Document:

ex10-6.htm

Exhibit 10.6

 

Garden State Securities Inc.

328 Newman Springs Rd.

Red Bank, NJ 07707

March 25, 2015

INNOVUS PHARMACEUTICALS, INC.

9171 Towne Centre Drive, Suite 440,

San Diego, CA  92122

ATT:  Dr. Bassam Damaj, Chief Executive Officer

 

Re:           Engagement Agreement

Dear Dr. Damaj,

    

This letter sets forth the Agreement (the “Letter Agreement”) by and among Innovus Pharmaceuticals, Inc. and its subsidiaries and affiliates (collectively herein referred as the “Company”) and Garden State Securities Inc. and its subsidiaries and its affiliates (“GSS”) with respect to the engagement of GSS to act as a non-exclusive selling/placement agent for the Company.

 

In connection with its engagement hereunder, this Letter Agreement confirms the Company’s understanding of GSS’s intention to attempt to utilize its best efforts to affect the following:

	
1.   

	
Review the business and operation of the Company and its historical and projected financial condition.

	
2.   

	
Advise Company of “best efforts” private placement of debt or equity securities to fulfill the Company’s business plan and a possible public listing through a self-filing and/or reverse merger. 

	
3.   

	
Contact for the Company possible financing sources.

 

Notwithstanding the foregoing, the intent herein described shall not obligate GSS to effect any public or private financing for the Company. Any such obligation shall be conditioned in its entirety upon the execution and delivery by GSS of an Agency or Underwriting Agreement satisfactory to GSS and the Company and satisfactory due diligence performed by GSS.

 

1. Term:

 

GSS shall act as the Company’s non-exclusive placement/selling agent until terminated pursuant hereto.  

 

  

-1-

  

 

2.  Compensation:

 

The Company agrees to pay to GSS at each full or incremental closing of any equity financing, convertible debt financing, debt conversion or any instrument convertible or exercisable into the Company’s common stock (the “Securities Financing”) on any Source(s) (described in Section 5) contacted by GSS for the purpose of investing in a Securities Financing; (i) a cash transaction fee in the amount of 10% of the amount of the Securities Financing;  and (ii) warrants (the “Warrants”) with “piggy back” registration rights, equal to 10% of the amount of securities sold the Securities Financing at an exercise price equal to the investor’s warrant exercise price of the Securities Financing or the price of the Securities Financing, if there are no warrants issued to investors.   The Warrants shall have a 5-year term and a cashless exercise provision.  The Company will also pay, at closing, the expense of GSS’s or investor’s legal counsel in connection to the Securities Financing, which will be disclosed in the Term Sheet for the Securities Financing. The Company shall also cause, at its cost and expense, all “blue sky” filings related to the Securities Financing and required by applicable law to be made in due and proper form and substance and in a timely manner as required under the laws of the states in which Securities are sold (“Blue Sky Filings”).  In addition, the Company shall cause, at its cost and expense, a Form D related to the Securities Financing to be filed with the Securities and Exchange Commission (“SEC”) in due and proper form and substance and in a timely manner.  The Company shall deliver true and correct copies of all Blue Sky Filings and the Form D, as filed with the SEC, to GSS within 15 days of the final closing date. 

 

3.  Access to Premises:  

In connection with the performance of services hereunder, the Company shall reasonably make its facilities, management and employees available to GSS and its representatives, during normal working hours, and shall be responsive to any and all reasonable requests for information made by GSS, with reasonable notice and with confidentiality. In performing its services hereunder, GSS 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 of all information that has been furnished to it by the Company and shall have no obligation to verify the accuracy or completeness of any such information or to conduct any appraisal of any assets.

