Document:

f8k070612a2ex10xv_stratex.htm

Exhibit 10.15

 

BRIO FINANCIAL GROUP

220 DAVIDSON AVE SUITE 305

SOMERSET, NEW JERSEY 08873

 

March 1, 2012

The Board of Directors of:

Stratex Oil & Gas

Steve Funk

30 Echo Lake Road

Watertown, CT 06795

In order to document the understanding between us as to the scope of the work that Brio Financial Group will perform for the period March 1, 2012 through December 31, 2012, as well as certain other matters, we are entering into this Agreement with Stratex Oil & Gas (“you” or the “Company”). To avoid any misunderstandings, this Agreement defines the services we will perform for you, as well as your responsibilities.

SCOPE OF WORK

Initial Service:

• We will assist you with preparing your annual financial statements, including the accompanying notes, in accordance with Generally Accepted Accounting Principles (GAAP) as applied by the Company. We will coordinate this effort with Company personnel and the Company’s independent auditor. Our engagement does not include any audit or review services in relation to the Company’s financial statements.

• We will assist you in the accounting of complex financial instruments and other complex

accounting transactions, such as the valuation, recognition, reporting and disclosure of all equity transactions and complex financial instruments. We will prepare and document our analysis so that you can provide the analysis to your independent auditors.

 

Recurring Services:

• We will assist you with preparing your quarterly and annual financial statements, including the accompanying notes, in accordance with Generally Accepted Accounting Principles (GAAP) as applied by the Company. We will coordinate this effort with Company personnel and the Company’s independent auditor. Our engagement does not include any audit or review services in relation to the Company’s financial statements.

• Each quarter during our engagement, prior to the commencement of our work for the period, the Company is responsible for entering all normal operating transactions into its accounting system for itself and each subsidiary. These transactions will include but not be limited to: cash receipts, cash disbursements, revenues, expenses, accruals and equity transactions. The Company is also responsible for reconciling all bank and credit card accounts.

 

  

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• We will review your general ledger trial balance on a quarterly basis and, if we become aware of any adjustments that may be appropriate, we will itemize these adjustments, provide supporting documentation and present the adjustments for management approval.  We will maintain an internal stock ledger and internal stock purchase warrants and stock option ledgers, utilized for accounting valuation and disclosure purposes.

• We will assist you in the accounting of complex financial instruments and other complex accounting transactions, such as the valuation, recognition, reporting and disclosure of all equity transactions and complex financial instruments. We will prepare and document our analysis so that you can provide the analysis to your independent auditors.

• We will assist in the preparation of the Management Discussion and Analysis of Financial Condition and Results of Operations (MD&A) portion of any quarterly and annual reports of the Company. You further acknowledge that we do not render legal advice.

• At your request we will be available for conference calls with management and your Board of Directors or the Audit Committee of your Board of Directors. We will prepare a board package containing supplemental financial information and key performance indicators for each meeting of the Board of Directors.

• You acknowledge that it is the responsibility of the Company to make and keep books, records, and accounts, which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company, and that our responsibility is limited to assisting you with the preparation of GAAP financial statements using management’s books, records, and accounts.

• We will assist the Company’s legal counsel in SEC compliance, this includes the assistance in drafting of Form 8K’s and other compliance filings.

• We will assist the Company’s controller in evaluating the company’s internal controls over financial reporting.  We will assist the Company’s controller in the design and implementation of internal controls not yet to be established as of the date of this agreement.

 

The services to be furnished to the Company are not designed to guarantee the accuracy of the financial statements and cannot be relied upon to detect fraud or errors, should any exist.  However, should any fraud or errors come to our attention; we will report them to you, except for any errors which are clearly inconsequential. In addition, during the course of our engagement, financial statement misstatements may be identified, either through our work or through communication by your employees to us, and we will bring these misstatements to your attention. The Company is solely responsible for any misstatements, as well as any corrective adjustments, although we may propose adjustments.

 

  

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The financial statements will be based on information that is the representation of management. We expect management to furnish us with all information necessary in order to make the financial statements not misleading. The financial statements will not be accompanied by a report from us. Based on our discussions with you, our services will be for management’s use only, and the Company’s financial statements will be reviewed or audited by a third party independent auditor prior to any distribution or use outside of the Company.

