August 18, 2004
Exhibit
10.1
August
18, 2004
Xxx
Xxxxxxxx, President and CEO
Alpha
Nutraceuticals, Inc.
0000
Xxxxx Xxxxxx
Xxxxx
Xxxxx, Xxxxxxxxxx 00000
Via
Facsimile to (000) 000-0000 and Email to
xxx@xxxxxxxxxxx.xxx
Cover
Letter to Engagement Agreement and Exhibits
Dear
Gentlemen:
Please
pardon the formality of this attached engagement agreement (the "Agreement"),
as
it is only intended to set out the details of our relationship as required
by
the California Business and Professions Code. Beyond the law, as a matter of
course, Business Consulting Group Unlimited, Inc. ("BCGU" or the "Firm") always
expects the best efforts of its clients, and our clients should expect our
best
efforts. This Agreement is simply a way to memorialize exactly what we should
expect from each other.
This
agreement consists of 17 pages. This Agreement includes all of the below
exhibits:
EXHIBIT
LIST
Exhibit
Letter
|
Exhibit
Name
|
Integrated
as a Part
of
the Agreement
|
A
|
Compensation
|
YES
|
B
|
BCGU
Professional Services
|
YES
|
C
|
Document
References
|
YES
|
D
|
Non-Disclosure
Agreement
|
YES
|
E
|
Business
Development Agreement
|
YES
|
If
you
have any questions with regard to any matter set forth in this Agreement, or
if
you have some different understanding of any portion of this Agreement, please
contact the undersigned immediately so that we can discuss those items and
determine if we will be able to reach an agreement by which we will represent
you.
If
the
foregoing correctly sets forth our understanding and agreement, please date,
initial the top of each page and sign the signature page and return the entire
Agreement in the return envelope, indicating that it meets with your approval.
A
copy of this Agreement is enclosed for your file. We appreciate the confidence
you have expressed by asking BCGU to represent you.
Sincerely,
BUSINESS
CONSULTING GROUP UNLIMITED
__/s/
Xxxx X. Baum_________________ and/or ____/s/
Xxxxx X. Panther, II___________
Xxxx
X.
Xxxx Xxxxx
X.
Panther, II
Managing
Director Managing
Director
A.
Introduction
One
key
purpose of this Agreement, including all attached exhibits, is to legally
confirm the association of BCGU as counselor to Alpha Nutraceuticals, Inc.
(the
"Client" or the "Company" or "ANUI"). Client shall also refer to and include
the
Client's Board of Directors. "Party" shall refer individually to either BCGU
or
Client, and "Parties" may refer collectively to both BCGU and Client.
In
connection with our efforts described herein (hereinafter cumulatively referred
to as "Engagement Efforts"), all work performed by BCGU on an ongoing basis
has
been discussed with the Client and has been requested to be performed by the
Client.
The
Firm's legal services will not include, among other areas of law, any litigation
of any kind, whether in court, in administrative hearings or before government
agencies or arbitration tribunals, although we will assist in locating
appropriate legal counsel and coordinate any litigation matters, at your
request. This Agreement will set forth in writing, which will be signed by
BCGU
and the Client, our understanding and agreement regarding the scope of our
representation.
This
Agreement will not take affect, and we will have no obligation to provide
services, until you return a signed copy of this Agreement and remit the
retainer called for in Exhibit A of this Agreement.
A
FACSIMILE COPY OF THIS AGREEMENT SHALL HAVE THE SAME LEGAL EFFECT AS AN ORIGINAL
OF THE SAME.
B. General
Provisions
1. Appointment.
The
Client hereby engages BCGU and BCGU agrees to render services to the Client
upon
the terms and conditions hereinafter set forth.
2. Term.
The
term
of this Consulting Agreement shall begin as of the date of this Agreement,
and
shall terminate 12 months thereafter, unless earlier terminated in accordance
with the terms herein or extended as agreed to between the parties.
3. Services.
During
the term of this Agreement, BCGU shall represent Client as a business and legal
consultant in accordance with the indicated professional practice areas selected
in Exhibit C.
4. Duties
of Client.
The
Client shall provide BCGU, on a regular and timely basis, with all approved
data, documents and/or information, or anything else reasonably requested by
BCGU that may be required and necessary in order for BCGU to adequately perform
the services as contemplated under the terms of this Agreement.
5. Representation
and Indemnification
a. General
Representations.
The
Client shall be deemed to have made a continuing representation as to the
accuracy of any and all facts, material information and data which it supplies
to BCGU and further acknowledges its awareness that BCGU will rely on such
continuing representation in disseminating such information and otherwise
performing its advisory functions. In the absence of notice in writing from
the
Client, BCGU will rely on the continuing accuracy of material, information
and
data supplied by the Client. BCGU represents that it has knowledge of and is
experienced in providing the aforementioned services.
b. Client.