 

4.  Reserved:

  

-2-

  

 

5.  Future Financing: 

If the Company were to receive any additional capital within twelve  (12) months from either the later of; (i) the closing of the Securities Financing from any investors that invested in the Securities Financing; and/or (ii) date of termination of this Letter Agreement from any Source(s) contacted by GSS for the purpose of investing in the Securities Financing; the Company will pay to GSS a cash fee of 10% of the amount raised at the closing of any such financing along with the Warrants detailed above in Section 2 of this Letter Agreement. The Company will not circumvent GSS and will not attempt to deal directly or indirectly through agents or representatives of the Company, with such Source(s) or investors without prior written consent of an officer of GSS.  As used in this Letter Agreement, the term “Source(s)” shall be defined to include, without limitation, any corporation, company, institution, partnership, individual and all of the Source(s)’ affiliates that are directly or indirectly contacted by GSS for the purpose of investing in the Securities Financing or the purpose of entering into a Transaction. The Company has provided a list of investors that GSS shall not contact and shall not be considered a Source(s), which is listed as Exhibit A.  Any investors that GSS contacts that is not listed on Exhibit A, shall officially become a Source(s) as contemplated by this Letter Agreement.  This paragraph shall survive any termination of this Letter Agreement.

6.  Expenses: 

Except as provided in Section 2 of this Letter Agreement, the Company hereby agrees to pay all reasonable filing fees, charges and expenses incident to the performance by the Company of its obligations hereunder, including, without limitation, all reasonable fees, charges, and expenses in connection with:  (i) the issuance, sale, transfer, and delivery of the Securities, including any transfer or other taxes payable thereon and the fees of any transfer agent or registrar; (ii) the securing of an exemption therefrom under state or foreign "blue sky" or securities laws, including without limitation, filing fees payable in the jurisdictions in which such registration or qualification or exemption therefrom is sought and disbursements in connection therewith; (iii) filing fees payable to the SEC, if any;.

 

7.  Intentionally Left Blank: 

 

8.  Indemnification: 

The Company agrees to indemnify GSS and certain other entities and persons as set forth in Schedule I.

  

-3-

  

 

9.  Disclosure:

	
(a)

	
The Company recognizes and confirms that GSS, in acting pursuant to this engagement, will be using information in reports and other information provided by others, including, without limitation, information provided by or on behalf of the Company, and that GSS does not assume responsibility for and may rely, without independent verification, on the accuracy and the completeness of any such reports and information. The Company hereby warrants that all of its information relating to the Company will not contain any untrue statement of a material fact or omit to state any material fact or omit to state any material fact necessary to make the statements contained herein, in the light of the circumstances under which they were made, not misleading. The Company agrees to provide GSS with (i) prompt notice of any material development affecting the Company; (ii) such other information concerning the business and financial condition of the Company as GSS may from time to time reasonably request provided that such information is maintained by GSS pursuant to a confidentiality agreement.  GSS agrees to distribute information regarding the Company, not in the public domain, only with written approval by the Company.

	
(b)

	
The Company agrees that any information or advice rendered by GSS or its representatives in connection with this engagement is for the confidential use of the Company only and, except as otherwise required by law, the Company has not and will not permit any third party to disclose or otherwise refer to such advice or information in any manner without GSS’s prior written consent, unless such information becomes part of the public domain through no fault of the Company.

	
(c)

	
GSS agrees that any information, plans or data regarding the Company and its activities are for the confidential use of GSS only and, except as otherwise required by law or otherwise in the public domain, GSS will not disclose or otherwise permit any third party to disclose or otherwise refer to, without the Company’s prior written consent.

10.  Termination: 

The Company and GSS will each have the right to terminate this Letter Agreement at any time, provided prior written notice is given 20 days before termination.  Any termination of this Letter Agreement shall not affect or limit (i) the rights of GSS or any other indemnified person (as defined in schedule I hereto) to receive indemnification, (ii) rights to receive fees accrued prior to such termination, (iii) the rights of GSS to receive fees and be covenanted to all of the terms and conditions detailed in Section 2, and Section 5 of this Letter Agreement on any Securities Financing that was negotiated during the term of this Letter Agreement and/or closes after any termination and (iv) the rights detailed in Section 5 of this Letter Agreement.

