Document:

exv10w1

Exhibit 10.1

February 5, 2010

Mr. Mark A. Libratore

President

Liberator Medical Holdings, Inc.

2979 SE Gran Park Way

Stuart, FL 34997

INVESTMENT BANKING AGREEMENT

Dear Mark:

We are pleased to reconfirm our mutual understanding regarding the retention of Littlebanc
Advisors, LLC (“Littlebanc”), securities offered through Wilmington Capital Securities, LLC, by
Liberator Medical Holdings, Inc., together with its subsidiaries, successors and assigns
(collectively, the “Company”), subject to the terms and conditions of this agreement (the
“Agreement”).

	 	1.	 	Purpose of Engagement. Littlebanc will assist the Company as its financial consultant
in connection with raising capital, renegotiations with current debt and equity holders and
negotiation of subordination agreements. For purposes of this Agreement, a “Transaction”
shall mean: (i) any offer or private sale of, investment or transaction in, or series of
investments or transactions in, the Company’s capital stock (whether outstanding or newly
issued shares), convertible securities, options, warrants, or other rights to acquire the
Company’s capital stock, or assets, or any other capital raise of any nature.
	 
	 	 	 	Littlebanc and the Company agree and acknowledge that this Agreement should not be
construed as a firm commitment or guarantee of any Transaction. It is acknowledged and
agreed that the decision to consummate a Transaction shall be in the Company’s sole and
absolute discretion.
	 
	 	2	 	Term. The term of this Agreement shall be for a period commencing on of the date
hereof and expiring on the earlier of six (6) months from the date hereof or the final
closing of a Transaction, unless sooner terminated or extended pursuant to the following
sentences (the “Term”). On or after six (6) months from the date hereof, Littlebanc or the
Company may terminate this Agreement upon thirty (30) days prior written notice to the
other party. Unless terminated by either party in writing, this Agreement shall
automatically renew for successive six month periods. Notwithstanding any termination or
expiration of this Agreement, the provisions of Paragraphs 5, 6 and Exhibit A, which is
attached hereto and incorporated herein, shall survive such termination or expiration.

	1.	 	Role of Littlebanc. Littlebanc will act as the Company’s financial consultant with respect
to:

	 	a)	 	Using its reasonable efforts to identify and introduce the Company to a single
or a small number of fundamentally oriented institutional financial investor(s)
(“Investor(s)”) and market the Transaction to such potential Investor(s).
	 
	 	b)	 	Evaluating Transaction proposals on behalf of the Company and providing
guidance with respect to the Transaction structure and valuation;

 

 

Liberator Medical Holdings, Inc.

February 5, 2010

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	 	c)	 	Assisting in any discussions or negotiations of any Transaction, as requested
by the Company, including renegotiations with current debt and equity holders and
negotiation of any subordination agreements that may be necessary;
	 
	 	d)	 	Coordinating due diligence, documentation and Transaction closing; and,
	 
	 	e)	 	Providing any other services related to a Transaction that may be appropriately
requested by the Company.

	2.	 	Compensation. In consideration for our services described above, Littlebanc shall be
entitled to receive, and the Company agrees to pay Littlebanc, the following compensation:

	 	a)	 	Transaction Fee. If the Company consummates a Transaction with any of the
Littelbanc Investors, the Company shall pay to Littlebanc a transaction fee (the
“Transaction Fee”) comprised of:

	 	(i)	 	A cash fee equal to 5 % of Consideration (as defined in Exhibit
A); and
	 
	 	(ii)	 	One share of five (5) year warrants for every 20 shares
purchased by an Investor in the Transaction (the “LB Securities”) issued by the
Company to Littlebanc or its designees, at an exercise price equal two dollars
and fifty cents ($2.50) per share.
	 
	 	(iii)	 	The Company shall pay Littlebanc its cash fee by wire transfer
at the closing of the Transaction payable to Wilmington Capital Securities,
LLC, and shall deliver securities earned by Littlebanc or its designees as soon
as practicable after closing of a Transaction.

	 	b)	 	Multiple Closings. In the event there are multiple partial closings prior to
the final closing of the Transaction, the Company shall issue to Littlebanc, or its
designees, the percentage of cash and securities set forth in Sections 5(a)(i), (ii)
payable with respect to the amount of each closing as soon as practicable after each
such closing.
	 
	 	c)	 	Other. In the event that any portion of the Transaction(s) includes
instruments or arrangements not contemplated by this Agreement, then the Company agrees
to negotiate with Littlebanc in good faith the amount of Transaction Fees that will be
due Littlebanc under such circumstances. No fee payable to any other financial advisor
by the Company or any other company in connection with the subject matter of this
engagement shall reduce or otherwise affect any fee payable hereunder to Littlebanc.
All fees due to Littlebanc hereunder shall have no offsets, and are non-refundable and
non-cancelable, except as described in Paragraph 5(b).