ANUI
shall indemnify BCGU and it’s affiliates and may indemnify any person who was or
is a party or is threatened to be made a party to any threatened, pending or
completed action, suit or proceeding by reason of the fact that he or she is
or
was a shareholder, officer, employee or other agent of the Company or that,
being or having been such a shareholder, officer, employee or agent, he or
she
is or was serving at the request of the Company as a manager, director, officer,
employee or other agent of another limited liability company, corporation,
partnership, joint venture, trust or other enterprise (all such persons being
referred to hereinafter as an “agent”), to the fullest extent permitted by
applicable law in effect on the date hereof and to such greater extent as
applicable law may hereafter from time to time permit.
c. BCGU.
BCGU
agrees to indemnify, defend, and shall hold harmless Client, its directors,
employees and agents, and defend any action brought against same with respect
to
any claim, demand, cause of action, or liability, including reasonable
attorneys’ fees, to the extent that such an action arises out of the gross
negligence or willful misconduct of BCGU.
d. Notice.
In
claiming indemnification hereunder, the indemnified party shall promptly provide
the indemnifying party with written notice of any claim, which the indemnified
party believes falls within the scope of the foregoing paragraphs. The
indemnified party may, at its expense, assist in the defense if it so chooses,
provided that the indemnifying party shall control such defense, and all
negotiations relative to the settlement of any such claim. Any settlement
intended to bind the indemnified party shall not be final without the
indemnified party’s written consent, which shall not be unreasonably
withheld.
e. Affiliate.
Affiliate shall mean shall mean any person directly or indirectly controlled
by,
controlling or under common control of any party to this Agreement.
6.
Compliance
With Securities Laws and Form S-8 Issues
a. BCGU
has
offered to perform the services referred to in this Agreement for cash payment
in accordance with BCGU's traditional fee structure. In this case, the Client
is
unable to tender a complete cash payment due to the Client's interest in
preserving cash to operate its business. Client requested that the BCGU consider
converting BCGU's fee into shares of the Client's stock as a substitute to
cash.
BCGU agreed to accept the Client's stock in accordance with the terms herein.
BCGU's fee is divided amongst various specific services that BCGU has been
engaged to render. Some stock that BCGU receives as Compensation may be
restricted shares; and portions of the Compensation outlined herein may be
common shares that are to be registered in one or more different forms of
registration statements.
b. With
respect to services that BCGU has been engaged to provide, specifically,
traditional business, management, technical and operational consulting, and
related public Client legal services (hereinafter these services shall
collectively be referred to as "S-8 Eligible Services"), Client understands
that
any and all Compensation outlined in Exhibit A where Compensation is tendered
to
BCGU in the form of common shares of Client stock that are registered in a
Form
S-8 registration statement ("S8 Shares") under the Securities Act of 1933 shall
be paid solely and exclusively as consideration for S-8 Eligible Services
engaged in by BCGU on behalf of the Client as an independent contractor, and
that receipt of:
(i)
any
S8
Shares, if any, shall be paid to a representative of BCGU that is a natural
person; and that
(ii)
any
S8
Shares, if any, shall not be tendered to BCGU in order to compensate BCGU for
any capital it has raised or has promised to raise for the Client; and
that
(iii)
any
S-8
Shares, if any, shall not be tendered to BCGU for: (a) promoting or marketing
of
any Client securities; and (b) raising money for the Client.
c. BCGU
has
not been engaged to provide Client with any type of stock promotion. BCGU is
not
in the business of stock promotion.
7. Additional
Provisions
a. Termination
(i) This
Agreement may be terminated for any reason by either Party upon written notice
to the non-Terminating Party. In such cases, the Termination shall be effective
immediately from the date such written notice is received by the non-Terminating
Party. Termination notification may be delivered via facsimile to the fax number
listed herein for the Client or for BCGU.
(ii) The
Client may only be relieved of an Exhibit A Compensation obligation if the
Termination notification is delivered in writing by or before the commencement
of a respective Period. Once a Period commences, the Client shall be obligated
to tender full payment for services rendered or to be rendered for that
respective Period. Any termination subsequent to the commencement of a
respective Period, regardless of fault or circumstances, shall not diminish
BCGU's rights to the Compensation indicated in Exhibit A for that respective
Period. Once Compensation, and any portion of the same, has been tendered to
BCGU, it shall be deemed earned.