11.  Miscellaneous:

GSS may, at its own expense, place announcements or advertisements in financial newspapers and journals describing its services hereunder, provided that the same shall comply with securities laws and shall be approved by the Company prior to dissemination.

 

  

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12.  Governing Law: 

This Agreement (a) shall be governed by and construed in accordance with the laws of the State of Delaware and the parties agree that any dispute, claim or controversy relating to or arising out of this Agreement or the performance of its terms shall be resolved and conducted in the County and State of Delaware , regardless of the laws that might otherwise govern under applicable principles of conflicts of law thereof, (b) incorporates the entire understanding of the parties with respect to the subject matter hereof and supersedes all previous agreements should they exist hereto, (c) may not be amended or modified except in writing executed by the Company and GSS and (d) shall be binding upon and inure to the benefit of the Company, GSS, and other indemnified Parties and their respective successors and assigns. In the event of litigation between the parties arising hereunder, GSS shall be entitled to costs and reasonable attorney's fees.

 

If you are in agreement with the foregoing, please execute the enclosed counterpart of this letter in the space below provided for that purpose and deliver it to the undersigned, whereupon the terms hereof shall become a binding agreement between us.

The investment banking staff of GSS and its affiliates look forward to working with you.

Very truly yours,

 

_______________________________

Ernest Pellegrino

Garden State Securities Corp.

 

AGREED TO AND ACCEPTED

THIS ___ DAY OF ____________, 2015

_______________________________

By: Dr. Bassam Damaj, CEO

Innovus Pharmaceuticals, Inc

  

-5-

  

Schedule I

 

Innovus Pharmaceuticals, Inc. (the “Company”) referred to in the attached Letter Agreement (the “Letter Agreement”) agrees to indemnify and hold harmless Garden State Securities Inc. (“GSS”) and its affiliates, and the respective directors, officers, agents and employees of GSS and its affiliates and each other entity or person, if any, controlling GSS or any of its affiliates within the meaning of Section 15 of the Securities Act of 1933, as amended,  (GSS and each such entity or person being referred to as an “Indemnified Person”) from and against any losses, claims, damages or liabilities (or actions in respect thereof) relating to or arising out of activities performed pursuant to the Letter Agreement, the transactions contemplated thereby or GSS’s role in connection therewith, or caused by any untrue statements of material nature contained in any document provided to GSS by the Company which documents are relied upon by GSS in connection with its performance of the Letter Agreement, and will reimburse GSS and any other Indemnified Person for all expenses (including, without limitation, reasonable fees and disbursements of counsel) incurred by GSS or any such other Indemnified Person in connection with investigating, preparing or defending any such action or claim, whether or not in connection with pending or threatened litigation to which GSS (or any other Indemnified Person) is a party, in each case, as such expenses are incurred or paid.  The Company will not, however, be responsible for any such losses, claims, damages, liabilities or expenses of any Indemnified Person that are determined by final judgment of a court of competent jurisdiction to have primarily resulted from actions taken or omitted to be taken by such Indemnified Person in bad faith, intentional misconduct, or from such indemnified Person’s  negligence.  The Company also agrees that no Indemnified Person shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company for or in connection with the Letter Agreement, any transactions contemplated thereby or GSS’s role in connection therewith, expect for any such liability for losses, claims, damages liabilities or expenses incurred by the Company that are determined by final judgment of a court of competent jurisdiction to have resulted primarily from actions taken or omitted to be taken by such Indemnified Person in bad faith, intentional misconduct, or from such Indemnified Person’s gross negligence.

