Document:

Ex-10.105 Oberon Securities Letter Agreement

 

Exhibit 10.105

March 3, 2005

STRICTLY CONFIDENTIAL

Attn: Kevin Brennan

President

XRG, Inc.

5301 Cypress Street, Suite 111

Tampa, FL 33607

	 	 	 
	Re:

	 	Pacific Business Funding/Capco Financial Company Credit Facility

Dear Kevin:

     This letter will serve as an invoice and as an amendment to the fee agreement between Oberon
Securities LLC (“Oberon”) and XRG, Inc. (“XRG”) only as it pertains to the debt financing provided
by Pacific Business Funding/Capco Financial Company (“Facility”):

	 	 	 	 	 
	 

	 	Cash Retainer	 	 
	 

	 	Capital Fee for Facility
	 	$120,000 (3% of$4.0mm)

     Please wire funds to the following Oberon account:

Oberon Securities, LLC

Bank of New York

A/C# 630-2306921

Swift# IRVTUS3N

ABA# 021000018

Bank of New York

260 Madison Avenue

NY,NY 10016

     In addition to the cash fee above, Oberon shall receive fees according the following schedule:

     A cash fee of$30,000 at the time that the balance owed under the Facility exceeds $4.000,000
for the first time; a cash fee of $30,000 at the time that the balance owed under the Facility
exceeds $5,000,000 for the first time; a cash fee of $30,000 at the time that the balance owed
under the Facility exceeds $6,000,000 for the first time; a cash fee of $30,000 at the time that
the balance owed under the Facility exceeds $7,000,000 for the first time; a cash fee of $30,000 at
the time that the balance owed under the Facility exceeds $8,000,000 for the first time; a cash fee
of $30,000 at the time that the balance owed under the Facility exceeds $9,000,000 for the first
time. For purposed of clarification, if at any given time the balance owed under the Facility is
$8,500,000, XRG will have paid Oberon a total of $270,000 in cash fees.

 

 

     In the event that the facility is extended above $10,000,000, Oberon shall be due a fee of 3%
of the extended amount, payable at the time of the extension.

     XRG will wire the initial fee of$120,000 to Oberon. XRG specifically authorizes Pacific
Business Funding/Capco Financial Company to wire all additional fees directly to Oberon as the
conditions are fulfilled as described above.

     In addition, XRG will issue Oberon 55,555 warrants (3-year, $2.16/share strike price) in the
name of “Oberon Securities, LLC” at the address below.

     If you are in agreement with the foregoing, please return the executed copy of this letter and
wire the funds as described above, whereupon this letter shall become effective as of the date
hereof.

	 	 	 	 	 
	 

	 	Sincerely,
	 
	 	 	 	 
	 

	 	Oberon
Securities, LC
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 

AGREED TO:

XRG, Inc.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 
	 	 
	Kevin Brennan	 	 
	CEO	 	 

2Ex-10.106 Mildred Conroy Consulting Agreement

 

Exhibit 10.106

CONSULTING AGREEMENT

     This Agreement is effective as of the 1st day of April, 2005, by and between XRG,
INC., a Delaware corporation (“Company”) and MICHAEL CONROY (“Consultant”). The Company and the
Consultant shall generically be referred to individually as the “Party” and collectively referred
to as the “Parties”.

     Consultant has background and experience in management consulting, including business and
strategic planning, financial statement preparation, SEC financial reporting and the design,
development and implementation of accounting systems. Consultant is willing to provide services to
the Company based on this background and experience. The Company desires to have services provided
by Consultant.

     Therefore, the Parties agree as follows:

1. DESCRIPTION OF SERVICES. During the term of this Agreement, Consultant shall provide the Company
with regular and customary financial and management consulting advice as is reasonably requested by
the Company (hereinafter “Services”). Consultant shall not be required to undertake duties not
reasonably within the scope of the financial and management services contemplated by this
Agreement. Services include, but are not limited to:

     1.1 Rendering advice and providing services with regarding to the following accounting
functions and matters:

	 	(i)	 	develop usable and accurate daily cash management reports;
	 
	 	(ii)	 	assist in the implementation and operation of the Company’s
accounting and management information systems;
	 
	 	(iii)	 	facilitate the consolidation of bank accounts;
	 
	 	(iv)	 	assist the Company in preparing for the audit of its March
31, 2005 financial statements and related Form 10-K;
	 
	 	(v)	 	assist in the timely preparation of monthly financial
statements;
	 
	 	(vi)	 	assist in the timely reconciliation of bank accounts;
	 
	 	(vii)	 	assist in the preparation of client prepared documents in
connection with the 2005 audit;
	 
	 	(viii)	 	assist in the integration and treasury functions pursuant to the
Administrative Services Agreement with R&R Express, Inc.

