Document:

Exhibit 10.2 Master Services Agreement

Master Agreement

Consultant / Professional Services

MASTER SERVICES AGREEMENT

between

Corradiance, LLC.

and

Fresh Medical Laboratories, Inc.

for

CONSULTANT/PROFESSIONAL SERVICES

01/11/2014

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Master Agreement

Consultant / Professional Services

EXHIBITS

Exhibit A

Work Order

2 pages

Attachment 1

Expense Policy

1 page

to Exhibit A

Exhibit B

Consultant’s Intellectual Property

1 page

Exhibit C

Project Budget

Exhibit D

 Project Budget Report

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Master Agreement

Consultant / Professional Services

This Master Agreement (the “Agreement”), made effective as of 01/11/2014 (the “Effective Date”), by and between Corradiance, LLC, a Utah company  (the “Consultant”), and Fresh Medical Laboratories, Inc. (the “Company”), a Delaware Corporation, evidences that, 

 

WHEREAS, Consultant is a corporation engaged in the business of providing consulting and professional services;

WHEREAS, Company desires to engage Consultant to provide consulting and professional services (collectively the “Services”) as Company may from time to time request;

NOW THEREFORE, in consideration of the premises, the mutual representations, warranties and covenants set forth herein and other good and valuable considerations, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

1.

TERM OF AGREEMENT.  This Agreement shall remain in full force and effect for a term of one (1) year following the effective date, unless sooner terminated as provided herein.

2.

MASTER AGREEMENT.  This Agreement anticipates the future issuance of Work Orders by Company. Each Work Order shall be subject to the terms and conditions of this Agreement.  This Agreement shall apply to all Work Orders entered during the term of this Agreement, with respect to the Services that are the subject of this Agreement, unless the parties expressly agree otherwise by a written modification to this Agreement, signed by an authorized representative of both parties.

3.

SCOPE OF AGREEMENT.

a)

Except as otherwise provided herein, Company shall authorize the performance of any Services by issuing written Work Orders from time to time substantially in the form of Exhibit A hereto.  Such Work Orders will be consecutively numbered in accordance with Company's practices.  In the event Consultant objects to the terms and conditions of any Work Order, Consultant shall notify the Company in writing as soon as practical after receipt of the Work Order, such notice to include a reasonable description of Consultant’s objections.  Consultant and Company agree to negotiate in good faith towards the resolution of any objections to the terms and conditions of any individual Work Order.

b)

Consultant shall perform all Services in accordance with the terms and conditions of this Agreement and specifications set forth for the Services in the applicable Work Order.  The term "Services" shall include, but not be limited to all labor and/or materials furnished by Consultant.

c)

Company shall have a limited right to make reasonable changes to the specifications set forth in any Work Order provided such changes remain within the general scope of Services contemplated by this Agreement.  If such proposed change shall alter the time contemplated for performance under, or payments due under, such Work Order, the proposed change shall not be effective unless agreed to in advance in a writing signed by each of the parties hereto.

d)

In order to facilitate Consultant’s performance of the Services, Company shall provide Consultant and Consultant’s employees, contractors, and agents (“Consultant’s Personnel”) reasonable access to Company’s personnel, sites and other information required for the performance of the Services by Consultant.

e)

Company shall provide Consultant and Consultant’s Personnel with any rules and regulations, including but not limited to safety regulations and security requirements.  Consultant and Consultant’s Personnel shall comply with any such rules and regulations as are made known to them. 

f)

In the event Company, for any reasonable and lawful reason, requests, in writing,  Consultant discontinue furnishing any of Consultant’s Personnel provided by Consultant for performing work on Company’s premises, Consultant shall immediately comply with such request.  Such person shall leave Company’s premises promptly and Consultant shall not furnish such person again to perform work on Company’s premises without Company’s consent.  Consultant shall have opportunity to replace such individual if replacement is made within ten (10) business days of written notification.

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Master Agreement

Consultant / Professional Services

4.

PERFORMANCE OF SERVICES.  The manner in which the Services are to be performed and the specific hours to be worked by Consultant’s personnel shall be determined by Consultant and/or Consultant’s personnel, but in all events will be in accordance with generally accepted practices with Company’s industry.  It is understood and agreed Consultant and Consultant’s Personnel shall be deemed to be independent contractors and shall in no sense be considered employees or agents of Company nor will they be entitled to participate in any benefits or privileges given or extended by Company to its employees.  Consultant and Consultant’s Personnel shall have no power or right, unless expressly authorized in writing, to enter into contracts or commitments on behalf of Company.  Consultant’s Personnel who perform Services for Company under this Agreement shall also be bound by the provisions of this Agreement.

5.

ACCEPTANCE OR REJECTION.  Consultant or Consultant’s Personnel shall provide weekly timesheets to Company providing detailed summaries of the tasks performed by Consultant or Consultant’s Personnel, the hours billed to Company and the tasks completed in connection with Consultant’s or Consultant’s Personnel’s rendering of the Services.  As an overall framework for the overall project, Consultant shall initially provide, and update as necessary to reflect material change estimates for the completion of the overall project in terms of objectives completed, work orders completed, work orders pending and additional work. Company shall indicate its approval of such timesheets, and its acceptance of Services, by its signature thereon.  Consultant shall provide timesheets and work orders in terms that are immediately understandable in connection with the project completion budget.  Company shall promptly notify Consultant of any instance in which Services rendered by Consultant or Consultant’s Personnel are unsatisfactory in Company’s reasonable estimation.  Upon receipt and review of any such notice from Company, Consultant and Company shall negotiate in good faith to complete the Services in a manner satisfactory to Company.  If the unsatisfactory Services have not been corrected within thirty (30) business days after Company's notice to Consultant, Company may, in addition to any other rights and remedies provided by law or this Agreement, terminate this Agreement upon written notice to Consultant.

6.

INVOICES AND PAYMENTS.

a)

Consultant shall render invoices for Services performed for Company in accordance with the charges, schedule and other terms and conditions specified in the applicable Work Order. Each invoice shall identify the total hours and period for billing, the amount of reimbursable expenses, if any, and applicable taxes, if any.  Company shall remit payment for each invoice within twenty (20) days of invoice date provided that Consultant as responded and clarified any questions directed to the Consultant by the Company with respect to the invoice.  The rates set forth in the applicable Work Order are not subject to increase by Consultant during the term of Work Order.  Reimbursable expenses greater than $500 require prior written Company approval.

b)

Company shall only be liable for charges expressly authorized in a Work Order or this Agreement.  Consultant shall not incur any expenses on behalf of Company unless such expenses are specifically authorized in the applicable Work Order.  Any other reimbursable expenses are subject to prior review and approval by Company.

c)

In the event Company reasonably disputes any amount on an invoice, the Company will so notify Consultant in writing and the parties will negotiate in good faith to resolve the dispute as soon as practical.  Payment under any disputed invoice shall be due and payable immediately upon resolution of the dispute. 

7.

TERMINATION.

a)

Either Consultant or Company may terminate this Agreement upon thirty (30) days prior written notice to the other setting forth the effective date of the termination.  The expiration or termination of this Agreement shall not affect the obligations of the parties under any Work Order previously issued under this Agreement, and the terms and conditions of this Agreement shall continue to apply to such Work Order as if this Agreement had not expired or been terminated.

b)

Either Consultant or Company may terminate any Work Order upon thirty (30) days prior written notice setting forth the Services to be completed by the effective date of termination.  Upon receipt of any termination notice from Company, Consultant shall endeavor in good faith not to incur additional expenses unless Company’s written notice of termination states otherwise.  Company shall pay Consultant for any Services not previously billed up to the effective date of termination.  

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Master Agreement

Consultant / Professional Services

c)

If either party is in default of its obligations under this Agreement and/or any Work Order and the default continues for thirty (30) days after written notice by the nondefaulting party, the nondefaulting party may, in addition to all other rights and remedies provided by law or this Agreement, terminate this Agreement and/or any Work Order that may be affected by the default unless the default reasonably requires more than thirty (30) days to correct and the defaulting party has begun substantial corrective action to correct the default with such thirty (30) day period, in which event termination shall not be effective unless ninety (90) days have expired from the date of the default notice and the default has not been remedied.

d)

Upon the expiration or termination of this Agreement or any Work Order, Consultant and Consultant's Personnel shall promptly return to Company all papers, written materials, equipment and other Information furnished to Consultant or Consultant's Personnel by Company or developed by Consultant or Consultant's Personnel in connection with or as a result of the performance of the Services under this Agreement. 

8.

INSURANCE.  Consultant shall maintain appropriate insurance coverage for the benefit of Consultant.  Consultant waives any rights to recovery from Company for any injuries that Consultant and/or Consultant's Personnel may sustain while performing services under this Agreement and that are a result of the negligence of Consultant or Consultant's Personnel.

9.