Upon receipt by an Indemnified Person of actual notice of a claim, action or proceeding against such Indemnified Person in respect of which indemnity may be sought hereunder, such Indemnified Person shall promptly notify the Company after any action is commenced by way of service with a summons or other legal process (giving information as to the nature and basis of the claim) against such Indemnified Person.  In any event, failure so to notify the Company shall not relieve the Company from any liability that the Company may have on account of this indemnity or otherwise, except to the extent the Company shall have been materially prejudiced by such failure.  The Company will, if requested by an Indemnified Person, assume the defense of any litigation or proceeding in respect of which indemnity may be sought hereunder, including the employment of counsel reasonably satisfactory to GSS and the payment of the fees and expenses of such counsel, in which event, except as provided below, the Company shall not be liable for the fees and expenses of any other counsel retained by any Indemnified Person in connection with such litigation or proceeding.  In any such litigation or proceeding the defense of which the Company shall have so assumed, any Indemnified Person shall have the right to participate in such litigation or proceeding and to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the Company and such Indemnified Person shall have mutually agreed in writing to the retention of such counsel or (ii) the named parties to any such litigation or proceeding (including any impeded parties) include the Company and such Indemnified Person and representation of both parties by the same counsel would in the opinion of counsel to such Indemnified Person, be inappropriate due to actual or potential differing interests between the Company and such Indemnified Person.  The Company shall not be liable for any settlement of any litigation or proceeding effected without its prior written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the Company agrees to indemnify the Indemnified Person from and against any loss or liability by reason of such settlement or judgment.  If the Company assumes the defense of any litigation or proceeding, the Company will not settle such litigation or proceeding without GSS’s written consent, which shall not be unreasonably withheld.

 

If for any reason the foregoing indemnification is unavailable to an Indemnified Person or insufficient to hold it harmless, the Company shall contribute to the amount paid or payable by the Indemnified Person as a result of such loss, claim, damage or liability in proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Indemnified Person on the other hand.  Notwithstanding the foregoing, under no circumstances shall any Indemnified Person’s aggregate contribution to any losses, claims, damages and expenses with respect to which contribution is available hereunder exceed the amount of fees actually received hereunder. Notwithstanding the foregoing, under no circumstances shall the Company’s aggregate contribution to any losses, claims, damages and expenses with respect to which contribution is available hereunder exceed the amount of fees actually received hereunder.

The provisions contained in this Schedule I shall remain operative and in full force and effect regardless of the expiration of any termination of the Letter Agreement.

 

-6-Exhibit

EXECUTION VERSION

SHARED SERVICES AGREEMENT BY AND BETWEEN
ALICO, INC. AND
TRAFELET BROKAW CAPITAL MANAGEMENT, L.P.

June 1, 2015

THIS SHARED SERVICES AGREEMENT (this "Agreement ") is made and entered into as of this 1st day of June, 2015 by and between ALICO , INC., a corporation organized under the laws of the State of Florida (on behalf of itself and its affiliates and subsidiaries, hereinafter jointly referred to as "Purchaser "), and TRAFELET BROKAW CAPITAL MANAGEMENT , L.P., a limited liability partnership organized under the laws of the State of Delaware ("Supplier").

RECITALS

WHEREAS, Purchaser requires certain functions and administrative services in New York City, including in connection with Purchaser 's office of the Chairman, Chief Financial Officer and certain Board and other meetings;

WHEREAS, Purchaser has requested that Supplier provide such Services (as hereinafter defined) on an at-cost basis;

WHEREAS , the intent and purpose of this Agreement is that Purchaser shall at all times obtain the Services at a cost equal to or less than Purchaser would be able to obtain equivalent services on an arm's-length basis from a third party; and

WHEREAS, because Supplier is controlled by affiliates of Purchaser, the transactions contemplated herein have been approved by the Audit Committee of the Board of Directors of Purchaser (the "Audit Committee").

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter set forth, the parties agree as follows:

ARTICLE I 
SERVICES PROVIDED 

1.Description of Services. Subject to all the terms and conditions hereof , during the term of this Agreement , Supplier shall provide or cause to be provided to Purchaser and its subsidiaries the following functional categories of services:

		
	(a)
	Shared Office Services. Supplier shall provide Purchaser with, and Purchaser shall purchase from Supplier, a license to use and occupy a portion of Supplier's office space located at 410 Park Avenue, 17th Floor (or such other space as is mutually agreed by the parties hereto, the "Shared Office") (the "Shared Office Services''.);

		
	(b)
	Administrative Support. Supplier shall provide Purchaser with, and Purchaser shall purchase from Supplier, such other services as are attendant to the Shared Office Services, including reception, secretarial services and related facilities services, as requested by Purchaser.

