coxdistributing_ex1010.htm


    Exhibit
10.10

     

    SERVICES
AGREEMENT

     

    THIS
SERVICES AGREEMENT (the "Agreement") is made and entered into as of June 27,
2008 (the "Effective Date") by and between Stephen D. Cox Supply ("Mr. Cox") and
Cox Distributing, Inc., a Nevada corporation ("Cox Distributing").

     

    BACKGROUND

     

    Mr. Cox and Cox Distributing wish to
establish an "arms length" agreement for the provision of services to be
provided to Cox Distributing by Mr. Cox.

     

    Cox Distributing is in the business of
distributing organic fertilizer products in eastern Idaho (the “Fertilizer
Distribution Business”).

     

    Cox Distributing has requested Mr. Cox
to provide certain services related to the operation of the Fertilizer
Distribution Business and Mr. Cox desires to provide such services to Cox
Distributing during the Term (as defined hereinafter).

     

    NOW, THEREFORE, in consideration of the
foregoing and the mutual covenants contained in this Agreement and for other
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, the parties hereto agree
as follows:

     

    1.    Services.   During
the term of this Agreement, Mr. Cox shall be entitled to the use of Cox
Distributing's present facilities, equipment, information systems and files in
order for Mr. Cox to provide the following services as it relates to the
Fertilizer Distribution Business (the “Services”):

     

    a.    Payroll.   All
necessary payroll services, including the preparation and filing of Form W-2 for
each employee of the Fertilizer Distribution Business.  Cox
Distributing shall establish a bank account with funds sufficient to make
payments for all amounts paid out to the employees of the Fertilizer
Distribution Business pursuant to this Section 1(a) and such account shall be
funded by Cox Distributing from the revenues generated by the Fertilizer
Distribution Business.   Mr. Cox shall make all information
relating to the payment of such employee payroll available to Cox Distributing
upon reasonable request therefore.

     

    b.  Accounting
Services.   Mr. Cox agrees to provide Cox Distributing
with accounting and financial assistance in closing the Fertilizer Distribution
Business's books consistent with the fiscal close periods and procedures
established by Cox Distributing.   Mr. Cox shall also assist Cox
Distributing in maintaining financial statements for the Fertilizer Distribution
Business, including preparation by Mr. Cox of balance sheets, profit and loss
statements and a general ledger, preparing tax returns and whatever additional
accounting and financial services as may reasonably be requested by Cox
Distributing relating to the Fertilizer Distribution Business.

     

    c.  Sales and Customer
Service.  Mr. Cox shall provide all sales and customer service
support for the Fertilizer Distribution Business including, without limitation,
obtaining orders for sales and marketing of products offered by Cox Distributing
and the supply of such products in connection with the operation of the
Fertilizer Distribution Business answering customer inquiries, referring return
information and requests to the appropriate personnel and such other functions
as may be reasonably requested by Cox Distributing.

     

    
      
         

      

      
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    d.  Collection of Accounts
Receivable.  Mr. Cox shall collect accounts receivable of Cox
Distributing in a commercially reasonable manner.  Mr. Cox shall pay
over to Cox Distributing all such Accounts Receivable as specified in Section 1
(e) hereof.  Mr. Cox will make available to Cox Distributing reports
setting forth the amount of Accounts Receivable collected, the persons from whom
such Accounts Receivable have been collected and, if specified by the payor, the
invoice number and date to which such Accounts Receivable are to be
applied.  Mr. Cox further agrees to make all information relating to
the collection of the Accounts Receivable available to Cox Distributing upon
reasonable request therefore.

     

    e.  Collection
Procedures.  Mr. Cox will collect all payments on invoices
rendered by Cox Distributing.  Mr. Cox shall post all funds received
to the corresponding invoice and make any appropriate deduction or adjustment in
accordance with the procedures set forth by Cox Distributing.  Mr. Cox
shall remit to Cox Distributing all cash collected on invoices, to the extent
they are Accounts Receivable of the Fertilizer Distribution
Business.

     

    f.  Payment of Trade
Payables.  Mr. Cox shall fund bank accounts from the revenues
of the Fertilizer Distribution Business the proceeds of which shall be used for
the payment of Cox Distributing's obligations relative to the Fertilizer
Distribution Business such as payroll checks and checks for payment of accounts
payable.

     

    g.  Email.  Mr.
Cox acknowledges and agrees that he shall be obligated to maintain at his own
cost and expense, an email system relative to the operation of the Fertilizer
Distribution Business.

     

    h.  Computer
Systems.  Mr. Cox acknowledges and agrees that he will maintain
and operate the computer and information systems currently being utilized by Cox
Distributing for sales and inventory reporting and tracking, accounts receivable
and general ledger accounting (the “Computer Systems”).  Cox
Distributing shall be permitted access to and use of the Computer Systems in
order to permit Cox Distributing and/or Mr. Cox on behalf of Cox Distributing to
close Cox Distributing's books, to record sales transactions, collect accounts
receivables, process customer orders, process purchase orders, maintain
inventory and to maintain Cox Distributing's general ledger.