	3.	 	Reimbursement of Expenses. In addition to the fees described in Paragraph 2, above, the
Company agrees to reimburse Littlebanc, promptly upon submission of an invoice from time to
time, all reasonable, out-of-pocket expenses incurred by Littlebanc (including travel,
databases, fees and disbursements of counsel, and of other consultants and advisors retained
by Littlebanc) in connection with a Transaction. Littlebanc shall not incur any expense
associated with the Transaction in an amount greater than $500 without the prior approval of
the Company.

 

 

Liberator Medical Holdings, Inc.

February 5, 2010

Page 3 of 7

 

We look forward to formalizing our business relationship. If the foregoing and the attached
Exhibit A correctly set forth our agreement, please execute the enclosed copy of this letter in the
space provided and return it to us.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	WILMINGTON CAPITAL SECURITIES, LLC

 	 
	 	By:  	/s/ Ronald Dorushkin
 	 
	 	 	Name:  	Ronald Dorushkin 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

Confirmed and agreed to this 5 day of February, 2010

Liberator Medical Holdings, Inc.

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

By: /s/ Mark A. Libratore          

Name: Mark A. Libratore

Title: President

 

 

Liberator Medical Holdings, Inc.

February 5, 2010

Page 4 of 7

 

EXHIBIT A

	(A)	 	Consideration. For purposes of this Agreement, “Consideration” shall mean the value
of the Transaction and shall include the aggregate value of all cash, securities, the
assumption, satisfaction or forgiveness of debt in access of the fair market value of the
collateral for that debt and minority interest obligations, and any other forms of payment
made, received or to be received, directly or indirectly, by the Company (or any of its
subsidiaries), its shareholders, or a third party, as the case may be.. Consideration shall
expressly include amounts actually received under the terms of any “earn-out” provision,
payments made pursuant to a non-competition agreement, vested rights to receive periodic
payments and all other rights that may be at any time (i) transferred or contributed to the
Company (or any of its subsidiaries), its affiliates or shareholders in connection with an
acquisition of equity or assets of the Company, (ii) transferred or contributed by the Company
(or any of its subsidiaries), its affiliates or shareholders in any transaction involving an
investment in or acquisition of any third party, or acquisition of the equity or assets
thereof, by the Company (or any of its subsidiaries) or any affiliate thereof or (iii)
transferred or contributed to the Company (or any of its subsidiaries), its affiliates or
shareholders and any other parties entering into any joint venture or similar joint enterprise
or undertaking with the Company (or any of its subsidiaries) or any affiliate thereof. The
aggregate value of all such cash, securities and other property shall be the aggregate fair
market value thereof as determined by Littlebanc and the Company, or by an independent
appraiser jointly selected by Littlebanc and the Company, the cost of which shall be split
50/50 between Littlebanc and the Company.
	 
	(B)	 	Representations of the Company. The Company hereby represents and warrants that any
and all information supplied hereunder to Littlebanc in connection with any and all services
to be performed hereunder by Littlebanc for and on behalf of the Company shall be, to the best
of the Company’s knowledge, true, complete and correct as of the date of such dissemination
and shall not fail to state a material fact necessary to make any of such information not
misleading. The Company hereby acknowledges that the ability of Littlebanc to adequately
provide services as described herein is dependent upon the prompt dissemination of accurate,
correct and complete information to Littlebanc. The Company further represents and warrants
hereunder that this Agreement has been duly and validly authorized by all requisite corporate
action; that the Company has the full right, power and capacity to execute, deliver and
perform its obligations hereunder; and that this Agreement, upon execution and delivery of the
same by the Company, will represent the valid and binding obligation of the Company
enforceable in accordance with its terms. The representations and warranties set forth herein
shall survive the termination or expiration of this Agreement.
	 
	(C)	 	Indemnification.

	 	1)	 	The Company hereby agrees to indemnify and hold Littlebanc, its officers,
directors, principals, employees, shareholders, affiliates, and members, and their
successors and assigns, harmless from and against any and all loss, claim, damage,
liability, deficiencies, actions, suits, proceedings, costs and legal expenses or
expense whatsoever (including, but not limited to, reasonable legal fees and other
expenses and reasonable disbursements incurred in connection with investigating,
preparing to defend or defending any action, suit or proceeding, including any inquiry
or investigation, commenced or threatened, or any claim whatsoever, or in appearing or
preparing for appearance as witness in any proceeding, including any pretrial
proceeding such as a deposition) (collectively, “Losses”) arising out of, based upon,
or in any way related or attributed to any breach of a representation, warranty or
covenant by the Company contained in this Agreement.
	 
	 	2)	 	Littlebanc agrees to indemnify and hold the Company, its officers, directors,
principals, employees and affiliates, and their successors and assigns, harmless from
and against a payment of fees as a result of the Investment Banking Agreement between
Ladenburg Thalman and the Company of August 28, 2008, particularly Article 6 thereto
should the Company be found to owe Ladenburg Thalman a fee for any Transaction
associated with this Agreement.

