Document:

Exhibit 10.1

 

 

STRATEGIC ALLIANCE AGREEMENT

 

This Strategic
Alliance Agreement is made and entered into this 20th day
of May 2005, by and between UTEK Corporation (“UTK”), 202 South Wheeler
Street, Plant City, Florida 33566, a Delaware Corporation, and VitaCube Systems
Holdings, Inc., Inc.  (“PRH”),
480 South Holly Street, Denver,
Colorado 80246, a Nevada Corporation.

 

WITNESSETH:

 

WHEREAS,
PRH desires to engage UTK to provide the services as set forth in this
Agreement, and

 

WHEREAS,
UTK is agreeable to provide these services.

 

NOW
THEREFORE, in consideration of the mutual promise made in this Agreement, and
for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto agree as follows:

 

I. ENGAGEMENT  

 

PRH hereby retains UTK to
provide those services as defined herein and UTK hereby agrees to the
appointment on the terms and conditions hereinafter set forth and agrees to use
commercially reasonable efforts in providing said services.

 

II. INDEPENDENT
CONTRACTOR

 

UTK shall be, and in all
respects be deemed to be, an independent contractor in the performance of its
duties hereunder.

 

A.           PRH shall be solely responsible for making
all payments to and on behalf of its employees and UTK shall in no event be
liable for any debts or other liabilities of PRH.

 

B.             UTK shall not have or be deemed to have,
fiduciary obligations or duties to, and shall be able to pursue, conduct and
carry on for its own account (or for the account of others) such activities, ventures,
businesses and other pursuits as UTK in its sole, absolute and unfettered
discretion, may elect.

 

C.             Notwithstanding the above, no activity,
venture, business or other pursuit of UTK, during the term of this Agreement
shall conflict with UTK’s obligations under this Agreement.

 

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III. SERVICES

 

UTK agrees to provide the
following services, hereinafter collectively referred to as “Services”:

 

SEE “CONFIDENTIAL
TERM SHEET” (EXHIBIT A) ATTACHED AND MADE A PART HEREOF.

 

A.                                   UTK shall devote such time and efforts, as it
deems commercially reasonable, under the circumstances to the affairs of PRH,
as is reasonable and adequate to render the Services contemplated by this
Agreement.

 

B.                                     UTK cannot guarantee results on behalf of
PRH, but shall pursue all reasonable avenues available through its network of
contacts.  The acceptance and consumption
of any transaction is subject to acceptance of the terms and conditions by in
its sole discretion.

 

C.                                     In conjunction with the Services, UTK agrees
to:

 

1.               Make itself available at the offices of PRH
or at another mutually agreed upon place,
during normal business hours, for reasonable periods of time, subject to
reasonable advance notice and mutually convenient scheduling.

 

2.               Make itself available for telephone
conferences with the principal officer(s) of PRH during normal business hours.

 

IV. EXPENSES

 

It is expressly agreed and
understood that each party shall be responsible for its own normal and
reasonable out-of-pocket expenses.

 

V. COMPENSATION

 

A.           In consideration for the services to be
provided, PRH agrees that it will remit the agreed upon stock certificate
within five (5) days of both parties executing this Agreement.

 

B.             PRH agrees that UTK shall be entitled to
compensation as follows:

 

SEE
STRATEGIC ALLIANCE CONFIDENTIAL TERM SHEET (EXHIBIT A) ATTACHED
AND MADE A PART HEREOF.

 

VI. TERM AND TERMINATION

 

The term of
the Agreement will be for 12 months unless terminated sooner. This Agreement
may be renewed upon mutual, written agreement of the parties. Either party may terminate this Agreement at
any time with 30 days written notice.

 

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VII. LEGAL COMPLIANCE

 

PRH agrees that it will put
in place, if it has not already done so, policies and procedures relating to
and addressing, with the commercially reasonable intent to ensure compliance
with, applicable securities laws, rules and regulations, including, but
not limited to:

 

A.                                   The use, release or other publication of
forward-looking statements.

 

B.                                     Disclosure requirements regarding the
required disclosure of the nature and terms of UTK’s relationship with,
including, but not limited to press releases, publications on its web site,
letters to investors and telephone or other personal communication with
potential or current investors.

