Document:

Ex-10.103 KDR Consulting Agreement

 

Exhibit 10.103

July 7, 2004

CONSULTING AGREEMENT

This agreement is made and entered into this 7th day of July, 2004 between KDR Transport, Inc.,
located at #3 Crafton Square, Pittsburgh, Pa 15205, hereinafter referred to as Consultant and XRG,
Inc. located at 601 Cleveland Street, Clearwater, FL 33755, hereinafter referred to as the Client.

WHEREAS, Consultant is an individual operating as an independent consultant, and

WHEREAS, Client is publicly-held with its common stock trading on one or more stock exchanges
and/or over the counter or on NASDAQ, and

WHEREAS, the Client desires to engage the services of Consultant to perform, for the Client,
consulting services regarding its business operation.

IT IS UNDERSTOOD:

	1.	 	Term and Obligations

     Client hereby appoints and engages Consultant as its advisor on the terms and conditions of
this Agreement. Consultant accepts such engagement and agrees to perform the services upon the
terms and conditions of said Agreement.

     Consultant shall act as an advisor in the following areas:

     a.) Interaction with Express Freight and Highbourne divisions XRG Logistics and any future
acquisitions, in particular the anticipated TEI acquisition.

     b.) Negotiation of all company insurance policies.

     c.) Other projects as designated.

	2.	 	Term of Engagement.

     (a) The term of this arrangement shall be for five years commencing July 7, 2004, and ending
July 7, 2009. Each acquisition will extend the Agreement for 5 years from the closing date of the
Acquisition. The Engagement Period, the Consultant’s compensation and any and all other rights of
the Consultant under this Agreement shall terminate (except as to compensation and rights accrued
prior to the effective date of such termination): (i) upon the death of the Consultant; (ii) upon
fourteen (14) days prior written notice by Client to Consultant in the event of the physical or
mental disability of the Consultant (as defined in Paragraph 2(b) below); (iii) for Cause (as
defined in Paragraph 2(c) below), immediately upon the giving of written notice thereof by Client
to the Consultant, or at such later time as such notice may specify; or (iv) without Cause at any
time after the initial five-year term hereof, upon not less than sixty (60) days’ prior written
notice by either the Client or Consultant to the other party and subject to Paragraph 2(d) below.

 

 

     (b) For purposes of this Agreement, the Consultant shall be deemed to have a “physical or
mental disability” if for medical reasons he has been unable to perform his duties for thirty (30)
consecutive days or ninety (90) days in any 12-month period, all as determined in good faith by a
physician mutually acceptable to Consultant and Client.

     (c) For purposes of this Agreement, the term “Cause” shall be deemed to mean the Consultant’s
conviction of any crime (felony or class 8 misdemeanors),

     (d) In the event the Engagement Period is terminated by Client for any reason other than for
Cause or for the death or the physical or mental disability of the Consultant, Client shall pay to
the Consultant, as Client’s sole and exclusive obligation related to such termination, the
compensation and annual bonuses provided for in this Agreement as described in paragraphs 2 (a) and
2(b) for a five-year term, payable in a lump sum within 30 days of termination.

     (e) Executive may terminate his employment for good reason. For purposes of this Agreement,
“good reason” shall mean a failure by Client to comply with any material provision of this
Agreement, which failure is not cured within fourteen (14) days after a written notice of
noncompliance has been given by Consultant to Client.

	3.	 	Compensation.

     A. As compensation the Client will pay the consultant on a monthly basis 0.5% of the revenue
billed through the client’s subsidiary XRG G&A, Inc. less the compensation the consultant earns as
President of XRG G&A, Inc. and R&R Express Intermodal, Inc.

     B. A fee equal to .5% of the annual revenue for the previous twelve months prior to close of
any acquisitions presented to the Client and ultimately acquired. The fee will be paid at the
closing based on the following:

          1. One half of the fee to be paid in XRG, Inc. common stock the number of shares will be
determined based on the average market price of the shares for the twenty days prior to the date of
close.

          2. One half of the fee paid in cash at closing.

     This fee is in addition to the compensation that will be earned ongoing in 2 .A. above.

	4.	 	Change of Control.

     In the event the Client is acquired or there was a substantial change of control, then the
Consultant would have the right to void this agreement.