 

 

Liberator Medical Holdings, Inc.

February 5, 2010

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	 	3)	 	If either Littlebanc, or the Company, as the case may be (the “Indemnified
Party”), receives written notice of the commencement of any legal action, suit or
proceeding with respect to which either of them is or may be obligated to provide
indemnification pursuant to this Section (C), the Indemnified Party shall, within
thirty (30) days of the receipt of such written notice, give the other party written
notice thereof (a “Claim Notice”). Failure to give such Claim Notice within such
thirty (30) day period shall not constitute a waiver by an Indemnified Party of its
right to indemnity hereunder with respect to such action, suit or proceeding as long as
no default has been entered. Upon receipt by the Company or Littlebanc of a Claim
Notice with respect to any claim for indemnification which is based upon a claim made
by a third party (“Third Party Claim”), the Company or Littlebanc, as the case may be,
may assume the defense of the Third Party Claim with counsel of its own choosing, as
described below. The Indemnified Party shall cooperate in the defense of the Third
Party Claim and shall furnish such records, information and testimony and attend all
such conferences, discovery proceedings, hearings, trial and appeals as may be
reasonably required in connection therewith. The Indemnified Party shall have the
right to approve its own counsel in any such action. Neither the Company nor
Littlebanc, as the indemnifying party, shall satisfy or settle any Third Party Claim
for which indemnification has been sought and is available hereunder, without the prior
written consent of the Indemnified Party, which consent shall not be delayed and which
shall not be required if the Indemnified Party is granted a release in connection
therewith. The indemnification provisions hereunder shall survive the termination or
expiration of this Agreement.

	 	 	IN NO EVENT SHALL EITHER PARTY OR ANY PARTY’S OFFICERS, DIRECTORS, EMPLOYEES, SHAREHOLDERS,
PARTNERS, AGENTS OR REPRESENTATIVES BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL, INDIRECT,
INCIDENTAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION LOSS OF
GOODWILL, LOST PROFITS, LOST DATA OR LOST OPPORTUNITIES, IN ANY WAY RELATING TO THIS
AGREEMENT, EVEN IF A PARTY HAS BEEN NOTIFIED OF THE POSSIBILITY OR LIKELIHOOD OF SUCH
DAMAGES OCCURRING, AND WHETHER SUCH LIABILITY IS BASED ON CONTRACT, TORT, NEGLIGENCE, STRICT
LIABILITY, PRODUCTS LIABILITY OR OTHERWISE. I N NO EVENT WILL EITHER PARTY’S LIABILITY IN
THE AGGREGATE FOR ANY LOSSES FOR ANY MATTER ARISING BETWEEN THE PARTIES HEREIN, EXCEPT FOR
THIRD PARTY CLAIMS ARISING UNDER THIS INDEMNIFICATION PROVISION UNDER THIS AGREEMENT, EVER
EXCEED THE TOTAL FEES RECEIVED BY LITTLEBANC, SECURITIES OFFERED THROUGH WILMINGTON CAPITAL
SECURITIES, LLC UNDER THIS AGREEMENT, REGARDLESS OF THE FORM OF ACTION, WHETHER BASED ON
CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY OR OTHERWISE.
	 
	 	 	For purposes of this Agreement, each officer, director, shareholder, member, and employee or
affiliate of an Indemnified Party and each person, if any, who controls an Indemnified Party
(or any affiliate) within the meaning of either Section 15 of the Securities Act of 1933, as
amended, or Section 20 of the Securities Exchange Act of 1934, as amended, shall have the
same rights as the Indemnified Party with respect to matters of indemnification hereunder.
	 
	(D)	 	Confidentiality. Littlebanc agrees that all non-public information pertaining to the
prior, current or contemplated business of the Company is a valuable and confidential asset of
the Company. Such information shall include, without limitation, information relating to
customer lists, bidding procedures, intellectual property, patents, trademarks, trade secrets,
financing techniques and sources and such financial statements of the Company as are not
available to the public. Littlebanc, its officers, directors, employees, agents and members
shall hold all such information in trust and confidence for the Company and shall not use or
disclose any such information for other than the Company’s business. Such confidentiality
does not apply (i) where such information is publicly available or later becomes publicly
available other than through a breach of this Agreement, (ii) where such information is
subsequently lawfully obtained by Littlebanc from a third party or parties, (iii) if such
information is known to Littlebanc prior to the execution of this Agreement or (iv) as may be
required by law.

 

 

Liberator Medical Holdings, Inc.

