--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Vista 10-Q [vista-10q_0815.htm]
 
Exhibit 10.6
 
Colebrooke Capital, Inc.

645 Fifth Avenue
Telephone: 212-848-0291
Eighth Floor
Fax: 212-848-0289
New York, NY 10022
 

 
April 15, 2010

 
Thomas Pfisterer
CEO
Vista International Technologies, Inc.
88 Inverness Circle East
Suite N-103
Denver, CO 80212

Dear Tom,

We continue to be excited about the prospects for Vista International
Technologies, Inc. (the "Company" or "VIT") and are enthusiastic about working
with you in regard to corporate development associated with capital raising and
strategic options.

In connection with introducing a potential capital transaction, the identity and
nature of the relationship between Colebrooke Capital, Inc. ("Colebrooke") and
any potential parties to a transaction ("Potential Participants"), will be
shared with VIT. Prior to any discussions, Colebrooke will submit potential
parties to a transaction to VIT for approval by mail, email or fax. Upon
approval, a party will become a Potential Participant and be recorded on
Addendum A of this agreement. We propose that our non-exclusive services to the
Company and compensation be structured substantially as follows:

1.           Services.

(a) In connection with the Engagement hereunder, Colebrooke agrees to provide
corporate development and advisory services to the Company including, but not
limited to, the following corporate finance activities: (i) evaluating
alternative financing structures, (ii) assisting, where appropriate, in
preparing descriptive materials, (iii) identifying and contacting various
prospective capital options, and (iv) assisting in evaluating acquisition
opportunities, and (v) assisting the Company in structuring, and executing any
transaction proposed by a Potential Participant.

(b) Colebrooke shall, as advisor, assist the Company with its objective of
securing a financing of up to $6 million. It is understood that the final terms
and conditions of any financing will be acceptable to the Company at its
absolute discretion. However, there can be no assurances that the Company will
receive financing during the term of this agreement. In association with
financing efforts, Colebrooke will seek to communicate and clarify the VIT
business model, strategic objectives and inherent value to the investment
community.

(c) Colebrooke will assist in identifying potential strategic acquisitions as
well as acting on those proposed by the Company. Colebrooke will assist in
determining the level of interest of potential targets and the target's
preferred form of transaction structure. Additionally, Colebrooke will assist in
identifying sale options for existing VIT tire recycling and processing
operations. All financial and business matters pertaining to any acquisition
targets or sale Potential Participants will remain confidential.

 
 

--------------------------------------------------------------------------------

 

2.           Compensation. If the Company agrees to close a transaction that
involves, directly or indirectly, a Potential Participant, the Company agrees to
pay Colebrooke in full compensation for its services the following:

(a) In the event that the Company completes a financing with any Potential
Participant with whom Colebrooke was in discussions with on behalf of VIT,
Colebrooke will receive consideration equal to the following schedule of the
total capital raised.

7% of the First Million of Capital, or any part: plus,
6% of the Second Million Dollars of capital, or any part: plus:
5% of the balance of the total capital in the Transaction.

In the event that a financing is consummated with any Potential Participant in
the form of an issuance of debt securities and/or equity-related debt
securities, the Colebrooke will receive consideration equal to 3% of the total
capital in the Transaction.

(b) For non-financing capital transactions (including but not limited to: sale
of the Company, acquisition of or merger with another company, joint venture or
other capital transaction), Colebrooke shall earn a fee equal to 5% of the
Transaction Value to be received as cash at closing where closing occurs during
the term of this agreement or if closing occurs thereafter with any parties
introduced to the Company by Colebrooke. Alternatively, and at Colebrooke's
option, Colebrooke will receive 6% of the Transaction Value to be received in an
equivalent form to that received or issued by the Company.

(c) In consideration for advisory services, the non-refundable sum of $5,000 to
be paid upon execution of this agreement and $2,500 to be paid each 30 days
thereafter for the term of this agreement. In the event that the Company
executes a term sheet for a financing or other transaction with any Potential
Participant provided by Colebrooke, upon execution the Company agrees to pay
Colebrooke 510,000. The Company shall reimburse Colebrooke for any pre-approved,
out-of-pocket expenses incurred in connection with its efforts on behalf of the
Company pursuant to this agreement

"Transaction Value" will be defined as all consideration issued or received by
the Company including cash, stock or other forms of value (in the case of a sale
or disposition by the Company of all or a material portion of its assets,
Transaction Value shall include the total consideration paid for such assets
pursuant to the sale and the principal amount of all indebtedness for borrowed
money assumed by the purchaser).