The above described services and products are referred to hereinafter, collectively, as the "Services."

2.Warranty Disclaimer. EXCEPT AS OTHERWISE SPECIFICALLY SET FORTH HEREIN, SUPPLIER MAKES NO EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES, INCLUDING, WITHOUT LIMITATION, WARRANTIES IMPLIED  BY  LAW OF MERCHANT ABILITY OR FITNESS FOR A PARTICULAR PURPOSE , REGARDING THIS AGREEMENT, THE PERFORMANCE OF THE SERVICES CONTEMPLATED BY THIS AGREEMENT OR ANY TANGIBLE PROPERTY DELIVERED BY SUPPLIER PURSUANT TO THIS AGREEMENT.

3.Limitation of Liability. Subject to Section 1.2, neither party  shall be liable to the other  or to any other person or entity for (a) any damages of any kind or nature (including compensatory damages) arising out of any act or omission of a party or any person or entity acting  on behalf  of a  party attributable to or arising in connection with the  Services,  whether  negligent  or  otherwise,  except for such damages attributable to a party 's fraud, bad faith, gross negligence or willful  misconduct or (b) any indirect, punitive,  exemplary, remote, speculative or similar damages in excess  of compensatory damages of the other arising in connection  with  the  transactions  contemplated  hereby (other than any such liability with respect to a third-party   claim).

4.Information. The Purchaser shall make available to Supplier any and all information which Supplier shall reasonably deem necessary in order to perform the Services   hereunder.

ARTICLE II COMPENSATION

1.Fees.

(a)General Shared Service Fees. In consideration of  the  Services,  during  the  Initial Term of this Agreement , Purchaser will pay Supplier an  amount  equal  to  Supplier's  actual costs of providing the Services as a base shared services fee. Such base shared  services  fee  shall include internal allocations, as determined by Supplier in consultation with Purchaser , and a prorated portion of any rent, utilities, telecommunications , phone, information technology infrastructure and support, leasehold improvements, property  taxes,  office  supplies and  similar payments  actually paid by  Supplier in respect  of the Shared Office determined by multiplying  the amounts paid by Supplier  by the percentage of the Shared Office used by Purchaser.  For example, if Supplier in consultation with Purchaser allocates 30% of all head-count in any specific department to Purchaser in any year,  and the total cost to Supplier for such department is $100,000 in such year, then the Purchaser will be invoiced $30,000 for the related services in such year. All such expenses and payments shall be fully supported with reasonable documentation and copies of all such documentation shall be provided to Purchaser upon Purchaser's reasonable request to the extent required to support such expenses and payments.

(b)On or before December 1 of each year of the Term of this Agreement, Supplier and Purchaser shall jointly agree on an estimate of Supplier's fees for each functional category of Service set forth in Section 1.1(b) to be provided pursuant this Agreement for Purchaser 's next fiscal year; provided , that to the extent such fees cannot be determined, as to such unknown fees, Supplier shall set out the basis on which they shall be charged . It is understood and agreed that all fees charged to Purchaser  for any particular  month  shall be no greater than  Supplier's actual  costs  of
providing such Services during such month, as determined pursuant to Section 2.1(a). Attached as Annex A is an estimate of such costs, on a monthly basis, during the period beginning on June 1 and ending on December 31, 2015 .

2.Invoice and Payment Procedures. Purchaser shall pay Supplier all fees described herein for Services hereunder by means of wire transfer of immediately available funds transfer from Purchaser 's account to Supplier's designated account. Supplier shall provide Purchaser with a written invoice of charges for such fees and out-of-pocket and pre-paid expenses (unless such expenses are already included in the relevant fees) on a monthly basis. Purchaser shall pay each such invoice within thirty (30) days of receipt. In the event of any dispute between Supplier and Purchaser over the amounts due for Services rendered, such disputed amounts shall, upon resolution of the dispute, be credited to or debited from 

Purchaser 's account against future payments for Services or paid in cash after termination of this Agreement.