February 5, 2010

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	(E)	 	Independent Contractor. It is expressly understood and agreed that Littlebanc shall,
at all times, act as an independent contractor with respect to the Company and not as an
employee or agent of the Company, and nothing contained in this Agreement shall be construed
to create a joint venture, partnership, association or other affiliation, or like
relationship, between the parties. It is specifically agreed that the relationship is and
shall remain that of independent parties to a contractual relationship and that Littlebanc
shall have no right to bind the Company in any manner. In no event shall either party be
liable for the debts or obligations of the other except as otherwise specifically provided in
this Agreement.
	 
	(F)	 	Amendment. No modification, waiver, amendment, discharge or change of this Agreement
shall be valid unless the same is evidenced by a written instrument, executed by the party
against which such modification, waiver, amendment, discharge, or change is sought.
	 
	(G)	 	Notices. All notices, demands or other communications given hereunder shall be in
writing and shall be deemed to have been duly given when delivered in person or transmitted by
facsimile transmission or on the third calendar day after being mailed by United States
registered or certified mail, return receipt requested, postage prepaid, to the addresses
herein above first mentioned or to such other address as any party hereto shall designate to
the other for such purpose.
	 
	(H)	 	Entire Agreement. This Agreement contains all of the understandings and agreements
of the parties with respect to the subject matter discussed herein. All prior agreements,
whether written or oral, are merged herein and shall be of no force or effect.
	 
	(I)	 	Severability. The invalidity, illegality or unenforceability of any provision or
provisions of this Agreement will not affect any other provision of this Agreement, which will
remain in full force and effect, nor will the invalidity, illegality or unenforceability of a
portion of any provision of this Agreement affect the balance of such provision. In the event
that any one or more of the provisions contained in this Agreement or any portion thereof
shall for any reason be held to be invalid, illegal or unenforceable in any respect, this
Agreement shall be reformed, construed and enforced as if such invalid, illegal or
unenforceable provision had never been contained herein.
	 
	(J)	 	Construction; Venue. This Agreement shall be governed by and construed in accordance
with the laws of the State of Florida. The Company agrees that the sole and exclusive venue
for any matters arising hereunder shall be the court of competent jurisdiction in Palm Beach
County, Florida, and agrees to waive any objections to such venue. EACH OF LITTLEBANC AND
THE COMPANY HEREBY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING, SUIT OR CLAIM (WHETHER
BASED UPON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR IN ANY WAY RELATING TO THIS
AGREEMENT.
	 
	(K)	 	Binding Nature. The terms and provisions of this Agreement shall be binding upon and
inure to the benefit of the parties, and their respective successors and assigns.
	 
	(L)	 	Counterparts. This Agreement may be executed in any number of counterparts,
including facsimile signatures, which shall be deemed as original signatures. All executed
counterparts shall constitute one Agreement, notwithstanding that all signatories are not
signatories to the original or the same counterpart.
	 
	(M)	 	Attorneys’ Fees and Court Costs. If any party to this Agreement brings an action,
directly or indirectly based upon this Agreement or the matters contemplated hereby against
the other party, the prevailing party shall be entitled to recover, in addition to any other
appropriate amounts, its reasonable costs and expenses in connection with such proceeding,
including, but not limited to, reasonable attorneys’ fees and expenses and court costs.
	 
	(N)	 	Computer Virus. During the course of this engagement, Littlebanc may exchange
electronic versions of documents and emails with you using commercially available software.
Unfortunately, the technology community is occasionally victimized by the creation and
dissemination of so-called viruses, or similar destructive electronic programs. Littlebanc
takes the issues raised by these viruses seriously and has
invested in document and email scanning software that identifies and rejects files
containing known viruses. Littlebanc also updates its system with the software vendor’s
most current releases at regular intervals.

 

 

Liberator Medical Holdings, Inc.

February 5, 2010

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	 	 	By utilizing this virus scanning software, Littlebanc’s system may occasionally reject a
communication you send. Littlebanc in turn may send you something that is rejected by your
system. This infrequent occurrence is to be expected as part of the ordinary course of
business.
	 
	 	 	Because the virus protection industry is generally one or two steps behind new viruses,
Littlebanc cannot guarantee that its communications and documents will always be virus free.
Occasionally, a virus will escape and go undetected as it is passed from system to system.
Although Littlebanc believes its virus protection measures are excellent, it can make no
warranty that its documents will be virus free at all times.
	 
	 	 	Please inform Littlebanc immediately in the event a virus enters your company’s system via
any electronic means originating from Littlebanc. Through cooperative efforts, disruption
to communications can be minimized.
	 
	(O)	 	Information Disclosure. Littlebanc may disclose any information when it is believed
necessary for the conduct of its business, or where disclosure is required by law. For
example, information may be disclosed for audit or research purposes, or to law enforcement
and regulatory agencies to do such things as prevent fraud. Information may also be disclosed
to affiliates as well as to others that are outside Littlebanc. Littlebanc may make other
disclosures of Information as permitted by law.
	 