 

C.                                     No press releases or any
other forms of communication to third parties, which mention both UTK
CORPORATION and PRH, shall be released without the prior written consent and
approval of both UTK and PRH.

 

D.                                    EXECUTION. 
The execution, delivery and performance of this Agreement, in the time
and manner herein specified will not conflict with, result in a breach of, or
constitute a default under any existing agreement, indenture, or other instrument
to which either PRH or UTK is a party or by which either entity may be bound or
affected.

 

E.                                      TIMELY APPRISALS.  PRH shall use its commercially reasonable
efforts to keep UTK up to date and apprised of all business, market and legal
developments related to and its relationship to UTK.

 

F.                                      CORPORATE AUTHORITY.  Both PRH and UTK have full legal authority to
enter into this Agreement and perform the same in the time and manner
contemplated.

 

G.                                     The individuals whose signatures appear below
are authorized to sign this Agreement on behalf of their respective
corporations.

 

H.                                    PRH will cooperate with UTK and will promptly
provide UTK with all pertinent materials and requested information in order for
UTK to perform its Services pursuant to this Agreement.

 

I.                                         When delivered, the shares of PRH Common
Stock shall be duly and validly issued, fully paid and non-assessable.

 

J.                                        UTK represents to PRH that a) it has the
experience as may be necessary to perform all the required, b) all Services
will be performed in a professional manner, and c) all individuals it provides
to perform the Services will be appropriately qualified and subject to
appropriate agreements concerning the protection of trade secrets and
confidential information of which such persons may have access to over the term
of this Agreement.

 

K.                                    Until termination of the engagement, PRH will
notify UTK promptly of the occurrence of any event, which might materially
affect the condition (financial or otherwise), or prospects of PRH.

 

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VIII. CONFIDENTIAL DATA

 

A.                                   UTK shall not divulge to others, any trade
secret or confidential information, knowledge, or data concerning or pertaining
to the business and affairs of PRH, obtained by UTK as a result of its
engagement hereunder, unless authorized, in writing by PRH. UTK represents and
warrants that it has established appropriate internal procedures for protecting
the trade secrets and confidential information of, PRH including, without
limitation, restrictions on disclosure of such information to employees and
other persons who may be engaged in such information to employees and other
persons who may be engaged in rendering services to any person, firm or entity
which may be a competitor of.

 

B.                                     PRH shall not divulge to others, any trade
secret or confidential information, knowledge, or data concerning or pertaining
to the business and affairs of UTK obtained as a result of its engagement
hereunder, unless authorized, in writing, by UTK.

 

C.                                     UTK shall not be required in the performance
of its duties to divulge to PRH, or any officer, director, agent or employee of
PRH, any secret or confidential information, knowledge, or data concerning any
other person, firm or entity (including, but not limited to, any such person,
firm or entity which may be a competitor or potential competitor of) which UTK
may have or be able to obtain other than as a result of the relationship
established by this Agreement.

 

IX. OTHER MATERIAL TERMS
AND CONDITIONS

 

A.                                   INDEMNITY.

1.               UTK shall indemnify, defend and hold harmless
PRH from and against any and all losses incurred by PRH which arise out of or
result from misrepresentation, breach of warranty or breach or non- fulfillment
of any covenant contained herein or Schedules annexed hereto or in any other
documents or instruments furnished by UTK pursuant hereto or in connection with
this Agreement.

 

2.               PRH shall indemnify, defend and hold harmless
UTK from and against any and all losses incurred by UTK which arise out of or
result from misrepresentation, breach of warranty or breach or non-fulfillment
of any covenant contained herein or Schedules annexed hereto or in any other
documents or instruments furnished by PRH pursuant hereto or in connection with
this Agreement.

 

B.             PROVISIONS.  Neither termination nor completion of the
assignment shall affect the provisions of this Agreement, and the
Indemnification Provisions that are incorporated herein, which shall remain
operative and in full force and effect.