3.Purchaser Audit Rights. As reasonably requested by Purchaser (not to exceed once per year) and at Purchaser 's sole expense, Purchaser or its independent auditor may reasonably audit Supplier's charges or performance under this Agreement. Purchaser will coordinate any such audits with Supplier and comply with Supplier's reasonable policies and procedures regarding access to and use of confidential information.

4.Certification to Audit Committee. Once each year during the Term of this Agreement, Purchaser 's management shall certify to the Audit Committee that the Services are being provided by Supplier at cost. Supplier shall reasonably cooperate with and provide information, upon Purchaser's reasonable request, to assist Purchaser 's management in making such certification .

ARTICLE III
TERM AND TERMINATION

1.Term. This Agreement shall take effect retroactive from January 1, 2015 and will continue in force for an initial period of one (1) year from June 1, 2015 ("Initial Term"), subject to earlier termination as provided in Section 3.2 hereof, and thereafter , this Agreement will be automatically renewed for additional periods of one (1) year each ("Additional Term(s)").

2.Termination . This Agreement or an entire functional category of Services may be terminated in accordance with the following provisions (Purchaser will have no right to terminate any Services within a specific functional category of Services):

(a)Either party hereto may terminate this Agreement at any time upon the occurrence of an event of bankruptcy with respect to the other party;

(b)Either party may terminate this Agreement , or a particular functional category of Services by giving notice in writing to the other party in the event the other party is in material breach of this Agreement and has failed to cure such breach within ninety (90) calendar days of receipt of written notice thereof from the other party ; provided , that, to the extent such material breach relates to a specific Service or specific Services, this Agreement may only be terminated with respect to such Service or Services;

(c)This Agreement , any Service or functional category of Services may be terminated by the mutual written consent of the parties, which mutual consent may terminate this Agreement in its entirety or terminate this Agreement in part by terminating a specific functional  category  of Services; or

(d)Purchaser may terminate any or all of the functional categories of Services, described in Section 1.1(b), and only such services, on written notice to Supplier.  The Section  1.1(b) Services  that are the subject of such notice shall be terminated as of the last day  of the  calendar  month  in  which notice is given; provided , that if notice is given after the fifteenth (15th) day  of a calendar  month, the Service shall terminate on the last day of the calendar  month  following  the  month  in which notice is given. In the event such termination would result in a breach by Supplier of a third party obligation, the parties agree to use commercially reasonable efforts to resolve or prevent the breach in a manner which will allow the Purchaser to proceed with termination of the   Service.

3.Rights and Obligations on Termination.  In the event of termination  of this Agreement or a particular functional category of Services for any reason, the  parties  will  have  the  following rights and obligations:

(a)Termination will not release either party from the obligation to make payment of all amounts then or thereafter  due and owing for Services already provided;   and

(b)The obligations hereunder which by their terms or clear intent extend beyond termination of this Agreement shall survive termination of this   Agreement.

ARTICLE IV RELATIONSHIP

4.1   General.   Nothing contained in this Agreement shall be construed to give either party the power to direct or control the day-to-day activities of the other party, nor to assume or create any obligation or responsibility, express or implied, on behalf of or in the name of the other party. In fulfilling its obligations under this Agreement, Supplier will be acting as an independent    contractor.