Notwithstanding any termination of this Agreement pursuant to the terms hereof
or otherwise, if twenty four (24) months from the effective date of introduction
to the Company of a Potential Participant or from the date that Colebrooke
started discussions with a party on behalf of and at the direction of VIT, the
Company enters into a definitive commitment relating to a Financing (or any
portion thereof) or non-financing capital transaction with any Potential
Participant or party that Colebrooke was in discussions with on behalf of VIT,
the Company shall pay to Colebrooke fees in accordance with the terms and
provisions of Section 2(a) or Section 2(b), as applicable.

3.           Term of Agreement. This agreement shall commence on the date of the
Company's execution and delivery of same and be for a term of four (4) months
and will renew automatically in the event that neither party has provided
written notice of cancellation. Colebrooke's engagement may be terminated by the
Company or Colebrooke at any time upon 30 days written notice from one party to
the other.

4.          Confidentiality. All financial and business information furnished by
the Company or its affiliates to Colebrooke shall be retained by Colebrooke and
its officers, directors, employees and stockholders on a confidential basis, and
shall be used only in connection with the preparation of the Descriptive
Materials or as specifically authorized by the Company. Colebrooke shall, upon
submission, of any such materials to any third party, execute such
confidentiality and/or non-disclosure agreements as are customary in engagements
of this

 
 

--------------------------------------------------------------------------------

 

type and shall require Potential Participant to execute such agreements in form
and substance acceptable to the Company.

5.           Indemnification. The Company shall indemnify, defend and hold
harmless Colebrooke, its officers, directors, stockholders, employees, and
agents from and against any cost, expense, liability or obligation in respect of
any securities of the Company sold in reliance upon any disclosures or
information contained in the Descriptive Materials and all exhibits thereto or
any other information (written or oral) constituting disclosures,
representations or covenants in respect of the Company, its business, financial
condition and/or prospects; it being understood that the Descriptive Materials
and its contents are and shall be based solely upon information supplied and
approved in advance by the Company and its affiliates.

6.           General.

(a) This agreement has been entered into and shall be interpreted under and
governed by the laws of the State of New York.

(b) This agreement has been duly authorized and shall constitute a binding
obligation upon each of Colebrooke and the Company enforceable in accordance
with its terms.

(c) This agreement calls for the professional services of Colebrooke and its
affiliates and therefore may not be assigned by Colebrooke to any third person,
firm, or corporation without the prior consent of the Company.

(d) This agreement shall inure to the benefit of and be binding upon the
successors and assigns of the respective parties hereto.

(e) Notwithstanding anything to the contrary, expressed or implied, contained
herein, it is expressly understood and agreed that Colebrooke is acting solely
in its capacity as advisor to the Company and is not to be authorized to enter
into any agreement or understanding on behalf of the Company, or otherwise
binding upon it, without, in each case, the prior written consent of the
Company.

We are enthusiastic about working together and see the potential for a mutually
profitable association. If the above terms and conditions are acceptable, please
so indicate by executing and returning a copy of the agreement.

Sincerely,
 

Colebrooke Capital, Inc.   Company:  Vista International Technologies, Inc.    
          By: 
 /s/ Sean C. Kenlon
  By:
 /s/ Thomas Pfisterer
   
 
   
 
  Name:
Sean C. Kenlon
 
Name:
Thomas Pfisterer
             
Title:
Managing Director   Title: CEO               Date: 4/15/10   Date: 4/16/10      
                   

 

 
 

--------------------------------------------------------------------------------

 

ADDENDUM A — Potential Participants
(as defined in paragraph 2 of this agreement)
 

 
1.________________________________

2.________________________________

3.________________________________

4.________________________________

5.________________________________

6.________________________________

7.________________________________

8.________________________________

9.________________________________

10._______________________________

11._______________________________

12._______________________________

13._______________________________

14._______________________________

15._______________________________