Document:

Exhibit 10.8

 

AGREEMENT OF PURCHASE AND SALE

 

AND

 

JOINT ESCROW INSTRUCTIONS

 

BY AND BETWEEN

 

FIRST STRIKE, INC.

A NEVADA CORPORATION

 

SELLER

 

AND

 

R.G. GLOBAL LIFESTYLES, INC.

A CALIFORNIA CORPORATION

 

PURCHASER

 

EFFECTIVE AS OF JANUARY 13, 2005

 

 

AGREEMENT OF PURCHASE AND SALE

 

AND

 

JOINT ESCROW INSTRUCTIONS

 

THIS AGREEMENT
OF PURCHASE AND SALE AND JOINT ESCROW INSTRUCTIONS (the “Agreement”) effective
as of January 13, 2005, is made by and between FIRST STRIKE, INC., a Nevada
Corporation (hereafter referred to as “First Strike” or “Seller”) and R.G.
GLOBAL LIFESTYLES, INC., a California Corporation (hereinafter referred to as “RGGL”
or “Purchaser”).(Seller and Purchaser are sometimes referred to herein
individually as a “Party” and collectively as the “Parties”).

 

PREAMBLE

 

A.                                   Seller
is a Nevada Corporation, duly organized and validly existing. Seller is the
owner of all right, title and interest in and to that certain website known as “Online
Surgery.Com”, together with all domain registrations, trade names, intellectual
property rights, and goodwill associated with said asset (hereinafter, the “Offered
Asset” or OLS”).  Seller desires to sell
and transfer the Offered Asset to Buyer effective upon the Closing Date, in
consideration for the promises, covenants, and agreements set forth in this
Agreement.

 

B.                                     Purchaser
desires to purchase and acquire the Offered Asset, on the terms and subject to
the conditions set forth in this Agreement.

 

C.                                     In
consideration of the mutual covenants set forth in this Agreement and other
good and valuable consideration, the receipt and sufficiency of which hereby
are acknowledged, Seller and Purchaser, intending to be bound legally and
equitably, agree as follows.

 

ARTICLE I.

 

PURCHASE; DESCRIPTION OF THE PROPERTY

 

1.1         Purchase and Sale and
Description of the Asset. Subject to the terms and conditions set forth in
this Agreement, at the Closing the Seller shall sell, convey, transfer, assign
and deliver to Purchaser, and Purchaser shall purchase and accept from the
Seller, all right, title and interest of Sellers in and to the website known as
Online Surgery.Com, together with all registrations, rights, and appurtenances
thereto, (hereafter, the “Offered Asset” or “OLS””):

 

(a)          Certificate of
Interest Owned by Seller.

 

(i)                                   All
right, title and interest of Seller in the Offered Asset.

 

(ii)                                The
Offered Asset t is being transferred subject to all rights and obligations
incident to the ownership of A registered and existing
website and domain name.  Purchaser has
conducted and completed its due diligence with respect to OLS and the results
thereof being satisfactory, Seller is transferring OLS to Purchaser on an “as
is” basis”, other than to represent that Seller owns the Offered Asset free and
clear of any and all liens, encumbrances, and claims of any kind.

 

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(iii)                             All
items of income and expense attributable to the operation of OLS shall be
prorated between the Parties based upon the closing date of this Agreement.

 

(b)         Excluded Property:
None.

 

ARTICLE II

 

PURCHASE PRICE, TERMS OF SALE

 

2.1                                                         Purchase
Price.  As consideration for the
transfer, sale, assignment, conveyance and delivery to the Purchaser of the
Property, the Purchaser shall, at the Closing, assume the operating expenses of
OLS and shall cause to be issued and transferred to Seller Two Hundred Thousand
(200,000) shares of its Restricted Common Stock, in the form and content set
forth as exhibit “A” to this Agreement, which shall be referred to hereinafter
as the Purchase Price.

 

2.2                                                         Allocation
of Purchase Price:  For purposes of
allocation of the purchase price only, inasmuch as the Offered Asset is
privately held and difficult to value, the parties have negotiated, valued and
agreed to the following valuations and allocations of the Purchase Price:  200,000 shares of common stock of Purchaser
based upon closing date of January 13, 2005 represents $0.001 per share at
stated par value, or $200.  Each of the
Parties represents and warrants to the other, that the foregoing Purchase Price
fairly represents the value of the Offered Asset as of the date of this
Agreement, and is based upon all information reasonably available to the
Parties as of the date hereof.  Neither
party has failed to disclose any material facts to the other in connection with
the sale and purchase of the Interest set forth herein, or in connection with
the existence of prospective clients, growth, or status of the Offered Asset as
of the date of this Agreement.

 

2.3                                                         The
parties hereby waive the need for an Escrow agent, since the closing date shall
be the date of physical delivery of the Certificate of  Ownership Interest endorsed for transfer and
the Certificate of Commitment to Issue the Common Stock of Purchaser (Exhibit “A”
hereto.).

 

2.4                                                         Payment
of Purchase Price. At Closing, Purchaser shall execute and deliver to
Seller the Certificate of Commitment to Issue the Common Stock of Purchaser,
and shall execute and deliver a copy of this Agreement of Purchase and Sale.

 

ARTICLE III

SELLER’S REPRESENTATIONS AND WARRANTIES

 

3.1                                 Representations
and Warranties. Seller hereby makes the representations and warranties set
forth in this Section 3.1, subject to the limitations set forth in Sections 3.2
and 3.4, upon which Seller acknowledges and agrees that Purchaser is entitled
to rely.

 

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(a)          Organization and
Power of Seller: Operation. Seller is a Nevada Corporation that is duly
formed, validly existing, in good standing in the jurisdiction of its formation
and is qualified to do business in the jurisdiction in which this transaction
is taking place.

 

(b)         Authority and Binding
Obligation. (i) Seller has full power and authority to execute and deliver
this Agreement and all documents now or hereafter to be executed and delivered
by Seller under this Agreement, and to perform all obligations arising under
this Agreement and such other documents, (ii) the execution by the undersigned
on behalf of Seller, and the delivery and performance of this Agreement by
Seller is or shall have been duly and validly authorized by all necessary
action on the part of Seller, and (iii) this Agreement and such other documents
now or hereafter to be executed and delivered by Seller under this Agreement,
when executed and delivered, will each constitute the legal, valid and binding
obligations of Seller enforceable against 
Seller in accordance with their respective terms, subject to the application
of equitable principles and the effect of all statutes, laws, common law,
rules, regulations, ordinances, codes or other legal requirements of any
Governmental Authority, (“Applicable Law”) affecting the rights of creditors generally,
and except to the extent Purchaser itself is in default hereunder.

 

(c)          Title to the Offered
Interest. To Seller’s Knowledge Seller has good and valid title to the
Offered Asset, which shall be free and clear of all liens, encumbrances and
claims as of the Closing.

