Document:

Grandview Consultants, Inc.

300 South Pine Island Road

Suite 305

Plantation, Fl 33324

 

October 24, 2011 

 

BeesFree, Inc.

2101 Vista Parkway, Suite 4033 

West Palm Beach, FL 33411

 

This letter is for the purpose of the engagement of Grandview Consultants, Inc. (GCI) as a financial consultant to BeesFree, Inc. (“BEES” or “the Company”). This letter is intended to serve as our Engagement Agreement (the “Agreement”) to provide such services.

 

1.           Services:

 

Assist in the ongoing review and adjustment of the Company's business and strategic plan for the growth of the Company's business. Provide such other services as reasonably determined by both parties and documented in writing.

 

GCI will provide its best efforts in furnishing the above services and will, in its sole discretion, determine the amount of its time to be devoted to undertaking those services. Services relative to securing or undertaking financing, strategic relationships and merger and acquisition transactions, including the identification of suitable partners and candidates, will be subject to separate agreements and financial arrangements.

 

In performing its services herein, GCI will be entitled to rely without investigation upon all information that is provided by the Company, and the Company hereby represents that such information will be complete and accurate in all material respects. GCI does not represent or guarantee that the Company will be successful in raising any Consultants or completing any merger or acquisition transactions.

 

GCI may, during or subsequent to the term of this Agreement, perform services for any other person or firm without the Company's prior approval.

 

2.           Term of Agreement. The term of this Agreement and the commencement of the services of GCI shall commence upon the acceptance of this Agreement as evidenced below (the “Effective Date”) and shall terminate six (6) months thereafter.

 

3.           Consulting Fees. Our compensation for this project will be as follows:

 

	 	

·

	
A nonrefundable fee in the amount of $10,000 USD payable on the date of the executed Agreement.

 

	 	

·

	
A fee in the amount of $15,000 USD payable on the closing of the PIPE financing or merger with BNHI, whichever occurs first.

 

	 	

·

	
Any termination of this Agreement by the Company prior to its termination date shall not affect compensation as described herein.

 

  

  

  

 

BeesFree, Inc.

10/24/2011

Page 2 of 4

	 	

·

	
Payment shall be made to: 

SunTrust Bank 

ABA# 061000104 

For further credit to: 

Grandview Consultants, Inc. 

Account # 1000141645571

 

3115 S. University Drive 

Davie, FL 33328 

954-472-5377

 

4.         Limitation on Services. As a financial consultant to the Company, GCI will assist the Company as described above but will not act as its agent. Accordingly, while GCI may identify prospective financing sources and target companies and provide information relating to the transaction to such persons at the Company's request, all business decisions relating to acceptance or rejection of offers, bids or other matters and the negotiation of such terms shall be solely the Company's responsibility. The Company is also responsible for taking steps to ensure that the transaction is conducted in compliance with all applicable federal and state securities laws (consulting with counsel, if appropriate). In the absence of gross negligence or willful misconduct on the part of GCI, GCI shall not be liable to the Company or to any affiliate, employee, shareholder or creditor of the Company for any act or omission in the course of or in connection with the provision of advice or assistance hereunder.

 

5.           Reimbursement of Expenses. The Company agrees to reimburse GCI for all pre approved expenses that are incurred on behalf of the Company. Expenses will be billed and paid on a monthly basis, when submitted on the first of each subsequent month.

 

6.           Location of Services. It is understood that GCI's services will be rendered off-site of the Company.

 

7            Miscellaneous:

 

A.           Confidentiality. The parties agree that they will cooperate with each other and provide full due diligence, and that all conversations, documentation, or work product will be kept in the utmost confidence. GCI will have the permission to offer, copy, and duplicate any part of the work product of the Company for the limited purpose of its own due diligence examination and for the purpose of introducing the Company to potential financing sources, strategic partners, etc. GCI will obtain the permission of the Company before any confidential information of the Company is delivered to third parties. Any misrepresentation by either party shall constitute a breach of this agreement. Notwithstanding the foregoing, confidential information will not include information: (i) disclosed by GCI pursuant to court order or other legal process; (ii) generally known to and available for use by the public; and (iii) required to be disclosed by GCI to enforce any rights it may have under this agreement.