(iii) If
the
Client falls to meet any of its obligations under this Agreement, BCGU shall
have the right to terminate this Agreement, and the Client shall take all steps
necessary to free the BCGU of any obligation to perform further, including,
without limitation, the execution of any documents necessary to complete BCGU's
discharge or withdrawal. The rights of BCGU hereunder are in addition to those
created by statute or recognized by Rules of Professional Conduct.
b. Modification.
This
Agreement sets forth the entire understanding of the Parties with respect to
the
subject matter hereof. This Consulting Agreement may be amended only in writing
signed by both Parties.
c. Notices.
Any
notice required or permitted to be given hereunder shall be in writing and
shall
be mailed or otherwise delivered in person or by facsimile transmission at
the
address of such Party set forth above or to such other address or facsimile
telephone number as the Party shall have furnished in writing to the other
Party.
d. Waiver.
Any
waiver by either Party of a breach of any provision of this Agreement shall
not
operate as or be construed to be a waiver of any other breach of that provision
or of any breach of any other provision of this Agreement. The failure of a
Party to insist upon strict adherence to any term of this Agreement on one
or
more occasions will not be considered a waiver or deprive that Party of the
right thereafter to insist upon adherence to that term of any other term of
this
Agreement.
e. Assignment.
Exhibit
A and Exhibit F compensation under this Agreement shall be assignable to any
third party at the sole discretion of the BCGU.
f. Severability.
If any
provision of this Agreement is invalid, illegal, or unenforceable, the balance
of this Agreement shall remain in effect. If any provision is inapplicable
to
any person or circumstance, it shall nevertheless remain applicable to all
other
persons and circumstances.
g. Disagreements.
Any
dispute or other disagreement arising from or out of this Agreement shall first
be submitted to non-binding arbitration under the rules of the American
Arbitration Association. Arbitration shall occur only in the State of
California, County of San Diego. The interpretation and the enforcement of
this
Agreement shall be governed by California Law as applied to residents of the
State of California relating to contracts executed in and to be performed solely
within the State of California. In the event any dispute is arbitrated, the
prevailing Party (as determined by the arbiter(s)) shall be entitled to recover
that Party's reasonable attorney's fees incurred (as determined by the
arbiter(s)).
h. Specific
Performance.
BCGU
shall have the right to demand specific performance of the terms, and each
of
them, of this Agreement.
i. Execution
of the Agreement.
Client
and the party executing this Agreement on behalf of the Client have the
requisite corporate power and authority to enter into and carry out the terms
and conditions of this Agreement, as well as all transactions contemplated
hereunder. All corporate proceedings have been taken and all corporate
authorizations and approvals have been secured which are necessary to authorize
the execution, delivery and performance by Client of this Agreement. This
Agreement has been duly and validly executed and delivered by Client and
constitutes the valid and binding obligations of Client, enforceable in
accordance with the respective terms contained herein. Upon delivery of this
Agreement to BCGU, this
Agreement, and the other Exhibits referred to herein, will constitute the valid
and binding obligations of Client
and BCGU,
and
will be enforceable in accordance with their respective terms.
j. No
Warranty.
Nothing
in this Agreement and nothing in BCGU's statements to Client will be construed
as a promise or guarantee about the outcome of Client's matter, including
registration of the securities. BCGU makes no such promises or guarantees.
BCGU's comments about the outcome of Client's matter are expressions of
opinion(s) only.
k. Costs.
The
Client agrees to pay BCGU, in addition to the Compensation designated in Exhibit
A herein, all costs and expenses incurred in performing services in connection
with the representation described in this Agreement. Such costs and expenses
may
include, without limitation, international long distance telephone calls,
messenger and other deliveries, postage, charges for computer research and
outside assisted legal research, expenses such as parking, airfare, meals and
hotel accommodations, for photocopying and other reproduction charges, clerical
staff overtime, word processing charges, charges for computer time, and other
similar items. All such items will be charged to the Client at the BCGU's cost.
The Client agrees to pay in advance all costs incurred in connection with the
representation described herein, however, as a courtesy, BCGU from time to
time
will advance some of these minor costs and the Client will be billed for such
advances. BCGU will attempt to obtain an estimate for any major expenses prior
to incurring such an expense so that BCGU may clear such major expense with
the
Client. BCGU
shall be obligated to confer with the Client in writing (electronic or letter)
prior to expending more than USD $100.00 in any one cost.
In
the
event it becomes necessary for the Firm to institute legal action to recover
any
amount due pursuant to the terms of this Agreement, the prevailing party in
such
action will be entitled to reasonable attorney fees and costs incurred in such
action and enforcement of any judgment.
8. Conflicts
of Interest.
The
Parties to this Agreement acknowledge that there may be conflicts of interest
in
having BCGU and it's affiliates performing certain services for the Client.