 

(d)         Litigation. To
Seller’s Knowledge, Seller has not (i) been served with any court filing in any
litigation with respect to the business of the Corporation in which Seller is
named a party, or (ii) received written notice of any charge or
complaint from any Governmental Authority or other Person pursuant to any
administrative, arbitration or similar judicial proceeding with respect to the
business of the Company which has not been settled or dismissed, and Seller has
not any received written notice threatening any such action .

 

(e)          Contracts. To
Seller’s Knowledge Seller has neither given nor received any written notice of
any breach or default under any of the Operational Agreements which has not
been cured, and no event has occurred or circumstance exists which, with notice
or the passage of time, or both, would result in a breach or default by Seller or
the other party thereunder.

 

(f)            Management and
License Agreements. Seller is not a party to any management, franchise,
license, concession or other Agreement for the management or operation of the
Company, other than the Operating Agreement disclosed herein.

 

(g)         Finders and Brokers.  Seller has not dealt with any Person who has
acted, directly or indirectly, as a broker, finder, financial adviser or in any
other capacity for or on behalf of Seller in connection with the transaction
contemplated by this Agreement in a manner which would entitle such Person to
any fee or commission in connection with this Agreement or the transaction
contemplated in this Agreement.

 

3.2                                 As-Is
Sale. Except for the representations and warranties of Seller expressly set
forth in this Article III, the Seller is not making any other representations
or warranties, express or implied, about the Company. The Purchaser
acknowledges that the Offered Asset being sold is not new and neither the
Seller nor Seller’s Manager make any representation or warranty, express or
implied, about the including without limitation, its physical condition,
prospects, financial projections or predictions, and the Offered Interest is
sold in its present “AS-IS” and “WHERE IS” condition.

 

3

 

3.3  Effect of Purchasers Know1edge. If Purchaser has
Knowledge prior to Closing of a breach of any representation or warranty made
by Sellers in this Agreement and Purchaser nevertheless elects to close this
transaction, such representation or warranty by Seller with respect to such
matter shall be deemed not to have been breached to the extent of Purchaser’s
Knowledge.

 

ARTICLE IV

 

PURCHASER’S REPRESENTATIONS AND WARRANTIES

 

4.1                                 Representations
and Warranties. Purchaser hereby makes the representations and warranties
in this Section 4.1, subject to the limitation in Section 4.2, upon which
Purchaser acknowledges and agrees that Seller is entitled to rely.

 

(a)          Organization and
Power. Purchaser has all requisite power and authority to acquire, own and
operate the Offered Asset as set forth in this Agreement.

 

(b)         Authority and Binding
Obligation. (i) Purchaser has full power and authority to execute and
deliver this Agreement and all documents now or hereafter to be executed and
delivered by Purchaser under this Agreement, and to perform all obligations
arising under this Agreement and such other documents, (ii) the execution by
the undersigned on behalf of Purchaser, and the delivery and performance of
this Agreement by Purchaser has been duly and validly authorized by all necessary
action on the part of Purchaser, and (iii) this Agreement and such other
documents now or hereafter to be executed and delivered by Purchase under this
Agreement, when executed and delivered, will each constitute the legal, valid
and binding obligations of Purchaser enforceable against Purchaser in
accordance with its terms, subject to the application of equitable principles
and Applicable Laws affecting the rights of creditors generally, and except to
the extent Seller is in default hereunder.

 

(c)          Consents and
Approvals: No Conflicts. (i) No filing with, and no permit, authorization.
consent or approval of, any Governmental Authority or other Person is necessary
for the consummation by Purchaser of its obligations under this Agreement, and
(ii) neither the execution and delivery of this Agreement by Purchaser, nor the
consummation by Purchaser of the transaction contemplated under this Agreement,
nor compliance by Purchaser with any of the terms of this Agreement will: (A)
violate any provision of the organizational or governing documents of
Purchaser; (B) violate any Applicable Law to which Purchaser is subject; or (C) result in a violation or breach of or constitute a default
under any contract, agreement or other instrument or obligation to which
Purchaser is a party or is bound or to which any of Purchaser’s properties are
subject.

 

(d)         Finders and Brokers.
Purchaser has not dealt with any Person who has acted, directly or indirectly,
as a broker, finder, financial adviser or in such other capacity for or on
behalf of Purchaser in connection with the transaction contemplated by this
Agreement in any manner which would entitle such Person to any fee or
commission in connection with this Agreement or the transaction contemplated in
this Agreement.

 

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4.2                                 Effect
of Seller’s Knowledge. If Seller has Knowledge prior to Closing of a breach
of any representation or warranty made by Purchaser in this Agreement and
Seller nevertheless elects to close this transaction, such representation or
warranty by Purchaser with respect to such matter shall be deemed to have not
been breached to the extent of Seller’s Knowledge.

 

ARTICLE V

COVENANTS

 

5.1                                 Confidentiality.

 

(a)          Disclosure of  Confidential
Information; Public Announcements. Seller and Purchaser shall keep
confidential and not make any public announcement or disclose to any Person the
existence or any terms of this Agreement, any information disclosed by the Inspections
or in the Seller Due Diligence Materials or Purchaser Due Diligence Reports,
and any other documents, materials, data or other information with respect to
the Company that is not generally known to the public (the “Confidential
Information”); provided, however, that Seller
and Purchaser shall be permitted to (i) disclose any Confidential Information
to the extent required by court order or under Applicable Law, (ii) make a
public announcement regarding the transaction contemplated in this Agreement after
the expiration of the Due Diligence Period, provided that
Seller and Purchaser shall approve the form and substance of any such public
announcement, which approval shall not be unreasonably withheld, conditioned or
delayed, or (iii) disclose any Confidential Information to any Person on a “need-to-know”
basis, such as their respective directors, officers, partners, members,
employees, attorneys, accountants, engineers, surveyors, consultants, lenders,
investors, managers, franchisers and such other Persons whose assistance is
required to consummate the transactions contemplated in this Agreement; provided, however, that Seller or Purchaser (as the case may
be) shall (a) advise such Person of the confidential nature of such Confidential
Information, and (b) use commercially reasonable efforts to cause such Person
to maintain the confidentiality of such information; and provided,
further, that except for the obligations of Seller and Purchaser to
use such commercially reasonable efforts, neither Seller nor Purchaser shall be
liable for any breach of confidentiality by such Person, If this Agreement is
terminated, Purchaser promptly shall return all Seller Due Diligence Materials
to Seller, together with any other documents which contain information obtained
from any Seller Due Diligence Materials, and if requested by Seller, Purchaser
shall provide a copy of all Purchaser Due Diligence Reports to Seller. This
Section 6.1(a) shall survive the termination of this Agreement and Closing.

