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ex10-4.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
10.4

    Form
8-K

    aVinci
Media Corporation

    File No.
000-17288

    EMPLOYMENT
AGREEMENT

    

    This
Employment Agreement (the “Agreement”) is made and entered into effective as of
April 1, 2008 (the “Effective Date”), by and between Sequoia Media Group, LC, a
Utah limited liability company (the “Company”), and Terry Dickson, an
individual (the “Executive”).

    

    In
consideration of the mutual promises and covenants contained in, and the mutual
benefits to be derived from, this Agreement, the parties hereto agree as
follows:

    

    1.           EMPLOYMENT.  The
Company hereby employs the Executive, and the Executive hereby accepts such
employment, upon the terms and conditions set forth herein.

    

    2.           DUTIES.  The
Executive be shall employed in the position of Vice President of Business
Development of the Company and shall perform the duties described in Exhibit “A”
attached hereto and such other duties as shall be assigned by the Chief
Executive Officer or by the Company’s Board of Managers (the “Board”) from time
to time.  The Executive shall diligently and faithfully execute and
perform such duties, subject to the general supervision and control of the
Company’s President.  The Executive shall devote substantially all of
his business time, attention, skill and efforts to the faithful performance of his duties
hereunder to the business of the Company and shall not, during the Employment
Term (as the term is defined in Section 5.1 below) be actively engaged in any
other business activity, except with the prior written consent of the Company’s
Board of Managers, and provided that such activity will not: (i) adversely
affect or materially interfere with the performance of the Executive’s duties
hereunder; (ii) involve a conflict of interest with the Company; or (iii)
involve activities competitive with the business or proposed business of the
Company.

    

    3.           COMPENSATION
AND BENEFITS.  As the entire consideration for the services to
be performed and the obligations incurred by the Executive hereunder, and
subject to the terms and conditions hereof, during the Employment Term the
Executive shall be entitled to the following:

    

    3.1           Base
Salary.  Subject to Section 5 below, commencing on the date
hereof, the Company shall pay the Executive an annual base salary of $185,000 on
an annual basis, subject to increase(s), if any, as determined from time to time
by the Company’s Board of Managers.

    

    3.2           Payment
of Base Salary.  The Company will pay the Executive his annual
base salary in equal, semi-monthly installments or at more frequent intervals in
accordance with the Company’s customary pay schedule.

    

    3.3           Additional
Benefits.  The Executive shall be entitled to participate, to
the extent of his eligibility in any employee benefit plans made available by
the Company to its employees during the Employment Term, including, without
limitation, such bonus plans, pension or profit sharing plans, incentive stock
option plans, retirement plans and health, life, hospitalization, dental,
disability or other insurance plans as may be in effect from time to
time.  Such participation shall be in accordance with the terms
established from time to time by the Company for individual participation in any
such plans. Notwithstanding the foregoing, the Company may terminate or reduce
benefits under any benefit plans and programs to the extent such reductions
apply uniformly to all
senior executives enabled to participate therein, and the Employee's benefits
shall be reduced or terminated accordingly.

    

    3.4           Vacation,
Sick Leave and Holidays.  The Executive shall be entitled to
vacation, sick leave and holidays at full pay in accordance with the Company’s
policies established and in effect from time to time, but in no event shall the
Executive receive less than four weeks of paid vacation annually.

    

    3.5           Deductions.  The
Company shall have the right to deduct and withhold from the compensation due to
the Executive hereunder, including salary and bonus, such taxes and other
amounts as may be customary or required by applicable state or federal
law.

    
      
         

      

      
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    3.6           Bonus
Program.  The Executive will be permitted to participate in and
receive payments under the annual bonus program targeted for approximately 95%
of the Executive’s annual base salary as described in the Company’s bonus
program.  The Executive shall also be entitled to receive any
additional bonus as declared by the Company’s Board of Managers.

    

    4.           BUSINESS
EXPENSES.  The Company shall promptly reimburse the Executive
for all reasonable out-of-pocket business expenses incurred in performing the
Executive’s duties and responsibilities hereunder in accordance with the
Company’s policies with respect thereto in effect form time to time, provided
that the Executive promptly furnishes to the Company adequate records and other
documentary evidence required by all applicable federal and state laws, rules
and regulations issued by the appropriate taxing authorities for the
substantiation of each such business expense as a deduction on the federal and
state income tax returns of the Company.