     1.2 Rendering advice with regard to any of the following corporate matters:

 

 

	 	(i)	 	changes in the capitalization of the Company;
	 
	 	(ii)	 	changes in the Company’s corporate structure;

	 
	 	(iii)	 	the formation of corporate goals and their implementation;

	 
	 	(iv)	 	supervision of accounting staff;
	 
	 	(v)	 	establishing and implementing business development goals and
strategies;
	 
	 	(iv)	 	operational management oversight and recommendations
regarding the Company’s or its subsidiaries operations;
	 
	 	(v)	 	performing market and competitive analysis.

2. PERFORMANCE OF SERVICES. Consultant agrees to make his services available three (3) days a week
during normal business hours. Consultant will make himself available at the Company’s offices
during normal business hours. The Consultant understands it may be necessary from time-to-time to
travel to the terminals serviced by the Company and the R&R Express administrative offices in
Pittsburgh, Pennsylvania. The Company understands and agrees that a portion of the services
provided by the Consultant may be performed at the Consultant’s home and the Company does not
object to the Consultant providing such services off-site.

3. PAYMENT FOR SERVICES; OPTIONS; EXPENSES. As consideration for the performance of the Services,
the Company shall pay Consultant the following:

     (a) Consulting Fee. The Company shall pay Consultant a fee equal to $100.00 per hour
based upon the Consultant providing thirty (30) hours of services per week. The Consultant will
not be required to provide time sheets or other detailed time keeping documentation. If the
Consultant works more than thirty (30) hours per week, he shall be entitled to the actual number of
hours worked for that week multiplied by $100.00 per hour. Consultant shall be paid on a bi-weekly
basis, and shall provide the Company bi-weekly invoicing evidencing the number of hours the
Consultant worked for the bi-weekly remuneration period.

     (b) Expenses. The Company shall reimburse Consultant for all reasonable, ordinary and
necessary travel, seminar, entertainment and miscellaneous expenses incurred in connection with the
performance of the Services, provided that the Consultant properly accounts for such expenses to
the Company in accordance with the Company’s policies and practices. The Consultant shall be
responsible for his own automobile related expenses.

     (c) Stock Options. Upon execution of this Agreement, Consultant shall receive a
nonqualified stock option agreement, which entitles the Consultant to receive up to 150,000 shares
of the Company’s Common Stock in accordance with the terms and conditions of a stock option
agreement between the Consultant and the Company. The options shall have an exercise price of $.01

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and will be exercisable for five (5) years, or through March 31, 2010. The options shall vest
based upon the Company achieving certain bench marks as set forth in the following table:

	 	 	 	 	 
	Bench Mark	 	# of Options
	Timely filing of March 31, 2005
Form 10-K (including a 12-b25
15 day extension)

	 	 	80,000	 
	 
	 	 	 	 
	Development of Usable and Accurate
Daily Cash Management Reports

	 	 	25,000	 
	 
	 	 	 	 
	Integration of Treasury and Accounting
Functions with R&R Express, Inc.
Pursuant to Administrative Services
Agreement, a copy of which is attached

	 	 	15,000	 
	 
	 	 	 	 
	Completion of Monthly Financial
Statements within 15 business days
of prior month end for at least two (2)
consecutive months

	 	 	15,000	 
	 
	 	 	 	 
	Completion of Bank Reconciliations
Within 15 business days of prior month
End for at least two (2) consecutive
months

	 	 	15,000	 

4. TERM/TERMINATION. The term of this Agreement is for six (6) months through October 31, 2005.
This Agreement may be terminated by either party with 30 days written notice.