	(P)	 	Legal Services. Littlebanc is not, in any manner, providing legal services or legal
advice to the Company. Furthermore, the Company agrees and acknowledges that Littlebanc is
not an advisor as to tax, accounting or regulatory matters in any jurisdiction.
	 
	(Q)	 	Securities Trading and Other Activities. Littlebanc is a full service securities
firm engaged, directly or indirectly, in various activities, including securities trading,
investment management, financing and brokerage activities. The Company agrees and
acknowledges that in the ordinary course of these activities, Littlebanc and its affiliates
may actively trade the debt or equity securities (or related derivative securities) of the
Company and other companies which may be the subject of the engagement contemplated by this
Agreement for its own account and for the accounts of its customers and may at any time hold
long and short positions in such securities. The Company further agrees and acknowledges that
Littlebanc and its affiliates also may from time to time perform various investment banking
and financial advisory services for other clients and customers who may have conflicting
interests with respect to the Company or the Transaction and nothing herein shall in any way
limit Littlebanc’s, or its affiliates’, ability to provide such services.
	 
	(R)	 	No Fiduciary Duties. The Company represents that it is a sophisticated business
enterprise that has retained Littlebanc for the limited purposes set forth in this Agreement,
and the parties acknowledge and agree that their respective rights and obligations are
contractual in nature. Each party disclaims any intention to impose fiduciary obligations on
the other by virtue of the engagement contemplated by this Agreement.
	 
	(S)	 	USA Patriot Act. If necessary, the Company agrees to provide Littlebanc with
information and supporting documentation to enable Littlebanc to comply with the requirements
under Title III of the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001 (“USA Patriot Act”) (Public Law
107-56).
	 
	(T)	 	Marketing. Littlebanc shall have the ability to publicize (i.e., use of the Company
logo in its marketing materials) its role in providing the Company with the services noted
herein.exv10w2

Exhibit 10.2

June 21, 2009

Strictly Confidential

Mr. Mark Libratore

CEO

Liberator Medical Holdings, Inc.

2979 SE Gran Park Way

Stuart, FL 34997

RESEARCH AND CONSULTING AGREEMENT

Dear Mr. Libratore:

We are pleased to confirm our mutual understanding regarding the retention of Littlebanc Advisers,
LLC (“Littlebanc) by Liberator Medical Holdings, Inc. together with its subsidiaries, affiliates,
beneficiaries, successors, and assigns (collectively, the “Company”), subject to the terms and
conditions of this agreement (the “Agreement”).

	 	1.	 	Purpose of Engagement. Littlebanc will assist the Company with sponsored research and
consulting services.
	 
	 	2.	 	Term of Engagement. The term of our engagement hereunder shall be for a period
commencing on the date the Agreement is executed for a period of twelve (12) months.
	 
	 	3.	 	Role of Littlebanc:

	 	a)	 	Prepare an equity research report (“The Report”) to be issued and
distributed to existing and potential stockholders of the Company. During the
preparation of The Report, Littlebanc will request information from the Company and
may require meetings with Company personnel in this regard. Completion of The
Report depends on the timely receipt of any required information and the timely
scheduling of requested meetings. Littlebanc will advise the Company of any delays
it is experiencing in gathering the information required for The Report. Littlebanc
anticipates The report will be completed within 8 weeks of the execution of this
Agreement and receipt of payment.
	 
	 	b)	 	Provide consulting services, which may include all or some of (1)
preparation of a presentation describing the Company’s industry, business strategy,
business and management and incorporating current financial and other appropriate
information based on data furnished by the Company; (2) Assisting in the
preparation of a financial model.

	 	4.	 	Compensation. In consideration for our services described above, Littlebanc shall be
entitled to receive, and the Company agrees to pay Littlebanc the following compensation:

	 	a)	 	Research Report Fee: The Company will pay Littlebanc twenty five
thousand dollars ($25,000) on the date this Agreement is executed.

 

 

	 	b)	 	Consulting Fee. The Company will pay Littlebanc ninety nine thousand
six hundred dollars ($99,600) and 60,000 shares of common stock of the Company,
which shares shall be restricted for 6 months from the date of execution of the
Agreement, for consulting services as follows:
	 
	 	 	 	Fees will be paid quarterly in advance.

On execution of the Agreement:       $19,000 plus 60,000 of restricted common stock of the
Company

	 	 	 	 	 
	On October 6, 2009:
	 	 	23,000	 
	On January 6, 2010:
	 	 	27,000	 
	On April 6, 2010:
	 	 	30,600	 

	 	5.	 	Right of First Refusal. In the event the Company determines, during the Term, that it
will require the services of an investment banker, financial advisor or similar
professional in connection with a fairness opinion, valuation, recapitalization, capital
raise, sale, business combination or similar transaction, the Company agrees to engage
Littlebanc, securities offered through Wilmington Capital Securities, LLC to provide such
services assuming the key terms and conditions of a proposal by Littlebanc are
substantially similar to such key terms and conditions provided by a qualified third party
service provider. On the other hand, if Littlebanc does not provide such services or the
key terms and conditions of the third party proposal for such services are better than
Littlebanc’s, then the Company may engage such third party service provider to perform such
services.
	 