    

    5.           TERM AND
TERMINATION.

    

    5.1           Employment
Term.  Subject to earlier termination as provided in Sections
5.2, 5.3 and 5.4 below (and except for the provisions of this Agreement and the
Exhibits attached hereto that, by their terms, continue in force beyond the
termination thereof), the term of this Agreement shall commence on the Effective
Date and end on March 30, 2010 (the “Employment Term”).  Unless
earlier terminated or unless either the Executive or the Company provides
written notice to the other party of their desire to terminate this Agreement at
least 180 days prior to the end of the Employment Term (or any renewal thereof),
the Employment Term will automatically renew for additional one year periods on
the same terms as provided herein.  If the Employment Term is renewed
or extended as set forth in Section 5.7, the term “Employment Term” will be
interpreted herein to include such renewal or extended term.  If at
the completion of the Employment Term, the Company and the Executive determine
not to renew or extend the Executive’s employment, the Executive shall be paid
by the Company the Severance compensation set forth under Section 5.6
hereunder.

    

    5.2           Termination
Without Cause.  Subject to Section 5.5.1 below, either the
Company or the Employee may terminate this Agreement and the Executive’s
employment hereunder without cause, and for any or no reason, at any time during
the Employment Term effective upon at least 30 days written notice by the
terminating party to the non-terminating party.  The Executive’s
employment shall be deemed to have been terminated by the Company without cause
if (i) the Executive’s authority, responsibility or position are materially
changed or reduced for any reason including in conjunction with a sale or merger
of the Company; (ii) the Executive is required to relocate his principle place
of employment more than 50 miles from his principle residence; or (iii) the
Executive’s salary, available bonus or benefits are reduced other than as part
of a proportional reduction for all Company officers.

    

    5.3           Termination
For Cause.  This Agreement and the Executive’s employment
hereunder shall terminate upon the Executive’s disability or death and is
otherwise immediately terminable for cause (as that term is defined below) upon
written notice by the Company to the Executive providing 15 days to cure any
deficiency.  As used in this Agreement, “cause” shall include: (i)
habitual neglect of or deliberate or intentional refusal to perform the
Executive’s duties or responsibilities under this Agreement or to follow the
Company’s policies or procedures or directives of the Company’s Board of
Managers; (ii) fraudulent or criminal activity negatively impacting the Company;
(iii) any grossly negligent or intentionally dishonest or unethical activity
negatively impacting the Company; (iv) any deliberate breach of fiduciary duty
or intended unauthorized disclosure of the Company’s trade secrets, confidential
information or any of the Company’s Proprietary Information (as that term is
defined in Section 6.3 below); or (v) fraudulent conduct in connection with the
business or affairs of the Company, regardless of whether said conduct is
designed to defraud the Company or others.

    

    
      
         

      

      
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    5.4           Termination
for Disability.  The Company’s Chairman may terminate this
Agreement and the Executive’s employment hereunder, upon written notice to the
Executive, for the “disability” (as that term is defined below) of the Executive
for 90 days in any 120 day period during the Employment Term if the Company’s
Board of Managers (with the Executive abstaining) determines in its sole
discretion that the Executive’s disability will prevent the Executive from
substantially performing his duties and responsibilities
hereunder.  As used in this Agreement, “disability” shall be defined
as (i) the Executive’s inability, by reason of physical or mental illness or
other cause, to substantially perform his duties and responsibilities hereunder,
or (ii) in the discretion of the Company’s Board of Managers (with the Executive
abstaining), disability as that term is defined in any disability insurance
policy of the Company in effect at the time in question.  The
Executive shall receive full compensation, benefits and reimbursement of
expenses pursuant to the terms of this Agreement as outlined in Section
5.5.2.

    

    5.5           Effect of
Termination.

    

    5.5.1           Termination
Without Cause; Severance Compensation.  Subject to the
Severance Compensation set forth in Section 5.6, the Company may, without cause,
terminate this Agreement at any time upon notice to the Executive as provided in
Section 5.2.  Notwithstanding anything herein to contrary, the
Company’s obligations to the Executive in the event the Company terminates the
employment under Section 5.2 and this Section 5.5.1, shall be to pay the
Executive the Severance compensation set forth under Section 5.6, offer to buy
within 30 days a total of 20% of the Executive’s beneficially held equity
holdings in the Company, which offer the Executive shall have the right to
accept or reject in whole or in part within 30 days of his termination, for a
price equal to the prior 30 day average market price per equivalent equity unit
if the Company’s securities are publicly traded, or if the Company’s securities
are not publicly traded, for the greater of (i) 1.50 times the price per
equivalent equity unit received for the last equity units issued by the Company
through a private or public placement of its securities or in conjunction with
any merger or acquisition of the Company, and (ii) a price per equity unit
determined by calculating the Company’s value at 10 times annual revenues
divided by the total number of equity units outstanding.

    

    5.5.2           Termination
for Death or Disability.  In the event the Executive’s
employment is terminated for reason of disability, as described herein, the
Executive shall receive full compensation, benefits and reimbursement of
expenses through the 180 day period following the effective date of termination
for such disability.   In the event the Executive’s employment is
terminated for reason of death, the Executive’s heirs or estate shall receive
the equivalent of full compensation through the 180 day period following the
date of death and reimbursement of all outstanding.  