INDEMNIFICATION.  Consultant shall indemnify in respect of, and hold Company and its officers, directors, employees and agents harmless against, any and all damages, claims, deficiencies, losses, including taxes, and all expenses (including interest, penalties, and attorneys' and accountants' fees and disbursements but reduced by any tax savings, benefits or offsets to which any party shall be entitled directly or indirectly by reason thereof) resulting from any misrepresentation, breach of warranty or negligence on the part of Consultant or  Consultant's Personnel under this Agreement.  The obligations imposed on Consultant under this Section 9 shall survive the termination of this Agreement.  Company shall indemnify in respect of, and hold Consultant and its officers, directors, employees and agents harmless against, any and all damages, claims, deficiencies, losses, including taxes, and all expenses (including interest, penalties, and attorneys' and accountants' fees and disbursements but reduced by any tax savings, benefits or offsets to which any party shall be entitled directly or indirectly by reason thereof) resulting from any misrepresentation, breach of warranty or negligence on the part of Company or Company's employees or agents under this Agreement.

10.

ASSIGNMENT.  Consultant's obligations under this Agreement may not be assigned or transferred to any other person, firm, or corporation without the prior written consent of Company.

11.

INTELLECTUAL PROPERTY.  The following provision shall apply with respect to copyrightable works, ideas, discoveries, inventions, applications for patents, and patents (collectively, "Intellectual Property"):

a)

Consultant’s Intellectual Property.  Consultant personally holds an interest in the Intellectual Property that is described on the attached Exhibit B and which is not subject to this Agreement. 

b)

Development of Intellectual Property.  Any improvements to Intellectual Property items listed on Exhibit B, further inventions or improvements, and any new items of Intellectual Property discovered or developed by Consultant’s Personnel during the term of this Agreement shall be the property of Consultant not withstanding Company’s right to acquire such Intellectual Property on terms agreeable to Consultant and Company.  Company will not acquire shop rights or an interest in any way in such Intellectual Property by virtue of the development, experimentation, or adaptation for manufacture, sale, or use.

12.

CONFIDENTIALITY. During the term of this Agreement, Consultant may have access to and become familiar with various sensitive information belonging to Company consisting of, but not limited to, processes, price lists, cost information, discounts, customer lists, trade secrets, business plans, compilations of information, records, procedures, techniques, technical data, know-how, methods of operations and other confidential information (collectively, the "Confidential Information"), which are acquired, developed and used by the Company.  Consultant acknowledges and agrees all Confidential Information is and shall remain the property of Company.  Consultant further agrees it shall not use in any way or disclose any of the Confidential Information, directly or indirectly, either during the term of this Agreement or at any time thereafter, except as required in the course of its performance under this Agreement or to the extent such Confidential Information is publicly known.  All files, records, documents, information, data, and similar items relating to the business of Company, whether prepared by Consultant or otherwise coming into their possession, shall remain the exclusive property of Company and shall not be removed from the premises of the Company under any circumstances without the prior written permission of Company (except in the ordinary course of business during the term of this Agreement), and in any event shall be promptly delivered to Company (without Consultant retaining any copies) upon termination of this Agreement.

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Master Agreement

Consultant / Professional Services

13.

NOTICES.  All notices required or permitted under this Agreement shall be in writing and shall be deemed delivered when delivered in person or deposited in the United States mail, postage prepaid, addressed as follows:

IF for Company:

Fresh Medical Laboratories, Inc.

Steven Eror

CEO

757 East South Temple

Suite 150

Salt Lake City, Utah  84025

IF for Consultant:

Corradiance, LLC.

Dennis J Tulane

Manager

1794 Grand View Drive

Farmington, Utah  84025

Such address may be changed from time to time by either party by providing written notice to the other in the manner set forth above.

14.

ENTIRE AGREEMENT. This Agreement and the agreements, instruments and documents contemplated by this Agreement represent the parties' entire agreement with respect to the subject matter of this Agreement and such other agreements, instruments and documents and supersede and replace any prior agreement or understanding with respect to that subject matter.  This Agreement may not be amended or supplemented except pursuant to a written instrument signed by the party against whom such amendment or supplement is to be enforced.  Nothing contained in this Agreement will be deemed to create any agency, joint venture, partnership or similar relationship between the parties to this Agreement.  Nothing contained in this Agreement will be deemed to authorize either party to this Agreement to bind or obligate the other party.  

15.

AMENDMENT.  This Agreement may only be modified or amended in a writing signed by both parties.

16.

COUNTERPARTS.   This Agreement may be executed in multiple counterparts, each of which will be deemed to be an original and all of which will be deemed to be a single agreement.  This Agreement will be considered fully executed when all parties have executed an identical counterpart, notwithstanding that all signatures may not appear on the same counterpart.  

17.

SEVERABILITY.  If any of the provisions of this Agreement are determined to be invalid or unenforceable, such invalidity or unenforceability will not invalidate or render unenforceable the remainder of this Agreement, but rather the entire Agreement will be construed as if not containing the particular invalid or unenforceable provision or provisions, and the rights and obligations of the parties will be construed and enforced accordingly.  The parties acknowledge that if any provision of this Agreement is determined to be invalid or unenforceable, it is their desire and intention that such provision be reformed and construed in such manner that it will, to the maximum extent practicable, be deemed to be valid and enforceable.

18.

WAIVER.  No failure or delay in exercising any right hereunder will operate as a waiver thereof, nor will any single or partial exercise thereof preclude any other or further exercise or the exercise of any other right.

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Master Agreement

Consultant / Professional Services

19.

APPLICABLE LAW.   THIS AGREEMENT AND THE AGREEMENTS, INSTRUMENTS AND DOCUMENTS CONTEMPLATED HEREBY WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF UTAH (EXCLUSIVE OF CONFLICTS OF LAW PRINCIPLES) AND WILL, TO THE MAXIMUM EXTENT PRACTICABLE, BE DEEMED TO CALL FOR PERFORMANCE IN SALT LAKE COUNTY, UTAH.  COURTS WITHIN THE STATE OF UTAH WILL HAVE EXCLUSIVE JURISDICTION OVER ANY AND ALL DISPUTES BETWEEN THE PARTIES HERETO, WHETHER IN LAW OR EQUITY, ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE AGREEMENTS, INSTRUMENTS AND DOCUMENTS CONTEMPLATED HEREBY.  THE PARTIES CONSENT TO AND AGREE TO SUBMIT TO THE JURISDICTION OF SUCH COURTS.  VENUE IN ANY SUCH DISPUTE, WHETHER IN FEDERAL OR STATE COURT, WILL BE LAID IN SALT LAKE COUNTY, UTAH. EACH OF THE PARTIES HEREBY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUCH DISPUTE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY CLAIM THAT (i) SUCH PARTY IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURTS, (ii) SUCH PARTY AND SUCH PARTY'S PROPERTY IS IMMUNE FROM ANY LEGAL PROCESS ISSUED BY SUCH COURTS OR (iii) ANY LITIGATION COMMENCED IN SUCH COURTS IS BROUGHT IN AN INCONVENIENT FORUM.

20.

FORCE MAJEURE.    Neither party to this Agreement shall be liable to the other for any delay or failure by such party to perform its obligations under this Agreement if such delay or failure arises from any cause or causes beyond the reasonable control of such party, including, without limitation, labor disputes, strikes, acts of God, floods, lightning, shortages of materials, rationing, utility or communication failures, earthquakes, casualty, war, acts of the public enemy, riots, insurrections, embargoes, blockades or regulations or orders of governmental authorities.  If a party to this Agreement shall be delayed or prevented from performing such party's obligations pursuant to this Agreement due to any cause beyond such party's reasonable control, such delay shall be excused during the continuance of such delay and the period of performance shall be extended to the extent necessary to enable such party to perform its obligations after the cause of such delay has been removed; provided, however, if such performance is delayed for 20 or more days, the party entitled to the benefit of such performance may elect to terminate this Agreement.  

21.

REPRESENTATIVES OF AUTHORITY.  Each person signing this Agreement represents and warrants that he is authorized to execute and deliver this Agreement, that this Agreement is binding upon the party for whom he has signed and that the signature of no one else is required to bind that party.  Each individual executing this Agreement on behalf of a corporation represents and warrants that he is duly authorized to execute and deliver the Agreement on behalf of such corporation.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective duly authorized representatives.

CONSULTANT 

COMPANY 

By: /s/ Dennis J. Tulane                                 

By:/s/ Steven C. Eror                                     

      Dennis J. Tulane                                       

      Steven C. Eror                                          

(Print Name)

(Print Name)

Title: Manager                                                

Title: CEO                                                    

Date Signed: 1/13/2014                                 

Date Signed: 1/13/2014                               

Page 7 of 7

EXHIBIT A - WORK ORDER 

MASTER AGREEMENT FOR

CONSULTANT/PROFESSIONAL SERVICES

WORK ORDER NO. 

1

DATE:

01/13/2014

CONSULTANT:

Corradiance, LLC.