	 	6.	 	Reimbursement of Expenses. In addition to the fees described in Paragraph 5 above, the
Company agrees to reimburse Littlebanc within ten (10) days after receipt of a reasonably
acceptable invoice from Littlebanc, securities offered through Wilmington Capital
Securities, LLC for all pre-approved (such pre-approval shall only be required for expenses
over $500), reasonable, out-of-pocket expenses incurred by Littlebanc (including travel,
databases and related fees) in connection with the services contemplated by this Agreement.

We look forward to formalizing our business relationship. If the foregoing and the attached Exhibit
A correctly set forth our agreement, please execute the enclosed copy of this letter in the space
provided and return it to us.

Very truly yours,

Littlebanc Advisers, LLC

	 	 	 	 	 
	 	 	 
	 	By:  	                                          /s/ Michael Margolies
 	 
	 	 	Name:  	Michael Margolies 	 
	 	 	Title:  	CEO 	 
	 

Confirmed and agreed to this 6 day of July, 2009

LIBERATOR MEDICAL HOLDINGS, INC.

By:  /s/ Mark Libratore

Mark Libratore, CEO

 

 

EXHIBIT A

	A.	 	Representations of the Company. The Company hereby represents and warrants that any and
all information supplied by Company to Littlebanc in connection with any and all services
to be performed hereunder by Littlebanc for and on behalf of the Company shall be, to the
Company’s knowledge, true and correct in all material respects as of the date of such
dissemination and shall not fail to state a material fact necessary to make any of such
information not misleading. The Company hereby acknowledges that the ability of Littlebanc
to adequately provide services as described herein is dependent upon the prompt
dissemination of such information to Littlebanc.
	 
	B.	 	Indemnification. The Company hereby agrees to indemnify and hold Littlebanc its
officers, directors, principals, employees, affiliates, and members, and their successors
and assigns, harmless from and against any and all loss, claim, damage, liability,
deficiencies, actions, suits, proceedings, costs and legal expenses or expense whatsoever
(including, but not limited to, reasonable legal fees and other expenses and reasonable
disbursements incurred in connection with investigating, preparing to defend or defending
any action, suit or proceeding, including any inquiry or investigation, commenced or.
threatened, or any claim whatsoever, or in appearing or preparing for appearance as witness
in any proceeding, including any pretrial proceeding such as a deposition) (collectively,
“Losses”) arising out of, based upon, or in any way related or attributed to, (i) any
material breach by the Company of any representation, warranty or covenant contained in
this Agreement or (ii) any negligent act or omission by Company hereunder.
	 
	 	 	If Littlebanc receives written notice of the commencement of any legal action, suit or
proceeding with respect to which the Company is or may be obligated to provide
indemnification pursuant to this Section (C), Littlebanc shall, within thirty (30) days of
the receipt of such written notice, give the Company written notice thereof (a “Claim
Notice”) . Failure to give such Claim Notice within such thirty (30) day period shall not
constitute a waiver by Littlebanc of its right to indemnity hereunder with respect to such
action, suit or proceeding. Upon receipt by the Company of a Claim Notice from Littlebanc
with respect to any claim for indemnification which is based upon a claim made by a third
party (“Third Party Claim”), the Company may assume the defense of the Third Party Claim
with counsel of its own choosing, as described below. Littlebanc shall cooperate in the
defense of the Third Party Claim and shall furnish such records, information and testimony
and attend all such conferences, discovery proceedings, hearings, trial and appeals as may
be reasonably required in connection therewith. Littlebanc shall have the right to employ
its own counsel in any such action. The Company shall not satisfy or settle any Third Party
Claim for which indemnification has been sought and is available hereunder, without the
prior written consent of Littlebanc which consent shall not be delayed and which shall not
be required if Littlebanc is granted a release in connection therewith.

 

 