    

    5.5.3           Termination
for Cause.  In the event the Executive’s employment is
terminated for cause hereunder, all obligations of the Company and all duties
and responsibilities of the Executive shall cease except as otherwise expressly
provided herein or in the exhibits attached hereto.  Upon such
termination, the Executive or the Executive’s representative or estate shall be
entitled to receive only the compensation, benefits and reimbursement earned by
or accrued to the Executive under the terms of this Agreement prior to the date
of termination computed pro rata up to and included the date of termination, but
shall not be entitled to any further compensation, benefits or reimbursement
from such date.

    

    5.6           Severance
Compensation.  Upon the termination of the Executive’s
employment by the Company without cause, the Company shall pay any salary and
prorata annual bonus (calculated at 100%) due through the end of the then
current term, but in no event less than the equivalent of 9 months salary and
bonus payable in three equal monthly installments beginning the month of
termination.

    

    5.7           New
Term.  The term of this Agreement shall automatically be set
for a two year period, regardless of the time remaining under the then existing
Term, upon and from the occurrence of any of the following “Trigger
Events:”

    

    (a)           a
merger or acquisition in which the Company is not the surviving entity (defined
as a corporation in which the Company’s stockholders do not hold a controlling
interest), except for a transaction the principal purpose of which is to change
the state in which the Company is incorporated;

     

    
      
         

      

      
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    (b)           the
sale, transfer, or other disposition of all or substantially all of the assets
of the Company (“substantially all” means for this section a sale of assets the
value of which exceeds 50% of the total book value of all of the assets of the
Company);

    

    (c)           any
reverse merger in which the Company is the surviving entity but in which 50% or
more of the Company’s outstanding voting stock is transferred to holders
different from those holding such stock immediately prior to such merger;
or

    

    (d)           a
firm commitment underwritten public offering pursuant to an effective
registration statement filed under the Securities Act of 1933, as amended,
covering the offer and sale of the Company’s common stock resulting in more than
a 30% increase in the number of shares to be issued and
outstanding.

    

    6.           PROPRIETARY
INFORMATION.

    

    6.1           Return of
Proprietary Information.  Upon the termination of this
Agreement and the Executive’s employment hereunder for any reason whatsoever
(whether such termination shall be with or without cause), the Executive shall
immediately return and turn over to the Company any and all Proprietary
Information (as that term is defined in Section 6.3 below) in his possession or
under his control.  The Executive shall have no right to retain any
copies of any material qualifying as Proprietary Information for any reason
whatsoever after the termination of his employment hereunder without the express
written consent of the Company, except such information that is relevant to the
Executive’s equity holdings in the Company and generally available to Company
equity holders.

    

    6.2           Non-disclosure.  It
is understood and agreed that, in the course of the Executive’s employment
hereunder and through his activities for an on behalf of the Company, as
provided in this Agreement, the Executive will receive, deal with and have
access to Proprietary Information and that the Executive holds and will hold the
Company’s Proprietary Information in trust and confidence for the Company and
for its benefit only.  The Executive agrees that he will not, during
the Employment Term or thereafter, in any fashion, form or manner, directly or
indirectly, retain, make copies of, divulge, disclose or communicate to any
person, company, corporation, firm, partnership or entity, in any manner
whatsoever (except when necessary or required in the normal course of the
Executive’s employment hereunder and for the benefit of the Company or with the
express written consent of the Company), any of the Company’s Proprietary
Information or any information of any kind, nature or description whatsoever
concerning any  matters affecting or relating to the Company’s
business or proposed business operations.

    

    6.3           Proprietary
Information Defined.  For purposes of this Agreement,
“Proprietary Information” means and includes the following:  (i) the
identity of Business Contacts (as that term is defined below) in, of or to the
Company; (ii) any written, typed or printed lists or other materials identifying
Business Contacts or potential Business Contacts of the Company; (iii) any
financial or other information supplied to the Company by Business Contacts;
(iv) any and all data or information involving the techniques, programs,
methods, formulas, data, information, or contacts employed by the Company in the
conduct of its business or proposed business operations; (v) any lists,
documents, manuals, records, forms or other documents, instruments, forms or
materials used by the company in the conduct of its business or proposed
business operations; (vi) any descriptive materials describing the methods and
procedures employed by the Company in the conduct of its business or proposed
business operations; and (vii) any other secret, proprietary or confidential
information (including, but not limited to, Proprietary Information) or data
concerning or related to the Company or the Company’s business or proposed
business operations.  The terms “list,” “document” or their
equivalent, as used in this Section 6.3, are not limited to a physical writing
or compilation, but rather include any and all information or data whatsoever
regarding the subject matter of the term “Business Contacts” shall mean any of
the Company’s clients, customers, suppliers, joint venture partners and
investors.  For purposes of this Agreement, “Proprietary Information”
shall not include information that is available in the public domain through no
fault of or violation of this Agreement by the Executive.

