Contract
This
Business
Development Agreement
(the
“BDA” or the “Agreement”)
is
entered into as of this the ____ day of ______________, 2006 (the “Effective
Date”) by and between Xxxxx X. XxXxxx, an individual (hereinafter referred to as
“LDM”), and Vitasti, Inc., a Delaware corporation (hereinafter referred to as
“Client”). LDM and Client are occasionally referred to herein individually as a
“Party” and collectively as the “Parties.”
WHEREAS,
Client
wishes to engage LDM to assist in identifying, developing, qualifying and/or
advising with respect to prospective and/or actual business opportunities
(hereinafter referred to as the “Engagement”).
WHEREAS,
LDM
hereby agrees to serve Client as a liaison and referral source for the purpose
of securing additional business opportunities for Client and Client related
persons and/or entities (“Affiliates”) in a number of fashions, including,
without limitation, mergers and acquisitions, collateralized debt obligations,
partnering, licensing, co-branding and other business related affiliations,
serve as a non-exclusive finder for Client and its Affiliates with respect
to
related ventures, and such other lawful purposes as the undersigned shall
determine from time to time (the “Transaction” or “Transactions”).
NOW,
THEREFORE,
in
consideration of the mutual promises hereinafter set forth, the sufficiency
of
which are hereby acknowledged, LDM and Client agree as follows:
A.
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Appointment
as Client's Finder.
Client hereby authorizes LDM, on a non-exclusive basis, to identify
merger
or acquisition candidates, investors, underwriters, lenders, guarantors
and/or similarly situated persons and/or entities (collectively,
the
“Investors”) interested in providing funds or capital (“Financing”) to
Client (the term “Financing is fully defined below in paragraph “F”),
Client’s Affiliates or portfolio companies (collectively, the “Client
Entities”) on terms acceptable to the Client Entities and the Investors.
It is agreed that LDM shall have no role and shall play no part in
any negotiations and/or relationship by and between any Investors
and
Client Entities; and that LDM is not now, nor shall it ever be, an
agent
of the Client Entities with respect to any Financing. It is further
understood that LDM is acting solely as a finder, 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 Client and/or Client
Entities, Client 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 LDM to become licensed as a securities or real estate broker
or
dealer.
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B.
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Acceptance
of Opportunities.
Client shall have the sole and absolute right to make, accept or
reject
any potential Transaction or Transactions arising from this
BDA.
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C.
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Terms
of Client Submission to Success Fees.
Client guaranties to LDM that if a Transaction is effectuated by
and
between any Client Entities and any Investors, then Client will pay
LDM a
fee of USD$600,000 converted into restricted common shares at $0.10,
or
6,000,000 restricted common shares (“Success Fee”).
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D.
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Method
and Terms of Payment of Success Fees.
Any Success Fee owed to LDM by Client Entities shall be paid in cash
concurrent to the time of the Closing of any such
Transaction(s).
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E.
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Disclosure
of Success Fee in Transaction Documents.
Client Entities shall include language describing the Client Entities’ fee
responsibility to LDM in the documents for any Transaction(s). Upon
request, the Client Entities shall provide LDM with copies of all
such
documents and give LDM adequate advance notice of the time and place
of
Closing, which LDM shall have the right to
attend.
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F. Financing.
Financing shall mean all amounts furnished to, or for use by, Client Entities
from any Investors, regardless of whether said Investors were directly or
indirectly introduced by, or through the efforts of, LDM to Client Entities
after the date of this Agreement, and regardless of whether said Financing
amounts are tendered by Investors in equity or debt securities, loans, loan
commitments, guarantees of indebtedness, leasing, sale and leaseback, joint
ventures or licenses.
G.
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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
LDM at LDM's address below, whichever is later. However, Client's
Success
Fee obligations to LDM arising out of this BDA from a Transaction
by
Client to a business introduced to, or dealt with on behalf of, Client
by
LDM during the term hereof, shall survive for five (5) years after
the
expiration of this BDA.
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H.
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Assignment.
The Success Fee is assignable, in whole or in part, at the discretion
of
LDM.
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I. |
Waiver.
No delay in exercising, no course of dealing with respect to, or
no
partial exercise of any right or remedy hereunder shall constitute
a
waiver of any other right or remedy, or future exercise
thereof.
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J. |
Severability.
If any term or provision of this BDA is held by a court of competent
jurisdiction to be invalid, void, or unenforceable, all terms, provisions,
covenants, and conditions and all applications not held invalid,
void, or
unenforceable will continue in full force and will in no way be affected,
impaired, or invalidated.
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K. |
Notice.
Written notice by any Party to the other shall be deemed to have
been
given when received via certified mail by the intended recipient
thereof
at its address shown on the signature page hereof, or to such other
address as such intended recipient may specify in a written notice
pursuant hereto.
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L. |
Governing
Law.
This BDA shall be governed in all respects by the laws of the State
of
California, without reference to conflicts of law rules. This BDA
shall be
considered made and entered into in the State of California. The
parties
agree that the United Nations Convention on Contracts for the
International Sale of Goods is specifically excluded from application
to
this Agreement. Any lawsuits or other legal actions brought to enforce
this BDA, or otherwise related to this BDA shall be brought exclusively
in
the federal or state courts within California. Each Party hereby
waives
its right to a trial by jury.
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M. |
Entire
Agreement; Amendment.
This BDA, together with any Exhibits and Schedules hereto, constitutes
the
entire BDA among the parties with respect to the subject matter hereof
and
supersedes in all respects all prior proposals, negotiations,
conversations, discussions and agreements between the parties. This
BDA
may not be modified or amended except by express written amendment
signed
by authorized representatives of all
parties.
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N. |
Attorneys'
Fees.
If any party hereto commences an action against another party to
enforce
any of the terms hereof or because of the breach by such other party
of
any of the terms hereof, the prevailing party shall be entitled,
in
addition to any other relief granted, to all actual out-of-pocket
costs
and expenses incurred by such prevailing party in connection with
such
action and the enforcement and collection of any judgment rendered
therein, including, without limitation, all reasonable attorneys'
fees,
consultant fees and expert witness fees, and a right to such costs
and
expenses shall be deemed to have accrued upon the commencement of
such
action and shall be enforceable whether or not such action is prosecuted
to judgment.
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O. |
Facsimile
Certification.
A
facsimile copy of this BDA signed by any and/or all Parties shall
have the
same binding and legal effect as an original of the
same.
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P. |
Counterparts.
This BDA may be executed in one or more counterparts, each of which
shall
be deemed an original, but all of which together shall constitute
one in
the same instrument. Regardless of whether this BDA is executed in
one or
more counterparts, each such counterpart may be executed by actual
or
facsimile signature(s).
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IN
WITNESS WHEREOF,
the
parties hereto, through their duly authorized officers, have executed this
Agreement as of the Effective Date.
VITASTI,
INC.
By:
Title:
Address:______________________________________
_____________________________________________
Tel
No:__________________________
Fax
No: _________________________
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XXXXX
X. XxXXXX
By:
Title:
Address:______________________________________
_____________________________________________
Tel
No:__________________________
Fax
No: _________________________
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