	 	 	The Company further agrees, upon demand by Littlebanc to promptly reimburse Littlebanc for,
or pay, any loss, claim, damage, liability or expense reasonably incurred as to which
Littlebanc has been indemnified herein with such reimbursement to be made currently as any
loss, damage, liability or expense is reasonably incurred by Littlebanc. If for any reason
the foregoing indemnification is unavailable or is insufficient to bold the Littlebanc
harmless, the Company agrees to contribute the amount paid or payable by the Littlebanc in
such proportion as to reflect not only the relative benefits received by the Indemnitor, as
the case may be, on the one hand, and Littlebanc on the other hand, but also the relative
fault of the Company and Littlebanc as well as any relevant equitable considerations. IN NO
EVENT SHALL EITHER PARTY OR ANY PARTY’S OFFICERS, DIRECTORS, EMPLOYEES, SHAREHOLDERS,
PARTNERS, AGENTS OR REPRESENTATIVES BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL, INDIRECT,
INCIDENTAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION LOSS OF
GOODWILL, LOST PROFITS, LOST DATA OR LOST OPPORTUNITIES, IN ANY WAY RELATING TO THIS
AGREEMENT, EVEN IF A PARTY HAS BEEN NOTIFIED OF THE POSSIBILITY OR LIKELIHOOD OF SUCH
DAMAGES OCCURRING, AND WHETHER SUCH LIABILITY IS BASED ON CONTRACT, TORT, NEGLIGENCE,
STRICT LIABILITY, PRODUCTS LIABILITY OR OTHERWISE. I N NO EVENT WILL EITHER PARTY’S
LIABILITY IN THE AGGREGATE FOR ANY LOSSES FOR ANY MATTER ARISING BETWEEN THE PARTIES
HEREIN, EXCEPT FOR THIRD PARTY CLAIMS ARISING UNDER THIS INDEMNIFICATION PROVISION UNDER
THIS AGREEMENT, EVER EXCEED THE TOTAL FEES RECEIVED BY LITTLEBANC UNDER THIS AGREEMENT,
REGARDLESS OF THE FORM OF ACTION, WHETHER BASED ON CONTRACT, TORT, NEGLIGENCE, STRICT
LIABILITY, PRODUCTS LIABILITY OR OTHERWISE.
	 
	 	 	For purposes of this Agreement, each officer, director, member, and employee or affiliate of
Littlebanc and each person, if any, who controls Littlebanc (or any applicable affiliate)
within the meaning of either Section 15 of the Securities Act of 1933, as amended, or
Section 20 of the Securities Exchange Act of 1934, as amended, shall have the same rights as
Littlebanc with respect to matters of indemnification by the Company hereunder.
	 
	C.	 	Confidentiality. Littlebanc agrees that all information pertaining to the prior,
current or contemplated business of the Company is valuable and confidential assets of the
Company. Such information shall include, without limitation, information relating to
customer lists, bidding procedures, intellectual property, patents, and trademarks, trade
secrets, financing techniques and sources and such financial statements of the Company.
Littlebanc its officers, directors, employees, agents and members shall hold all such
information in trust and confidence for the Company and shall not use or disclose any such
information for other than the Company’s business . Such confidentiality does not apply (i)
where such information is publicly available as of the Effective Date or later becomes
publicly available other than through a breach of this Agreement, (ii) where such
information is subsequently lawfully obtained by Littlebanc from a third party or parties,
who are authorized by Company to disclose such information, or (iii) to such
information where disclosure is required pursuant to a government order or applicable law.

 

 

	D.	 	Independent Contractor. It is expressly understood and agreed that Littlebanc shall, at
all times, act as an independent contractor with respect to the Company and not as an
employee or agent of the Company, and nothing contained in this Agreement shall be
construed to create a joint venture, partnership, association or other affiliation, or like
relationship, between the parties . It is specifically agreed that the relationship is and
shall remain that of independent parties to a contractual relationship and that Littlebanc
shall have no right to bind the Company in any manner. In no event shall either party be
liable for the debts or obligations of the other except as otherwise specifically provided
in this Agreement.
	 
	E.	 	Amendment. No modification, waiver, amendment, discharge or change of this Agreement
shall be valid unless the same is evidenced by a written instrument, executed by the party
against which such modification, waiver, amendment, discharge, or change is sought.
	 
	F.	 	Notices All notices, demands or other communications given hereunder shall be in
writing and shall be deemed to have been duly given when delivered in person or transmitted
by facsimile or electronic transmission or on the third calendar day after being mailed by
United States registered or certified mail, return receipt requested, postage prepaid, to
the addresses herein above first mentioned or to such other address as any party hereto
shall designate to the other for such purpose.
	 
	G.	 	Entire Agreement This Agreement contains all of the understandings and agreements of
the parties with respect to the subject matter discussed herein. All prior agreements,
whether written or oral, are merged herein and shall be of no force or effect.
	 
	H.	 	Severability. The invalidity, illegality or unenforceability of any provision or
provisions of this Agreement will not affect any other provision of this Agreement, which
will remain in full force and effect, nor will the invalidity, illegality or
unenforceability of a portion of any provision of this Agreement affect the balance of such
provision. In the event that any one or more of the provisions contained in this Agreement
or any portion thereof shall for any reason be held to be invalid, illegal or unenforceable
in any respect, this Agreement shall be reformed, construed and enforced as if such
invalid, illegal or unenforceable provision had never been contained herein.
	 
