Document:

Letter Agreement

 Exhibit 10.1 
  
 

 
  
 September 1, 2005 
  
 Board of Directors 
 World Health Alternatives, Inc. 
 777 Penn Center Boulevard 
 Pittsburgh, PA 15235 
  
 Members of the Board of
Directors: 
  
 This letter confirms and sets forth the terms and conditions of
the engagement between Alvarez & Marsal, LLC (“A&M”) and World Health Alternatives, Inc. (the “Company”), including the scope of the services to be performed and the basis of compensation for those services. Upon
execution of this letter by each of the parties below and receipt of the retainer described below, this letter will constitute an agreement between the Company and A&M. 
  

	 	1.	Description of Services 

  

	 	a.	Officers. In connection with this engagement, A&M shall make available to the Company: 

  

	 	1.	Scott Phillips will lead the project for A&M and serve as the Chief Restructuring Officer (the “CRO”); 

  

	 	2.	David Friend, MD to serve as an Executive Officer serving as technical advisor focused on stabilizing the company and developing strategic alternatives to address the existing
crises; 

  

	 	3.	Scott Phillips and David Friend will constitute the A&M Team (together with the Additional Officers (as defined below) the “Team”); and 

  

	 	4.	Upon the mutual agreement of A&M and the Board of Directors of the Company (the “Board”), such additional personnel as are necessary to assist in the performance of
the duties set forth in clause 1.b below (the “Additional Officers”). Such Additional Officers shall be designated by the Company as executive officers. 

 

 
  
  

 World Health Alternatives, Inc., Retention Agreement, September 1, 2005 
  

	 	b.	Duties.  

  

	 	(i)	The Team shall provide Interim Management services designed to manage / stabilize the core business operations; 

  

	 	(ii)	The CRO and Dr. Friend, together with any Additional Officers, in cooperation with the Interim Chief Executive Officer of the Company (the “CEO”), shall perform a
financial review of the Company, including but not limited to a review and assessment of financial information that has been, and that will be, provided by the Company to its creditors, including without limitation its short and long-term projected
cash flows; 

  

	 	(iii)	The CRO shall assist in the identification of cost reduction and operations improvement opportunities; 

  

	 	(iv)	The CRO shall assist the CEO in developing for the Board’s review possible restructuring plans or strategic alternatives for maximizing the enterprise value of the
Company’s various business lines; 

  

	 	(v)	The CRO shall serve as the principal contact with the Company’s creditors with respect to the Company’s financial and operational matters; and 

  

	 	(vi)	The CRO shall perform such other services as requested or directed by the Board and CEO and agreed to by such officer. 

  

	 	c.	Reporting. The CRO shall report to the Board. 

  

	 	d.	Employment by A&M. The Team will continue to be employed by A&M and while rendering services to the Company will continue to work with other personnel at A&M in
connection with other unrelated matters, which will not unduly interfere with services pursuant to this engagement. With respect to the Company, however, the Team shall operate under the direction of the Board. 

  

	 	e.	Projections; Reliance; Limitation of Duties. You understand that the services to be rendered by the Team may include the preparation of projections and other forward-looking
statements, and that numerous factors can affect the actual results of the Company’s operations, which may materially and adversely differ 

  

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 from those projections and other forward-looking statements. In addition, the Team will be relying
on information provided by other members of the Company’s management in the preparation of those projections and other forward-looking statements. Neither the Team, nor A&M makes any representation or guarantee that an appropriate
restructuring proposal or strategic alternative can be formulated for the Company, that any restructuring proposal or strategic alternative presented to the Board will be more successful than all other possible restructuring proposals or strategic
alternatives, that restructuring is the best course of action for the Company or, if formulated, that any proposed restructuring plan or strategic alternative will be accepted by any of the Company’s creditors, shareholders and other
constituents including the bankruptcy court. Further, neither the Team, nor A&M assumes responsibility for the selection of any restructuring proposal or strategic alternative that any such officer assists in formulating and presenting to the
Board, and the Team shall be responsible for implementation only of the proposal or alternative approved by the Board and the bankruptcy court and only to the extent and in the manner authorized and directed by the Board and the bankruptcy court.

  

	 	f.	Additional Duties and Responsibilities. Upon the mutual agreement of the Company and A&M, and subject to bankruptcy court approval if necessary, A&M may provide such
additional personnel as the Company may request to assist in performing other services as may be agreed to, on such terms and conditions and for such compensation as the Company and A&M shall agree. 

  

	 	2.	Compensation 

  

	 	a.	Professional fees for the services of the Team detailed above shall be based on our standard hourly rates and billed at the rate of $125,000 per month (the “Fixed Monthly
Fee”). Our standard hourly rates by staff level are as follows: 

  

			
	Managing Director	  	$525 to $600 per hour
	Director	  	$350 to $475 per hour
	Associate	  	$225 to $300 per hour
	Analyst	  	$125 to $175 per hour

  
 Standard fees in
excess of $125,000 in any month for the services of the Team will not be billed to the Company. 
  