ADDRESS:

1794 Grand View Drive

Farmington, Utah  84025

ATTN:

Dennis J Tulane

Fresh Medical Laboratories, Inc. ("Company ") requests Corradiance, LLC (“Consultant”) to provide the Services described below subject to the terms and conditions set forth herein and in accordance with the provisions of the Master Agreement for Consultant/Professional Services, dated 01/11/2014 by and between Company and Consultant.  

1.

Consultant's personnel who will perform Services: 

Todd Newman - Project Manager/Software Architect

2.

Description of Services:

Review current system

Determine new system requirements/vision

Develop project scope, project plan, and budget

3.

Location and Timetable for Services:

Fresh Medical Laboratories Office, 757 East South Temple, Suite 150, Salt Lake City

February 24, 2014 – March 12, 2014

4.

This work order shall expire immediately following the date set forth above.

5.

Reports to be furnished by Consultant's personnel:

Status Report 

Page 1 of 2

EXHIBIT A - WORK ORDER 

MASTER AGREEMENT FOR

CONSULTANT/PROFESSIONAL SERVICES

6. 

Compensation shall be:

a.

For Services:

$8,500.00 fixed cost plus up to $500.00 for expense reimbursement          

ANY ADDITIONAL COMPENSATION FOR SERVICES PERFORMED BY CONSULTANT OR CONSULTANT'S PERSONNEL OUTSIDE THE SCOPE OF THIS EXHIBIT MUST BE APPROVED IN ADVANCE BY COMPANY IN WRITING.

b.

For Reimbursable Expenses:

Up to $500.00 for expense reimbursement          

7.

Pay in lieu of prior written notice (section 7.b. of Master Services Agreement) for termination of this Work Order shall be 15 days.

Consultant shall present bills, receipts and other documentary proof supporting any expenses submitted for reimbursement.  EXCEPT AS SPECIFICALLY PROVIDED FOR IN THIS EXHIBIT, ATTACHMENT I, OR AS SPECIFICALLY AUTHORIZED BY COMPANY IN WRITING, CONSULTANT SHALL NOT BE ENTITLED TO REIMBURSEMENT FOR ANY AMOUNTS PAID BY CONSULTANT OR CONSULTANT'S PERSONNEL TO THIRD PARTY SUPPLIERS OF GOODS OR SERVICES. 

Agreed and Accepted:

Corradiance, LLC                                  

Fresh Medical Laboratories, Inc.                     

“CONSULTANT”

“COMPANY”

/s/ Dennis J. Tulane                              

/s/ Steven C. Eror                                            

Name

Name

Dennis J Tulane, Manager                  

Steven C. Eror, CEO                                       

(Print Name and Title)

(Print Name and Title)

2/13/2014                                           

2/13/2014                                                       

(Date)

(Date)

Page 2 of 2

ATTACHMENT 1 TO EXHIBIT A 

MASTER AGREEMENT FOR

CONSULTANT/PROFESSIONAL SERVICES

  

Travel and Expense Policy

Actual Costs:

All travel and living expenses are billed for the actual costs incurred, with the exception of the per diem meal allowance.  Receipts are retained for all expenses above $25.00.

Airfare:

Airfare is the cost of one round trip coach fare.  Reservations and ticketing are made as early as possible, using advanced bookings (where possible) in order to obtain the lowest possible fare.  The client assumes the risk of the cost of any penalties due to cancellations as a result of client’s changes in consultants’ schedules.  Any deviations in the consultant’s home or client destinations must be cost neutral to the client and require prior approval by the client.

Lodging:

Lodging is acquired near the client’s offices at a price agreeable to the client and consistent with rates for the area.  Consultants use the client’s corporate rate at designated hotels whenever possible.

Per Diem:

Meal expenses are calculated on a per diem basis which includes all meals, tips, and incidental expenses.  The per diem amount varies based on the city and county according to IRS guidelines.

Car Rental:

Car rental is for a four-door compact or mid-sized car.  Consultants use client’s preferred rental company and corporate rate.  Consultants attempt to share transportation if possible.

Taxis/Trains:

client is billed for the cost of taxi, bus, shuttle, or train fare to and from the client’s offices.  Consultants attempt to use the most cost and time effective of transportation.

Parking/Tolls:

Client is billed for the cost of parking and tolls associated with transportation to and from the client’s site, as well as airport parking and mileage to and from the airport.

Mileage:

Mileage is billed at the standard rate as published by the IRS according to the following rules:

·

Out-of-Town:  The round trip distance from the consultant’s home to the airport.

·

Local:     the round trip distance from the consultant’s  home to the client site.

Laundry:

Client is billed for laundry expenses based on the actual cost up to a maximum of $20 per week when a consultant is required to stay more than five consecutive days on site.

Phone Calls:

Client is billed only for phone calls related to client business.

Postage / Out-of-

Client will be billed for postage, courier, overnight delivery, and other out-of-pocket expenses 

Pocket Expenses:

incurred in the production of client-related work. 

Page 1 of 1

EXHIBIT B 

MASTER AGREEMENT FOR

CONSULTANT/PROFESSIONAL SERVICES

CONSULTANT'S INTELLECTUAL PROPERTY

Development Methodologies

Project Management Methodologies

System Integration Methodologies

Note – Company shall own all “Work For Hire” work products

Page 1 of 1

EXHIBIT A – WORK ORDER

MASTER AGREEMENT FOR

CONSULTANT/PROFESSIONAL SERVICES

WORK ORDER NO. 

2

DATE:

03/26/2014

CONSULTANT:

Corradiance, LLC.

ADDRESS:

1794 Grand View Drive

Farmington, Utah  84025

ATTN:

Dennis J Tulane

Fresh Medical Laboratories, Inc. ("Company ") requests Corradiance, LLC (“Consultant”) to provide the Services described below subject to the terms and conditions set forth herein and in accordance with the provisions of the Master Agreement for Consultant/Professional Services, dated 01/11/2014 by and between Company and Consultant.  

1.

Consultant's personnel who will perform Services: 

Todd Newman - Project Manager/Software Architect

Other development/testing personnel as directed by the project manager

2.

Description of Services:

See Attachment 1

3.

Primary Location and Estimated Timetable for Services:

Fresh Medical Laboratories Office, 757 East South Temple, Suite 150, Salt Lake City

Off-site as directed by the project manager

March 26, 2014 – July 18, 2014

4.

This work order shall expire based on completion of deliverables.

5.

Reports to be furnished by Consultant's personnel:

Status Report 

6. 

Compensation shall be:

a.

For Services:

The total cost of the project will be $147,900.00.  This price is fixed bid and is inclusive of expenses.  Project will be driven by phase, dates are presented as targets but milestones may be completed slightly ahead or behind targets.  Payments will be made based on the completion of milestones on the following schedule:

			
	Prototype Complete

	$

	26,800.00

	Development Complete

	$

	59,800.00

	Testing Complete

	$

	22,500.00

	Deployment

	$

	38,800.00

	 
	$

	147,900.00

15% of the cost of the project will be paid in FML stock.  The price of the shares will be based on the current valuation of the company at the time of the milestone completion date and issued in conjunction with milestone payment not to exceed 20 days of milestone completion.

Page 1 of 2

EXHIBIT A – WORK ORDER

MASTER AGREEMENT FOR

CONSULTANT/PROFESSIONAL SERVICES

Client agrees to provide resources in a timely manner as described in the Attachment 1 below.  Failure to do so will have an adverse impact on the timeline and quality of the quality of the project.

ANY ADDITIONAL COMPENSATION FOR SERVICES PERFORMED BY CONSULTANT OR CONSULTANT'S PERSONNEL OUTSIDE THE SCOPE OF THIS EXHIBIT MUST BE APPROVED IN ADVANCE BY COMPANY IN WRITING.

b.

For Reimbursable Expenses:

N/A

7.

Pay in lieu of prior written notice (section 7.b. of Master Services Agreement) for termination of this Work Order shall be 15 days.

Consultant shall present bills, receipts and other documentary proof supporting any expenses submitted for reimbursement.  EXCEPT AS SPECIFICALLY PROVIDED FOR IN THIS EXHIBIT, ATTACHMENT I, OR AS SPECIFICALLY AUTHORIZED BY COMPANY IN WRITING, CONSULTANT SHALL NOT BE ENTITLED TO REIMBURSEMENT FOR ANY AMOUNTS PAID BY CONSULTANT OR CONSULTANT'S PERSONNEL TO THIRD PARTY SUPPLIERS OF GOODS OR SERVICES. 

Agreed and Accepted:

Corradiance, LLC                                  

Fresh Medical Laboratories, Inc.                     