    

    
      
         

      

      
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    6.4           Patent or
Copyright Rights. Any new patents, or other proprietary rights including,
but not limited to, trademarks, copyrights and trade secrets relating to or
constituting new products or processes developed by the Employee during the term
of the Employee's employment hereunder shall be the property of the
Company.

    

    6.5           Violation.  If
any of the covenants or agreements contained in this Section 6 are violated, the
Executive agrees and acknowledges that any such violation or threatened
violation will cause irreparable injury to the Company and that the remedy at
law for any such violation or threatened violation will be inadequate and that
the Company will be entitled to injunctive relief and other equitable remedies
without the necessity of proving actual damages.

    

    6.6           Enforceability.  Employee
agrees that the covenants in this Section shall be construed as an agreement
independent of any other provision of this Agreement so that the existence of
any claim or cause of action by either the Employee or the Company against the
other, whether predicated on this Section or otherwise, shall not
relieve  Employee of his or her obligations under this Section
6.

    

    7.           TERMINATION
OF PRIOR AGREEMENTS.  This Agreement terminates and supersedes
any and all prior agreements and understandings between the parties hereto
(whether written or oral) with respect to employment or with respect to the
compensation of the Executive by the Company.

    

    8.           ASSIGNMENT.  This
Agreement is for the unique personal services of the Executive and is not
assignable or delegable in whole or in part by the Executive without the prior
written consent of the Company.  This Agreement may be assigned or
delegated in whole or in part by the Company and, in such case, shall be assumed
by and become binding upon the person or entity to which this Agreement is
assigned.  The Company shall remain liable for its obligations
hereunder in the event of any assignment unless the assignee of the Company
shall have a net worth equal to or greater than the net worth of the Company on
the date of such assignment.

    

    9.           WAIVER OR
MODIFICATION.  Any waiver, change, modification, extension
(other than an automatic extension of the Employment Term pursuant to Section
5.1 above), discharge or amendment of any provision of this Agreement shall be
effective only if in writing in a document that specifically refers to this
Agreement and such document is signed by the party against whom enforcement of
any waiver, change, modification, extension, discharge or amendment is
sought.  The waiver by either party of any provision of this Agreement
by the other party shall not operate or be construed as a waiver of any other
provision hereof or any subsequent breach of the same provision
hereof.

    

    10.           SEVERABILITY;
INTERPRETATION.  In the event that any term or provision,
including any part of a Section or subsection, of this Agreement is invalid or
unenforceable for any reason, such invalid or unenforceable term or provision
shall be severed herefrom, and the remaining terms or provisions of this
Agreement, including the remaining Sections and subsections, shall remain in
full force and effect.  The parties to this Agreement agree that the
court making a determination that any term or provision of this Agreement is
invalid or unenforceable shall modify the time, duration, geographic scope or
area and/or application of the term or provision so that the term or provision
is enforceable to the maximum extent permitted by applicable
law.  Notwithstanding any rule or maxim of construction to the
contrary, any ambiguity or uncertainty in this Agreement shall not be construed
against either of the parties hereto based upon authorship or any of the terms
or provisions hereof.

    

    11.           NOTICES.  Any
notice required or permitted hereunder to be given by either party shall be in
writing and shall be delivered personally or sent by certified or registered
mail, postage prepaid, or by private courier to the other party to the address
set forth below or to such other address as either party may designate from time
to time according to the terms of this Section 11:

    

    
      	
              •           To
      the Executive at:

            	
              11781
      Lone Peak Parkway, Suite 270

              Draper,
      Utah  84020

            

    

    

    
      
         

      

      
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              •           To
      the Company at:

            	
              Sequoia
      Media Group, LC

              Attn:
      Corporate Secretary

              11781
      Lone Peak Parkway, Suite 270

              Draper,
      Utah  84020

            

    

    

    A notice
delivered personally or by private courier shall be effective upon
receipt.  A notice delivered by mail shall be effective on the third
day after the day of mailing.

    

    12.           GOVERNING
LAW; JURISDICTION AND VENUE.  This Agreement shall be governed
by and construed in accordance with the laws of the State of Utah without giving
effect to any applicable conflicts of law provisions.  The parties
consent to the exclusive jurisdiction and venue of the appropriate federal or
state court in Salt Lake County, State of Utah.