 

B.           Indemnification. It is understood that each party shall be held harmless from any and all legal action resulting from the other's misstatements, omissions, or errors of any kind and shall be indemnified from any and all direct legal expenses and any and all direct costs, excluding salary and any loss of business such party may incur as a result of the other's actions.

 

  

  

  

 

BeesFree, Inc.

10/24/2011

Page 3 of 4

C.           Entire Agreement. This Agreement sets forth the entire understanding of the parties relating to the subject matter hereof and supersedes any prior communications, understandings, and agreements between the parties. This Agreement cannot be modified or changed nor can any of its provisions be waived, except by a writing signed by all parties.

 

D.           Governing Law. This Agreement shall be governed by the laws of the State of Florida. Any controversy shall be settled in the appropriate forum located in Broward County, Florida, U.S.A.

 

E.           Attorneys' Fees. In the event any litigation or controversy arises out of or in connection with this Agreement between the parties hereto, the prevailing party in such litigation or controversy shall be entitled to recover from the other party or parties all reasonable attorneys' fees, expenses, and suit costs, including those associated with any appellate or post judgment collection proceedings.

 

F.           Binding Effect. GCI shall not assign this Agreement in whole or in part, nor any of his rights and obligations hereunder without the prior written consent of the Company. This Agreement shall insure to the benefit of, and be binding upon the parties hereto, and their respective heirs, personal representatives, successors and assigns.

 

8.           Notices. Any and all notices or other communications given under this Agreement shall be in writing and shall be deemed to have been duly given on (1) the date of delivery, if delivered in person to the addressee, (ii) the next business day if sent by overnight courier or by overnight U.S. Express Postal Service, or (iii) three days after mailing, if mailed within the continental United States, postage prepaid, by certified mail, return receipt requested, to the party entitled to receive same, at his or its address set forth below.

 

	 	
Company: 

	
BeesFree, Inc.

2101 Vista Parkway, Suite 4033

West Palm Beach, FL 33411

Attention: Mario Sforza, President and CEO

 

	 	
Company 

	
Grandview Consultants, Inc.

300 South Pine Island Road 

Suite 305

Plantation, Florida 33324 

Attention: Peter Goldstein

 

The parties may designate by notice to each other any new address for the purposes of this Agreement as provided in this Section 8.

 

If the foregoing letter is in accordance with our understanding of the terms of our engagement, please sign, date, and return your signature to us via facsimile with an original via mail.

 

  

  

  

 

BeesFree, Inc.

10/24/2011

Page 4 of 4

	  	
Very truly yours,

	  	  
	  	
GRANDVIEW CONSULTANTS, INC.

	  	  
	  	
By:

	
/s/ Peter Goldstein

	  	  	
Peter Goldstein, President

 

   

	
AGREED AND ACCEPTED:

	  
	
BeesFree, Inc.

	  
	
By:Unassociated Document

BEESFREE, INC.

2101 Vista Parkway, Suite 4033

West Palm Beach, FL 33411

October 9, 2011

Re: Offer of At-Will Employment

Dear Mr. Sforza:

We are pleased you have accepted our offer to be employed by BeesFree, mc. (the "Company") as its President and Chief Executive Officer. As President and Chief Executive Officer of the Company, you shall devote 100% of your working time, attention and energies to the Company with the work1oad and obligations customary for a President and Chief Executive Officer of a company similar 'to us (your "Employment").

Your initial compensation for the annual term of August 2011 to August 2012 (your "Compensation") is $120,000, to be paid on a monthly basis, as earned in accordance with our customary payroll practice net of all applicable withholdings and deductions.

Your Compensation shall also include a grant to purchase 250,000 shares of the Company's stocks (the "Stock Options"), ofwhich (i) an option to purchase 125,000 shares shall vest upon the achievement of the Period I Targets (as defined below), and (ii) an option to purchase 125,000 shares shall vest upon the achievement of the Period II Targets (as defined below). You will be entitled to exercise your option to purchase Company's shares within 12 months from vesting time at a purchase share price not exceeding USD 1.

Period I and II targets will be based upon and refer to a revised Business Plan (the"Business PIan") which shall be presented to and approved by the Board of the Company not later than November 15, 2011

Period I Targets

On or before February 28, 2012, the achievement of each of the following:

	
1.  