 

 

	5.	 	Expenses.

     The Client hereby agrees to reimburse Consultant for all reasonable out-of-pocket and properly
documented expenses incurred by Consultant in connection with the performance of Consultant’s
services hereunder provided that the Client has approved such expenses.

	6.	 	Miscellaneous.

     (a) Amendments and Waivers. Except as otherwise provided herein, the provisions of
this Agreement may not be amended, modified or supplemented without the written consent of each of
the parties hereto.

     (b) Governing Law. This Agreement and the rights, obligations and liabilities of the
parties hereto shall be governed by and construed and interpreted in accordance with the laws of
the State of Florida without regard to the conflicts of laws principles thereof. For that purpose,
the parties hereto consent to the jurisdiction and venue of an appropriate court located in
Pinellas County, State of Florida.

	 	 	 
	Signatures:

	 	 
	 
	 	 
	Consultant
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	Title
	 	 
	 
	 	 
	Client
	 	 
	 
	 	 
	 

	 	 
	Kevin P. Brennan
	 	 
	President and Chief Executive Officer
KRG, Inc.Ex-10.104 Common Stock Purchase Warrant

 

Exhibit 10.104

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE
REGISTRATION THEREOF OR IN ACCORDANCE WITH APPLICABLE LAW.

WARRANT TO PURCHASE STOCK

	 	 	 	 	 
	Corporation:

	 	XRG, INC.
	 	 
	Number of Shares:

	 	63,820 	 	 
	Class of Stock:

	 	Common	 	 
	Initial Exercise Price:

	 	$2.35 	 	 
	Issue Date:

	 	March 21, 2005	 	 
	Expiration Date:

	 	March 21, 2010	 	 

THIS WARRANT CERTIFIES THAT, in consideration of the payment of $1.00 and for other good and
valuable consideration, GREA TER BAY BANK, N .A. or registered assignee (“Holder”) is entitled to
purchase the number of fully paid and nonassessable shares (the “Shares”) of Common Stock of XRG,
Inc. (the “Company”), in the number, at the price, and for the term specified above.

ARTICLE 1. EXERCISE

     1.1 Method of Exercise. Holder may exercise this Warrant by delivering this Warrant
and a duly executed Notice of Exercise in substantially the form attached as Appendix 1 to the
principal office of the Company. Unless Holder is exercising the conversion right set forth in
Section 1.2, Holder shall also deliver to the Company a check for the aggregate Warrant Price for
the Shares being purchased.

     1.2 Conversion Right. In lieu of exercising this Warrant as specified in Section 1.1,
Holder may from time to time convert this Warrant, in whole or in part, into a number of Shares
determined by dividing (a) the aggregate fair market value of the Shares or other securities
otherwise issuable upon exercise of this Warrant minus the aggregate Warrant Price of such Shares
by (b) the fair market value of one Share. The fair market value of the Shares shall be determined
pursuant to Section 1.3.

     1.3 Fair Market Value. If the Shares are traded regularly in a public market, the
fair market value of the Shares shall be the closing price of the Shares (or the closing price of
the Company’s stock into which the Shares are convertible) reported for the business day
immediately before Holder delivers its Notice of Exercise to the Company. If the Shares are not
regularly traded in a public market, the Board of Directors of the Company shall determine fair
market value in its reasonable good faith judgment. The foregoing notwithstanding, if Holder
advises the Board of Directors in writing that Holder disagrees with such determination, then the
Company and Holder shall promptly agree upon a reputable investment banking firm to undertake such
valuation. If the valuation of such investment banking firm is greater than that determined by the
Board of Directors, then all fees and expenses of such investment banking firm shall be paid by the
Company. In all other circumstances, such fees and expenses shall be paid by Holder.

     1.4 Delivery of Certificate and New Warrant. Promptly after Holder exercises or
converts this Warrant, the Company shall deliver to Holder certificates for the Shares acquired
and, if this Warrant has not been fully exercised or converted and has not expired, a new Warrant
representing the Shares not so acquired.

     1.5 Replacement of Warrants. On receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss,
theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and
amount to the Company or, in the case of mutilation, or surrender and cancellation of this Warrant,
the Company at its expense shall execute and deliver, in lieu of this Warrant, a new warrant of
like tenor.

 

 

ARTICLE 2. ADJUSTMENTS TO THE SHARES.