 

5.2                                 Operation
of Business Prior to Closing.

 

(a)          Operation in Ordinary
Course of  Business. From the date of this Agreement until the
Closing or earlier termination of this Agreement, Seller shall operate the
business in the Ordinary Course of Business, including, without limitation, (i)
maintaining all existing insurance coverage (or adequate replacements thereof);
(ii) maintaining inventories of Supplies in the Ordinary Course of Business,
and (iii) performing maintenance and repairs in the Ordinary Course of
Business. Supplies will be maintained at normal operating levels.

 

(b)         Operating Agreements.
From the date of this Agreement until the Closing or earlier termination of
this Agreement Seller shall not (i) amend, modify, extend, renew or terminate
any existing Operating Agreements or Licenses and Permits, in each case without
Purchaser’s prior written consent, except in the Ordinary Course of Business,
which consent shall not

 

5

 

be withheld or
delayed unreasonably, nor (ii) enter into any new Operating Agreements, unless
such new Operating Agreements are terminable by Purchaser, without any
termination fee, upon not more than thirty (30) days notice.

 

ARTICLE VI

CLOSING

 

6.1         Closing Date, The
closing of the transaction contemplated under this Agreement (the “Closing”)
shall occur on January 13, 2005 at 12:00 p.m. or at such other time as agreed
to in writing between Seller and Purchaser (the date on which the Closing
occurs is referred to herein as the ‘Closing Date”), at the offices of
Purchaser, 17751 Mitchell Ave., Irvine, CA 92614.

 

6.2         At the Closing date, each
Party shall deliver to the other party, the documents required to be delivered
by such Party under this Agreement, and the parties further agree to co-operate
with one another to fully effectuate their intent under this Agreement.

 

ARTICLE VII.

LIQUIDATED DAMAGES PROVISION

 

SELLER AND
PURCHASER AGREE THAT IF THIS AGREEMENT IS TERMINATED, THE DAMAGES THAT SELLER
WOULD SUSTAIN AS A RESULT OF SUCH TERMINATION WOULD BE DIFFICULT IF NOT
IMPOSSIBLE TO ASCERTAIN. ACCORDINGLY, SELLER AND PURCHASER AGREE AFTER
NEGOTIATION THAT SELLERS SHALL RETAIN FIFTY THOUSAND SHARES OF THE PURCHASE
PRICE, AND RETURN THE REMAINDER OF THE SHARES, AS FULL AND COMPLETE LIQUIDATED
DAMAGES AND AS SELLER’S SOLE AND EXCLUSIVE REMEDY FOR SUCH TERMINATION;
PROVIDED, HOWEVER, THAT THE PARTIES SHALL RETAIN ALL RIGHTS AND REMEDIES UNDER
THIS AGREEMENT WITH RESPECT TO THOSE OBLIGATIONS WHICH EXPRESSLY SURVIVE SUCH
TERMINATION; AND PROVIDED, FURTHER, THAT THE SELLER SHALL BE ENTITLED TO
EXERCISE ANY RIGHTS OR REMEDIES IT MAY HAVE BY VIRTUE OF AN INDEMNITY CREATED
OR GRANTED IN THIS AGREEMENT INCLUDING, WITHOUT LIMITATION, RECOVERY OF
REASONABLE ATTORNEYS FEES AND COSTS.

	
  Sellers’
  Initials

  	
  Purchasers
  Initials

  

 

ARTICLE VIII

CASUALTY; FRUSTRATION OF PURPOSE

 

8.1                                 Casualty,
Frustration, or Mutual Agreement to Unwind.

 

(a)          Frustration. If for any
reason due to force majeure or circumstances beyond the control of the parties the
Offered Interest cannot be transferred in accordance with this Agreement, the
parties shall use reasonable efforts to agree to amend this Agreement as may be
necessary to complete the transaction contemplated by this Agreement; provided,
however, that if the parties cannot reach mutual agreement, this Agreement
shall terminate without fault of either Seller or Purchaser.

 

6

 

ARTICLE IX

INDEMNIFICATION

 

9.1       Indemnification by
Seller. Subject to the limitations set forth in this Agreement, Seller shall
defend, indemnify and hold harmless the Purchaser and its members, managers and
the successors, Assigns, heirs and legal representatives of each of the
foregoing (collectively, the Indemnified Purchaser) from and against any
claims, liability, damage, loss, cost or expense, including, without
limitation, reasonable attorney’s fees, disbursements and expenses and court
costs, incurred by the Person in question (collectively ‘losses) incurred by
any Indemnified Purchaser  (a) after the
Closing as a result of (l) any inaccuracy or untruth of any representations or
warranties made by Seller in this Agreement, and (2) the breach by Seller of
any of its covenants or obligations under this Agreement which expressly
survive the Closing or (b) after the termination of this Agreement, based on
the breach by Seller of any of its covenants or obligations under this
Agreement which expressly survive such termination.

 

9.2         Indemnification by
Purchaser. Subject to the limitations set forth in this Agreement,
Purchaser shall defend, indemnify and hold harmless the Seller and its
respective shareholders, directors, officers, members, employees and agents,
and their successors, assigns, heirs and legal representatives of each of the
foregoing (the “Indemnified Seller” from and against any Losses incurred by an
Indemnified Seller (a) after the Closing as a result of (1) any inaccuracy or
breach of any representations or warranties made by Purchaser in this
Agreement, or (2) the breach by Purchaser of any of its covenants or obligations
under this Agreement which expressly survive the Closing, or (b) after the
termination of this Agreement based on the breach by Purchaser of any of its
covenants or obligations under this Agreement which expressly survive such
termination.

 

9.3                                 Limitations
on Indemnification Obligations.

 

(a)          Survival of
Representations and Warranties. The representations and warranties of
Seller under this Agreement, and the representations and warranties of
Purchaser under this Agreement shall survive the Closing until the expiration
of the applicable statute of limitations. To the extent any Indemnified Seller
or Indemnified Purchaser (each an “Indemnified Party”) is seeking the defense
of, or indemnification for, a breach of any representations or warranties, the
Indemnified Party shall be entitled to indemnification only for those matters as to which such a party has given written notice to
the Indemnitor (as defined below) prior to the expiration of the expiration of
the applicable Survival Period.

 

(b)         Indemnification Cap.
Notwithstanding anything to the contrary in this Agreement, in no event shall Seller’s
indemnification obligations exceed the Purchase Price in the aggregate (the ‘Indemnification
Cap’).

 

(c)          Effect of Taxes and
Insurance. The amount of any Losses for which defense or indemnification is
provided to any Indemnitee under this Article 9 shall be net of any tax
benefits realized or insurance proceeds received by such Indemnitee in
connection with the Indemnification Claim.

