Document:

United States Securities & Exchange Commission EDGAR Filing

			
	

	

	

Letter of Engagement

Video Without Boundaries, Inc.

June 1, 2006

The following sets forth the agreement for the engagement of Trilogy Capital Partners, Inc. (“Trilogy”) by Video Without Boundaries, Inc. (“VDWB” or the “Company”):

		
	Term and Termination

	Twelve months, commencing as of the date set forth above (the “Initial Term”), and terminable thereafter by either party upon 30 days’ prior written notice. 

	Objective

	The development and implementation of a proactive marketing program designed to increase the investor awareness of VDWB in the investment community and generate a significant increase in liquidity and market capitalization.  

	The Program

	Trilogy will structure and implement a marketing program designed to create extensive financial market and investor awareness for VDWB to drive long-term shareholder support.  The core drivers of the program will be to i

nform potential

 institutional and retail

investors of VDWB’s business and stimulate interest in investment

 in the Company’s stock through a proactive sales and marketing program emphasizing technology-driven communications and leveraging VDWB’s image to attract additional long term investors and to create additional opportunities in M&A and Business Development.  As share price is affected by various factors, Trilogy can give no assurance that the marketing program will result in an increase in VDWB’s stock price.

 

Trilogy understands that during any period in which the Company is in “registration” for a public offering of securities under the Securities Act of 1933, and during the distribution of such securities, the Company’s investor relations and marketing efforts will be severely limited.  However, it will be the responsibility of the Company (with the advice of its securities counsel) to determine what investor relations and financial marketing efforts are permissible and non-permissible during such periods, and Trilogy will follow the direction of the Company and its securities counsel.

		
	Responsibilities

	Trilogy will structure and implement the program described above in accordance with a marketing plan provided to VDWB.  Trilogy will work in conjunction with the Company’s management, securities counsel, investment bankers, auditors and marketing director, and under supervision of executive management.  Trilogy will designate a principal account representative to VDWB responsible for this engagement.

 

The content is as follows:  

 

·

Campaign Planning, Development and Execution 

·

Press Announcements: drafting, approval and distribution

·

Database Development and Management

·

Image Analysis:  recommendations and implementation 

·

Messaging:  institutional and retail

·

Online presentations: drafting and production responsibilities 

·

Website Overhaul – installation and maintenance of auto IR program 

·

Email messaging: targets: Retail and Institutional/Other databases

·

Media including Interactives and PowerPoints

·

Direct Mail: shareholder, media, VDWB relationship universe

·

Public Relations

·

Capital Conferences

 

Trilogy will not publish or publicly release any press release or other public communication or document referring to the Company (“IR Documents”) regarding the Company, or cause any other party to do so, that has not been approved in writing by the Company.  The Company assumes responsibility for the accuracy and completeness of all IR Documents which it has approved and the compliance of such IR Documents with applicable laws, rules and regulations.  The Company agrees that Trilogy has no obligation or duty to verify the accuracy or completeness of the IR Documents.

- 2 -

		
	

Confidentiality and Material Information

	

Trilogy agrees that all Confidential Information shall remain the property of the Company and will be held and treated by Trilogy and its affiliates, directors, officers and employees (collectively, the “

Representatives

”) in confidence and will not, except as provided in this Agreement, without the prior written consent of the Company, be disclosed by Trilogy or its Representatives, in any manner whatsoever, in whole or in part, and will not be used by Trilogy or its Representatives other than in connection with performing the duties and responsibilities of Trilogy under this Agreement.

 

“

Confidential Information

” means all technical, commercial, financial or other information concerning the business, affairs and operations of the Company and its affiliates and which the Company or its agents or representatives have provided or will provide to Trilogy in connection with its services hereunder whether provided in writing, electronically or verbally.  Notwithstanding the foregoing, the following will not constitute "Confidential Information" for purposes of this Agreement: (i) information which is available in the public domain or marketplace; (ii) information which after disclosure to Trilogy by the Company becomes part of the public domain by publication or otherwise, expect by breach by Trilogy of the terms of this Agreement; (iii) information which was rightfully in the possession of Trilogy at the time of disclosure to Trilogy by the Company; and (iv) information which is rightfully received by Trilogy from a third party who is not prohibited from transmitting the information to Trilogy by a contractual, legal or fiduciary obligation to the Company.