 Our Fixed Monthly Fee shall be subject to adjustment annually at such time as A&M adjusts its rates generally. 
  

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 World Health Alternatives, Inc., Retention Agreement, September 1, 2005 
  

	 	b.	In addition to the Fixed Monthly Fee, the Company and A&M recognize that it is appropriate that A&M receive incentive compensation for its services hereunder, in addition to
the compensation set forth above. To establish such incentive compensation, A&M and the Company will seek to reach agreement within thirty days from the date hereof on the amount of such incentive compensation and the terms on which it shall be
payable. It is understood by A&M and the Company that: 

  

	 	(i)	No incentive compensation shall be paid to A&M if the Company enters into an executed agreement to sell, merge or liquidate the company prior to January 1, 2006, and

  

	 	(ii)	The amount of the incentive compensation, if payable, shall be fixed at between $800,000.00 and $1,000,000.00. 

  
 If no written agreement is reached with respect to the amount or terms upon
which any incentive is to be paid, no such incentive compensation shall be owed. 
  

	 	c.	In addition, A&M will be reimbursed by the Company for the reasonable out-of-pocket expenses of the Team, and if applicable, other A&M personnel, incurred in connection with
this assignment, such as travel, lodging, duplications, computer research, messenger and telephone charges. In addition, A&M shall be reimbursed by the Company for the reasonable fees and expenses of its counsel incurred in connection with the
preparation, negotiation, enforcement and approval of this agreement. All fees and expenses due to A&M will be billed on a monthly basis or, at A&M’s discretion, more frequently. 

  

	 	d.	The Company shall promptly remit to A&M a retainer in the amount of $150,000, which shall be credited against any amounts due at the termination of this engagement and returned
upon the satisfaction of all obligations hereunder. 

  

	 	3.	Term 

  
 The engagement will commence as of the date hereof and may be terminated by either party without cause by giving 30 days’ written notice to the other party. In the event of any such termination, any fees and
expenses due to A&M shall be remitted promptly (including fees and expenses that accrued prior to but were invoiced subsequent to such termination). The Company may immediately terminate A&M’s services 
  

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 World Health Alternatives, Inc., Retention Agreement, September 1, 2005 
  

 hereunder at any time for Cause by giving written notice to A&M. Upon any such termination, the
Company shall be relieved of all of its payment obligations under this Agreement, except for the payment of fees and expenses through the effective date of termination (including fees and expenses that accrued prior to but were invoiced subsequent
to such termination) and its obligations under paragraph 7. 
  
 For purposes of this Agreement, “Cause” shall mean if (i) the CRO is convicted of, admits guilt in a written document filed with a court of competent jurisdiction to, or enters a plea of nolo contendere to, an allegation of fraud,
embezzlement, misappropriation or any felony; (ii) the CRO willfully disobeys a lawful direction of the Board; or (iii) a material breach of any of A&M’s or the CRO material obligations under this Agreement which is not cured within 15 days
of the Company’s written notice thereof to A&M describing in reasonable detail the nature of the alleged breach. For purposes of this Agreement, termination for “Good Reason” shall mean either its resignation caused by a breach by
the Company of any of its material obligations under this Agreement that is not cured within 15 days of A&M having given written notice of such breach to the Company describing in reasonable detail the nature of the alleged breach or a filing of
a petition under Chapter 11 of the United States Bankruptcy Code in respect of the Company unless within 45 days thereafter (or, if sooner, prior to the date on which a plan of reorganization is confirmed or the case is converted to one under
Chapter 7), the Company has obtained judicial authorization to continue the engagement on the terms herein pursuant to an order which has become a final, nonappealable order. 
  

	 	4.	No Audit, Duty to Update. 

  
 It is understood that the Team and A&M are not being requested to perform an audit, review or compilation, or any other type of financial statement
reporting engagement that is subject to the rules of the AICPA, SEC or other state or national professional or regulatory body. They are entitled to rely on the accuracy and validity of the data disclosed to them or supplied to them by employees and
representatives of the Company. The Team and A&M are under no obligation to update data submitted to them or review any other areas unless specifically requested by the Board to do so. 
  

	 	5.	No Third Party Beneficiary. 

  
 The Company acknowledges that all advice (written or oral) given by A&M to the Company in connection with this engagement is intended 
  

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 World Health Alternatives, Inc., Retention Agreement, September 1, 2005 
  

 solely for the benefit and use of the Company (limited to its Board and management) in considering
the matters to which this engagement relates. 
  