    

    13.           DISPUTE
RESOLUTION.  In
the event of any dispute (each, a “Dispute”) between the Parties in connection
with the performance of this Agreement, each party agrees to negotiate in good
faith to attempt to resolve such Dispute.  (Notwithstanding the
forgoing, this obligation to negotiate does not apply to termination pursuant to
Section 5.3.)  The parties must complete the foregoing dispute
resolution process before serving written notice on the other party alleging a
material breach of this Agreement in accordance with Section 14 provided
however; the parties acknowledge and agree that not every Dispute will rise to
the level of a material breach.

    

    14.           ARBITRATION.  In
the event a Dispute cannot be resolved through good faith negotiations, the
parties agree that any dispute arising out of this Agreement shall be resolved
through arbitration in accordance with the then current Rules of Commercial
Arbitration of the American Arbitration Association or any successor
organization (the "AAA").  The party desiring to initiate the
arbitration process shall give written notice to that effect to the other party
and shall, in such written notice, include a brief statement of its
claims.  Within ten (10) days of the note of intent to arbitrate, the
parties shall meet for the purpose of attempting to jointly select a single
arbitrator to serve in the matter. If they are unable to agree on the
designation of the arbitrator, either party may apply to the AAA for the
appointment of a single arbitrator in accordance with the rules of the AAA then
in effect.  The arbitration proceeding shall be held within 60 days of
the appointment of the arbitrator and the arbitrator shall render his or her
decision within 30 days after the conclusion of the arbitration
proceeding.  The decision of the arbitrator shall be final and binding
upon, and non-appealable by, the parties and any judgment may be had on the
decision and award so rendered in any court of competent
jurisdiction.  The prevailing party shall be entitled to all costs
incurred in connection with the arbitration proceeding, including the fees of
the arbitrator, its reasonable attorneys' fees, witness fees and other costs as
determined by the arbitrator.

    

    15.           TAXES.  Any
payments provided for hereunder shall be paid net of any applicable withholding or other
employment taxes required under federal, state or local law.

    

    16.           SURVIVAL.  The
obligations under Sections 5, 6, and 10-19 hereof shall survive the expiration
of this Agreement.

    

    17.           SUPERSEDE.  This
Agreement supersedes and replaces in its entirety any existing employment
agreement by and between the Employee and the Company as of the date of this
Agreement.  Both parties acknowledge and agree that this provision
does not trigger any termination, expiration or other rights that might be
available to Employee under any prior existing employment
agreement.

    

    18.           ENTIRE
AGREEMENT.  This Agreement embodies the entire agreement of the
parties hereto respecting the matters within its scope.  All Exhibits
attached hereto are deemed to be incorporated herein by reference.

    

    IN
WITNESS WHEREOF, the parties have executed this Agreement effective as of the
date first set forth above.

    

    
      
         

      

      
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              THE
COMPANY:

               

               

              SEQUOIA
      MEDIA GROUP, LC,

              a
      Utah limited liability company

               

               

              By:
      ________________________________________

               

              Its:
      ________________________________________

               

            	
              THE
      EXECUTIVE:

               

               

               

               

               

               

              By:  _________________________________________

              Terry
      Dickson

            

    

    

    
      
         

      

      
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    Exhibit
“A”

     

    EMPLOYMENT
DUTIES

     

    Subject to the direction of the
Company’s Board of Managers, during the Employment Term the Executive shall
perform the following duties, and such other duties and responsibilities as may
be determined and assigned to the Executive from time to time by the Company’s
Board of Managers:

    

    
      	
               
      

            	
              ▪

            	
              Shall
      serve as Vice President Business Development of Sequoia Media Group, LC
      and assume the normal and customary duties of such
    position.

            

    

    

    
      	
               
      

            	
              ▪

            	
              Shall
      be responsible for overseeing business development and marketing the
      Company.

            

    

    

    
      	
               
      

            	
              ▪

            	
              Shall
      be responsible to make sure the Company and its subsidiaries, if any,
      remain in compliance with all applicable state and federal tax
      laws.

            

    

    

    
      	
               
      

            	
              ▪

            	
              Shall
      perform any reasonable duty or service as may be requested by the
      Company’s Board of Managers.

            

    

    

    The
Executive shall report directly to the President.

     

    
      
         

      

      
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    Exhibit
“B”

    

    BONUS
PLAN

    

    Pursuant
to a resolution of the Board of Managers dated December 7, 2007, a Bonus Pool
was established and will be funded from which executives and employees of the
Company will be paid bonuses as described therein.

    

    

    

    

    
      
         

      

      
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EXHIBIT 10.8

                                  PROTEO, INC.

                       PREFERRED STOCK PURCHASE AGREEMENT
                       ----------------------------------

This Preferred Stock Purchase Agreement ("Agreement") is made this 9th day of
June, 2008 by and between PROTEO, INC., a Nevada corporation with its principal
place of business at 2102 Business Center Drive, Irvine, CA 92612 (the
"Company") and the Purchaser of its stock, FIDEsprit AG, a Swiss corporation
with its principal place of business at Rosengartenstr. 4, CH-8608 Bubikon,
Switzerland ("Purchaser").