 

C.             PRH agrees that for a twenty four months (24)
following the execution of this Agreement, PRH shall not, without UTEK’s prior
written consent, directly or indirectly solicit for employment
any present  employee  of UTEK, or request, induce or advise any
employee of UTEK to leave the employ of UTEK. In turn, UTEK agrees that it will
not directly or indirectly solicit any present employee of PRH.

 

4

 

D.            ADDITIONAL INSTRUMENTS.   Each of the parties shall from time to time,
at the request of others, execute, acknowledge and deliver to the other party
any and all further instruments that may be reasonably required to give full
effect and force to the provisions of this Agreement.

 

E.              ENTIRE AGREEMENT.  Each of the parties hereby covenants that
this Agreement, is intended to and does contain and embody herein all of the
understandings and agreements, both written or oral, of the parties hereby with
respect to the subject matter of this Agreement, and that there exists no oral
agreement or understanding expressed or implied liability, whereby the
absolute, final and unconditional character and nature of this Agreement shall
be in any way invalidated, empowered or affected.  There are no representations, warranties or
covenants other than those set forth herein.

 

F.              ASSIGNMENTS. The benefits of the Agreement
shall inure to the respective successors and assignees of the parties and
assigns and representatives, and the obligations and liabilities assumed in
this Agreement by the parties hereto shall be binding upon their respective
successors and assigns; provided that the rights and obligations of UTK under
this Agreement may not be assigned or delegated without the prior written
consent of PRH and any such purported assignment shall be null and void.  Notwithstanding the foregoing, UTK may assign
this Agreement or any portion of its Compensation as outlined herein to its
subsidiaries in its sole discretion.

 

G.             ORIGINALS. 
This Agreement may be executed in any number of counterparts, each of
which so executed shall be deemed an original and constitute one and the same
agreement.

 

H.            ADDRESSES OF PARTIES.  Each party shall at all times keep the other
informed of its principal place of business if different from that stated
herein, and shall promptly notify the other of any change, giving the address
of the new place of business or residence.

 

I.                 NOTICES. 
All notices that are required to be or may be sent pursuant to the
provision of this Agreement shall be sent by certified mail, return receipt
requested, or by overnight package delivery service to each of the parties at
the addresses appearing herein, and shall count from the date of mailing or the
validated air bill.

 

J.                MODIFICATION AND WAVIER.   A modification or waiver of any of the
provisions of this Agreement shall be effective only if made in writing and
executed with the same formality as this Agreement.  The failure of any party to insist upon
strict performance of any of the provisions of this Agreement shall not be
construed as a waiver of any subsequent default of the same or similar nature
or of any other nature.

 

K.            INJUNCTIVE RELIEF.   Solely by virtue of their respective
execution of this Agreement and in consideration for the mutual covenants of
each other, PRH and UTK hereby agree, consent and acknowledge that, in the
event of a breach of any material term of this Agreement, the non-breaching
party will be without adequate remedy-at-law and shall therefore, be entitled
to immediately redress any material breach of this Agreement by temporary or
permanent injunctive or mandatory

 

5

 

relief obtained in an action or proceeding instituted in any court of
competent jurisdiction without the necessity of proving damages and without
prejudice to any other remedies which the non-breaching party may have at law
or in equity.

 

L.              ATTORNEY’S FEES.   If any arbitration, litigation, action,
suit, or other proceeding is instituted to remedy, prevent or obtain relief
from a breach of this Agreement, in relation to a breach of this Agreement or
pertaining to a declaration of rights under this Agreement, the prevailing
party will recover all such party’s attorneys’ fees incurred in each and every
such action, suit or other proceeding, including any and all appeals or
petitions there from.  As used in this
Agreement, attorneys’ fees will be deemed to be the full and actual cost of any
legal services actually performed in connection with the matters involved,
including those related to any appeal to the enforcement of any judgment
calculated on the basis of the usual fee charged by attorneys performing such
services.

 

 

APPROVED
AND AGREED:

 

	
  UTEK
  CORPORATION

  	
   

  	
  VITACUBE SYSTEMS HOLDING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Clifford M. Gross

  	
   

  	
  By:

  	
  /s/ Earnest Mathis

  
	
   

  	
  Clifford M. Gross, Ph.D.