	Fees

	$12,500 per month, with the first payment due on execution, payable by wire transfer of funds to the account designated by Trilogy.   

	Equity

Compensation

	VDWB has concurrently herewith issued to Trilogy 4,400,000 Warrants, each Warrant representing the right to purchase one share of Common Stock for $0.17 per share at any time through the third year following issuance.  The Company agrees to file a Registration Statement with the Securities and Exchange Commission registering the resale of the shares underlying the Warrants no later than forty five (45) days from the date of this Agreement.  

- 3 -

		
	Marketing Budget

	To support the financial marketing program, VDWB acknowledges that it will incur certain third party marketing costs.  Trilogy will not incur these costs on behalf of the Company except with the approval of the Company or pursuant to a budget approved by the Company (which budget shall not be less than $200,000 over 12 months).  The Company shall have no obligation to reimburse Trilogy for any third party marketing cost that exceeds the approved budget or is otherwise not approved by the Company.  The Company understands that prompt payment of these costs is vital to the on-going investor relations program, and therefore shall pay these costs promptly upon invoice, to Trilogy (to enable Trilogy to promptly reimburse these third parties).  The Company shall indemnify and hold Trilogy harmless from any losses, claims, costs, expenses, liabilities and damages from failure to timely pay these third party marketing costs.

	Indemnification

	The Company agrees to provide the indemnification set forth in “Exhibit A” attached hereto.  

	Corporate Obligations

	The obligations of Trilogy under this Agreement are solely corporate obligations, and no officer, director, employee, agent, shareholder or controlling person of Trilogy shall be subject to any personal liability whatsoever to any person, nor will any such claim be asserted by or on behalf of any other party to this Agreement.

	Additional Services

	If Trilogy is called upon to render services directly or indirectly relating to the subject matter of this Agreement, beyond the services contemplated above (including, but not limited to, production of documents, answering interrogatories, giving depositions, giving expert or other testimony, whether by agreement, subpoena or otherwise), the Company shall pay to Trilogy a reasonable hourly rates for the persons involved for the time expended in rendering such services, including, but not limited to, time for meetings, conferences, preparation and travel, and all related costs and expenses and the reasonable legal fees and expenses of Trilogy’s counsel.  This Section is not intended to address circumstances in which Trilogy has a claim for indemnification, which circumstances are addressed by Exhibit A to this Agreement.

- 4 -

		
	Survival of Certain Provisions

	The Sections entitled “Indemnification” (including “Exhibit A”), “Corporate Obligations” and “Additional Services” shall survive any termination of this Agreement and Trilogy’s engagement pursuant to this Agreement.  In addition, such termination shall not terminate Trilogy’s right to compensation accrued through the date of termination and for reimbursement of allowed expenses (including third party marketing costs).  Any purported termination of this Agreement by the Company prior to the end of the Initial Term other than for material breach or default in accordance with “Term and Termination” above, or any termination by Trilogy as a result of non-payment or other material breach by the Company (including the failure to pay third-party marketing costs), shall not terminate Trilogy’s right to the fees through the entire Initial Term (as Trilogy’s time and commitment are expected to be greater in the first part of its engagement).

	Services/Costs

	The compensation paid to Trilogy under this Agreement will cover all costs for services by Trilogy and Trilogy personnel.  Travel and entertainment costs for Trilogy personnel, in addition to certain third-party costs, will be borne by the Company and included in the marketing budget prepared by Trilogy.  Trilogy will provide reasonable documentation to support reimbursement claims.  Trilogy will not incur any particular reimbursable cost of $500 or more without the written approval from the Company.  These reimbursable costs are not third-party marketing costs under “Marketing Budget.”

	Attorneys’ Fees

	If any action or proceeding is brought to enforce or interpret any provision of this Agreement, the prevailing party shall be entitled to recover as an element of its costs, and not its damages, reasonable attorneys’ fees to be fixed by the court.  

	Governing Law

	California, without giving effect to the principles of conflicts of law thereof.

- 5 -

Agreed and Accepted:

		
	Video Without Boundaries, Inc.

By  _____________________________

                Jeffrey Harrell

                President and CEO

	Trilogy Capital Partners, Inc.