“CONSULTANT”

“COMPANY”

/s/ Dennis J. Tulane                              

/s/ Steven C. Eror                                            

Name

Name

Dennis J. Tulane, Manager                  

Steven C. Eror, CEO                                       

      (Print Name and Title)

(Print Name and Title)

4/4/2014                                                      

4/3/2014                                                 

(Date)

(Date)

Page 2 of 2exhibit1001.htm

ALTERNATIVE INVESTMENT

PLACEMENT AGENT AGREEMENT

 

This Alternative Investment Placement Agent Agreement (“Agreement”) is dated as of April 1, 2014, by and among each of the Delaware limited partnerships listed on Schedule 1 hereto (each, a “Partnership,” and together, the “Partnerships”), Ceres Managed Futures LLC, a Delaware limited liability company (the “General Partner”), and Morgan Stanley Smith Barney LLC, a Delaware limited liability company, currently doing business as Morgan Stanley Wealth Management (“MSSB”).  Partnerships may be added to this Agreement upon the agreement of the General Partner and MSSB.  The listing of such partnership on Schedule 1 hereto shall be evidence of such agreement.  This Agreement supersedes all prior agreements between each Partnership, MSSB and the General Partner, including, but not limited to, those listed on Schedule 2 hereto.

 

WHEREAS, the offering and sale of units of limited partnership or other interests in the Partnerships (“Interests” or “Units”) in accordance with the terms of each Partnership’s private placement offering memorandum and disclosure document, including any supplements thereto approved by the applicable Partnership (each, a “Memorandum”), each Partnership’s subscription/exchange agreements (the “Subscription Agreements”) and certain other investor materials or supplements approved for use or prepared by each Partnership, including without limitation the summary information contained in certain related marketing materials, all as amended from time to time (collectively, the “Offering Documents”), and each Partnership’s organizational documents (as amended or supplemented from time to time, “Organizational Documents”) (collectively, “Offering Materials”) is exempt from the registration requirements of the Securities Act of 1933, as amended (“Securities Act”), pursuant to Section 4(a)(2) and Rule 506 of Regulation D promulgated thereunder;

 

WHEREAS, the Partnerships desire to retain MSSB as a placement agent; and

 

WHEREAS, MSSB desires to be so retained and to assist, as placement agent, in the offer and sale of the Interests.

 

           NOW, THEREFORE, in consideration of the promises and the mutual agreements hereinafter contained and other good and valuable consideration the value of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

1. Appointment of MSSB.

 

    (a) MSSB is hereby appointed as a non-exclusive placement agent of the Partnerships during the term of this Agreement for the purpose of finding eligible investors for Interests through offerings that are exempt from registration under the Securities Act, pursuant to Section 4(a)(2) thereof and Rule 506 of Regulation D promulgated thereunder.  For Managed Futures Strategic Alternatives, L.P., MSSB is appointed as a non-exclusive placement agent during the term of this Agreement for the purpose of finding eligible investors that are “qualified eligible persons,” as defined in Commodity Futures Trading Commission Rule 4.7, for Interests through offerings that are exempt from registration under the Securities Act, pursuant to Section 4(a)(2) thereof and Rule 506 of Regulation D promulgated thereunder.

 

  

  

  

    (b) In the case of any Partnership formed after the date of this agreement, Units initially shall be offered at $1,000 per Unit or as otherwise determined by the General Partner, and thereafter shall be offered on a continuous basis as of the first day of each month at the final Net Asset Value per Unit (as defined in each Partnership’s Limited Partnership Agreement) as of the last day of the immediately preceding month.  For all other Partnerships, Units are being offered on a continuous basis as of the first day of each month at the final Net Asset Value per Unit (as defined in each Partnership’s Limited Partnership Agreement) as of the last day of the immediately preceding month.  The General Partner in its sole discretion may terminate at any time the continuous offering period of one or more of the Partnerships and may at any time in its sole discretion, terminate, discontinue or resume the continuous offering of any class of Units in any of the Partnerships.

 

    (c) Subject to the right of the General Partner to reject any subscription in whole or in part at any time prior to acceptance, the General Partner shall accept subscriptions for Units properly made and shall cause proper entries to be made in the books and records of the relevant Partnership.  No certificate evidencing Interests shall be issued to any limited partner, although limited partners shall receive confirmations of purchase from the General Partner in its customary form.  Payment for the Interests shall be made as described in the Offering Documents at such time on such date as may be agreed to by the General Partner.  Payment shall be made against issuance of the Interests in the name of the limited partners.

 

    (d) Subject to the performance by the Partnerships and the General Partner of their respective obligations hereunder, MSSB hereby accepts such appointment and agrees on the terms and conditions set forth herein to find eligible investors for Interests during the term hereof and to use reasonable efforts to assist the Partnerships and the General Partner in communicating with limited partners with respect to consent solicitations and limited partner votes and other items requiring actions of the limited partners with respect to the applicable Partnership, at the reasonable request of the General Partner.  MSSB shall have no obligation to offer or sell any Interests.

 

    (e) MSSB may, without notice to the Partnership or the General Partner, assign or delegate its rights and obligations to its affiliates, or otherwise retain affiliates to act as sub-placement agents, in connection with the solicitation of investors and otherwise to assist MSSB in performing its obligations under this Agreement to the extent MSSB deems appropriate, subject to compliance with applicable laws, rules or regulations; provided however, that each such sub-placement agent shall execute a sub-agent agreement substantially in the form of this Agreement.  MSSB may compensate any such sub-placement agent by paying the sub-placement agent from MSSB’s own funds.

 

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2. Offering and Sale of Interests.

 

    (a) MSSB shall deliver, to each person to whom MSSB makes an offer of an Interest, the Offering Documents, as amended as of such time.

 

    (b) MSSB shall not make any offer of Interests on the basis of any communications or documents relating to any of the Partnerships or the Interests, except the Offering Materials, any other documents supplied or prepared by the General Partner on behalf of the Partnerships and delivered to MSSB by the General Partner for use in making an offer of Interests, or any other materials expressly approved for such use by the General Partner in writing (which shall include electronic mail).  Subject to Section 9, the Partnerships and the General Partner shall provide MSSB copies of any Offering Documents a commercially reasonable time prior to providing such Offering Documents to any limited partner for MSSB’s review and approval, which shall not be unreasonably withheld.

 

    (c) Without the prior written consent of the General Partner, MSSB shall not use any form of “general solicitation” or “general advertising” (within the meaning of Rule 502 of Regulation D under the Securities Act prior to the effective date of the final rules implementing Section 201(a) of the Jumpstart Our Business Startups Act) in making offers of Interests, including any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over television or radio, or any seminar or meeting whose attendees have been invited by any general solicitation or advertising.

 

    (d) MSSB shall, in accordance with requirements of Regulation D under the Securities Act, reasonably believe immediately prior to making any offer or sale of Interests that any prospective investor solicited by MSSB is an “accredited investor,” as that term is defined in Rule 501(a) of Regulation D under the Securities Act, and meets such other eligibility criteria as are set forth in the Offering Documents.  The Partnerships shall be responsible for the timely filing with the U.S. Securities and Exchange Commission (“SEC”) of any notices required by Rule 503 of Regulation D under the Securities Act.  MSSB shall only solicit prospective investors in any jurisdiction in compliance with the marketing rules and private placement rules of such jurisdiction.

 

    (e) MSSB represents and warrants that it has policies and procedures reasonably designed to comply with applicable anti-money laundering and anti-terrorist financing laws, rules and regulations.  Additionally, MSSB represents and warrants that it has policies and procedures reasonably designed to ensure that it does not accept or maintain investments in the Partnerships, directly or indirectly, from a person, government, organization or entity (a) who is or becomes the subject of a sanctions program administered by the U.S. Office of Foreign Assets Control (“OFAC”), is included in any executive order or is on the list of Specially Designated Nationals and Blocked Persons maintained by OFAC, or (b) whose name appears on such other lists of prohibited persons and entities as may be mandated by applicable local law or regulation.

 

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    (f) MSSB represents to the Partnerships as of the date hereof that MSSB is subject to the anti-money laundering regime of the United States and maintains anti-money laundering policies and procedures in compliance with applicable anti-money laundering legislation and regulations, as amended from time to time (the “Anti-Money Laundering Regime”).

 

    (g) MSSB shall be responsible for ensuring that any activities taken in connection with the sale of Interests in any jurisdiction outside of the United States shall be conducted in compliance with the private placement or other applicable offering rules of such jurisdiction; provided, however, that, the Partnerships and the General Partner agree to coordinate with MSSB in respect of determining the number of offers made to prospective investors in any particular jurisdiction and such other relevant information in respect of offerings of Interests made by any party other than MSSB, which would reasonably be deemed to affect MSSB’s compliance with applicable offering rules.  MSSB shall make no offer or sale of any Interest in any foreign jurisdiction, or to any prospective investor located in any foreign jurisdiction, where there is a prohibition on the sale of securities such as the Interests.

 

    (h) The General Partner shall be responsible for any applicable registration or qualification of the Interests under all applicable laws, rules or regulations of the United States and the states therein.  The General Partner on behalf of the Partnerships acknowledges that MSSB intends to offer the Interests in each state within the United States.  The General Partner, at the applicable Partnership’s expense, shall use reasonable efforts to register or qualify the Interests, if required, in each jurisdiction within the United States that the Interests are offered by MSSB or to make any filings required by applicable law in each jurisdiction within the United States in which the Interests are sold by MSSB.  If the Interests may not be offered in any particular jurisdiction in the United States, the applicable Partnership and the General Partner shall promptly notify MSSB.