 

7

 

(d)         Third Party Claims.
Except as to amounts covered under Purchaser’s insurance policy or policies, Purchaser
shall not be obligated to indemnify or defend Seller or hold Seller harmless
from any third party claim related to the period of time during which the
Seller owned the Real Property. Except as to amounts covered under Seller’s
insurance policy or policies, Seller shall not be obligated to indemnify or
defend Purchaser or hold Purchaser harmless from any third
party claim related to the period of time during which the Purchaser owns the
Real Property.

 

9.4                                 Exclusive
Remedy. Except for claims based on fraud, the provisions of this Article IX
shall be the sole and exclusive remedy of any Indemnitee with respect to any
claim for Losses arising from or in connection with this Agreement.

 

ARTICLE X

 

MISCELLANEOUS PROVISIONS

 

10.1                           Notices.

 

(a)          Method of  Delivery.
All notices, requests, demands and other communications (each, a “Notice”)
required to be provided to the other Party pursuant to this Agreement shall be
in writing and shall be delivered (i) by messenger or in person. (ii) by
certified U.S. mail, with postage prepaid and return receipt requested, (iii)
by overnight courier service. or (iv) by facsimile transmittal, with a
verification copy sent on the same day by any of the methods set forth in
clauses (i), (ii) and (iii), to the other Party to this Agreement at the
following address or facsimile number (or to such other address or facsimile
number as Seller or Purchaser may designate from time to time pursuant to
Section 10.1(c)):

 

	
  If to
  Purchaser:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  To Louis L.
  Knickerbocker, CEO.

  	
   

  	
   

  
	
   

  	
  R.G. Global
  Lifestyles, Inc.

  	
   

  	
   

  
	
   

  	
  17751
  Mitchell Ave.

  	
   

  	
   

  
	
   

  	
  Irvine, CA
  92614

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  If to
  Seller:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  To the
  Office of the President

  	
   

  	
   

  
	
   

  	
  First
  Strike, Inc.

  	
   

  	
   

  
	
   

  	
  3395 S.
  Jones St., Ste. 222

  	
   

  	
   

  
	
   

  	
  Las Vegas,
  NV 89146

  	
   

  	
   

  
					

 

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(b)         Receipt of Notices.
All Notices sent by Sellers or Purchaser (or their respective counsel pursuant
to Section 10.1(d)) under this Agreement shall be deemed to have been received
by the Party to whom such Notice is sent upon (i) delivery to the address or
facsimile number of the recipient Party, provided that
such delivery is made prior to 5:00 p.m. (local time for the recipient Party)
on a Business Day, otherwise the following Business Day, or (ii) the attempted
delivery of such Notice if (A) such recipient Party refuses delivery of such
Notice, or (B) such recipient Party is no longer at such address or facsimile
number, and such recipient Party failed to provide the sending Party with its
current address or facsimile number pursuant to this Section 10.1(b).

 

(c)          Change of Address.
Seller and Purchaser and their respective counsel shall have the right to
change their respective address and/or facsimile number for the purposes of
this Section 10.1 by providing a Notice of such change in address and/or
facsimile as required under this Section 10.1(c).

 

(d)         Delivery by Party’s
Counsel. Sellers and Purchaser agree that the attorney for such Party shall
have the authority to deliver Notices on such Party’s behalf to the other Party
hereto.

 

10.2                           Time
is of  the Essence, Time is of the essence of this Agreement; provided, however, that notwithstanding anything to the
contrary in this Agreement, if the time period for the performance of any
covenant or obligation, satisfaction of any condition or delivery of any notice
or item required under this Agreement shall expire on a day other than a
Business Day, such time period shall be extended automatically to the next
Business Day.

 

10.3                           Successors
and Assigns: Third Party Beneficiaries. This Agreement shall be binding
upon and inure to the benefit of Sellers and Purchaser, and their respective
successors and permitted assigns pursuant to this Agreement.

 

10.4   In the event of any dispute arising between
the parties, and an arbitration or similar judicial proceeding is sought,
taken, instituted or brought by Seller or Purchaser to enforce its rights under
this Agreement, all fees, costs and expenses, including, without limitation,
reasonable attorneys fees and court costs, of the prevailing Party in such
action, suitor proceeding shall be borne by the Party against whose interest
the judgment or decision is rendered. This Section 10.4 shall survive the
termination of this Agreement and the Closing.

 

10.5                           No
Recordation. Neither this Agreement, nor any memorandum or other notice of
this Agreement, shall be recorded without Seller’s prior written consent, which
consent may be withheld in Seller’s sole discretion.

 

10.6                           Rules
of Construction. The following rules shall apply to the construction and
interpretation of this Agreement:

 

(a)          Singular words shall
connote the plural as well as the singular, and plural words shall connote the
singular as well as the plural, and the masculine shall include the feminine
and the neuter.

 

(b)         All references in this
Agreement to particular articles, sections, subsections or clauses (whether in
upper or lower case) are references to articles, sections, subsections or
clauses of this Agreement. All references in this Agreement to particular
exhibits or schedules (whether in upper or lower case) are references to the
exhibits and schedules attached to this Agreement unless otherwise expressly
stated or clearly apparent from the context of such reference.

 

9

 

(c)          The headings contained
herein are solely for convenience of reference and shall not constitute a part
of this Agreement nor shall they affect its meaning, construction or effect.

 

(d)         Each Party hereto and its
counsel have reviewed and revised (or requested revisions of) this Agreement
and have participated in the negotiation and preparation of this Agreement, and
therefore any rules of construction requiring that ambiguities are to be
resolved against a particular Party shall not be applicable in the construction
and interpretation of this Agreement or any exhibits hereto. Each Party has had
the opportunity to seek review by independent legal counsel.

 

(e)          The terms “hereby.” “hereof.”
“hereto,’ “herein,” “hereunder” and any
similar terms shall refer to this Agreement, and not solely to the provision in
which such term is used.

 

(f)            The terms “include,” “including”
and similar terms shall be construed as if followed by the phrase “without
limitation.”

 

10.8                           Governing
Law; Severability, This Agreement shall be governed by the laws of the
State of Nevada. If any term or provision of this Agreement is held to be or
rendered invalid or unenforceable at any time in any jurisdiction, such term or
provision shall not affect the validity or enforceability of any other terms or
provisions of this Agreement, or the validity or enforceability of such
affected terms or provisions at any other time or in any other jurisdiction.
Venue in any action or proceeding arising in connection with this Agreement
shall be in Las Vegas, Nevada.

 

10.9                           Recitals,
Exhibits and Schedules, The recitals to this Agreement, and all exhibits
and schedules referred to in this Agreement are incorporated herein by such
reference and made a part of this Agreement.

 

10.10                     Exculpation.
Purchaser acknowledges and agrees that all persons dealing with Seller shall
look solely to Seller’s equity in the Property for the enforcement of any
claims against Seller; its members, directors, officers, employees, agents and
security holders of such entities assume and shall have no personal liability
for the liabilities and obligations entered into by such entity, and their
respective individual assets shall not be subject to the claims of any Person
relating to such liabilities and obligations.