     2.1 Stock Dividends, Splits, Etc. If the Company declares or pays a dividend on its
common stock payable in common stock, or other securities, subdivides the outstanding common stock
into a greater amount of common stock, then upon exercise of this Warrant, for each Share acquired,
Holder shall receive, without cost to Holder, the total number and kind of securities to which
Holder would have been entitled had Holder owned the Shares of record as of the date the dividend
or subdivision occurred.

     2.2 Reclassification, Exchange or Substitution. Upon any reclassification, exchange,
substitution, or other event that results in a change of the number and/or class of the securities
issuable upon exercise or conversion of this Warrant, Holder shall be entitled to receive, upon
exercise or conversion of this Warrant, the number and kind of securities and property that Holder
would have received for the Shares if this Warrant had been exercised immediately before such
reclassification, exchange, substitution, or other event. Such an event shall include any
automatic conversion of the outstanding or issuable securities of the Company of the same class or
series as the Shares to common stock pursuant to the terms of the Company’s Certificate of
Incorporation upon the closing of a registered public offering of the Company’s common stock. Upon
the closing of any sale, license, or other disposition of all or substantially all of the assets
(including intellectual property) of the Company, or any reorganization, consolidation, or merger
of the Company where the holders of the Company’s securities before the transaction beneficially
own less than 50% of the outstanding voting securities of the surviving entity after the
transaction, the successor entity shall assume the obligations of this Warrant, and this Warrant
thereafter shall be exercisable for the same securities, cash, and property as would be payable for
the Shares issuable upon exercise of the unexercised portion of this Warrant as if such Shares were
outstanding on the record date for the Acquisition and subsequent closing. The Warrant Price shall
be adjusted accordingly. The Company or its successor shall promptly issue to Holder a new Warrant
for such new securities or other property. The new Warrant shall provide for adjustments which
shall be as nearly equivalent as may be practicable to the adjustments provided for in this Article
2 including, without limitation, adjustments to the Warrant Price and to the number of securities
or property issuable upon exercise of the new Warrant. The provisions of this Section 2.2 shall
similarly apply to successive reclassifications, exchanges, substitutions, or other events.

     2.3 Adjustments for Combinations, Etc. If the outstanding Shares are combined or
consolidated, by reclassification or otherwise, into a lesser number of shares, the Warrant Price
shall be proportionately increased.

     2.4 Certificate as to Adjustments. Upon each adjustment of the Warrant Price, the
Company at its expense shall promptly compute such adjustment, and furnish Holder with a
certificate of its Chief Financial Officer setting forth such adjustment and the facts upon which
such adjustment is based. The Company shall, upon written request, furnish Holder a certificate
setting forth the Warrant Price in effect upon the date thereof and the series of adjustments
leading to such Warrant Price.

ARTICLE 3. REPRESENTATIONS AND COVENANTS OF THE COMPANY.

     3.1 Representations and Warranties. The Company hereby represents and warrants to the
Holder as follows:

          (a) The initial Warrant Price referenced on the first page of this Warrant is not greater than
the fair market value of the Shares as of the date of this Warrant.

          (b) All Shares that may be issued upon the exercise of the purchase right represented by this
Warrant, shall, upon issuance, be duly authorized, validly issued, fully paid and nonassessable,
and free of any liens and encumbrances except for restrictions on transfer provided for herein or
under applicable federal and state securities laws.

          (c) The capitalization table attached hereto correctly sets forth the authorized, issued and
outstanding shares of capital stock of the Company and all options to acquire any such shares.

     3.2 Notice of Certain Events. If the Company proposes at any time (a) to declare any
dividend or distribution upon its common stock, whether in cash, property, stock, or other
securities and whether or not a regular cash dividend; (b) to offer for subscription pro rata to
the holders of any class or series of its stock any additional shares

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of stock of any class or series or other rights; (c) to effect any reclassification or
recapitalization of common stock; (d) to merge or consolidate with or into any other corporation,
or sell, lease, license, or convey all or substantially all of its assets, or to liquidate,
dissolve or wind up; or ( e) offer holders of registration rights the opportunity to participate in
an underwritten public offering of the company’s securities for cash, then, in connection with each
such event, the Company shall give Holder (1) at least 20 days prior written notice of the date on
which a record will be taken for such dividend, distribution, or subscription rights (and
specifying the date on which the holders of common stock will be entitled thereto) or for
determining rights to vote, if any, in respect of the matters referred to in (a) and (b) above; (2)
in the case of the matters referred to in (c) and (d) above at least 20 days prior written notice
of the date when the same will take place (and specifying the date on which the holders of common
stock will be entitled to exchange their common stock for securities or other property deliverable
upon the occurrence of such event); and (3) in the case of the matter referred to in (e) above, the
same notice as is given to the holders of such registration rights.