 

    (i) The Partnerships shall provide a reasonable quantity of copies of the Offering Materials and such other documents as MSSB is required to provide to prospective investors under this Agreement.  If any Offering Materials are amended or supplemented, the General Partner shall promptly notify MSSB, and provide copies of such amendments or supplements in accordance with the preceding sentence.

 

    (j) All subscriptions for Interests submitted by or through MSSB shall be subject to the General Partner’s approval, in its sole discretion.  The General Partner and MSSB agree that the General Partner has the ultimate responsibility to determine whether a prospective investor meets all applicable private placement accreditation, minimum investment, and other regulatory requirements necessary to invest in a Partnership, provided, however, it is acknowledged by MSSB that the General Partner shall reasonably rely upon due diligence conducted by MSSB on each prospective investor.

 

3. Fees and Expenses. 

 

    (a) Each Partnership listed in Schedule 3 shall pay MSSB a monthly ongoing compensation fee as of the beginning of each month with respect to each prospective investor introduced by MSSB that invests in one or more of such Partnerships on a placement basis equal to the amount described for each Partnership in Schedule 3 (“Ongoing Placement Agent Fee”).  Net Asset Value shall have the meaning set forth in the respective Partnership’s Limited Partnership Agreement.  The fee shall be payable monthly beginning with the first month that a Unit is issued.

 

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    (b) No Ongoing Placement Agent Fee is payable by the Partnerships listed in Schedule 4. Each Partnership listed in Schedule 4 shall pay MSSB a monthly flat-rate brokerage fee in an amount equal to the amount described for each Partnership in Schedule 4 (“Brokerage Fee”), a portion of which MSSB may pay as a selling agent fee to its employees, affiliates, or any additional selling agents with respect to each investor introduced by MSSB.

 

    (c) MSSB may introduce investors on an advisory basis whereby the applicable Partnership shall not be obligated to pay MSSB any direct compensation for such limited partners; provided MSSB may be compensated directly by such limited partners in relation to their investments in such Partnership.

 

    (d) MSSB may, without notice, allocate all or a portion of its fees to its affiliates and may also allocate all or a portion of its fees to non-affiliates upon written notice to the General Partner.  The Partnerships and the General Partner agree that MSSB, including any applicable affiliate of MSSB, reserves the sole right to reduce or waive the Ongoing Placement Agent Fee in whole or in part.  The General Partner agrees to reduce or waive the Ongoing Placement Agent Fee described herein for any limited partner in accordance with written instructions provided by MSSB to the General Partner.  MSSB agrees that neither the Partnerships nor the General Partner shall have any additional responsibility or liability to MSSB or any other party for complying with the written instructions provided by MSSB relating to this Section 3(d) beyond making payments in accordance with such written instructions.

 

    (e) If MSSB becomes aware that a limited partner is no longer a client of MSSB, it shall promptly inform the General Partner and if the General Partner becomes aware that a limited partner is no longer a client of MSSB, the General Partner shall promptly notify MSSB.  Once a limited partner is no longer a client of MSSB, the applicable Partnership will no longer be obligated to pay the Ongoing Placement Agent Fee attributable to such limited partner.  Notwithstanding the foregoing, a limited partner may be a client of MSSB and another broker-dealer at the same time, and the fact that such limited partner is a client of another broker-dealer may not, by itself, serve as evidence that such limited partner is not a client of MSSB.

 

    (f) The Partnerships and MSSB shall each bear their own expenses in connection with the solicitation of prospective investors, including expenses of preparing, reproducing, mailing and/or delivering offering and sales materials.

 

4. Representations, Warranties and Agreements of the Partnership and the General Partner.  Each Partnership and the General Partner (for purposes of this Section 4 only, each a “Party”) severally, and not jointly, represent and warrant to MSSB and agree with MSSB as follows:

 

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    (a) It is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation or organization, and it has full power and authority under applicable laws, rules or regulations to conduct its business as contemplated by the Offering Materials.

 

    (b) The execution, delivery and performance of this Agreement has been duly authorized by all necessary action of each Party, and upon the execution and delivery hereof, this Agreement shall constitute a valid, binding and enforceable obligation of such Party.

 

    (c) The execution, delivery and performance of this Agreement, the incurrence of the obligations set forth herein and the consummation of the transactions contemplated herein and in the Offering Materials, including the issuance and sale of the Interests, shall not constitute a breach of or default under any agreement or instrument by which such Party is bound, or to which any of its assets is subject, or any order, rule or regulation applicable to it of any court or any governmental body or administrative agency having jurisdiction over it.

 

    (d) There is not pending or, to the best knowledge of such Party, threatened any action, suit or proceeding before or by any court or other governmental body to which such Party is a party, or to which any of its assets is subject, which might reasonably be expected to result in any material adverse change in the condition, financial or otherwise, business or prospects of such Party.  Such Party has not received any notice of an investigation regarding non-compliance by such Party with applicable laws, rules or regulations.

 

    (e) The Offering Materials, as of the date hereof and at any subsequent time during the term of this Agreement, do not and shall not contain any untrue statement of a material fact, or omit to state any material fact required to be stated therein or necessary in order to make the statements contained therein, in light of the circumstances under which they are made, not misleading.  If any statement were to become untrue or if an omission of a material fact is discovered, the General Partner shall promptly supplement the Offering Materials to remove such untrue statement or to disclose such material fact.

 

    (f) At all times during which MSSB client(s) own(s) an Interest, the General Partner shall, as soon as commercially practical, notify and update in writing such MSSB client(s) of any material changes or developments relating to the applicable Partnership or their Interests.

 

    (g) The Interests have been duly authorized for issuance and sale, and, when issued and subscribed for in the amounts and for the consideration described in the Offering Materials, shall be entitled to the rights and subject to the restrictions and conditions contained in the Organizational Documents; no limited partner shall be personally liable for the debts of and claims against the Partnership in which it is invested by the mere reason of being a limited partner; and all necessary action required to be taken for authorization, issue and sale of the Interests has been validly and sufficiently taken.

 

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    (h) It is not necessary in connection with the offer, sale and delivery of the Interests in the manner contemplated by this Agreement to register the Interests under the Securities Act or, to the best knowledge of such Party, the laws of any other jurisdiction where it is being offered.  For Managed Futures Strategic Alternatives, L.P., it is also not necessary in connection with the offer, sale and delivery of the Interests to file the confidential private placement memorandum and disclosure document pursuant to the regulations under the Commodity Exchange Act (the “CEAct”).  Each Party shall conduct itself, and ensure that its agents conduct themselves, in a manner consistent with the exemption from registration under Section 4(a)(2) of the Securities Act and the rules and regulations promulgated thereunder, and the regulations under the CEAct, as applicable, and, without limitation, shall not use, or permit any other person to use, any form of prohibited general solicitation or general advertising in making offers of Interests.

 

    (i) The General Partner will promptly notify MSSB in the event that a Partnership is no longer able to rely on the private placement exemption under Rule 506(d).

 

    (j) Each Party acknowledges that in performing the services contemplated hereby, MSSB shall be entitled to rely upon and assume, without independent verification, the accuracy and completeness of all information that is available from public sources and all information that has been provided to it by, or on behalf of, the Partnerships or the General Partner, and that MSSB has no obligation to verify the accuracy or completeness of any such information and shall have no liability to the Partnerships, the General Partner or any third party for any information contained in the Offering Materials.

 

    (k) The representations and warranties set forth in this Agreement are continuing during the term of this Agreement and each Party agrees to notify MSSB promptly in writing if at any time during the term of this Agreement, any such representation or warranty becomes materially inaccurate or untrue and of the facts related thereto.

 

    (l) Each Party acknowledges that MSSB enters into this Agreement in reliance on the representations, warranties and agreements of the Partnerships and the General Partner contained herein.

 

5. Representations, Warranties and Agreements of MSSB.  MSSB represents and warrants to and agrees with, the Partnerships and the General Partner as follows:

 

    (a) MSSB is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and MSSB has full power and authority under applicable laws, rules or regulations to engage in the activities contemplated under this Agreement.

 

    (b) The execution, delivery and performance of this Agreement has been duly authorized by all necessary action of MSSB, and upon the execution and delivery hereof, this Agreement shall constitute a valid, binding and enforceable obligation of MSSB.

 

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    (c) The execution, delivery and performance of this Agreement, the incurrence of the obligations set forth herein and the consummation of the transactions contemplated herein shall not constitute a breach of or default under any agreement or instrument by which MSSB is bound, or to which any of its assets is subject, or any order, rule or regulation applicable to it or of any court or any governmental body or administrative agency having jurisdiction over it.