 

10.11                     Entire
Agreement: Amendments to Agreement. This Agreement sets forth the entire
understanding and agreement of the Parties hereto, and shall supersede all
letters of intent and any other agreements and understandings (written or oral)
between Sellers and Purchaser on or prior to the date of this Agreement with
respect to the transaction contemplated in this Agreement. No amendment or
modification to any terms of this Agreement or cancellation of this Agreement,
shall be valid unless in writing and executed and delivered by Seller and
Purchaser.

 

10.12                     Knowledge.
Phrases referencing “Knowledge” means (a) with respect to Seller, and expressly
excludes the knowledge of any other director, officer, manager, employee, agent
or representative of Seller, and (b) with respect to Purchaser, (i) the
knowledge of, and expressly excludes the knowledge of any other member,
manager, employee, agent or representative of Purchaser.

 

10

 

10.13                     Facsimile:
Counterparts, Seller and Purchaser may deliver executed signature pages to
this Agreement by facsimile transmission to the other Party, which facsimile
copy shall be deemed to be an original executed signature page: provided,
however, that such Party shall deliver an original signature page to the other
Party promptly thereafter. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all of which
counterparts together shall constitute one agreement with the same effect as if
the Parties had signed the same signature page.

 

10.14                     Authority.
The individuals signing this Agreement on behalf of a Party hereby make the
following representations and warranties in favor of other Parties arid agree
that the other Parties are entitled to rely thereon: Each such individual has
fill power, authorization and authority to execute and deliver this Agreement
on behalf of the Party for whom the individual signs and, subject to express
warranties made by such Party in this Agreement, to bind such Party to perform
all obligations arising under this Agreement.

 

IN WITNESS
WHEREOF, Seller and Purchaser have caused this Agreement to be executed in
their names by their respective duly authorized officers or representatives.

 

	
  SELLER:

  
	
  FIRST
  STRIKE, INC.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name: Eric
  Bush, Pres.

  
	
   

  
	
   

  
	
  PURCHASER:

  
	
  R.G. GLOBAL
  LIFESTYLES, INC.

  
	
   

  
	
  BY:

  	
   

  	
   

  
	
  Name: Louis
  L. Knickerbocker, Pres.

  

 

11

 

EXHIBIT “A”

 

CERTIFICATE OF COMMITMENT TO ISSUE SHARES

 

The
undersigned Officers of R.G. Global Lifestyles, Inc. hereby certify that they
are authorized to issue to Seller, or order, Two Hundred Thousand (200,000)
shares of Restricted Common Shares of R.G. Global Lifestyles, Inc., in
compliance with the terms and conditions of the Agreement of Purchase and Sale
dated January 13, 2005.

 

 

	
  Louis L.
  Knickerbocker, CEO

  
	
   

  
	
   

  
	
  William C.
  Hitchcock, CFOExhibit 10.9

 

PROFESSIONAL
SERVICES AGREEMENT

 

This
Professional Services Agreement (the “Agreement”) is made and entered into as
of February 25, 2005 (“Effective Date”) by and between Specialized
Marketing Services, Inc. (“SMS”), a California corporation, with offices
located at 17809 Gillette Avenue, Irvine, California 92614-6501 and
Amerikal Nutraceutical Corp. (“Amerikal”), a California corporation, with its principal place of
business located at 17751 Mitchell Avenue, Irvine, California 92614.

 

WHEREAS, Amerikal desires to procure services in the area of marketing
fulfillment (the “Services”) and wishes to retain Services of SMS as set forth
in this Agreement.

 

WHEREAS, SMS wishes to provide Services to Amerikal on the terms and conditions
as set forth in this Agreement.

 

NOW THEREFORE, in consideration of the mutual covenants set forth in this Agreement,
the receipt and sufficiency of which are hereby expressly acknowledged, the
parties agree as follows:

 

1.                                       Professional Services.  SMS
agrees to provide Amerikal with the Services as set forth in Exhibit A attached
hereto or any other Exhibits as from time to time may be added to this
Professional Services Agreement.

 

2.                                     Fees.  In consideration for the
Services to be performed under this Agreement, Amerikal hereby agrees to pay
SMS the fees set forth in Exhibit A below or any other Exhibits as from
time to time may be added to this Professional Services Agreement. SMS will
submit invoices to Amerikal on a monthly basis for Services provided in the
previous month. Amerikal will pay such invoices ten (15) days after receipt. In
the event that Amerikal disputes any invoice submitted, Amerikal shall provide
written notice to SMS within ten (10) days of the receipt of invoice, detailing
the reason for the disputed amounts. Notwithstanding the foregoing, Amerikal
shall pay SMS for any undisputed amounts due. Past due accounts are subject to
a one and one half percent (1.5%) finance charge per month or the maximum allowed
by law for each month that payment remains outstanding. Funds for postage or
shipping shall be kept on deposit at SMS and requests for deposits will be
payable upon receipt.

 

3.                                     Confidentiality.  The
parties entered into a certain Mutual Confidentiality and Non-Disclosure Agreement
(“NDA”) dated February 25, 2005 of which the terms and conditions are hereby
incorporated herein.

 

4.                                     Term and Termination.  This
Agreement is effective as of the date first written above, and will continue in
effect for a period of one (1) year from the Effective Date, unless
terminated earlier in accordance with the terms of this Agreement. Thereafter,
this Agreement shall renew for additional 12 month periods.

 

(a)                              Amerikal may terminate this Agreement, with
or without cause, upon sixty (60) days prior written notice to SMS. SMS may
terminate this Agreement, with or without cause, upon sixty (60) days prior
written notice to Amerikal. Upon any termination of this Agreement, it is
Amerikal’s obligation to pay SMS the fees due for Services completed prior to
such termination. Furthermore Amerikal acknowledges and agrees to pay SMS for
costs related to closing out Amerikal’s account with SMS which shall consist of:
(i) extracting data from the system and providing such data to Amerikal; (ii) performing
an inventory cycle count, preparing outstanding orders for shipping, dumping,
or recycling; (iii) coordinating the

 

 

transfer of materials and information; (iv) dumping
and/or recycling fees; and (v) any additional services requested in
writing by Amerikal.

 

(b)                             SMS may terminate the Agreement immediately
in the event Amerikal fails to pay any invoice within sixty (60) days of
receipt of invoice.

 

(c)                              Where agreement, approval, acceptance, or
consent by either party is required by any provision of this Agreement, such
action shall not be unreasonably delayed or withheld.

 

(d)                             Sections 2, 3, 4, 5, 7, 11, 13 and 14 shall
survive any termination or expiration of this Agreement.