 The Company
agrees that no such advice shall be used for any other purpose or reproduced, disseminated, quoted or referred to at any time in any manner or for any purpose other than accomplishing the tasks referred to herein without A&M’s prior
approval (which shall not be unreasonably withheld), except as required by law. 
  

	 	6.	Conflicts. 

  
 A&M is not currently aware of any relationship (i) that would create a conflict of interest with the Company or those parties-in-interest of which you
have made us aware or (ii) that would preclude us from being a “professional person” under Sections 327 and 330 of the United States Bankruptcy Code. Because A&M is a consulting firm that serves clients on an international basis in
numerous cases, both in and out of court, it is possible that A&M may have rendered services to or have business associations with other entities or people which had or have or may have relationships with the Company, including creditors of the
Company. In the event you accept the terms of this engagement, A&M will not represent, and A&M has not represented, the interests of any such entities or people in connection with this matter. 
  

	 	7.	Confidentiality / Non-Solicitation. 

  
 The Team and A&M shall keep as confidential all non-public information received from the Company in conjunction with this engagement, except (i) as
requested by the Company or its legal counsel, provided that A&M provides written notice to the Company prior to disclosure; (ii) as required by legal proceedings or (iii) as reasonably required in the performance of this engagement. All
obligations as to non-disclosure shall cease as to any part of such information to the extent that such information is or becomes public other than as a result of a breach of this provision. Except as specifically provided for in this letter, the
Company on behalf of itself and any successor-in-interest to the Company agrees not to solicit, recruit or hire any employees of A&M that provided services to the Company effective from the date of this Agreement and continuing for a period of
two years subsequent to the termination of this engagement. Should the Company or any successor-in-interest to the Company extend offers of employment to or otherwise engage any A&M employee that provided services to the Company (other than as
specifically provided for in this Agreement) and should such an offer be accepted, A&M will be entitled to 
  

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 World Health Alternatives, Inc., Retention Agreement, September 1, 2005 
  

 a fee based upon such individual’s hourly rates multiplied by an assumed annual billing of 2,000
hours. This fee would be payable at the time of the individual’s acceptance of employment from the Company. 
  

	 	8.	Indemnification. 

  
 The Company shall indemnify the Team to the same extent as the most favorable indemnification it extends to its officers or directors, whether under the
Company’s bylaws, its certificate of incorporation, by contract or otherwise, and no reduction or termination in any of the benefits provided under any such indemnities shall affect the benefits provided to the Team. The Team shall be covered
as an officer under the Company’s existing director and officer liability insurance policy. The Company shall also maintain any such insurance coverage for the Team for a period of not less than two years following the date of the termination
of such officer’s services hereunder; provided, however, that if the Company files a petition in bankruptcy or files a petition or otherwise seeks relief under or pursuant to any bankruptcy, insolvency or reorganization statute or proceeding or
if a petition in bankruptcy is filed against it, then the Company shall use its best efforts to obtain such insurance coverage or comparable coverage. The provisions of this section 8 are in the nature of contractual obligations and no change in
applicable law or the Company’s charter, bylaws or other organizational documents or policies shall affect the Team’s rights hereunder. The indemnity provisions detailed in the attached Indemnification Agreement, dated September 1, 2005,
are incorporated herein and the termination of this agreement or the engagement shall not affect those provisions, which shall survive termination. 
  

	 	9.	Miscellaneous. 

  
 This Agreement (together with the attached indemnity provisions) shall be: (a) governed and construed in accordance with the laws of the State of New
York, regardless of the laws that might otherwise govern under applicable principles of conflict of laws thereof; (b) incorporates the entire understanding of the parties with respect to the subject matter thereof; and (c) may not be amended or
modified except in writing executed by each of the signatories hereto. The Company and A&M agree to waive trial by jury in any action, proceeding or counterclaim brought by or on behalf of the parties hereto with respect to any matter relating
to or arising out of the performance or non-performance of the Company or A&M hereunder. 
  
 If the foregoing is acceptable to you, kindly sign the enclosed copy to acknowledge your agreement with its terms. 
  

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 World Health Alternatives, Inc., Retention Agreement, September 1, 2005 
  

			
	Very truly yours,
	
	Alvarez & Marsal, LLC
		
	By:	 	 /s/ Scott K. Phillips

	 	 	Scott K. Phillips
	 	 	Managing Director

  

			
	ACCEPTED AND AGREED:
	
	World Health Alternatives, Inc.
		
	By:	 	 /s/ John Sercu

	 	 	John Sercu, Interim CEO

  

 Page 8 of 8Indemnification Agreement

 Exhibit 10.2 
  
 INDEMNIFICATION AGREEMENT 
  
 This indemnity is made part of an agreement, dated September 1, 2005 (which together with any renewals, modifications or extensions
thereof, is herein referred to as the “Agreement”) by and between Alvarez & Marsal, LLC (“A&M”) and World Health Alternatives, Inc. (the “Company”), for services to be rendered to the Company by A&M.