 

    (d) MSSB (or any designee to which it delegates its right and obligations hereunder pursuant to Section 1(e)) has and shall maintain all licenses and registrations necessary under applicable federal and state laws, rules and regulations, including the rules and regulation of any self-regulatory organization with competent jurisdiction, to provide the services required to be provided by MSSB (or such designee) hereunder. To the reasonable knowledge of MSSB, MSSB has not solicited and shall not solicit any offer to buy or offer to sell Interests in any manner that would be inconsistent with applicable laws and regulations, or in any manner that would constitute a general solicitation or general advertising (within the meaning of Rule 502 of Regulation D under the Securities Act) or any state securities laws.  MSSB shall conduct itself and take reasonable measures to ensure that its respective agents conduct themselves, in a manner consistent with (i) the exemption from registration under Section 4(a)(2) of the Securities Act and the rules and regulations promulgated thereunder, including, without limitation the requirements of Regulation D under the Securities Act, and (ii) any applicable state law exemptions from registration.

 

    (e) MSSB shall furnish to each prospective investor it solicits the most current copy of the applicable Partnership’s Memorandum provided to it by the General Partner prior to that person’s admission as a limited partner.

 

    (f) MSSB shall furnish to the Partnerships a description of all material pending and prior litigation and regulatory actions involving MSSB and its subsidiaries, required to be disclosed in the Memorandums during the term of this Agreement.

 

    (g) MSSB has and maintains policies, procedures, and internal controls that are reasonably designed to ensure that no Covered Person identified in Appendix A subject to disqualification is permitted to participate in any of a Partnership’s offerings pursuant to Rule 506 of Regulation D under the Securities Act (“Rule 506”).  MSSB represents that it has exercised reasonable care, in accordance with section (e) of Rule 506 in making a factual inquiry into whether any Covered Person is the subject of any of the acts enumerated in Rule 506(d)(1)(i) through (viii) or that would cause a Partnership to be unable to rely upon Rule 506 (each a “Disqualifying Event”).  MSSB agrees that each Partnership may disclose any Disqualifying Event involving a Covered Person that occurred prior to September 23, 2013, in accordance with the method of disclosure under Rule 506(e).

 

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    (h) The representations and warranties set forth in this Agreement are continuing during the term of this Agreement and MSSB agrees to notify each of the Partnerships and the General Partner promptly in writing if at any time during the term of this Agreement, any such representation or warranty becomes materially inaccurate or untrue and of the facts related thereto.

 

    (i) MSSB acknowledges that each of the Partnerships and the General Partner enter into this Agreement in reliance on the representations, warranties and agreements of MSSB contained herein.

 

6. Covenants of MSSB.

 

    (a) MSSB will promptly notify the Partnerships and the General Partner if it becomes aware of any Covered Person who is or becomes the subject of a Disqualifying Event.

 

    (b) MSSB shall, to the extent practicable and reasonable, make available personnel to the General Partner to respond to reasonable queries about its processes directly related to identifying Covered Persons and Disqualifying Events under Rule 506(d) and confirm that the representations made in Section 5(g) are accurate and complete.

 

7. Indemnification.

 

    (a) Each Partnership shall indemnify, hold harmless, and defend MSSB, each person who controls MSSB within the meaning of Section 15 of the Securities Act or Section 20(a) of the Securities Exchange Act of 1934, and their respective officers, directors, partners, members, shareholders, employees and agents from and against any losses, claims, damages or liabilities (or actions in respect thereof) (“Covered Claims”) arising out of or relating to (i) the offer or sale of the Interests or the management or affairs of the applicable Partnership; (ii) any untrue statement or alleged untrue statement of material fact or any omission of a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading in any Offering Materials or in any advertising or promotional material approved, published or provided to MSSB by or on behalf of the applicable Partnership or the General Partner or accurately derived from information approved, published or provided to MSSB by or on behalf of the applicable Partnership (iii) any violation of any law, rule or regulation relating to the registration or qualification of Interests or the applicable Partnership, (iv) any breach by the applicable Partnership or the General Partner of any representation, warranty or agreement contained in this Agreement, (v) any violation of any law, rule or regulation relating to the operation of the applicable Partnership or (vi) any willful misconduct or gross negligence by the applicable Partnership or the General Partner or their respective affiliates in the performance of, or failure to perform, its obligations under this Agreement, except to the extent that any such Covered Claim is caused by breach of this Agreement by MSSB or its affiliates, directors, members, employees, agents and affiliates or the willful misconduct or gross negligence of any of the foregoing in the performance of, or failure to perform, their obligations under this Agreement.

 

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    (b) MSSB shall indemnify, hold harmless, and defend each of the Partnerships and the General Partner, each person who controls any of the foregoing within the meaning of Section 15 of the Securities Act or Section 20(a) of the Securities Exchange Act of 1934, and their officers, directors, partners, members, shareholders, employees, and agents from and against any Covered Claims arising out of or relating to (i) any breach by MSSB of any representation, warranty or agreement contained in this Agreement, (ii) failure of MSSB to comply with marketing rules or private placement rules in any jurisdiction, (iii) any untrue statement, or alleged untrue statement of a material fact, made by MSSB in connection with MSSB’s placement of the Interests that is not in reliance on or in conformity with the Offering Materials, or (iv) willful misconduct or gross negligence by MSSB in the performance of, or failure to perform, its obligations under this Agreement, except in each case to the extent that any Covered Claim is caused by breach of this Agreement by any of the Partnerships or the General Partner or their officers, directors, partners, members, shareholders, employees, agents and affiliates or the willful misconduct or gross negligence of any of the foregoing in the performance of, or failure to perform, their obligations under this Agreement.

 

    (c) Promptly after receipt of notice of any claim or complaint or the commencement of any action or proceeding with respect to which an indemnified party is entitled to seek indemnification hereunder, the indemnified party shall notify the indemnifying party in writing of such claim or complaint or the commencement of such action or proceeding.  The indemnifying party shall be entitled to participate at its own expense in the defense or, if it so elects within a reasonable time after receipt of such notice, to assume the defense of any suit so brought, which defense shall be conducted by counsel chosen by it and satisfactory to the indemnified party or parties.  In the event that the indemnifying party elects to assume the defense of any such suit and retain such counsel, the indemnified party or parties shall bear the fees and expenses of any additional counsel thereafter retained by it or them.

 

    (d) If the foregoing indemnification is for any reason unavailable to an indemnified party (other than by reason of the terms thereof), the indemnifying party shall contribute to the Covered Claims that are paid or payable by the indemnified party in such proportion as is appropriate to reflect the relative economic interests of the indemnifying party, on the one hand, and the indemnified party, on the other hand, in the transactions contemplated by this Agreement (whether or not consummated) and any other relevant equitable considerations.  For purposes of this paragraph, the relative interests of the applicable Partnership and the General Partner, on the one hand, and MSSB, on the other hand, in the transactions contemplated by this Agreement, shall be deemed to be in the same proportion as (i) the total proceeds received or contemplated to be received by the applicable Partnership and the General Partner in the transactions contemplated by this Agreement (whether or not any such transaction is consummated) bears to (ii) the fees paid or to be paid to MSSB under the Agreement; provided however, that to the extent permitted by applicable law, in no event shall the applicable Partnership and the General Partner contribute less than the amount necessary to ensure that all indemnified parties, in the aggregate, are not liable in excess of the amount of fees actually received by MSSB pursuant to this Agreement.

 

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    (e) The foregoing indemnity shall be in addition to any liabilities that the parties may otherwise have incurred hereunder.

 

8. Confidentiality.

 

    (a) Each party acknowledges that, in performing its obligations under this Agreement, it may have access to confidential and proprietary information of the other party (“Confidential Information”).  The parties agree that information concerning any potential investor introduced by MSSB to the Partnerships or the General Partner is the Confidential Information of MSSB.  By way of illustration but not of limitation, “Confidential Information” includes any “nonpublic personal information” (as defined in SEC Regulation S-P or FTC Regulation 313) regarding prospective investors and limited partners or members, trade secrets, data, know-how, accounting data, statistical data, financial data or projections, forecasts, business practices or policies, research projects, reports, development and marketing plans, strategies, or other business information that is not generally known or available to the public.  The term “Confidential Information” does not include information that: (i) is or becomes generally available to the public other than as a result of an improper disclosure by the disclosing party; (ii) was rightfully available to a party on a non-confidential basis before its disclosure by the other party; (iii) was independently developed by the receiving party or (iv) becomes available to a party on a non-confidential basis from a source other than the other party, provided that such source is not prohibited from transmitting the information by a contractual, legal, or fiduciary obligation.