	I.	 	Construction: Venue. This Agreement shall be governed by and construed in accordance
with the laws of the State of Florida. The parties herein agree that the sole and exclusive
venue for any action hereunder shall be the court of competent jurisdiction in Palm Beach
County, Florida. Both parties agree to waive any objections to the above venue. EACH OF
LITTLEBANC AND THE COMPANY HEREBY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING, SUIT
OR CLAIM (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) RISING OUT OF OR IN ANY WAY
RELATING TO THIS AGREEMENT.

 

 

	J.	 	Binding Nature. The terms and provisions of this Agreement shall be binding upon and
injure to the benefit of the parties, and their respective successors and assigns.
	 
	K.	 	Counterparts. This Agreement may be executed in any number of counterparts, including
facsimile or electronic signatures, which shall be deemed as original signatures. All
executed counterparts shall constitute one Agreement, notwithstanding that all signatories
are not signatories to the original or the same counterpart.
	 
	L.	 	Attorneys’ Fees and Court Costs. If any party to this Agreement brings an action,
directly or indirectly based upon this Agreement or the matters contemplated hereby against
the other party, the prevailing party shall be entitled to recover, in addition to any
other appropriate amounts, its reasonable costs and expenses in connection with such
proceeding, including, but not limited to, reasonable attorneys’ fees and court costs.
	 
	M.	 	Computer Virus. During the course of this engagement, each party may exchange
electronic versions of documents and emails with the other using commercially available
software. Unfortunately, the technology community is occasionally victimized by the
creation and dissemination of so-called viruses, or similar destructive electronic
programs. Both party’s take the issues raised by these viruses seriously and have invested
in document and email scanning software that identifies and rejects files containing known
viruses. Both parties also update their systems with the software vendor’s most current
releases at regular intervals.
	 
	 	 	By utilizing this virus scanning software, each party’s system may occasionally reject a
sent communication. Each party in turn may send something that is rejected by the receiving
party’s system. This infrequent occurrence is to be expected as part of the ordinary course
of business.
	 
	 	 	Because the virus protection industry is generally one or two steps behind new viruses,
neither party can guarantee that its communications and documents will always be virus free.
Occasionally, a virus will escape and go undetected as it is passed from system to system.
Although each party believes its virus protection measures are excellent, it can make no
warranty that its documents will be virus free at all tines.
	 
	 	 	Each party agrees to immediately inform the other in the event a virus enters the affected
party’s system via any electronic means originating from the delivering party. Through
cooperative efforts, disruption to communications can be minimized.
	 
	N.	 	Information Disclosure. Each party may disclose any information where disclosure is
required by law, subject to giving the other party a reasonable period of time to negotiate
with the governmental authority to stop or, possibly restrict the disclosure. For example,
information may be disclosed to law enforcement and regulatory agencies to do such things
as prevent fraud. Information may also be disclosed to affiliates who have a need to know
and provided that such disclosure is subject to this Agreement.

 

 

	O.	 	Legal Services. Littlebanc is not, in any manner, providing legal services or legal
advice to the Company. Furthermore, the Company agrees and acknowledges that Littlebanc is
not an advisor as to tax, accounting or regulatory matters in any jurisdiction.
	 
	P.	 	Securities Trading and Other Activities. Littlebanc, securities offered through
Wilmington Capital Securities, LLC is a full service securities firm engaged, directly or
indirectly, in various activities, including securities trading, investment management,
financing and brokerage activities. Subject to the prior written approval of the Company,
Littlebanc, securities offered through Wilmington Capital Securities, LLC and its
affiliates may actively trade the debt or equity securities (or related derivative
securities) of the Company and other companies which may be the subject of the engagement
contemplated by this Agreement for its own account and for the accounts of its customers
and may at any time hold long and short positions in such securities. Littlebanc,
securities offered through Wilmington Capital Securities, LLC and its affiliates also may
from time to time perform various investment banking and financial advisory services for
other clients and customers who may have conflicting interests with respect to the Company
or the Transaction; provided that Littlebanc, securities offered through Wilmington Capital
Securities, LLC and its affiliates promptly notify Company of such conflict and obtain the
prior written consent of Company, which consent shall not be unreasonably withheld.
	 
	Q.	 	No Fiduciary Duties. The Company represents that it is a sophisticated business
enterprise that has retained Littlebanc for the limited purposes set forth in this
Agreement, and the parties acknowledge and agree that their respective rights and
obligations are contractual in nature. Each party disclaims any intention to impose
fiduciary obligations on the other by virtue of the engagement contemplated by this
Agreement.
	 
	R.	 	USA Patriot Act. If necessary, the Company agrees to provide Littlebanc with
information and supporting documentation to enable Littlebanc to comply with the
requirements under Title III of the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (“USA Patriot
Act”) (Public Law 107-56).
	 
	S.	 	Marketing. Subject to the prior written approval of Company (which approval shall not
be unreasonably withheld), Littlebanc shall have the ability to publicize this engagement
with the Company (i.e., and use the Company’s logo) in its marketing materials.

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