 

5.                                       Indemnification.

 

A.        Indemnification: To the fullest extent permitted by law,
Amerikal shall, at Amerikal’s sole expense and with counsel reasonably
acceptable to SMS, indemnify, defend, and hold harmless SMS from and against all
Claims arising from any cause, directly or indirectly arising out of or
relation to this Contract, or the Product without limitation; (a) the use
of the Product by any other party; (b) the negligence or misconduct of Amerikal
or of any employee, agent or contractor of Amerikal; (c) Amerikal’s
conduct of business; (d) any breach or default in performance of any
obligation on Amerikal’s part to be performed under this Contract, whether
before or during the Contract Term or after its expiration and/or termination.
The foregoing indemnification extends to and includes claims for: (a) injury
to any persons (including death); (b) loss of, injury or damage to, or
destruction of property (including all loss of use); and (c) all economic losses
and consequential or resulting damage of any kind. Amerikal’s insurance obligations
under this Contract are independent of Amerikal’s exculpation, indemnification,
and other obligations under this Contract and shall not be construed or interpreted
in any way to restrict, limit, or modify Amerikal’s exculpation, indemnification,
and such obligations of Amerikal or to limit Amerikal’s liability under this
Contract.

 

B.        Duty to Defend: Amerikal’s duty to defend SMS is separate and
independent of Amerikal’s duty to indemnify SMS. The duty to defend includes
claims for which SMS may be liable without fault or strictly liable. The duty
to defend applies regardless of whether the issues of negligence, liability,
fault, default, or other obligation on the part of Amerikal have been
determined. The duty to defend applies immediately, regardless of whether SMS
has paid any sums or incurred any detriment arising out of or relating
(directly or indirectly) to any Claims. It is the express intention of the
parties that SMS be entitled to summary adjudication or summary judgment
regarding Amerikal’s duty to defend SMS at any stage or any claim of suit within
the scope of Section 13.

 

C.        Exculpation: To the
fullest extent permitted by law, Amerikal waives all Claims (in law, equity or
otherwise) against SMS arising out of, and agrees that SMS shall not be liable
to Amerikal for (and Amerikal knowingly and voluntarily assumes the risk of) the
following: (a) injury to or death of any person; (b) loss of, injury
or damage to, or destruction of any tangible or intangible property, including
the resulting loss of use, economic losses and consequential or resulting
damages of any kind form any cause. This exculpation clause shall not apply to
claims against SMS to the extent that a final judgment of a court of competent
jurisdiction established that the injury, loss, damage

 

2

 

or
destruction was proximately caused by SMS’ fraud, gross negligence, willful
injury to person or property, or violation of law.

 

D.        Survival:
The indemnification and exculpation provisions of Section 13 shall survive
the expiration or termination of this
Contract until all Claims contemplated by these provisions are fully,
finally and absolutely barred by the applicable statute of limitations.

 

E.   Damages:
In no event shall SMS be liable to Amerikal for any consequential losses, claims,
damages or liabilities.

 

6.                                     Insurance.
 SMS is to be named as additional insured
on Amerikal’s Product Liability Policy. Proof of insurance to be forwarded to
SMS within thirty days of this agreement. Amerikal is responsible to provide
their own insurance for product loss and fire while stored or in transit to the
SMS warehouse on designated warehouse facility.

 

7.                                     Notice.
 Any notice or other communication
required or permitted to be given by either party under this Agreement shall be
given in writing, by personal delivery, or by registered or certified mail,
return receipt requested, addressed to each respective party at its current
address as set forth above, or to such other address as either party shall
indicate by proper notice to the other in the manner provided herein. All notices
will be deemed to be given when received in accordance with the provisions of
this Section 7.

 

8.                                     Assignment.  This Agreement may not be assigned by either
party without written consent of the other.

 

9.                                     Relationship
of the Parties.  It is understood
that SMS is an independent contractor, and that this Agreement does not create
any agency, employment, partnership, joint venture or similar relationship between
the parties, and neither Amerikal nor SMS has any authority to bind the other
with respect to any matter. Under no circumstances shall either SMS or Amerikal
have the right or authority to act or make any commitment of any kind to any
third party on behalf of the other party or to represent the other party in any
way as an agent.

 

10.                               Force
Majeure.  Neither party shall be in
default by reason of failure in performance of this Agreement if such failure
arises, directly or indirectly, out of causes reasonably beyond the control or
foreseeability of either party, including but not limited to, default by
suppliers, acts of God or the public enemy, U.S. or foreign governmental acts
in either a sovereign or contractual capacity, transportation contingencies,
fire flood, epidemic, restrictions and strikes.

 

11.                                 Waiver
and Severability.  No waiver of any
breach of this Agreement shall constitute a waiver of any other breach of the
same or any other provision of this Agreement, and no waiver shall be effective
unless made in writing. If any provision of this Agreement is held by a court
of competent jurisdiction to be illegal or unenforceable, such provision shall
be severed and the remainder of this Agreement shall continue in full force and
effect. Unless stated otherwise, all remedies provided for in this Agreement
shall be cumulative and in addition to and not in lieu of any other remedies
available to either party at law, in equity, or otherwise.

 

12.                                 Federal
Compliance.  The parties agree to
comply with all applicable federal and state laws, regulations and requirements
in regard to all Services provided under this Agreement.

 

3

 

13.                              Governing Law and Forum.  The
interpretation and construction of this Agreement, and all matters relating
hereto, shall be governed by the laws of the State of California applicable to
agreements executed and to be performed solely within such state. The parties
hereby submit to the jurisdiction of, and waive any venue objections against,
the United States District Court for the Central District of California, Orange
County Branch and the Superior and Municipal Courts of the State of California,
Orange County in any litigation arising out of this Agreement. The prevailing
party shall be awarded its reasonable attorney’s fees and costs in any lawsuit
arising out of or related to this Agreement.

 

14.                               General.  Section headings in this
Agreement are for convenience of reference only and are not part of this
Agreement. This Agreement shall be governed by and interpreted in accordance
with the internal laws of the State of California. In any action arising out of
or related to this Agreement, the prevailing party shall be entitled to recover
its reasonable attorney fees and related expenses, in addition to any other
relief granted. This Agreement and all exhibits attached hereto, sets forth the
entire understanding between SMS and Amerikal relating to the subject matter
hereof, and supersedes all prior or contemporaneous agreements related thereto.
No modification of this Agreement shall be effective unless set forth in a
writing executed by the party to be charged with such modification. This
Agreement may be executed in two or more counterparts, each of which, when so
executed and delivered, shall be an original instrument, but all of which
together shall constitute a single agreement.

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their authorized representatives, effective as of the date first
set forth above.

 

Specialized Marketing Services, Inc.

 

	
  Signature:

  	
  /s/ Michael D. Stannard

  	
   

  
	
   

  
	
  Michael
  D. Stannard

  
	
  General
  Manager

  
	
   

  
	
  Date:

  	
  2/25/05

  	
   

  
	
   

  
	
   

  
	
  Amerikal
  Nutraceutical Corp.