You agree that all books, records, accounts, documentation, and information we request in connection with our work will be made available to us (including those pertaining to related parties), and that all material information will be disclosed to us and that we will have full cooperation of your personnel.

Notwithstanding any provision of this Agreement to the contrary, we will not be responsible for detecting errors or evidence of fraud or illegal acts that may exist in your books, records, accounts, or operations (provided, however, that we will inform the appropriate level of management of any evidence of fraud or possible illegal acts or errors that come to the attention of us, except for any errors which are clearly inconsequential). We will have no responsibility to identify or communicate significant deficiencies or material weaknesses in the Company’s internal control over financial reporting as part of its engagement under this Agreement.

E-mail Communication

In connection with this engagement, we may communicate with you or others via e-mail transmission. As e-mails can be intercepted and read, disclosed, or otherwise used or communicated by an unintended third party, or may not be delivered to each of the parties to whom they are directed and only to such parties, we cannot guarantee or warrant that emails from us will be properly delivered and read only by the addressee. Therefore, we specifically disclaim any liability or responsibility whatsoever for interception or unintentional disclosure or communication of e-mail transmissions, or for the unauthorized use or failed delivery of e-mails transmitted by us in connection with the performance of this engagement. In that regard, you agree that we shall have no liability for any loss or damage to any person or entity resulting from the use of e-mail transmissions, including any consequential, incidental, direct, indirect, or special damages, such as loss of revenues or anticipated profits, or disclosure or communication of confidential or proprietary information.

Compelled Disclosure

In the event that we or any of its affiliates, or any of its or their members, managers, partners, directors, officers and employees are requested or become legally compelled (by oral questions, interrogatories, request for information or documents, subpoena, civil investigative demand or similar process) to disclose any information regarding the Company or the services provided hereunder, the Company (to the extent permitted) will be provided with prompt written notice thereof, so that the Company may seek a protective order or other appropriate remedy at its own option and expense. The Company shall reimburse us for all costs and expenses, including attorneys’ fees, which we and its affiliates, and its and their members, managers, partners, directors, officers and employees incur in connection with such requested or compelled disclosure, whether or not any such protective order or other remedy is sought or obtained.

 

  

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Indemnification

The Company shall defend, indemnify, and hold us and its affiliates, and its and their members, managers, partners, directors, officers and employees, harmless from and against all claims asserted by a third party (or parties) and related damages, losses, or expenses, including, but not limited, to attorneys’ fees arising out of or resulting from any and all acts or omissions of the Company or its affiliates, including, but not limited to acts or omissions in the maintenance of the Company’s books, records, and accounts, in the preparation or use of the Company’s financial statements, in the timely filing of reports, statements, and other documents with the U.S. Securities and Exchange Commission, and in the design and maintenance of disclosure controls and procedures and internal control over financial reporting.

Limitation on Liability

Our maximum liability hereunder for any reason shall be limited to the aggregate amount of the fees paid by the Company to us for the twelve months immediately preceding the date of the applicable claim, except to the extent that it is finally determined that the Company has incurred actual direct damages that have resulted from the gross negligence or willful misconduct of us, in which case our maximum liability hereunder shall be limited to such actual direct damages. UNDER NO CIRCUMSTANCES SHALL WE BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL LOSS OR DAMAGE RELATING TO THIS AGREEMENT. This limitation on liability provision shall apply to the fullest extent of the law, whether any claims are based in contract, statute, tort, or otherwise.

Waiver

The failure of any party to this Agreement at any time to require the performance of any provision of this Agreement shall in no manner affect the right to enforce the same, and no waiver by any party to this Agreement of any provision of this Agreement (whether by conduct or otherwise) shall be deemed or construed as a further or continuing waiver of such provision or any other provision of this Agreement.

Third-Party Rights

No provision of this Agreement shall in any way inure to the benefit of any third person (including the public at large) so as to make any such person a third-party beneficiary of this Agreement or of any one or more of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto.

Severability

If any provision of this Agreement, as applied to any party or to any circumstances, shall be found by a court of competent jurisdiction to be void, invalid, or unenforceable, the same shall in no way affect any other provision of this Agreement, the application of any such provision in any other circumstances, or the validity or enforceability of this Agreement.

Entire Agreement

This Agreement contains the entire understanding of the parties hereto relating to the subject matter of this Agreement and supersedes all prior and collateral agreements, understandings, statements, and negotiations of the parties.