By
and through this Agreement, Client has been advised that periodically certain
conflicts of interest may arise, of which BCGU shall advise Client verbally
or
in writing, and that it is advisable to seek outside independent legal counsel
to address any such issue which Client believes may call into question BCGU's
advisory responsibilities as described herein.
8.5 Client
Should Seek Outside Counsel Prior to Executing This Agreement.
BCGU
recommends that Client seek outside legal counsel prior to executing this
Agreement. The same outside counsel should address any questions or concerns
related to this Agreement and should represent the interests of the Client
regarding the same. Any direct communication between Client and BCGU regarding
Client's concerns related to this Agreement are in contravention of BCGU's
recommendation to seek outside counsel.
9. Special
Provisions for Legal Services
a. Binding
Arbitration for Legal Services Disputes.
The
Parties hereto agree that any dispute under this Agreement for legal services
rendered shall be submitted to binding arbitration by the San Diego County
Bar
Association pursuant to California Business and Professions Code Section 6200
et
seq. or, should that organization decline to arbitrate the dispute, before
the
State Bar of California pursuant to California Business and Professions Code
Section 6200. Subject to applicable Bar Association rules, the prevailing party
in any such arbitration shall be awarded its reasonable costs and attorneys'
fees incurred in connection with the dispute. For disputes for non-legal
services, please see Section 7(g) of this Agreement.
b. Section
307 of the Xxxxxxxx-Xxxxx Act of 2002.
Section
307 of the Sarbanes Oxley Act of 2002 directs the Securities and Exchange
Commission ("SEC" or the "Commission") to establish minimum standards of
professional conduct for attorneys practicing before the SEC. This Agreement
involves BCGU and it's affiliates engaging in efforts on behalf of the Client
that involves "practicing before the SEC."
Section
307 DOES NOT mandate that an attorney reveal or disclose client confidence
or
secrets. However, the Section and the rules related thereto do provide that
an
attorney may, without the consent of the Client, reveal confidential
information, to the extent reasonably necessary to (1) prevent the Client from
committing a material violation likely to cause substantial financial injury
to
the Client and its shareholders; (2) to prevent the Client from committing
an
illegal act; and (3) to rectify the consequences of a material violation or
illegal act in which BCGU's services have been used.
If
BCGU
discovers "evidence of a material violation" of a securities law, BCGU has
an
affirmative duty to report the violation or a potential violation to the CEO
of
the Client or its Chief Legal Officer ("CLO"). The term "evidence of a material
violation" is defined as "credible evidence based upon which it would be
unreasonable, under the circumstances, for a prudent and competent attorney
not
to conclude that it is reasonably likely that a material violation has occurred,
is ongoing, or is about to occur."
BCGU
will
report such activities internally, and Client hereby agrees to conduct an
internal investigation into such matters, and to take appropriate steps,
including taking affirmative or negative corrective actions, in order to remedy
the matter.
c. No
Duty to Investigate or Supervise Consultants or Employees.
BCGU
has not been engaged to conduct any investigations, background checks or
surveillance, of any kind, related to any consultant or employee that Client
has
engaged, hired, or a consultant that may be engaged or hired in the future.
Specifically, with respect to Form S-8 compensation, BCGU has not been engaged
to supervise any consultant or employee; nor has BCGU been asked to request
work
product from any Client consultant or employee.
10. Specific
Power of Attorney.
Client
specifically grants BCGU the right to request and receive materials of any
nature from a holder of those materials to the extent that the requested
materials contain information related to the Client's shareholders. Client
has
knowledge that BCGU may use the requested materials in order to deliver to
the
Client's shareholders fact-based data regarding the Client. By executing this
Agreement, Client approves of this specific power of attorney.
SIGNATURE
PAGE
THE
UNDERSIGNED HAS READ THE FOREGOING AGREEMENT, APPROVED IT, AND AGREES WITH
ALL
OF ITS TERMS AND CONDITIONS.
The
signatures on Page One of this Agreement shall represent the offer of BCGU
and
the below signatures shall represent your acceptance of the same
offer.
Dated: November
2, 2004 CLIENT
Alpha
Nutraceuticals, Inc.
By:
__/s/
Xxx Cartmill____________________________
*
Xxx
Xxxxxxxx
ANUI
hereby appoints Xxx Xxxxxxxx as Chief Legal Officer. (Please See Section 9(b)
of
this Agreement).
*Xxx
Xxxxxxxx currently serves as the CEO of ANUI.
______________________________________________________________________________________
Please
initial each page and fax back the executed agreement to the fax number:
000-000-0000
EXHIBIT
A:
"Compensation"
This
Exhibit A shall be incorporated by reference into the
attached
Engagement
Agreement ("Agreement")
executed
on the 2nd
day of November, 2004,
by
and between BCGU and ANUI.