     3.3 Information Rights. So long as the Holder holds this Warrant and/or any of the
Shares, the Company shall deliver to the Holder (a) within ninety (90) days after the end of each
fiscal year of the Company, the annual audited financial statements of the Company certified by
independent public accountants of recognized standing and (b) within forty-five (45) days after the
end of each of the first three quarters of each fiscal year, the Company’s quarterly, unaudited
financial statements, provided Company need not provide such information for any period in which
Company has filed Form 10Q with the Securities and Exchange Commission.

ARTICLE 4. MISCELLANEOUS.

     4.1 Term. This Warrant is exercisable, in whole or in part, at any time and from time
to time on or before the Expiration Date set forth above.

     4.2 Legends. This Warrant and the Shares (and the securities issuable, directly or
indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in
substantially the following form:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT
AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR IN ACCORDANCE WITH
APPLICABLE LAW.

     4.3 Compliance with Securities Laws on Transfer. This Warrant and the Shares issuable
upon exercise this Warrant (and the securities issuable, directly or indirectly, upon conversion of
the Shares, if any) may not be transferred or assigned in whole or in part without compliance with
applicable federal and state securities laws by the transferor and the transferee.

     4.4 Transfer Procedure. Subject to the provisions of Section 4.3, Holder may transfer
all or part of this Warrant or the Shares issuable upon exercise of this Warrant (or the securities
issuable, directly or indirectly, upon conversion of the Shares, if any) by giving the Company
notice of the portion of the Warrant being transferred setting forth the name, address and taxpayer
identification number of the transferee and surrendering this Warrant to the Company for reissuance
to the transferee(s) (and Holder, if applicable), provided that no such notice shall be required
for a transfer to an affiliate of Holder.

     4.5 Notices. All notices and other communications from the Company to the Holder, or vice
versa, shall be deemed delivered and effective when given personally or mailed by first-class
registered or certified mail, postage prepaid, at such address as may have been furnished to the
Company or the Holder, as the case may be, in writing by the Company or such Holder from time to
time.

     4.6 Waiver. This Warrant and any term hereof may be changed, waived, discharged or
terminated only by an instrument in writing signed by the party against which enforcement of such
change, waiver, discharge or termination is sought.

3

 

     4.7 Attorneys’ Fees. In the event of any dispute between the parties concerning the
terms and provisions of this Warrant, the party prevailing in such dispute shall be entitled to
collect from the other party all costs incurred in such dispute, including reasonable attorneys’
fees.

     4.8 Governing Law. This Warrant shall be governed by and construed in accordance with
the laws of the State of Delaware, without giving effect to its principles regarding conflicts of
law.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	XRG, INC.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	Print Name:	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

4

 

APPENDIX 1

NOTICE OF EXERCISE

     1. The undersigned hereby elects to purchase ___shares of the Common Stock of XRG, Inc.
pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase price
of such shares in full.

     2. The undersigned hereby elects to convert the attached Warrant into Shares in the manner
specified in the Warrant. This conversion is exercised with respect to of the Shares covered by the
Warrant.

     [Strike paragraph that does not apply.]

     3. Please issue a certificate or certificates representing said shares in the name of the
undersigned or in such other name as is specified below:

	 	 	 	 	 
	 

	 	Greater Bay Bank, N.A	 	 
	 

	 	 
	 	 
	 

	 	 
	 	 
	 

	 	Or Registered Assignee	 	 

     4. The undersigned represents it is acquiring the shares solely for its own account and not as
a nominee for any other party and not with a view toward the resale or distribution thereof except
in compliance with applicable securities laws.

	 	 	 
	GREATER BAY BANK, N.A. or Registered
	 	 
	Assignee
	 	 
	 
	 	 
	 
	 	 
	(Signature)
	 	 
	 
	 	 
	 
(Date)
	 	 

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