  
	
   

  
	
  Signature:

  	
  /s/
  Herrie Tantono

  	
   

  
	
   

  
	
  Printed
  Name:

  	
  Herrie
  Tantono

  	
   

  
	
   

  
	
  Title:

  	
  President

  	
   

  
	
   

  
	
  Date:

  	
  February 25,
  2005

  	
   

  
							

 

4

 

Mutual Non
Disclosure Agreement

 

This
Mutual Non Disclosure Agreement (the “Agreement”) is made and entered into as
of the 25th day
of February, 2005 (the “Effective Date”) by and between SPECIALIZED
MARKETING SERVICES, INC.,
a California corporation with offices at 17809 Gillette Ave, Irvine, CA
92614 (“SMS”) and Amerikal Nutraceutical Corp. a CA corporation with offices at 17751 Mitchell Avenue Irvine, CA 92614 (the “Company”).

 

WHEREAS, SMS
and Company have agreed to enter into certain business discussions and/or
transactions regarding Marketing Services (the “Transaction”);

 

WHEREAS, SMS
and Company will disclose certain information and documentation that is non-public, confidential and/or
proprietary in nature during discussions regarding the Transaction in order to
evaluate a potential business relationship between SMS and Company (the “Purpose”);

 

NOW THEREFORE, in
consideration of the mutual promises and covenants contained in this Agreement,
and intending to be legally bound by this Agreement, SMS and Company hereby
agrees as follows:

 

1.                                       Any information and documents that are
furnished by one party to another, whether intentionally or unintentionally and
whether or not related to the Transaction, unless otherwise excepted, are
proprietary and confidential and shall be used only for the Purpose. This
information includes, without limitation: the terms of this Agreement;
technical specifications and operating manuals; information relating to and
descriptions of current, future, or proposed products and services and
combinations of products and services; financial information; information
related to mergers or acquisitions; passwords and security procedures; computer
programs, software, and software documentation; customer and/or prospective
client lists, data files, and all other information relating in any way to the
customer and/or prospective clients and printouts; records; policies, practices
and procedures; and any or all other information, data or materials relating to
the business, trade secrets and technology of a parry, its customers, clients,
employees, business affairs, affiliates, subsidiaries and the affiliates of its
parent organization (all of the foregoing collectively referred to as “Confidential
Information”). For the purpose of this Agreement, the “Discloser” is the party
to whom the Confidential Information belongs and the “Recipient” is the party
receiving Confidential Information.

 

2.                                       Each party agrees to maintain the Confidential
Information in confidence using the same degree of care that it uses to protect
its own information of a confidential
nature, but in no event less than a reasonable standard of care. Each party
further agrees to (a) restrict disclosure of Confidential Information
solely to persons who need to know the Confidential Information to perform
under this Agreement, and (b) use the Confidential Information only for
the Purpose, and (c) not to disclose any Confidential Information to any
third party without written approval of Discloser, and (d) inform those
third parties and other persons who receive Confidential Information of its confidential
nature and obtain their written agreement to abide by confidentiality
provisions that are no less stringent than those set forth in this Agreement.
Recipient agrees that it shall not make copies of the Confidential Information except
as absolutely required for the Purpose. All copies made, in any medium
whatsoever, shall retain all confidential and proprietary markings of the
original and shall be covered by the terms and conditions of this Agreement.

 

3.                                       Except as required by law, without the prior
written consent of Discloser, neither Recipient nor any of its representatives
will disclose to any other person or entity the fact that the Confidential
Information has been made available, that discussion or negotiations are taking
place concerning the Transaction, or any of the terms, conditions or other
facts with respect to the Transaction.

 

4.                                       All Confidential Information is and will
remain the property of Discloser. By disclosing the Confidential Information,
Discloser does not grant any express or implied license or other rights to or under
its copyrights, trademarks, trade secrets or other proprietary rights.

 

5.                                       The obligations imposed under this Agreement
shall not apply to Confidential Information that (a) is made public by
Discloser, or (b) is or becomes generally available to the public other
than as a result of disclosure by Recipient or its representatives, or (c) is
or becomes available to Recipient on a non-confidential basis from a source (other
than Discloser or its representatives) that is not known to Recipient to be
prohibited from disclosing such

 

1

 

Confidential
Information to Recipient by a legal, contractual or fiduciary obligation to
Discloser; or (d) is disclosed with the prior written consent of
Discloser. In the event that Recipient or any of its agents becomes legally
compelled (by deposition, interrogatory, request for documents, subpoena, civil
or criminal investigative demand or similar process) to disclose any
Confidential Information, then Recipient shall provide Discloser with prompt
prior notice so that Discloser may seek a protective order or other appropriate
remedy. In the event that such protective order or other remedy is not
obtained, or that Discloser
waives compliance with the provisions of this Agreement, Recipient will furnish
only that portion of the Confidential Information which in the judgment of its
counsel is legally required and will exercise reasonable efforts to obtain
assurances that confidential treatment will be accorded the Confidential Information.

 

6.                                       Each party acknowledges and agrees that any
breach or threatened breach of any of the provisions of this Agreement will
result in immediate and irreparable harm and that any remedies at law in such
event will be inadequate. Each party agrees that such breaches, whether
threatened or actual, will give the non-breaching party the right to terminate
this Agreement immediately and obtain injunctive relief to restrain such
disclosure or use. This right shall, however, be in addition to and not in lieu
of any other remedies at law or in equity.

 

7.                                       Either party may terminate this Agreement at
any time upon ten (10) days prior written notice to the other party. Either
party may immediately terminate this Agreement upon written notice in the event
of a breach by the other party of any term or condition of this Agreement. Notwithstanding
any termination of the Agreement, and whether or not the Transaction proceeds,
all provisions of this Agreement will remain in effect for a period of two (2) years
from the Effective Date hereof unless sooner terminated or superseded by mutual
agreement of the parties.

 

8.                                       Upon termination of the Agreement, all copies of
the Confidential Information, except for that portion of the Confidential
Information that consists of analyses, compilations, forecasts, studies or
other documents prepared by Recipient will either be destroyed or returned to
the Discloser within ten (10) days following written request. That portion
of the Confidential Information that consists of analyses, compilations,
forecasts, studies or other documents prepared by Recipient will be held by
Recipient and kept confidential and subject to the terms and conditions of this
Agreement or destroyed in the event negotiations for the Transaction are
terminated.

 

9.                                       This Agreement is not intended to and shall
not be construed as creating a joint venture, partnership, or other form of
business association between the parties. Neither party shall have the power or
authority or bind or obligate the other party.

 

10.                                 This Agreement will be governed by and construed
in accordance with the laws of the State of California irrespective of its
choice of laws principles.