By  _____________________________

           Paul Karon, 

           President

	 	 

- 6 -

EXHIBIT A

Indemnification Provisions

Video Without Boundaries, Inc. (the “Company”) unconditionally, absolutely and irrevocably agrees to and shall indemnify and hold harmless Trilogy Capital Partners, Inc. (“Trilogy”) and its past, present and future directors, officers, affiliates, counsel, shareholders, employees, agents, representatives, contractors, successors and assigns (Trilogy and such persons are collectively referred to as the “Indemnified Persons”) from and against any and all losses, claims, costs, expenses, liabilities and damages (or actions in respect thereof) arising out of or related to this Agreement, and any actions taken or omitted to be taken by an Indemnified Party in connection with this Agreement (“Indemnified Claim”).  Without limiting the generality of the foregoing, such indemnification shall cover losses, claims, costs, expenses, liabilities and damages imposed on or incurred by the Indemnified Persons, directly or indirectly, relating to, resulting from, or arising out of any: (i) actual or alleged misstatement of fact or omission of fact, or any actual or alleged inaccuracy in any information provided or approved by the Company in connection with the engagement, including any actual or alleged misstatement, omission or inaccuracy in any SEC filing, press release, website, marketing material or other document, or oral presentation or webcast, whether or not the Indemnified Persons relied thereon or had knowledge thereof.  In addition, the Company agrees to reimburse the Indemnified Persons for legal or other expenses reasonably incurred by them in respect of each Indemnified Claim at the time such expenses are incurred.  Notwithstanding the foregoing, the Company shall not be obligated under the foregoing for any loss, claim, liability or damage that is finally determined by a court with proper jurisdiction to have resulted primarily from the willful misconduct (including a willful breach of the obligations of Trilogy under the Agreement) or bad faith of the Indemnified Person. 

- 7 -<PAGE>
                                                                  EXHIBIT 10.1

                    [FORM OF RELEASE AND COVENANT NOT TO SUE]

         TO ALL TO WHOM THESE PRESENTS SHALL COME OR MAY CONCERN, KNOW THAT:

WHEREAS on January 21, 2005, Vanguard Info-Solutions Corporation, The A
Consulting Team, Inc. ("TACT"), Shmuel BenTov, and Andrew Ball (among others)
entered into certain agreements in contemplation of a transaction (the
"Contemplated Transaction") between Vanguard Info-Solutions Corp. and TACT,
among them: (i) the Share Exchange Agreement, among Vanguard Info-Solutions
Corp., its stockholders named therein, and TACT (the "Share Exchange
Agreement"); (ii) the Stock Purchase Agreement between Oak Finance Investments
Ltd. and TACT (the "Oak-TACT Agreement"); and (iii) the Stock Purchase Agreement
between Oak Finance Investments Ltd. and BenTov (the "Oak-BenTov Agreement")
(collectively, "the Transaction Agreements"); and

WHEREAS, on August 4, 2005, TACT and BenTov terminated the Contemplated
Transaction and the Transaction Agreements, pursuant to their respective terms,
each of which provided that the Agreements could be terminated where the
Contemplated Transaction had not been consummated by July 31, 2005 (Share
Exchange Agreement Section 12.2(i); Oak-TACT Agreement Section 11.1(b);
Oak-BenTov Agreement Section 12.1(b));

NOW, THEREFORE, in consideration of the sum of TEN DOLLARS ($10) and other good
and valuable consideration, including releases received from the following
parties:

         [Insert names of parties who deliver releases]

         receipt whereof is hereby acknowledged:

1. [Insert Name of Releasor] (the "RELEASORS") release and discharge [Insert
Names] (the "RELEASEES") from any and all claims, rights, obligations, demands,
charges, complaints, actions, suits, causes of action, losses, damages, bonds
and liabilities of any kind for damages or other relief that any one or more of
the RELEASORS ever had, now has or hereafter may have against any one or more of
the RELEASEES by reason of any matter, cause or thing whatsoever from the
beginning of the world to and including the date of full execution of this
Release and Covenant Not to Sue, whether known or unknown, suspected or
unsuspected, foreseen or unforeseen, accrued or unaccrued, actual or potential,
contingent or absolute, secured or unsecured, disclosed or undisclosed, hidden
or concealed, direct or derivative or brought in any other capacity, whether
under federal, state, common or any other law, including (without limitation)
all of the claims, if any, that may have survived the termination of the Share
Exchange Agreement (Section 12.5(b)), the Oak-TACT Agreement (Section 11.2), or
the Oak-BenTov Agreement (Section 12.2) (the "Released Claims").