     If the Consultant resigns or this consulting arrangement is terminated by either party, then
the Company shall be obligated to pay the Consultant the balance of the fees payable hereunder
through the effective date of Consultant’s termination or resignation. In the event of termination
of this Consulting Agreement prior to its expiration, all unvested options granted to the
Consultant referenced in Section 3(c) shall terminate and be of no further force and effect.

5. RELATIONSHIP OF PARTIES. It is understood by the Parties that Consultant is an independent
contractor working on a non-agency basis with respect to the Company, and not an employee of
Company. Company will not provide fringe benefits, including health insurance benefits, paid
vacation, or any other employee benefits for Consultant.

6. WORK PRODUCT. Any and all information, documentation, inventions, business methods, concepts,
financial plans, marketing plans and methods,

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customer lists, product ideas, trademarks, logos, trade names and other work product created or
developed by Consultant during the performance of the Services relating to business of the Company
shall be the sole and exclusive property of the Company with the Company owning exclusively all
proprietary and intellectual property rights therein, including, without limitation, the sole and
exclusive right to commercialize any such work product.

7. ASSIGNABILITY. The rights and obligations of the Company under this Agreement shall inure to
the benefit of and be binding upon the successors and assigns of the Company, provided that such
successor or assign shall acquire all or substantially all of the assets and business of the
Company. Consultant’s rights and obligations hereunder may not be assigned or alienated without
the prior written consent of the Company and any attempt to do so by Consultant will be void.

8. SEVERABILITY. If any provision of this Agreement is deemed to be invalid or unenforceable or is
prohibited by the laws of the state or jurisdiction where it is to be performed, this Agreement
shall be considered divisible as to such provision and such provision shall be inoperative in such
state or jurisdiction and shall not be part of the consideration moving from either of the parties
to the other. The remaining provisions of this Agreement shall be valid and binding.

9. NOTICES. Notices given pursuant to the provisions of this Agreement shall be sent by
certified mail, postage prepaid, or by overnight courier to the following addresses:

	 	 	 	 	 	 	 
	 

	 	To the Company:
	 	XRG, Inc.	 	 
	 

	 	 	 	601 Cleveland Street, Suite 820	 	 
	 

	 	 	 	Clearwater, FL 33755-4169	 	 
	 
	 	 	 	 	 	 
	 

	 	To the Consultant:
	 	Michael Conroy	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	
 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 

     Either party may, from time to time, designate any other address to which any such notice to
it or him shall be sent. Any such notice shall be deemed to have been delivered upon the earlier
of actual receipt or four days after deposit in the mail, if by certified mail.

10. MISCELLANEOUS.

     (a) Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the internal, substantive laws of the State of Florida without giving effect to the
conflict of laws rules thereof. Venue shall exclusively be with a court having jurisdiction in
Pinellas County, Florida.

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     (b) Waiver/Amendment. The waiver by any party to this Agreement of a breach of any
provision hereof by any other party shall not be construed as a waiver of any subsequent breach by
any party. No provision of this Agreement may be terminated, amended, supplemented, waived or
modified other than by an instrument in writing signed by the party against whom the enforcement of
the termination, amendment, supplement, waiver or modification is sought.

     (c) Attorney’s Fees. In the event any action is commenced, the prevailing party shall
be entitled to reasonable attorney’s fee, costs and expenses.

     (d) Entire Agreement. This Agreement represents the entire agreement between the
parties with respect to the subject matter hereof and replaces and supersedes any prior agreements
or understandings.

     (e) Counterparts. This Agreement may be executed in counterparts, all of which shall
constitute one and the same instrument.

     IN WITNESS WHEREOF, the Company and Consultant have executed this Agreement as of the day and
year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	COMPANY:
	 
	 	 	 	 	 	 	 	 
	WITNESSES:	 	 	 	XRG, INC.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	 	 	 	 	 
	Print Name:

	 	 	 	 	 	Print Name: 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:
	 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Print Name:

	 	 	 	 	 	 	 	 
	 
	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 	CONSULTANT:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Print Name:	 	 	 	 	 	 	 	Michael Conroy
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Print Name:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

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