ARTICLE V MISCELLANEOUS

5.1    Notices. All notices and other communications to  be  given to  any party  hereunder  shall be sufficiently given for all purposes hereunder if in writing and delivered by hand, courier or overnight delivery service or five (5) days after being mailed by certified or registered mail, return receipt requested , with appropriate postage prepaid, or when received in the form of a facsimile or  email transmission and shall be directed to the address set forth below (or at such other address or facsimile number as such party  shall designate by like  notice):

As to Supplier:    Trafelet Brokaw Capital Management, L.P.
410 Park Avenue, 17th Floor New York, NY 10022
Attention: 
Remy Trafelet
Fax No: 212-201-7801

As to Purchaser    Alico, Inc.
10070 Daniels Interstate Court, Suite 100 Fort Myers, FL 33913
Attention: 
Clayton G. Wilson
 Fax No: 239-226 -2004

5.2    Entire Agreement; Amendments; Assignment. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof. This Agreement may not be modified, amended, rescinded, canceled or waived, in whole or in part, except by a written instrument duly executed by the parties hereto.  Neither party shall voluntarily or involuntarily assign its rights or obligations under this Agreement without the prior written approval of the other party.  Any such prohibited assignment will be null and   void.

5.3    Counterparts. This Agreement may be executed simultaneously in two (2) or more counterparts, and each such counterpart will be deemed an original hereof, but all such counterparts together will constitute one and the same   instrument.

5.4    Waiver. No failure or delay by either party to take any action or assert any right or remedy hereunder or to enforce strict compliance with any provision hereof will be deemed to be a waiver of, or estopped with respect to, such right, remedy or noncompliance in the event of the continuation or repetition of the circumstances giving rise to such right, remedy or noncompliance.  No waiver will be effective unless given in a duly executed written   instrument.

5.5    Severability. In the event that any of the terms or provisions of this Agreement are in conflict with any rule of law or statutory provision or otherwise unenforceable under the laws or regulations of any government or subdivision thereof having jurisdiction over this agreement , such terms or provisions will be deemed stricken from this  Agreement  to  the  extent  necessary to avoid such conflict, but such invalidity or unenforceability will not invalidate any of the other terms or provisions of this agreement and the remainder of such terms or provisions and the remainder of this Agreement will continue in full force and effect, unless the invalidity or unenforceability of any such provisions hereof does substantial violence to, or where the invalid or unenforceable provisions  comprise an integral part of, or are otherwise inseparable  from, the remainder of this   Agreement.

5.6    No Third-Party Beneficiaries. This Agreement is for the sole benefit of the Parties and their permitted successors and assigns, and nothing in this Agreement express or implied shall give or  be construed to give to any Person, other than the Parties and their permitted successors and assigns,  any legal or equitable rights hereunder , whether as third-party beneficiaries  or  otherwise.

5.7    Governing Law. This Agreement shall be construed and enforced in accordance with the internal laws of the State of New York, United States of America, without regard to its principles of conflicts of law (except to the extent that the internal affairs doctrine or other requirements of statute or case law requires the application of the laws of the country or jurisdiction of organization of any entity).

IN W ITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their
authorized representatives  effective  as of the date  first  above written.

ALICO INC.                    TRAFELET BROKAW CAPITAL MANAGEMENT, L.P.

By:    /s/ Clayton G. Wilson                    By:    /s/ Andrew Loggia                

Its:    Chief Executive Officer                    Its:    Chief Financial Officer        

Annex A

	
			
	2015 OFFICE COSTS FOR TRAFELET BROKAW BASED ON SQUARE FOOTAGE USAGE

	Office Costs
	Monthly Cost
	Total Annual Cost

	Rent and Electricity
	35,806
	429,672

	Amortized  Improvements
	5,137
	61,640

	Commercial Rent Tax
	1,396
	16,757

	Technology and Support
	4,500
	54,000

	Supplies and Miscellaneous
	2,790
	33,480

	Letter of Credit
	1,250
	15,000

	Total Monthly Office Cost
	50,879
	610,549

	Square feet of office
	6,072
	6,072

	Cost per Sq foot
	8.38
	100.55

	

ALICO ALLOCATION FOR SHARED SERVICES

	Square  Footage Allocation
	2,429
	 

	Total Monthly Office Cost
	20,352

	Staff Support
	 

	50% Ad min cost (l00K/yr)
	8,333

	Receptionist
	0

	Analyst
	4,167

	Total Per Month Alico
	32,852

	Total For Quarter Alico
	98,555

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