	
Completed its planned (i) merger or share exchange with a public company listed for trading in the United States of America on the OTC Bulletin Board automated quotation system and (ii) private placement of securities;

	
2.  

	
Commenced regional development projects in Argentina, Brazil and South Africa (the "Regional Development Projects");

	
3.  

	
Met product units sales targets for the first 6 operating months, as per the Business Plan;

	
4.  

	
Achieved full product prototyping capabilities, as per the Business Plan;

	
5.  

	
Established a lab facility operating in Italy, as per the Business Plan;

	
6.  

	
Established corporate headquarters located in the United States of America;

	
7.  

	
Executed distribution agreements with parties in Argentina, Brazil and South Africa;

	
8.  

	
Commenced the operational status of its corporate web site;

	
9.  

	
Defined a marketing and sales plan;

	
10.  

	
Appointed to the Company' s board of directors at least one member with a graduate degree or higher in a discipline or field related to the business of the Company; and

	
11.  

	
Hired additional sales representatives and personnel (collectively, the "Period I Targets").

  

  

  

 

Period II Targets

On or before August 30, 2012, the achievement of each of the following:

	
1.  

	
Completed the Initial Development Projects;

	
2.  

	
Begun regional development projects in two countries in the Northern hemisphere, which such countries shall be determined by the Board of the Company not later than February 28th, 2012;

	
3.  

	
Met product units sales targets for the first operating year, as per the Business Plan;

	
4.  

	
Executed distribution agreements covering all regions worldwide; with such Regions defined in the Business Plan;

	
5.  

	
Executed products provisioning contracts covering all regions worldwide; with such Regions defined in the Business Plan

	
6.  

	
Assigned staff members to all regional sales structures; and

	
7.  

	
Completed all corporate staff hiring as set forth (collectively, the "Period II Targets") and approved by the Board within January 31, 2012.

	
8.  

	 

You shall also be entitled to the following benefits to be provided by the Company: (i) reimbursement for all travel and lodging expenses related to your Employment, upon submission of related proofs of payment; (ii) payment of your telephone and data service plan on a handheld device devoted to Employment-related use; and (iii) payment of your personal computer devoted to Employment-related use.

Your Compensation shall be subject to adjustment, at the discretion of the Board of the Company, as your workload and responsibilities change. Upon acceptance of the terms of this letter, your Employment will be effective retroactively to August 4, 2011.

Termination Clauses

Resignation may be provided by you to the Board of the Company with at least three months notice. You will be entitled to receive your Compensation Package and benefits up to the end of the notice period.

The Company, through a majority decision taken by the Board of Directors, may terminate the Employment at any time, for just cause only. You will be however granted your full Compensation Package for the fun term of this Employment.

Confidentiality

In the course of the Employment you and the Company (collectively "The Parties") may produce and/or acquire certain research data, technical processes, business plans, activities and services, trade secrets and patents, business and marketing strategies, methods of operation, other valuable information, confidential information and trade related information relating to the business and activities of the Company. (hereinafter “Confidential Information"). The Parties acknowledge and agree that such Proprietary Information will be proprietary and confidential in nature. The terms of this Employment shall be also considered as Confidential Information. Confidential Information do not include information, technical data or know-how which:

	
1.  

	
a Party can demonstrate it was already in his possession prior to or at the time of disclosure; or

	
2.  

	
prior to or after the time of disclosure becomes part of the public knowledge or literature, as evidenced by documents which were generally published prior to such disclosure, or

	
3.  

	
is required by a court order to be disclosed.

The Parties agree that the Confidential Information is confidential and unique, and constitutes the exclusive property of the Company and shall not be divulged or disclosed in any form and to any person, firm, corporation or other entity, either directly or indirectly, whether or not for compensation.

[Remainder of Page intentionally Blank]

  

  

  

 

We look forward to your Employment with the Co,pany. The Company anticipates exciting times ahead filled with many challenges and opportunities. We are confident that you will make significant contributions to our future success.

Very truly yours,

/s/ Akiva Kurland

Akiva Kurland

Chief Financial Officer

BeesFree, Inc.

Agreed to and accepted by the undersigned

the 9th day of October 2011

/s/ Mario Sforza

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