______________________________________________________________________________________
All
Compensation is subject to Section 7(a) of the Agreement.
______________________________________________________________________________________
Exhibit
A Compensation shall be:
[
] Time
based
[
X ]
Event/Performance Based
[
] Both
Time and Event/Performance Based as indicated below
_____________________________________________________________________________________
Retainer.
Within
5 days of the execution of the Agreement, Alpha Nutraceuticals shall tender
via
check or wire transfer, the sum of USD $30,000. BCGU acknowledges receipt of
these funds.
Period
One Compensation.
Within
10 days of the execution of this Agreement, BCGU or its assignee shall be issued
a warrant ("Warrant") to purchase 7.5% of the then issued and outstanding common
shares for USD $.001 per share. This Warrant shall have anti-dilution rights
such that the number of shares issuable under the Warrant shall not be
diminished should there be a recapitalization, reverse split or other change
in
the common stock capital of the Client within 6 months of the date of the
issuance of the Warrant.
Period
Two Compensation.
Within
10 days of the Client being a fully reporting company under the securities
laws
of the United States, BCGU or its assignee, shall be issued a warrant ("Warrant
Two") to purchase 2.5% of the then issued and outstanding common shares of
the
Client for USD $.001 per share.
Period
Three Compensation.
Within
30 days of the Client being listed to trade on the over-the-counter bulletin
board trading system, BCGU shall be issued a warrant ("Warrant Three") to
purchase 2.5% of the then issued and outstanding common shares of the Client
for
USD $.001 per share.
______________________________________________________________________________________
EXHIBIT
B:
"BCGU
Professional Services"
This
Exhibit B shall be incorporated by reference into the
attached
Engagement
Agreement ("Agreement")
executed
on the 2nd
day of November, 2004,
by
and between BCGU and ANUI.
[
X
] Legal
Services
[
X
] General
corporate advisory and transactional legal work
Specific
Tasks:
including Business Plan, PPM, restructuring
[
X
] SEC
Reporting
Specific
Tasks:
SEC
reporting work, OTCBB listing
[
X
] XXXXX
Services
[
X
] XxxxxXxxxxx.xxx¨
[
X
] Shareholder
Management Software
[
X
] Merger
& Acquisition Advisory Services ("M&A"), Consulting and Merchant
Banking§
EXHIBIT
C:
"Additional
Document References"
This
Exhibit C shall be incorporated by reference into the
attached
Engagement
Agreement ("Agreement")
executed
on the 2nd
day of November, 2004,
by
and between BCGU and ANUI.
These
additional documents shall be incorporated herein by reference:
· August
12, 2004 Proposal to ANUIEXHIBIT
D:
NON-DISCLOSURE
and NON-CIRCUMVENTION (“NDA”)
This
Exhibit D shall be incorporated by reference into the
attached
Engagement
Agreement ("Agreement")
executed
on the 2nd
day of November, 2004,
by
and between BCGU and ANUI.
This
NDA
is made effective and executed as of the date above by and between Business
Consulting Group Unlimited (hereinafter “BCGU”) and Alpha Nutraceuticals, Inc.
and any and all entities it controls or has significant business relationships
with (hereinafter collectively referred to as “Client”) in an effort to (1)
assure the protection and preservation of the confidential and/or proprietary
nature of information disclosed or made available, or to be disclosed or made
available, to each other in connection with certain discussions and/or
negotiations with respect to the subject or subjects summarized and so stated
below; and (2) to prevent circumvention by Client against BCGU related to a
“Protected Party” (as defined below) which shall be disclosed to Client by BCGU
subsequent to the execution of the Agreement.
Whereas
the parties desire to assure the confidential status of the information which
may be disclosed to each other;
Now,
therefore, in reliance upon and in consideration of the following undertakings,
the parties agree as follows:
A.
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Subject
to the limitations set forth in Paragraph 2 of this NDA, all information
disclosed to the other party shall be deemed "proprietary information."
In
particular, proprietary information shall be deemed to include any
information, including but not limited to a marketing technique,
publicity
technique, public relations technique, process, algorithm, program,
design, drawing, mask work, formula, or test data research, work
in
progress, future development, engineering, manufacturing, marketing,
servicing, financing, or personal matter relating to the disclosing
party,
its present or future products, sales, suppliers, clients, customers,
employees, investors, or business, whether in whole or in part, oral,
written, graphic, or in an electronic
form.