     

    i.  Data and Communication
Services.  Mr. Cox shall provide all communication services,
including, but not limited to, maintenance of the data communication lines and
system, telephone system and other like services required for the Fertilizer
Distribution Business.

     

    j.  Employee
Benefits.  Mr. Cox will be responsible for the administration
of all existing health and welfare benefit plans offered to Cox Distributing
employees, if any.

     

    2.  Payments.  In
addition to any specific reimbursement or other obligation of Cox Distributing
set forth herein, during the term hereof, Cox Distributing shall pay to Mr. Cox
an amount equal to all net revenues of the Fertilizer Distribution Business
after payment of all expenses associated with the operation of such business
including a reserve for payment of future expenses related to the operation of
the business.

     

    
      
         

      

      
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    3.  Term.  Mr.
Cox understands and acknowledges that the term of this Agreement is (i) on an
“at-will” basis, (ii) is for an unspecified duration, and (iii) may be
terminated at any time, with or without cause, and with or without notice, at
Cox Distributing’s option.  In the event of the termination or
expiration of this Agreement, the following provisions shall apply:

     

    a.   Mr.
Cox shall cease performing Services and shall submit an invoice for any amounts
which may be due Mr. Cox under this Agreement as of the date of termination if
there are any funds available from Fertilizer Distribution Business’ operations;
and

     

    b.   Mr.
Cox shall deliver to Cox Distributing all information related to the operation
of Fertilizer Distribution Business in Mr. Cox’s possession or under Mr. Cox’s
control.

     

    4.  Miscellaneous.

     

    a.  Assignment.  Neither
party shall assign any of its rights or delegate any of its obligations under
this Agreement, without the express prior written consent of the other
party.

     

    b.  Amendments.  This
Agreement may be amended, modified, or superseded, and any of the terms hereof
may be waived, only by written instrument executed by the parties hereto or in
the case of a waiver, by the party waiving compliance.  The failure of
any party at any time to require performance of any provision hereof shall in no
manner affect the right at a later time to enforce the same.  No
waiver by any party of any term continued in this Agreement shall be deemed or
construed as a further or continuing waiver of any such breach in any subsequent
instance or a waiver of any such breach in any subsequent instance or a waiver
of any breach of any other terms contained in this Agreement.

     

    c.  Independent
Contractors.   In performing the Services, nothing in this
Agreement shall be construed to create the relationship of employer-employee,
principal-agent or master-servant, either expressed or implied. Further, the
relationship between the Parties is that of contract, Mr. Cox being an
independent contractor, free from interference or control by Cox Distributing in
the performance of the services set forth herein, subject only to the terms of
this Agreement. Neither Cox Distributing nor Mr. Cox has the authority to bind
or incur any obligation for the other, and each agrees that Mr. Cox will not
hold itself out to any third party as having, or act toward any third party in
any manner which would suggest that they have, any such authority.

     

    d.  Ownership of
Information.  Mr. Cox and Cox Distributing agree that all
files, computer programs, tapes, records, materials, data, papers, reports, and
other information relating to the services which were obtained as a result of
its performance of its obligations under this Agreement are vested in and owned
by Cox Distributing.  Mr. Cox agrees to return to Cox Distributing all
such property owned by Cox Distributing and which is in Mr. Cox’s possession
upon termination of this Agreement or at any earlier time immediately upon the
request of Cox Distributing.  This clause will survive the termination
of this Agreement.

     

    e.  Headings.  Headings
in this Agreement are for convenience only and shall not be deemed to have any
substantive effect.

     

    
      
         

      

      
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    f.  Counterparts.  This
Agreement may be executed on separate counterparts, each of which will be deemed
an original, which counterparts may be delivered to the other party hereto by
facsimile transmission, and all of which taken together will constitute one and
the same instrument.

     

    f.  Severability.  If
any term, covenant, condition or provision of this Agreement is held by a court
of competent jurisdiction to be invalid, void or unenforceable, the remainder of
the provisions hereof shall remain in full force and effect and shall in no way
be affected, impaired or invalidated thereby.

     

    g.  Governing
Law.  This Agreement shall be governed by, and construed and
interpreted in accordance with the laws of the State of Florida, without regard
to choice of law principles thereof.

     

    IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the day and year first above
written.

     

    Stephen D. Cox

     

    By:
­­­­­­­­­­­­­­­/s/
Stephen D. Cox

     

    Name:  Stephen
D. Cox

     

    Cox Distributing, Inc.

     

    By: ­­­­­­­­­­­­­­­/s/
Stephen D. Cox

     

    Name:  Stephen
D. Cox

     

    Title:
Chief Executive Officer

     

    


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