 

    (b) Except to the extent necessary to perform its obligations under this Agreement, no party may disclose or use any of the other parties’ Confidential Information.  Each party shall maintain the confidentiality of the other parties’ Confidential Information in its possession or control.  For the avoidance of doubt, no party may provide information concerning the Partnerships or prospective investors to any third party knowing that such third party may use such information in any form of publication, whether publicly or privately distributed, without the express prior written approval of the other parties.  Each party shall limit the disclosure of the other parties’ Confidential Information to those of its employees and agents with a need to know such Confidential Information for purposes of this Agreement.  Each party shall use reasonable care to prevent its employees and agents from violating the foregoing restrictions.  Notwithstanding the above, Confidential Information may be disclosed to the extent required by law or by an order or decree of any court or other governmental authority or a request is made by a governmental authority, regulatory agency or self-regulatory agency; provided, however, that each party shall, to the extent practicable, if legally compelled to disclose such information:  (i) provide the applicable party with prompt written notice of that fact so that the other party may attempt to obtain a protective order or other appropriate remedy and/or waive compliance with the provisions of this Section 8; (ii) disclose only that portion of the information that a party’s legal counsel advises is legally required; and (iii) endeavor to obtain assurance that confidential treatment shall be accorded the information so disclosed.  Notwithstanding the foregoing, limited partners shall also be governed by the privacy policy included in the Offering Materials.

 

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    (c) On written request or on the expiration or termination of this Agreement, each party shall return to the other parties or destroy all Confidential Information in its possession or control, provided that each party may retain a single archival copy of any document or information that such party is obligated to maintain pursuant to record keeping requirements to which it is subject under applicable laws, rules or regulations, but for only so long as such records are required to be maintained.

 

9. Client Communications.  Each Partnership and the General Partner severally agree to provide to MSSB copies of any communications to limited partners with respect to the operation and performance of the applicable Partnership.  Communications that are provided on a regular basis such as monthly account statements, shall be distributed to MSSB when such communications are distributed to MSSB clients.  The General Partner shall use its commercially reasonable efforts to distribute to MSSB all communications that require any action by limited partners such as limited partner consent or vote prior to the distribution of such communication to limited partners.  Each Partnership and the General Partner agree that MSSB may use such communications in connection with reports issued by MSSB to the applicable limited partners to which such communications were directed.  Each Partnership and the General Partner severally agree to respond as soon as practicable to inquiries of MSSB investors as communicated by MSSB and shall endeavor to copy MSSB on all such communications.

 

10. Term and Termination.

 

    (a) This Agreement shall remain in full force and effect until terminated by a party on thirty days’ prior written notice to the other parties.

 

    (b) This Agreement may be terminated immediately on written notice to the other parties hereto on the dissolution, insolvency or bankruptcy of any party or upon a material breach of any condition, warranty, representation or other term of this Agreement by the other party.

 

    (c) Notwithstanding Section 10(b), upon becoming aware of a Disqualifying Event occurring on or after September 23, 2013 with respect to MSSB or any of its Covered Persons, a Partnership may, in its sole discretion, terminate this Agreement which shall be effective immediately or on such future date as indicated by such Partnership in a notice to MSSB relating to such termination.

 

    (d) On termination of this Agreement, the General Partner shall continue to pay MSSB the compensation set forth in Section 3 for so long as each limited partner introduced to the Partnerships by MSSB remains a limited partner and MSSB (and its applicable employees) maintains all necessary licenses and regulations required to receive such compensation.  For purposes of the foregoing, MSSB shall be entitled to the compensation set forth in Section 3 with respect to any person introduced by MSSB to the General Partner prior to termination whose subscription is accepted by the applicable Partnership within sixty days following such termination.

 

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11. Notices.  Any notice required or desired to be delivered under this Agreement shall be effective on actual receipt and shall be in writing and (i) delivered personally; (ii) sent by first class mail or overnight delivery, postage prepaid; (iii) transmitted by electronic mail (with confirmation of delivery and receipt); or (iv) transmitted by fax (with confirmation by first class mail, postage prepaid) to the parties at the following address or such other address as the parties from time to time specify in writing:

 

	
If to the Partnership or the General Partner :

 

[Name of Partnership]

c/o Ceres Managed Futures LLC

Morgan Stanley Alternative Investments

522 5th Avenue, 14th Floor

New York, NY  10036

Fax: 212-296-6869

Email: Alper.Daglioglu@morganstanley.com

Attention: Alper Daglioglu, President

 

With a copy to:

Alston & Bird LLP

90 Park Avenue

New York, NY 10016

Email:  tim.selby@alston.com

Attention: Tim Selby

 

	
If to MSSB:

 

Morgan Stanley Smith Barney LLC

522 5th Avenue, 13th Floor

New York, NY  10036

Fax: 212 905-2750

Email: Jeremy.Beal@morganstanley.com

Attention:  Jeremy Beal, Executive Director

 

12. Status of Parties.  In selling the Interests, MSSB shall be an independent contractor (rather than employee, agent or representative) of any Partnership or the General Partner, and MSSB shall not have the right, power or authority to enter into any contract or to create any obligation on behalf of any Partnership or the General Partner or otherwise bind any Partnership or the General Partner in any way.  Nothing in this Agreement shall create a partnership, joint venture, agency, association, syndicate, unincorporated business or any other similar relationship between the parties.  Nothing in this Agreement shall be construed to imply that MSSB is a partner, shareholder, manager, managing member or member of any Partnership or the General Partner.

 

13. Miscellaneous.

 

    (a) Headings.  Headings to sections and subsections in this Agreement are for the convenience of the parties only and are not intended to be a part of or affect the meaning or interpretation hereof.

 

    (b) Entire Agreement.  This Agreement embodies the entire agreement and understanding of the parties with respect to the subject matter hereof, and supersedes all other agreements and understandings, whether written or oral, between the parties relating to the subject matter hereof entered into prior to this Agreement.

 

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    (c) Amendments.  This Agreement (including Schedules 3 and 4) shall not be amended except by a writing signed by all parties hereto.  Notwithstanding the previous sentence, Partnerships may be added to this Agreement upon the agreement of the General Partner and MSSB.  The listing of such Partnership on Schedule 1 hereto shall be evidence of such agreement.

 

    (d) Waiver.  No waiver of any provision of this Agreement shall be implied from any course of dealing between the parties hereto either before or after the effective date of this Agreement or from any failure by any party hereto to assert its rights hereunder on any occasion or series of occasions.

 

    (e) Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflict or choice of law provisions thereof.  The provisions of Sections 3, 7 (including with respect to breaches of Section 4 or 5), 8, 9, 10(c), and this Section 13 shall survive termination of this Agreement.  If any provision of this Agreement is or should become inconsistent with any present or future law, rule, or regulation of any governmental or regulatory authority having jurisdiction over the subject matter of this Agreement, such provision shall be deemed rescinded or modified in accordance with any such law, rule or regulation.  In all other respects, this Agreement shall continue and remain in full force and effect.

 

    (f) Successors and Assigns.  This Agreement shall inure to the benefit of and be binding on the parties hereto and such parties’ respective successors and permitted assigns.

 

    (g) Assignment.  No party may assign this Agreement without the prior written consent of the other parties, except as otherwise provided herein.  Any purported assignment in violation of this Section 13 shall be void.

 

    (h) Jurisdiction and Consent.  THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN NEW YORK CITY OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND WAIVE TRIAL BY JURY.  EACH OF THE PARTIES IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.  EACH OF THE PARTIES AGREES THAT A FINAL JUDGMENT IN ANY SUCH SUIT, ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND BINDING UPON THE PARTIES AND MAY BE ENFORCED IN ANY OTHER COURTS TO WHOSE JURISDICTION A PARTY IS OR MAY BE SUBJECT, BY SUIT UPON SUCH JUDGMENT.  EACH PARTNERSHIP AND THE GENERAL PARTNER EACH HEREBY CONSENTS TO THE SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT BY MEANS OF PERSONAL DELIVERY OR COURIER SERVICE, ADDRESSED TO ITS ADDRESS PROVIDED ABOVE AND TO THE ATTENTION OF ANY SECRETARY, ASSISTANT SECRETARY OR ANY OTHER OFFICER, DIRECTOR, MANAGING AGENT OR GENERAL AGENT OF SUCH PARTY, AND SUCH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE UNDER NEW YORK LAW OR UNDER ANY LAW OF ANY STATE OF THE UNITED STATES OR OF ANY OTHER JURISDICTION OR OTHERWISE TO SERVICE OF PROCESS IN SUCH MANNER.

 

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(i) Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.  Facsimiles (including facsimiles of the signature pages of this Agreement) shall have the same legal effect hereunder as originals.

 

 

 

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

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IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be executed as of the day and year first above written.

	
THE PARTNERSHIPS LISTED ON SCHEDULE 1 HERETO

 

By: Ceres Managed Futures LLC

 

Name:   /s/ Alper Daglioglu                                                

           Alper Daglioglu

 

Title:  President

	
Morgan Stanley Smith Barney LLC

 

 

 

Name: /s/ Jeremy Beal                                               

             Jeremy Beal

 

Title:  Executive Director

	  	
Ceres Managed Futures LLC

 

Name: /s/ Alper Daglioglu                                                      

           Alper Daglioglu

 

Title:  President

 

 

 

 

 

	                                                                                          - 16 -  	  

 

  

  

  

Schedule 1

 

	
PARTNERSHIP

	
STATE AND DATE OF ORGANIZATION

	
EFFECTIVE DATE

	
Polaris Futures Fund L.P.