  	
   

  	
   

  	
  Earnest Mathis

  
	
   

  	
  Chief Executive Officer

  	
   

  	
   

  	
  Chief Executive Officer

  

 

6Exhibit 10.2

 

Exhibit A

 

 

CONFIDENTIAL TERM SHEET

 

PROPOSED STRATEGIC ALLIANCE
BETWEEN

UTEK CORPORATION (UTK) &
VITACUBE SYSTEMS HOLDINGS, INC. (PRH)

 

Statement of Work:  To identify technology acquisition opportunities for PRH from research
universities and government laboratories. A first step in this process is the
development of a Technology Acquisition Profile.  Once completed, we will identify and present
technologies that meet this profile. While conducting our search we will
maintain the confidentiality of PRH.

 

Term:  The term of the Agreement will be for 12
months unless terminated sooner. This Agreement may be renewed upon mutual,
written agreement of the parties. Either party
may terminate this agreement at any time with 30 days written notice.

 

Services:                                             UTK agrees to provide the following distinct
services to PRH:

 

i.                  Identify synergistic new technologies
from universities and government laboratories to help provide PRH with an
enhanced new product pipeline.

 

ii.               Review technology acquisition opportunities
for PRH while maintaining PRH’s confidentiality.

 

iii.            Present
technology acquisition opportunities for PRH. PRH will have 30-days to
determine if they want to go forward with the technology license.

 

a.               UTK after 30
days shall have the right to present the technology to other clients.

 

iv.           PRH
acknowledges that the sources of technologies represented by UTEK are 3rd
party research institutions for which UTEK does not control whether the
technology will be shown to other parties by the licensor.

 

v.              At PRH’s
request, UTK will prepare, and compile additional information regarding the
technology acquisition opportunities for PRH.

 

vi.           At PRH’s
request and upon mutual agreement between PRH and UTK, UTK will negotiate and
seek to acquire a license to the requested technology for subsequent sale to
and acquisition by PRH.

 

vii.        On a
case-by-case basis, at PRH’s request and UTK’s sole discretion, UTK will
propose an equity-financing plan for PRH’s consideration, to finance select
technology acquisition opportunities for PRH.

 

viii.     PRH will not
seek to acquire any technologies presented to PRH by UTK directly from the
technology developer for a period of 24 months following the termination of
this Strategic Alliance agreement.

 

ix.             The
compensation quotation is valid for projects authorized and initiated within 30
days of the date of this term sheet.

 

 

Technology Transfer:  When a
technology is shown to PRH that PRH wants to acquire, UTK will
seek to acquire the license to a technology through one of its subsidiaries.
UTK will then seek to provide a term sheet to PRH outlining the consideration
to be paid by PRH for the acquisition of this technology.  UTK shall transfer this subsidiary to PRH in
a stock for stock exchange under an “Agreement and Plan of Acquisition.”  The consideration to be paid by PRH to UTK
will be based upon a markup to the value of the license and other assets in the
subsidiary as determined by UTK and agreed to by both parties.

 

COMPENSATION

 

In
consideration for providing these Services, PRH shall pay UTK $96,000 worth of
unregistered shares of common stock (54,857 shares) upon the execution of this
Strategic Alliance Agreement. 1/12th of the shares (4,571) shall
vest each month during the term of this Agreement. If this Agreement is
terminated any unvested shares will be returned to PRH.  Both
PRH and UTK will cover their own out-of-pocket expenses incurred during the
performance of this Strategic Alliance Agreement.

 

 

Approved
by:

 

	
  UTEK Corporation

  	
   

  	
   

  	
  VitaCube Systems Holdings, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/Clifford M. Gross

  	
   

  	
   

  	
  /s/ Earnest Mathis

  	
   

  
	
  Clifford
  M. Gross, Ph.D.

  	
   

  	
   

  	
  Earnest Mathis

  	
   

  
	
  Chief
  Executive Officer

  	
   

  	
   

  	
  Chief Executive Officer

  	
   

  
							

 

 

Dated:
Tuesday, May 20, 2005

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