                                    RECITALS
                                    --------

A.      The Company is engaged in research and development of pharmaceuticals.
        The Company now is willing to sell shares of its Series A Preferred
        stock, on terms as stated herein.

B.      The Company has authorized 300,000,000 shares of common stock and
        10,000,000 shares of preferred stock. Currently, 23,879,350 shares of
        the Company's common stock are issued and outstanding. As of the date
        hereof, no preferred stock has been issued.

C.      The Company has created a Series A Preferred Stock of and designated up
        to 750,000 shares of the Company's preferred stock which voting powers,
        preferences and relative, participating, optional and other special
        rights are defined in the Certificate of Designation of Series A
        Preferred Stock, a copy of which is attached hereto as Exhibit A.

D.      Purchaser and the Company now mutually desire for Purchaser to purchase
        600,000 shares of the Company's Series A Preferred Stock at the price
        per share determined herein, on the terms and conditions stated herein.

                                    AGREEMENT
                                    ---------

In consideration of the mutual promises, representations, warranties and
conditions set forth in this Agreement, the Company and Purchaser agree as
follows.

1. Purchase and Sale of Shares.

                                      -1-
<PAGE>

         1.1      SALE OF SHARES. The Company and its Board of Directors has
                  authorized the issuance and sale of 600,000 shares of Series A
                  Preferred stock (the "Purchase Shares") pursuant to the terms
                  of this Agreement, which Purchase Shares in accordance with
                  the Certificate of Designation, Preferences and Rights of
                  Series A Preferred Stock (the "Certificate"), a copy of which
                  is attached hereto as part of this Agreement.

         1.2      PRICE PER SHARE. The price per share shall be $6.00 per share,
                  totaling to $3,600,000 for the Purchase Shares.

                  In reliance upon Purchaser representations and warranties
                  contained in Section 4 hereof, and subject to the terms and
                  conditions set forth herein, the Company hereby agrees to sell
                  to Purchaser 600,000 shares of the Company's Series A
                  Preferred Stock.

2.       CLOSING: ISSUANCE AND DELIVERY OF SHARES: CONDITIONS.

         2.1      CLOSING(S). The closing of the sale under this Agreement (the
                  "Closing"), shall be held within five (5) working days
                  following the date of the Agreement ("Closing Date"), at the
                  offices of the Company or on such earlier date or at such
                  other place as the Parties may agree.

         2.2      PAYMENT OF PURCHASE PRICE. At the Closing, the Purchaser shall
                  deliver appropriate promissory note for the payment of the
                  purchase price as determined in paragraph 1.2. payable in four
                  (4) installments in such amount and at such date as following:
                  o        First installment of $900,000 falling due upon
                           execution;
                  o        Second installment of $450,000 falling due on or
                           before August 30, 2008;
                  o        Third installment of $900,000 falling due on or
                           before November 30, 2008;
                  o        Fourth and final installment of $1,350,000 falling
                           due on or before March 31, 2009.

                  Any payment shall be in United States funds by check, cash, by
                  wire transfer or by other means of payment as shall have been
                  agreed upon by the Purchaser and the Company prior to payment.

                                      -2-
<PAGE>

         2.3      ISSUANCE AND DELIVERY. At the Closing, subject to the terms
                  and conditions hereof, the Company shall deliver an
                  irrevocable instruction to the Company's secretary to issue
                  and deliver to Purchaser appropriate stock certificates,
                  registered in the name of the Purchaser for the Shares, or his
                  designee.

3.       REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

The Company hereby represents and warrants to Purchaser as of the date hereof as
follows, and all such representations and warranties shall be true and correct
as of any Closing Date as if then made and shall survive the Closing.

          3.1     ORGANIZATION. The Company is a corporation, duly incorporated,
                  validly existing and in good standing under the laws of
                  Nevada. The Company has all requisite power and authority to
                  own or lease its properties and to conduct its business as now
                  conducted. The Company holds all licenses and permits required
                  for the conduct of its business as now conducted, which, if
                  not obtained, would have a material adverse effect on the
                  business, financial condition or results of operations of the
                  Company taken as a whole. The Company is qualified as a
                  foreign corporation and is in good standing in any states
                  where the conduct of its business or its ownership or leasing
                  of property requires such qualification, except where the
                  failure to so qualify would not have a material adverse effect
                  on the business, financial condition or results of operations
                  of the Company taken as a whole.