 

  

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Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey without regard to any laws that might otherwise govern under applicable principles of conflicts of laws.

Pricing

We will perform the Initial Services for a rate between $______ and $_____. We will perform the recurring services at a fixed monthly rate of $________, billed on the first of every month. The Company will also be billed for travel and other out-of-pocket costs, such as report production, postage, etc. We request a retainer in the amount of $_______ which will be applied to the initial services portion of this Agreement. If the Company determines that additional work is needed from Brio Financial Group, an additional pricing agreement will be agreed upon and issued prior to the commencement of the work.

In addition, the Company agrees to pay Brio Financial Group ________ shares of restricted common stock at the close of each financial quarter.

The above retainer is all inclusive of the services set forth above except for the assistance in evaluating, establishing and maintaining internal controls.  For these such services, the Company will be billed at an hourly rate of $______/hour for Partner Time and $____/hour for Non Partner Time.  These bills will be rendered monthly.

Additional work not expressly provided for in this Agreement, such as work for registration statements, due diligence reviews for potential acquisitions, current reports on Form 8-K, analysis for additional debt and equity raises, and additional travel for attendance in person at Board of Director or other meetings are not included in the above estimate. Services such as these will be billed at our standard hourly rates unless an additional engagement letter and pricing scheme is in place. Please note that if there is a significant change in the company’s business or number of transaction, the fixed monthly rate will need to be re-negotiated and a new agreement will need to be put into place prior to additional work being performed by Brio Financial Group.

In accordance with our usual procedures, we will present invoices on a monthly basis with payments due upon receipt. We reserve the right to suspend services whenever an invoice remains unpaid for more than 45 days.

Dispute Resolution

If any dispute arises among the parties, they agree to try first in good faith to settle the dispute by mediation administered by the American Arbitration Association (AAA) under its Commercial Mediation Rules. All unresolved disputes shall then be decided by final and binding arbitration in accordance with the Commercial Arbitration Rules of the AAA. Fees charged by any mediators, arbitrators, or the AAA shall be shared equally by all parties. In agreeing to arbitration, we both acknowledge that in the event of a dispute over fees, each of us is giving up the right to have the dispute decided in a court of law before a judge or jury and instead we are accepting the use of arbitration for resolution.

 

  

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Term

This Agreement will commence on the date hereof and will continue in effect until the first anniversary of the date hereof. It is understood that either party may terminate this Agreement at any time, for any reason, within 10 days of written notice to the other party. It is understood that any unpaid services that are outstanding at the date of termination are to be paid in full within 10 days from the date of termination.

We would like to take this opportunity to express our appreciation for the opportunity to offer our services to your organization.

Very truly yours,

Brio Financial Group

Acceptance:

This letter correctly sets forth the understanding of Stratex Oil & Gas and the execution of this engagement letter simultaneously terminates all previously executed engagement letters.

 

___________________________________

Steven Funk

Chief Executive Officer

___________________________________

Date

 

 

6ex10-1.htm

EXHIBIT 10.1

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF

1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAWS AND

NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE

OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED

UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS

EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES

LAWS OR (2) AN EXEMPTION TO SUCH REGISTRATION IS AVAILABLE FOR

SUCH OFFER, VALUE PLEDGE, ASSIGNMENT OR TRANSFER.

 

 

CONVERTIBLE PROMISSORY NOTE

 

 

	
$20,000

	
March 15, 2012

 

FOR VALUE RECEIVED, Beauty Brands Group, Inc., Inc., a Florida corporation (the "Company"), hereby promises to pay to the order of Heriot Holdings Limited ("Holder") the principal amount of twenty thousand ($20,000) Dollars (the "Principal Amount"), with interest on the Principal. Amount outstanding from time to time hereunder from the date hereof, in arrears, all on the dates and on such other terms as hereinafter provided. Principal and interest is payable in the lawful currency of the United States of America, in immediately available funds, without any defense, set-off, counterclaim, rescission, recoupment or deduction of any kind.

 

This Note shall be subject to the following additional terms and conditions.

 

1.     Principal Amount, Interest and Payment. Interest will accrue on the Principal Amount outstanding from time to time at the rate of 10% per annum, until the Principal Amount is repaid in full. The Principal Amount is due and payable in full on March 15, 2013 (the "Maturity Date"). Interest will be calculated on the basis of a 360-day year.