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B.
|
The
term "proprietary information" shall not be deemed to include any
information which (i) is now, or hereafter becomes, through no act
or
failure to act on the part of receiving party, generally known or
available information; (ii) is known by the receiving party at the
time of
receiving such information as evidenced by its records; (iii) is
hereafter
furnished to the receiving party by a third party, as a matter of
right
and without restriction on non-disclosure; (iv) is independently
developed
by the receiving party without reference to the information disclosed
hereunder; or (v) is the subject of a written permission to disclose
provided by the disclosing party.
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Not
withstanding any other provision of this NDA, disclosure of proprietary
information shall not be precluded if such disclosure:
1. Is
in
response to a valid order of a Court or other governmental body of the
United States of America, or any other political subdivision
thereof;
2. Is
otherwise required by law; or
3. Is
otherwise necessary to establish rights or enforce obligations under
this
agreement, but only to the extent that any such disclosure is necessary.
In
the
event that the receiving party is requested in any proceedings before a court
or
any governmental body to disclose proprietary information, it shall give
disclosing party prompt notice of such request so that the disclosing party
may
seek an appropriate protective order. If in the absence of a protective order,
the receiving party is nonetheless compelled to disclose proprietary
information, the receiving party may disclose such information without liability
hereunder; provided however, that such party gives the disclosing party advanced
written notice of the information to be disclosed and upon the request and
at
the expense of the disclosing party, uses its best efforts to obtain assurances
that confidential treatment will be accorded to such information.
C.
|
Each
party shall maintain trust and confidence and not disclose to any
third
party or use for any unauthorized purpose any proprietary information
received from the other party. Each party may use such proprietary
information in the extent required to accomplish the purpose of the
discussions with respect to the subject. Proprietary information
shall not
be used for any purpose or in any manner that would constitute a
violation
of a valid law or regulation, including without limitation, export
control
law of the United States of America or Canada. No other rights or
licenses
to trademarks, inventions, copyrights or patents are implied or granted
under this NDA.
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D.
|
Proprietary
information supplied shall not be reproduced in any form except as
required to accomplish the intent of this
NDA.
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E.
|
The
responsibilities of the parties are limited to using their best efforts to
protect the proprietary information received with the same degree
of care
used to protect their own proprietary information from unauthorized
use or
disclosure. Both parties shall advise their employees or agents who
might
have access to such proprietary information of the confidential nature
of
said proprietary information and that by receiving such information,
they
are agreeing to be bound by this NDA. No proprietary information
shall be
disclosed to any officer, employee, or agent of either party who
does not
have a need for such information for the purpose of the discussions
which
are the subject of this NDA.
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F.
|
All
proprietary information (including all copies thereof) shall remain
the
property of the disclosing party and shall be returned to the disclosing
party after the party's need for such information has expired, or
upon
request by the disclosing party, and in any event, upon completion
or
termination of this NDA. The receiving party further agrees to destroy
all
notes and copies thereof made by its officers and employees containing
or
based on any proprietary information and to cause all agents and
representatives to whom or which proprietary information has been
disclosed to destroy all notes and copies in their possession that
contain
proprietary information.
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G.
|
This
NDA shall survive any termination of the discussions which are the
subject
of this Agreement, and shall continue in full force and effect until
such
time as parties mutually agree to terminate
it.
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H.
|
This
NDA shall be governed by the laws of the United States of America,
and as
those laws that are applied to contracts entered into and to be performed
in all states. Should any revision or part of this NDA be determined
to be
void, invalid, or otherwise unenforceable by any Court or tribunal
of
competent jurisdiction, such determination shall not effect the remaining
provisions of this NDA which shall remain in full force and
effect.
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I.
|
This
NDA contains the full and final, complete and exclusive terms of
the
parties relating to the subject from which this NDA was created.
This NDA
shall supercede any prior Agreement, whether oral or written. This
NDA may
not be changed and or otherwise modified or amended except with a
subsequent written instrument executed by both/all
parties.
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J.
|
Each
Party acknowledges and agrees that in the event of any breach by
either
party, including without limitations, the actual or threatened disclosure
of a disclosing party's proprietary information without the prior
express
written consent of said party, the disclosing party will suffer
irreparable damage and injury such that no remedy at law will afford
adequate protection against or appropriate compensation for such
injury.
Accordingly, each party hereby agrees that the other party shall
be
entitled to specific performance of a receiving party's obligations
under
this Agreement. As well, further injunctive relief may be sought,
and
granted by a Court of competent
jurisdiction.
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K.
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Non-Circumvention.
Client acknowledges that disclosure of information or circumvention
in
contravention of this Agreement could cause irreparable injury to
the
non-disclosing party for which there would not be an adequate remedy
at
law. Accordingly, in addition to any other remedies, Recipient shall
have
the right to injunctive relief. During the NDA, and for a period
of no
less than two years after its termination, if the Client engages
in any
financial or other business transaction with any BCGU Protected Party,
then the Client shall pay BCGU, immediately at the closing of that
transaction, compensation (in cash and/or equity, at the discretion
of
BCGU) equal to the amount of financial benefit gained by Client.