         3.2      CAPITALIZATION. The Company is authorized to issue 300,000,000
                  shares of Common Stock of which 23,879,350 shares are
                  outstanding at the date of this Agreement. The Company is
                  authorized to issue 10,000,000 shares of Preferred Stock of
                  which no shares are outstanding at the date of this Agreement.
                  All of the issued and outstanding shares of Common Stock on
                  the Closing Date are or will have been duly authorized,
                  validly issued and then fully paid and non-assessable. The
                  Company's right to issue shares of its stock otherwise shall
                  not be limited by any provision herein.

                                      -3-
<PAGE>

         3.3      AUTHORITY. The Company has all requisite power and authority
                  to enter into this Agreement, and to consummate the
                  transactions contemplated hereby. The execution and delivery
                  of this Agreement, and the consummation of the transactions
                  contemplated hereby have been duly authorized by all necessary
                  corporate action on the part of the Company, and upon their
                  execution and delivery by the Company, such document will
                  constitute a valid and binding obligation of the Company,
                  enforceable against the Company in accordance with its terms.

         3.4      ISSUANCE OF SHARES. The Purchase Shares, when issued pursuant
                  to the terms of this Agreement, will be duly and validly
                  authorized and issued, fully paid and non-assessable.

         3.5      NO CONFLICT WITH LAW OR DOCUMENTS. The execution, delivery and
                  consummation of this Agreement, and the transactions
                  contemplated hereby, will not (a) conflict with any provisions
                  of the Articles of Incorporation or Bylaws of the Company; (b)
                  result in any violation of or default or loss of a benefit
                  under, or permit the acceleration of any obligation under (in
                  each case, upon the giving of notice, the passage of time, or
                  both), any mortgage, indenture, lease, agreement or other
                  instrument, permit, franchise license, judgement, order,
                  decree, law, ordinance, rule or regulation applicable to the
                  Company.

         3.6      CONSENTS, APPROVALS AND PRIVATE OFFERING. Except for any
                  filings required under Federal and applicable state securities
                  laws, all of which shall have been made as of the Closing Date
                  to the extent required as of such time, no permit, consent,
                  approval, order or authorization of, or registration,
                  declaration or filing with, any Federal, state, local or
                  foreign governmental authority is required to be made or
                  obtained by the Company in connection with the execution and
                  delivery of this Agreement, and the consummation of the
                  transactions contemplated hereby and thereby.

4.       REPRESENTATIONS AND WARRANTIES OF PURCHASER.

Purchaser hereby represents, warrants and covenants with the Company as follows:

                                      -4-
<PAGE>

         4.1      LEGAL POWER. Purchaser has the requisite power, as
                  appropriate, and is authorized to enter into this Agreement,
                  to purchase the Purchase Shares hereunder, and to carry out
                  and perform his, her or its obligations under the terms of
                  this Agreement.

         4.2      DUE EXECUTION. This Agreement has been duly authorized,
                  executed and delivered by Purchaser, and, upon due execution
                  and delivery by the Company, this Agreement will be a valid
                  and binding agreement of Purchaser.

         4.3       INVESTMENT REPRESENTATIONS.

                  Purchaser represents and agrees that:

                  4.3.1    Purchaser is acquiring the Purchase Shares for its
                           own account, not as a nominee or agent, for
                           investment and not with a view to or for resale in
                           connection with, any distribution or public offering
                           thereof within the meaning of the Securities Act of
                           1933, as amended (the "Act"), except pursuant to an
                           effective registration statement under the Act;

                  4.3.2    Purchaser is a professional and an 'accredited
                           investor,' as that term is defined in Rule 501 (a) of
                           Regulation D promulgated under the Act. Purchaser has
                           such knowledge and experience in financial and
                           business matters that it is fully able to evaluate
                           the merits and risks of the acquisition of the
                           Securities, and has conducted their own investigation
                           into the suitability of its investment, and reviewed
                           all the information that it considers necessary to
                           evaluate its acceptance of the Purchase Shares.
                           Purchaser is able to bear the risks associated with
                           accepting the Purchase Shares, including the risk of
                           loss of the entire investment in the Purchase Shares.
                           Purchaser has received and reviewed any and all
                           information Purchaser deemed necessary to evaluate
                           its investment.

                  4.3.3    Purchaser understands that the Purchase Shares have
                           not been registered under the Act by reason of a
                           specific exemption therefrom, and may not be
                           transferred or resold except pursuant to an effective
                           registration statement or exemption from registration
                           and each certificate representing the Purchase Shares
                           will be endorsed with the following legend:

                                      -5-
<PAGE>

                           (i)  THE SECURITIES REPRESENTED BY THIS CERTIFICATE
                                HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
                                ACT OF 1933, AS AMENDED (THE "ACT"). THE SHARES
                                HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE
                                SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE
                                DISPOSED OF IN THE ABSENCE OF A CURRENT AND
                                EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT
                                WITH RESPECT TO SUCH SHARES, OR AN OPINION OF
                                THE ISSUER'S COUNSEL TO THE EFFECT THAT
                                REGISTRATION IS NOT REQUIRED UNDER THE ACT; and

                           (ii) Any legend required to be placed thereon by
                                applicable federal or state securities laws.