2. The RELEASORS covenant not to file or commence, or solicit or encourage or
directly or indirectly cause others to file or commence, any claim, right,
demand, charge, complaint, suit, cause of action, action or proceeding of any
kind or nature whatsoever asserting, directly or indirectly: (a) any of the
Released Claims; and (b) any and all claims that any one or more of the
RELEASORS ever had, now has, or may have in the future that concern or relate in
any way, whether directly or indirectly, to the Contemplated Transaction or the
Transaction Agreements, against any individual or entity, whether the individual
or entity is known or unknown, including (without limitation) the RELEASEES and
the Other Affected Parties (as defined below).

<PAGE>

3. Notwithstanding anything herein to the contrary, nothing shall limit the
right of the RELEASORS to assert any of the claims that are the subject of the
above paragraph 2 as a counterclaim or an affirmative defense against an
opposing party in response to any claim, right, demand, charge, complaint, suit,
cause of action, action or proceeding by that opposing party against such
RELEASOR that concerns or relates in any way, directly or indirectly, to the
Contemplated Transaction or the Transaction Agreements, provided that such
RELEASOR asserting a counterclaim or an affirmative defense has not breached
this Release and Covenant Not to Sue, and provided that no claim released
against [insert name of applicable Releasees] in paragraph 1 above may ever be
asserted as a counterclaim or an affirmative defense in any event and provided
that no counterclaim, affirmative defense or other statement (whether pled in
court or otherwise made, publicly or privately) shall contain any allegation,
statement, observation, or opinion that is calculated to or is likely to
undermine, impugn, disparage, or otherwise in any way reflect adversely or
detrimentally upon any of the [insert names of applicable RELEASEES] or that
accuses or implies that any of the [insert names of applicable RELEASEES]
engaged in any wrongful, unlawful or improper conduct.

4. "Other Affected Parties" shall mean:

         [Insert Names of Other Affected Parties]

5. The RELEASORS waive their rights, to the extent permitted by law, to any
benefits of the provision of section 1542 of the California Civil Code or any
other similar state law, federal law, principle of common law, or any other law,
which may have the effect of limiting the releases set forth above. Section 1542
of the California Civil Code provides:

         A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT
         KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING
         THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED
         HIS OR HER SETTLEMENT WITH THE DEBTOR.

6. This Release and Covenant Not to Sue may not be changed orally, and shall be
governed by and construed under the laws of the State of New York without resort
to its conflict of laws principles.

7. This Release and Covenant Not to Sue may be executed with original or
facsimile signatures in one or more counterparts, each of which will be deemed
to be an original copy of this Release and Covenant Not to Sue and all of which,
when taken together, will be deemed to constitute one-and-the-same document.

         [THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]

<PAGE>

     IN WITNESS WHEREOF, the RELEASORS have hereunto set RELEASORS' hands
 on the ____ day of May, 2006.

                                     [NAME OF RELEASOR]

                                     By: _________________________________
                                     Name: _______________________________
                                     Title: ______________________________

STATE OF NEW YORK, COUNTY OF NEW YORK  SS.:

     On May ___, 2006, before me, the undersigned, personally came
______________________, to me known or proved to me on the basis of satisfactory
evidence to be the individual whose name is subscribed to the within instrument,
who, by me duly sworn, did depose and say that deponent resides at
__________________________________________, that deponent is the
__________________ of [Name of Releasor], the corporation described in, and
which executed the foregoing RELEASE, and that deponent signed deponent's name
pursuant to authority granted by the board of directors of the corporation.

                                     ------------------------------
                                     (signature and office of individual taking
                                     acknowledgment)

                                     ----------------------------------
                                     [NAME OF RELEASOR]

STATE OF NEW YORK, COUNTY OF NEW YORK  SS.:

     On May ____, 2006, before me, the undersigned, personally appeared [NAME OF
RELEASOR], personally known to me or proved to me on the basis of satisfactory
evidence to be the individual whose name is subscribed to the within instrument
and acknowledged to me that he executed the same.

                                     ------------------------------
                                     (signature and office of individual taking
                                     acknowledgment)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00104-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00104-of-00352.parquet"}]]