The term
“BCGU Protected Party” shall mean any person or entity that either BCGU
introduced to the Client in connection with the Agreement, or a third
party person or entity that has a business or other affiliation with
any
person or entity that BCGU introduced to the Client in connection
with
BCGU’s services under the Agreement.
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L.
No
Contact With Protected Party.
Unless
authorized by BCGU in writing, under no other circumstances, shall Client make
any effort to contact a BCGU Protected Party. Any and all contact information
regarding the proprietary information is being provided solely for evaluative
purposes only. The evaluative nature of this information is meant solely to
assist Client in deciding whether or not they wish to execute a compensatory
arrangement
with BCGU with respect to a potential business dealing with the BCGU Protected
Party.
EXHIBIT
E:
"BUSINESS
DEVELOPMENT AGREEMENT"
This
Exhibit E shall be incorporated by reference into the
attached
Engagement
Agreement ("Agreement")
executed
on the 2nd
day of November, 2004,
by
and between BCGU and ANUI.
THE
DEFINITIONS AND TERMS CONTAINED BELOW ARE EXCLUSIVE TERMS FOR THIS BUSINESS
DEVELOPMENT AGREEMENT
This
BUSINESS DEVELOPMENT BDA ("BDA") is entered into on the date above, by and
between Business Consulting Group Unlimited, Inc. (hereinafter referred to
as
"BCGU" or "Intermediary"), a Nevada Corporation and Alpha Nutraceuticals, Inc.
(hereinafter referred to as "Client" or "ANUI").
A. Engagement.
Client
hereby engages Intermediary to assist in identifying, developing,
and when requested to do so by Client, qualifying
and/or advising with
respect to one or more prospective business opportunities (hereinafter
referred
to as the "Engagement").
B. Purpose
of the BDA.
BCGU is
engaged to (i) serve as a liaison and referral source
to
bring business opportunities to ANUI and its Affiliates in a number of
fashions,
including, without limitation, mergers and acquisitions, collateralized
debt
obligations, partnering, licensing, co-branding and other business related
affiliations
(the “Transactions”) (ii) serve as a non-exclusive finder for ANUI and
its Affiliates
with respect to related ventures and (iii) such other lawful purposes as
the
undersigned shall determine.
C.
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Appointment
as Client's Finder.
ANUI hereby authorizes the Company, on a non-exclusive basis, to
identify
investors, underwriters, joint ventures, lenders and/or guarantors
(collectively “Investors”) interested in providing Financing to ANUI or
its Affiliates or portfolio companies (the “ANUI Entities”) on terms
acceptable to the ANUI Entities and the Investors. It is agreed that
the Company shall have no continuing role or part in negotiations
or
relationship between any Investors when the Company identifies to
the ANUI
Entities; and that the Company is not now, nor shall it ever be,
an agent
of the ANUI Entities with respect to the provision of Financing.
It is
further understood that the Company is acting as a finder only, is
not a
licensed securities or real estate broker or dealer, and shall have
no
authority to enter into any Financing commitments on behalf of ANUI,
its
affiliates or portfolio companies, or to negotiate the terms of any
potential Financing or to hold any funds or securities in connection
with
any potential Financing or to perform any act which would require
the
Company to become licensed as a securities or real estate broker
or
dealer.
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D. Acceptance
of Opportunities.
Client
shall have the sole and absolute right to make,
accept or reject any offer or opportunity arising from this BDA.
E.
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Terms
of Client Submission to Success Fees.
Client guaranties Intermediary that if a Transaction is effected
between
Client and an Intermediary Protected Party ("IPP" or a "Seller"),
then
Client will pay Intermediary a success fee ("Success Fee") in accordance
with the Schedule of Success Fees set forth below. The term IPP shall
mean
any person or entity that either Intermediary introduced directly
or
indirectly (as in the case of a person or entity that was introduced
to
the Client by a party (person or entity) who is an IPP) to the Client
in
connection with this BDA Engagement. This shall also include all
persons
and entities whose business or financing needs was provided for,
in whole
or in part, by Intermediary within 60 months of the date of the execution
of this BDA. All BCGU Protected Parties referred to in Exhibit D
are IPPs.