 

11.                                 This Agreement constitutes the only agreement
between the parties relating to the confidentiality of information provided in
connection with the Transaction. This Agreement will expressly survive whatever
determination the parties may make regarding the Transaction. Without limiting
the scope of the preceding sentence,
the terms and restrictions of this Agreement will continue to apply during any
transaction between the parties, except and only to the extent otherwise set
forth in the documents pertaining to such transaction.

 

12.                                 Any notices required or permitted hereunder
will be in writing and will be deemed to have been properly given: (i) upon
delivery if delivered personally or by courier or overnight service; or (ii) five
(5) business days after mailing by certified mail, postage prepaid, return
receipt requested, to the parties at the following address (or to such other
address of which either party may notify the other in a notice that complies
with the provision of this section):

 

	
  To
  Specialized Marketing Services, Inc.

  	
  To: 

  	
  AMERIKAL NUTRACEUTICAL
  CORP.

  
	
  17809
  Gillette Ave

  	
   

  	
  ATTN
  HERRIE TANTONO, PRES

  
	
  Irvine,
  CA 92614

  	
   

  	
  17751
  MITCHELL AVE

  
	
  ATTN:
  General Manager

  	
   

  	
  IRVINE CA 92614

  

 

13.                                 No modification or waiver of any provision of
this Agreement will be valid unless such modification or waiver is in writing
and) signed by the party against whom it is sought to be enforced. No waiver at
any time of any provision of this Agreement will be deemed to be a waiver of
any other provision of this Agreement.

 

2

 

14.                                 If any provision of this Agreement is held for
any reason to be invalid, illegal or unenforceable, such invalidity, illegality
or unenforceability will not affect any other provisions of this Agreement and
this Agreement will be construed as if such invalid, illegal or unenforceable
provision had not been contained herein.

 

IN
WITNESS WHEREOF, the parties have caused their respective authorized
representatives to enter into this Agreement.

 

	
  Specialized
  Marketing Services, Inc.

  	
  Company:

  	
  AMERIKAL NUTRACEUTICAL
  CORP.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/
  Michael Stannard

  	
   

  	
  By:

  	
   

  	
   /s/
  Herrie Tantono

  	
   

  
	
  Name:

  	
  Michael
  Stannard

  	
   

  	
  Name:

  	
  Herrie
  Tantono

  	
   

  
	
  Title:

  	
  G.M.

  	
   

  	
  Title:

  	
  President

  	
   

  
	
  Date:

  	
  2/25/05

  	
   

  	
  Date:

  	
  Feb 25, 2005

  	
   

  
													

 

3

 

EXHIBIT “A”

 

SCOPE OF WORK & FEES

 

SMS will perform the following as part of our order
processing price

 

1.               Download
orders or program information from in-bound telemarketing services.

2.               Prepare
orders and download to merchant bank for credit authorization (declined c.c. are
attempted 6 times in a 35 day credit card cycle).

3.               Prepare
packing slips, labels and manifest for shipping.

4.               Settle
credit card sales for deposit to account.

5.               Receive
merchandise, prepare receiving reports and maintain inventory reports, which
include:

A.           Product activity

B.             Shipped
manifest reports

C.             Unshipped
manifests

D.            Backorder
reports by unit and dollars

6.               Additional
reports include

A.           Sales by source (individual TV stations on media)

B.             Cashiering
journal (credit cards, checks or e-checks)

C.             Deposit
verification by source

D.            Customer
service detail reports 

E.              Continuity
and installment reports

7.               Monthly
preparation of necessary state sales tax reports.

8.               Sales,
inventory, delivery confirmation are provided daily

 

Cost for the above
described services:

$1.95 for 1-2999
per order 

$1.90 for 3000-3999
per order 

$1.85 for 4000-5000
per order 

(excluding
postage, assembly and packaging materials)

 

Assembly
of client supplied shipper box with insert will bill at $.l7ea

Additional items
shipped in the same order will bill at $0.50

Monthly continuity
shipments will bill at $1.45 ea

Installment
billing each installment will bill at $.75 ea (excluding postage)

Manual input of
orders will bill at $.75 each.

Packing
materials will be billed on usage

Additional assembly or custom packaging will be estimated as need
arises.

 

(Above prices do not include postage or shipping
charges. All outgoing postage must be paid in advance of shipping.)

 

Return Service

The following
procedures are all included in the return price.

A.         Receive
merchandise from consumer

B.           Inspect
merchandise and remove shipping label and match to any correspondence.

C.           Read and
assign customer service codes from return labels and correspondence.

D.          Data entry
return information to include name, address, order number, quantity and action
to be taken.

E.            Issue
electronic credit for credit card return and credits to issue a check for
returns when original payment was by check. (An advance refund account must be
established prior to issuing any refund checks.)

 

Cost per return
$1.95 each.

 

 

Live Customer Service Call

A.           Customer
service agents will be trained to answer to specific inquiries on product or service.

B.             Agents can answer questions or issue credits,
authorize returns, cancel future shipments, send out tracers or perform over twenty
additional customer service functions.

 

Cost per customer service call $1.95 for first 3 min.

Additional minutes at $.75 per minute.

Additional phone charges will bill at actual cost.

Chargebacks will bill at $3.00 each.

 

E-Mail Customer Service

 

SMS will answer e-mail inquiries, returns, credits,
change of shipment dates and additional customer requests via e-mail.

 

Cost per e-mail transaction $1.95 each.

 

Warehouse Charges

 

Storage per month will bill
at $15.00 per pallet.

 

Truck Unloading

 

	
  Partial
  20’ ft. truck unloading

  	
   

  	
  $

  	
  45.00

  	
   

  
	
  20’
  ft. truck unloading

  	
   

  	
  $

  	
  135.00

  	
   

  
	
  40’
  ft. truck unloading

  	
   

  	
  $

  	
  260.00

  	
   

  

 

Postage Account

 

ANC will maintain with SMS an advance postage account in an amount to
cover cots of shipping for ANC. In the even the account
has no funds in it, SMS will not ship orders until the account has been
replenished.

 

Minimum Billing

 

The above prices quoted are based on a guaranteed minimum of 2,200
orders per month. In the event the guaranteed minimum billing is not generated,
SMS reserves the right to renegotiate prices based on the lower projected
volume. Prices quoted do not include any special computer programming you may
require, postage, packaging materials or labor for over packing or special
labor projects.

 

II.                                  SMS shall have the right to increase prices
on labor or materials due to increases assessed SMS by material suppliers
and/or federal or state minimum labor rate increases equal to the percentage of
increase passed to SMS.

 

SMS shall charge a minimum weekly of $250.00 for any
period requiring order processing, cashiering and sales reporting.

 

Computer and program set up charge for the initial
program will be $1,000.00 if we already work with Telemarketers and Merchant
Bank. Any additional specialized programming will be based on an hourly rate of
$115.00 per hour.

 

III.                              SMS shall have the right to increase the
prices as a result of an annual review beginning with the first option term.
Increases shall not exceed ten percent (10%).

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