                  4.3.4    Purchaser has read, and understands and agrees to the
                           Certificate of Designation for the Series A Preferred
                           Stock.

5.       TERM AND TERMINATION

         5.1      TERM. This Agreement shall expire upon total payment of the
                  Purchase Price and issuance of 600,000 shares of Preferred
                  Stock Class A to Purchaser.

         5.2.     The Company may cancel this agreement upon

                  (i)      any misrepresentation or omission of or on behalf of
                           the Purchaser made to the Company in connection with
                           this Agreement;
                  (ii)     adjudication of bankruptcy, or filing of a petition
                           under any bankruptcy or debtor's relief law by or
                           against the Purchaser, or failure of the Purchaser to
                           generally pay its debts as they become due;
                  (iii)    failure of the Purchaser to pay any installment
                           hereunder when due, which shall continue for ten (10)
                           days;
                  (iv)     termination of the Promissory Note given by the
                           Purchaser to the Company in accordance with paragraph
                           2.2;

                                      -6-
<PAGE>

6.       MISCELLANEOUS.

         6.1      GOVERNING LAW . This Agreement shall be governed by and
                  construed under the laws of the State of California.

         6.2      SUCCESSORS AND ASSIGNS. Except as otherwise expressly provided
                  herein, the provisions hereof shall inure to the benefit of,
                  and are binding upon, the successors, assigns, heirs,
                  executors, and administrators of the parties hereto.

         6.3      ENTIRE AGREEMENT. This Agreement and the other documents
                  delivered pursuant hereto, constitute the full and entire
                  understanding and agreement among the parties with regard to
                  the subjects hereof and no party shall be liable or bound to
                  any other party in any manner by a representations,
                  warranties, covenants, or agreements except as specifically
                  set forth herein or therein. Nothing in this Agreement,
                  express or implied, is intended to confer upon any party,
                  other than the parties hereto and their respective successors
                  and assigns, any rights, remedies, obligations, or liabilities
                  under or by reason of this Agreement, except as expressly
                  provided herein.

         6.4      SEVERABILITY. In case any provision of this Agreement shall be
                  invalid, illegal, or unenforceable, it shall to the extent
                  practicable, be modified so as to make it valid, legal and
                  enforceable and to retain as nearly as practicable the intent
                  of the parties and the validity, legality, and enforceability
                  of the remaining provisions shall not in any way be affected
                  or impaired thereby.

         6.5      AMENDMENT AND WAIVER. Except as otherwise provided herein, any
                  term of this Agreement may be amended, and the observance of
                  any term of this Agreement may be waived (either generally or
                  in a particular instance, either retroactively or
                  prospectively, and either for a specified period of time or
                  indefinitely), with the written consent of the Company and
                  Purchaser. Any amendment or waiver effected in accordance with
                  this Section shall be binding upon each future holder of any
                  security purchased under this Agreement (including securities
                  into which such securities have been converted) and the
                  Company.

                                      -7-
<PAGE>

         6.6      NOTICES. All notices and other communications required or
                  permitted hereunder shall be in writing and shall be effective
                  when delivered personally, or sent by telex or telecopier
                  (with receipt confirmed), provided that a copy is mailed by
                  registered mail, return receipt requested, or when received by
                  the addressee, if sent by Express Mail, Federal Express or
                  other express delivery service (receipt request) in each case
                  to the appropriate address set forth below.

If to the Company:                  PROTEO, INC.
                                    Birge Bargmann
                                    Proteo Biotech AG
                                    Am Kiel-Kanal 44
                                    D-24106 Kiel

If to Purchaser:                    FID Esprit AG
                                    Joerg Alte
                                    Rosengartenstr. 4
                                    CH-8608 Bubikon

         6.7      TITLES AND SUBTITLES. The titles of paragraphs and
                  subparagraphs of this Agreement are for convenience of
                  reference only and are not be not considered in construing
                  this Agreement.

         6.8      COUNTERPARTS. This Agreement may be executed in any number of
                  counterparts, each of which shall be deemed an original, but
                  all of which together shall constitute one instrument.

IN WITNESS WHEREOF, the parties have executed this Agreement the date first
above written.

"COMPANY"
PROTEO, INC. a Nevada Corporation

By:  /S/ BIRGE BARGMANN
     -----------------------------
     CEO:  Birge Bargmann

"PURCHASER"
FIDEsprit AG

By:  /S/ JOERG ALTE
     -----------------------------
     Managing Director: Joerg Alte

                                      -8-

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