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1. Schedule
of Success Fees
a. Any
Business Combination Between Client and a Publicly Trading or
Publicly Reporting Company
(1) 5%
of the
post-Transaction common shares ("Shares") of the
post-merger company/entity;
b. Sales
of Goods and/or Services
(1) In
the
case where BCGU or an IPP's effort results in the sale
of
one or more of the Client's products or services, BCGU
shall be paid a flat success fee of 5% of the gross value
of
the products or services delivered for as long as the
Clients' products or services are delivered to that IPP or
related party.
c. Non-Business
Combination Transactions
(1) If
there
is a sale of an asset or business by the Client as a result
of
the Intermediary’s efforts and items a. or b. above (in
this
“Schedule of Success Fees”) are not applicable, Intermediary
shall be paid 5% of the Total Value of the Transaction.
For the purposes of this BDA, Total Value shall
be
considered the entire value, tangible and intangible,
of all consideration received by Client, or an affiliate
of Client, from a Transaction.
d. Financing
(1) 5%
of any
amount up to USD $1,000,000;
(2) 4%
of
amounts from $1,000,001 to $2,000,000;
(3) 3%
of
amounts from $2,000,001 to $3,000,000;
(4) 2%
of any
amount over $3,000,000.
F.
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Invalidation
of Success Fees.
No Success Fee shall be payable under this BDA if within three (3)
business days of identification to Client by Intermediary of a prospective
purchaser or IPP introduced to Client by Intermediary, Client notifies
Intermediary of, and upon request provides to Intermediary verifiable
evidence of prior and on-going discussions concerning a possible
Transaction(s) to/with said prospective purchaser or IPP by Client.
Notification under this paragraph must be made in writing to the
Intermediary, and may be tendered via facsimile transmission at (000)
000-0000.
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G.
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Method
and Terms of Payment of Success Fees.
Any Success Fee owed to Intermediary by Client shall be paid in full
in
cash or certified or bank check or stock (at the discretion of the
Intermediary) at the closing of any Transactions ("Closing"), except
where
portions of the Total Value are to be determined after Closing, and
then
the portions of the Success Fee attributable to such subsequently
determined portions of the Total Value shall be paid to Intermediary
by
Client in cash or certified or bank check or stock coincident with
the
payment of such subsequently determined portions of the Total Value.
Any
such portions of the Total Value determined after Closing shall be
considered additive for the purposes of the Schedule of Success Fees
to
the portion of the Total Value determined at Closing. In the event
the
purchase price does not include enough cash payment to pay the Success
Fees, Client shall have the option to pay the Success Fees in the
form of
the stock or other form of consideration Client receives in the
Transaction.
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H.
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Disclosure
of Success Fee in Transaction Documents.
Client will include language describing Client's fee responsibility
to
Intermediary in the transaction documents for any Transactions. Upon
request, Client will provide Intermediary with copies of all transaction
documents and give Intermediary adequate advance notice of the time
and
place of Closing, which Intermediary shall have the right to
attend.
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I. Financing.
Financing shall mean all amounts furnished to or for the use of any iii Entity
with Investors directed or introduced by, or through the efforts of, the Company
after the date of this Agreement, whether by investment in equity or debt
securities of any ANUI Entity, loans, loan commitments, guarantees of
indebtedness, leasing, sale and leaseback, joint ventures or
licenses.
J.
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Post-Transaction
Stock Splits, Combinations and Dividends.
If the Shares related to the Success Fee are, for a period of 12
months
subsequent to the related Transaction, subdivided or combined into
a
greater or smaller number of shares of common stock, or if a dividend
is
paid on the common stock in shares of common stock, the number of
Shares
due and payable to BCGU shall be proportionately reduced in case
of
subdivision of shares or stock dividend or proportionately increased
in
the case of combination of shares, in each such case by the ratio
which
the total number of shares of common stock outstanding immediately
after
such event bears to the total number of shares of common stock outstanding
immediately prior to such event.
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K.
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Expiration
of the BDA.
The expiration of this BDA shall be 18 months after the date hereof
or
thirty days after written notice of termination from Client received
by
Intermediary at Intermediary's address below, whichever is later.
However,
Client's Success Fee obligations to Intermediary arising out of this
BDA
from a Transaction by Client to a business introduced to, or dealt
with on
behalf of, Client by Intermediary during the term hereof, shall survive
for five (5) years after the expiration of this
BDA.
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L.
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Assignment.
This BDA shall be binding upon and inure to the benefit of the parties
hereto and their respective heirs, successors and
assigns.
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¨ Form
S-8
registered shares may not be used to compensate BCGU or any of it's affiliates
for these services. This is not an admission that these services are
"promotional" in nature. Should this box be checked, with reference to
the
Exhibit A Compensation, the following has been paid to BCGU or a BCGU affiliate
for XxxxxXxxxxx.xxx services:
5,000
common shares of the Exhibit A Compensation
§ Any
M&A and general business development consulting compensation shall be
defined by the terms in Exhibit E
exclusively.