	
Delaware; February 22, 2007

	
April 1, 2014

	
Meritage Futures Fund L.P.

	
Delaware; February 22, 2007

	
April 1, 2014

	
LV Futures Fund L.P.

	
Delaware; February 22, 2007

	
April 1, 2014

	
Managed Futures Premier BHM L.P.

	
Delaware; August 23, 2010

	
April 1, 2014

	
Managed Futures Premier Graham L.P.

	
Delaware; July 15, 1998

	
April 1, 2014

	
Managed Futures Strategic Alternatives, L.P.

	
Delaware; May 4, 1999

	
April 1, 2014

	
Managed Futures Premier Aventis L.P.

	
Delaware; April 10, 2012

	
April 1, 2014

	
Morgan Stanley Smith Barney Charter Aspect L.P.

	
Delaware; October 22, 1993

	
December 31, 2013

	
Morgan Stanley Smith Barney Charter Campbell L.P.

	
Delaware; March 26, 2002

	
December 31, 2013

	
Morgan Stanley Smith Barney Charter WNT L.P.

	
Delaware; July 15, 1998

	
December 31, 2013

	
Morgan Stanley Smith Barney Spectrum Currency and Commodity L.P.

	
Delaware; October 20, 1999

	
December 31, 2013

	
Morgan Stanley Smith Barney Spectrum Global Balanced L.P.

	
Delaware; April 29, 1994

	
December 31, 2013

	
Morgan Stanley Smith Barney Spectrum Select L.P.

	
Delaware; March 21, 1991

	
December 31, 2013

	
Morgan Stanley Smith Barney Spectrum Strategic L.P.

	
Delaware; April 29, 1994

	
December 31, 2013

	
Morgan Stanley Smith Barney Spectrum Technical L.P.

	
Delaware; April 29, 1994

	
December 31, 2013

 

  

  

  

Schedule 2

 

	
PRIOR AGREEMENT

	
Alternative Investment Placement Agent Agreement, dated as of June 1, 2007, by and among LV Futures Fund L.P. (formerly Morgan Stanley Managed Futures LV, L.P.), Meritage Futures Fund L.P. (formerly Morgan Stanley Managed Futures MV, L.P.), Polaris Futures Fund L.P. (formerly Morgan Stanley Managed Futures HV, L.P.), Ceres Managed Futures LLC (formerly Demeter Management Corporation), and Morgan Stanley Wealth Management (replacing Morgan Stanley & Co. LLC (formerly Morgan Stanley & Co. Incorporated)), as amended

	
Amended and Restated Selling Agreement, dated as of July 29, 2002, among Managed Futures Premier Graham L.P. (formerly Morgan Stanley Charter Graham L.P.), Morgan Stanley Smith Barney Charter Campbell L.P. (formerly Morgan Stanley Charter Campbell L.P.), Morgan Stanley Smith Barney Charter Aspect L.P. (formerly Morgan Stanley Charter MSFCM L.P.), Morgan Stanley Charter Welton L.P., and Morgan Stanley Smith Barney Charter WNT L.P. (formerly Morgan Stanley Charter Millburn L.P.), Morgan Stanley DW Inc., and Ceres Managed Futures LLC (formerly Demeter Management Corporation), as amended

	
Alternative Investment Placement Agent Agreement, dated as of October 1, 2011, by and among Managed Futures Premier Aventis L.P. (and such other partnerships listed on Schedule 1 thereto), Ceres Managed Futures LLC, and Morgan Stanley Smith Barney LLC

	
Amended and Restated Selling Agreement, dated as of March 7, 2000, among Morgan Stanley Smith Barney Spectrum Currency and Commodity L.P. (formerly Morgan Stanley Dean Witter Spectrum Currency L.P.), Morgan Stanley Smith Barnery Spectrum Global Balanced L.P. (formerly Morgan Stanley Dean Witter Spectrum Global Balanced L.P.), Morgan Stanley Smith Barney Spectrum Select L.P. (formerly Morgan Stanley Dean Witter Spectrum Select L.P.), Morgan Stanley Smith Barney Spectrum Strategic L.P. (formerly Morgan Stanley Dean Witter Spectrum Strategic L.P.), Morgan Stanley Smith Barney Spectrum Technical L.P. (formerly Morgan Stanley Dean Witter Spectrum Technical L.P.), Morgan Stanley Dean Witter Spectrum Commodity L.P., Dean Witter Reynolds Inc., and Ceres Managed Futures LLC (formerly Demeter Management Corporation), as amended

	
Alternative Investment Placement Agent Agreement, by and among Managed Futures Premier BHM L.P. (formerly BHM Discretionary Futures Fund L.P.), Ceres Managed Futures LLC, and Morgan Stanley Smith Barney LLC, as amended

	
Placement Agreement, dated as of June 30, 1999, between Morgan Stanley & Co. Incorporated, Morgan Stanley Dean Witter Strategic Alternatives, L.L.C., Morgan Stanley Strategic Alternatives L.P., and Demeter Management Corporation, as amended by the Additional Placement Agreement, dated as of August 31, 1999, between Morgan Stanley & Co. Incorporated, Morgan Stanley Dean Witter Strategic Alternatives, L.L.C., Morgan Stanley Strategic Alternatives L.P., Demeter Management Corporation, and Dean Witter Reynolds, Inc., as amended

 

 

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Schedule 3

 

	
PARTNERSHIP

	
ONGOING PLACEMENT AGENT FEE

	
LV Futures Fund L.P.

	
1/12 of 2.0% per month (2.0% annual) of the net asset value per unit where the limited partner has an aggregate investment of up to $4,999,999; and 1/12 of 0.75% per month (0.75% annual) of the net asset value per unit where the limited partner has an aggregate investment of $5,000,000 or more1

	
Meritage Futures Fund L.P.

	
1/12 of 2.0% per month (2.0% annual) of the net asset value per unit where the limited partner has an aggregate investment of up to $4,999,999; and 1/12 of 0.75% per month (0.75% annual) of the net asset value per unit where the limited partner has an aggregate investment of $5,000,000 or more7

	
Polaris Futures Fund L.P.

	
1/12 of 2.0% per month (2.0% annual) of the net asset value per unit where the limited partner has an aggregate investment of up to $4,999,999; and 1/12 of 0.75% per month (0.75% annual) of the net asset value per unit where the limited partner has an aggregate investment of $5,000,000 or more7

	
Managed Futures Premier BHM L.P.

	
2.0% annual of the net asset value per unit paid on a monthly basis

	
Managed Futures Premier Graham L.P.

	
2.0% annual of the net asset value per unit paid on a monthly basis

	
Managed Futures Premier Aventis L.P.

	
1/12 of 2.0% per month (2.0% annual) of the net asset value per unit

	
Managed Futures Strategic Alternatives, L.P.

	
1/12 of 1.0% per month (1.0% annual) of the net asset value per unit

  

1For the calculation of the aggregate investment for an investor in each of LV Futures Fund L.P., Meritage Futures Fund L.P. and Polaris Futures Fund L.P., the aggregate investment shall equal the total investment by such investor in all three partnerships.

 

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Schedule 4

 

	
PARTNERSHIP

	
BROKERAGE FEE

	
Morgan Stanley Smith Barney Charter Aspect L.P.

	
4.0% annually of the net asset value per unit paid on a monthly basis

	
Morgan Stanley Smith Barney Charter Campbell L.P.

	
4.0% annually of the net asset value per unit paid on a monthly basis

	
Morgan Stanley Smith Barney Charter WNT L.P.

	
4.0% annually of the net asset value per unit paid on a monthly basis

	
Morgan Stanley Smith Barney Spectrum Currency and Commodity L.P.

	
3.60% annually of the net asset value per unit paid on a monthly basis

	
Morgan Stanley Smith Barney Spectrum Global Balanced L.P.

	
3.60% annually of the net asset value per unit paid on a monthly basis

	
Morgan Stanley Smith Barney Spectrum Select L.P.

	
4.0% annually of the net asset value per unit paid on a monthly basis

	
Morgan Stanley Smith Barney Spectrum Strategic L.P.

	
4.0% annually of the net asset value per unit paid on a monthly basis

	
Morgan Stanley Smith Barney Spectrum Technical L.P.

	
4.0% annually of the net asset value per unit paid on a monthly basis

 

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Appendix A

 

Covered Persons:

 

	
(i)  

	
MSSB and its executive officers and directors and officers participating in the offering of any of the Partnerships;

 

	
(ii)  

	
Morgan Stanley Financial Advisors soliciting investors for the Partnerships on September 23, 2013 and thereafter who receive compensation with respect to such solicitation; and

 

	
(iii)  

	
MSSB’s managing member, Morgan Stanley Smith Barney Holdings LLC (the “Managing Member”), and the Managing Member’s executive officers and directors and officers participating in the offering of any of the Partnerships.

 

 

- 5 -

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