 

2.     Prepayment. The Company may prepay the Principal Amount outstanding in whole or in part at any time without penalty provided that the Company pays all accrued but unpaid interest on such prepayment therewith. Any partial prepayments made will be applied to the Installment Payments in the inverse order of their maturities and no partial prepayments of the Installment Payment made hereunder shall postpone the date that any Installment Payment is due or the Maturity Date.

 

3.     Conversion. The Holder, at the Holder's option, at any time from the date hereof, shall have the right to convert the then-outstanding Principal Amount and any interest accrued thereon (or any portion hereof) into shares of the Company's common stock, $0.001 par value ("Common Stock") at a price of $0.01 (the "Conversion Price").

 

 

 

 

 

  

  

  

4.          Manner of Conversion. In the event that the Holder shall elect to exercise its right to convert this Note, or any portion thereof, the Holder shall serve notice thereof to the other party, in accordance with the provisions of Section 9 below (a "Conversion Notice"), stating the amount of Principal Amount and interest to be converted; together with this Note shall accompany the Conversion Notice. Within a reasonable time, not exceeding seven (7) days after the receipt of this Note from Holder, the Company shall issue and deliver to the Holder, a certificate for the number of shares of Common Stock issuable upon the conversion of this Note, bearing the restrictive legend set forth in Section 10 below. To the extent permitted by law, such conversion shall be deemed to have been effected as of the close of business on the date on which the Conversion Notice is received by the Holder, or upon the date the close of business on the date on which the Conversion Notice is received by the Company, as the case may be. No fractional shares shall be issued upon the Conversion of this Note into Common Stock.

 

5.          Adjustment. The Conversion Price shall be adjusted, from time to time, as set forth below.

 

(a)          In the event that the Company shall (1) declare a dividend on the outstanding Common Stock payable in shares of its Common Stock, (2) subdivide the outstanding Common Stock, (3) combine the outstanding Common Stock into a smaller number of shares, or (4) issue by reclassification any shares of its capital stock, then, in each case, the Conversion Price in effect at the time of the record date for such dividend or of the effective date of such subdivision, or combination, shall be proportionately adjusted so that the Holder after such time shall be entitled to receive upon conversion the aggregate number and kind of shares for such consideration which the Holder would have been entitled to have had the conversion taken place prior to such time at the then-current Conversion Price; and

 

(b)          In the event that the Company shall declare a dividend on the outstanding Common Stock payable in cash, then, upon the payment of each such dividend, the Conversion Price in effect at the time of the record date for such dividend shall be reduced by the amount of the per share dividend amount.

 

(c)          In the event of any reorganization of the Company, the stock or securities of which are at the time deliverable on the conversion of this Note, or in case the Company shall consolidate with or merge into another company, or convey all or substantially all of its assets to another company,. the Holder, upon the conversion hereof, shall be entitled to receive, in lieu of the Common Stock called for hereby, the stock or other securities or property to which Holder hereof would have been entitled upon the consummation of such reorganization, consolidation, merger, or conveyance if this Note had been converted immediately prior thereto; and in such case, the provisions of this Note shall be applicable to the shares of stock or other securities or property thereafter deliverable upon the conversion of this Note.

 

(d)         Notice of Adjustments. Whenever there is an adjustment pursuant to this Section 5 ("Adjustment"), the Company shall cause to be prepared and executed a certificate setting forth, in reasonable detail, the event requiring the Adjustment, the method by which such Adjustment was calculated, and the Conversion Price and the number of shares of Common Stock for which this Note is convertible after giving effect to such Adjustment, and shall cause copies of such certificate to be delivered to the Holder promptly after each Adjustment.

 

  

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6.          Compliance with Securities Laws.

 

(a)       The Holder acknowledges that this Note or any shares of Common Stock to be issued upon conversion hereof are being acquired solely for the Holder's own account and not as a nominee for any other party, and for investment, and that the Holder will not offer, sell or otherwise dispose of this Note or any shares of Common Stock to be issued upon conversion hereof except pursuant to an effective registration statement, or an exemption from registration, under the Securities Act of 1933, as amended (the "Securities Act") and any applicable state securities laws.

 

(b)       The Holder further acknowledges that: (i) the shares of Common Stock have not been registered under the Securities Act and (ii) the shares of Common Stock may not be sold, transferred, assigned, pledged or subjected to any lien or security interest unless they are first registered under the Act and applicable state securities laws or an exemption from the registration provisions of the Act and applicable state securities laws are available with respect to the proposed sale or transfer; and (iii) any certificate(s) evidencing the shares of Common Stock shall contain a restrictive legend to the effect that the transfer thereof is restricted.

 

7.          Default. In the event that (a) the Company fails to make any payment of interest or principal hereunder when due and does not cure such failure within five (5) days after receipt by the Company of written notice of such failure from Holder, or (b) files a petition for protection under any bankruptcy or insolvency law (a "Default"), then, in any such case, the entire Principal Amount then-outstanding shall become then immediately due and payable by the Company hereof.

 

8.          Covenants of the Company. The Company covenants and agrees that all shares of Common Stock that may be issued upon the conversion of this Note and as the payment of interest will, upon issuance, be fully paid and non-assessable and free from all taxes of governmental authorities in the United States with respect to the issue thereof and all liens and charges against such shares, The Company further covenants and agrees that, during the period within which the conversion rights represented by this Note may be exercised, the Company will at all times have authorized and reserved a sufficient number of shares of Common Stock to provide for the conversion of this Note and the payment of interest. The Company shall not by any action including, without limitation, amending its charter documents or the by-laws, or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale or securities or any other action, avoid or seek to avoid the observance or performance or any of the terms of this Note, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may necessary or appropriate to protect the rights of Holder against dilution (to the extent specifically provided herein) or impairment.

 

 

 

  

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9.          Notice, Any communications or notices hereunder may be delivered or mailed to the offices of the Company at:

 

Mr. Gianluca Cicogna Mozzoni 

Baytree Capital Associates, LLC 40 Wall Street

58th Floor

New York, NY 10005

United States of America

 

and to the registered Holder hereof at:

 

Mr. Rhett Groom

Sinerstrasse 65

CH 6330

Cham, Switzerland

 

or to such other addresses as either the Company or such registered Holder may designate by notice in writing to the other from time to time.

 

10.          Legend on Shares. Each stock certificate issued upon a Conversion shall bear the following legend:

 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE

SECURITIES LAWS AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR (2) AN

EXEMPTION TO SUCH REGISTRATION IS AVAILABLE FOR SUCH OFFER, VALUE PLEDGE, ASSIGNMENT OR TRANSFER.

 

11.       Miscellaneous. (a) In addition to and not in limitation of the foregoing, the Company further agrees, subject only to any limitation imposed by applicable taw, to pay all expenses, included, but not limited to, attorneys' fees and legal expenses incurred by the Holder in connection with the administration of this Note or collection hereof whether or not suit is filed thereon.

 

(b) None of the provisions of this Note may be waived, changed, or terminated orally or otherwise, except by a writing duly executed by the undersigned and the Holder. This Note shall be governed by and construed in accordance with the laws of the State of New York.

 

  

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(c)         The Company does hereby waive diligence, presentment, demand, extension of time for payment, notice of dishonor, protest, and all other notices whatsoever, and agrees that the Holder may, from time to time, extend or renew this Note for any period and grant any releases, compromises, extensions, renewals or indulgences with respect to this Note, all without notice to or consent of the Company and without affecting the obligations of the Company. It is expressly agreed that such waiver is reasonable under the circumstances.

 

(d)         This Note shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, personal representatives, successors and permitted assigns, In the event any one or more of the provisions contained in this Note for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality of unenforceability shall not affect any other provision of this Note or such other security documents, but this Note and the other security documents shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein or therein. This Note may not be changed orally, but only by an agreement in writing signed by the parties against whom enforcement of any waiver, change, modification or discharge is sought.

 

(e)         IN ANY ACTION, SUIT OR PROCEEDING IN RESPECT OR ARISING OUT OF THIS NOTE, THE COMPANY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO A TRIAL BY JURY AS WELL AS (I) THE RIGHT TO INTERPOSE ANY SET-OFF OR COUNTERCLAIM OF ANY NATURE OR DESCRIPTION, AND (II) ANY CLAIM FOR CONSEQUENTIAL, PUNITIVE OR SPECIAL DAMAGES.

 

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed under its corporate seal by the signature of its authorized officer, as of the 15th day of March, 2012.

 

 

 

	 	 	  

Beauty Brands Group, Inc.

	 
	 	 	 	 
	 	 		 

 

 

 

 

 

 

 

  

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