  
 A. The Company agrees to indemnify and hold harmless each of A&M, its
shareholders, employees, agents, representatives and subcontractors (each, an “Indemnified Party” and collectively, the “Indemnified Parties”) against any and all losses, claims, damages, liabilities, penalties, obligations and
expenses, including the costs for counsel or others (including employees of A&M, based on their then current hourly billing rates) in investigating, preparing or defending any action or claim, whether or not in connection with litigation in
which any Indemnified Party is a party, or enforcing the Agreement (including these indemnity provisions), as and when incurred, caused by, relating to, based upon or arising out of (directly or indirectly) the Indemnified Parties’ acceptance
of or the performance or nonperformance of their obligations under the Agreement; provided, however, such indemnity shall not apply to any such loss, claim, damage, liability or expense to the extent it is found in a final judgment by a court of
competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from such Indemnified Party’s gross negligence or willful misconduct. The Company also agrees that no Indemnified Party shall have any liability
(whether direct or indirect, in contract or tort or otherwise) to the Company for or in connection with the engagement of A&M, except to the extent for any such liability for losses, claims, damages, liabilities or expenses that are found in a
final judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from such Indemnified Party’s gross negligence or willful misconduct. The Company further agrees that it will not,
without the prior consent of an Indemnified Party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which such Indemnified Party seeks indemnification hereunder
(whether or not such Indemnified Party is an actual party to such claim, action, suit or proceedings) unless such settlement, compromise or consent includes an unconditional release of such Indemnified Party from all liabilities arising out of such
claim, action, suit or proceeding. 
  
 B. These indemnification provisions shall
be in addition to any liability which the Company may otherwise have to the Indemnified Parties. In the event that, at any time whether before or after termination of the engagement or the Agreement, as a result of or in connection with the
Agreement or A&M’s and its personnel’s role under the Agreement, A&M or any Indemnified Party is required to produce any of its personnel (including former employees) or for examination, deposition or other written, recorded or
oral presentation, or A&M or any of its personnel (including former employees) or any other Indemnified Party is required to produce or otherwise review, compile, submit, duplicate, search for, organize or report on any material within such
Indemnified Party’s possession or control pursuant to a subpoena or other legal (including administrative) process, the Company will reimburse the Indemnified Party for its out of pocket expenses, including the reasonable fees and expenses of
its counsel, and will 
  

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 Indemnification Agreement – World Health Alternatives, Inc., September 1, 2005 
  

 compensate the Indemnified Party for the time expended by its personnel based on such personnel’s then current
hourly rate if the services were performed after termination of the engagement. 
  
 C. If any action, proceeding or investigation is commenced to which any Indemnified Party proposes to demand indemnification hereunder, such Indemnified Party will notify the Company with reasonable promptness; provided, however, that any
failure by such Indemnified Party to notify the Company will not relieve the Company from its obligations hereunder, except to the extent that such failure shall have actually prejudiced the defense of such action. The Company shall promptly pay
expenses reasonably incurred by any Indemnified Party in defending, participating in, or settling any action, proceeding or investigation in which such Indemnified Party is a party or is threatened to be made a party or otherwise is participating in
by reason of the engagement under the Agreement, upon submission of invoices therefore, whether in advance of the final disposition of such action, proceeding, or investigation or otherwise. Each Indemnified Party hereby undertakes, and the Company
hereby accepts its undertaking, to repay any and all such amounts so advanced if it shall ultimately be determined that such Indemnified Party is not entitled to be indemnified therefore. If any such action, proceeding or investigation in which an
Indemnified Party is a party is also against the Company, the Company may, in lieu of advancing the expenses of separate counsel for such Indemnified Party, provide such Indemnified Party with legal representation by the same counsel who represents
the Company, provided such counsel is reasonably satisfactory to such Indemnified Party, at no cost to such Indemnified Party; provided, however, that if such counsel or counsel to the Indemnified Party shall determine that due to the existence of
actual or potential conflicts of interest between such Indemnified Party and the Company such counsel is unable to represent both the Indemnified Party and the Company, then the Indemnified Party shall be entitled to use separate counsel of its own
choice, and the Company shall promptly advance its reasonable expenses of such separate counsel upon submission of invoices therefore. Nothing herein shall prevent an Indemnified Party from using separate counsel of its own choice at its own
expense. The Company will be liable for any settlement of any claim against an Indemnified Party made with the Company’s written consent, which consent shall not be unreasonably withheld. 
  
 D. In order to provide for just and equitable contribution if a claim for indemnification
pursuant to these indemnification provisions is made but it is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) that such indemnification may not be enforced in such case, even though the express
provisions hereof provide for indemnification, then the relative fault of the Company, on the one hand, and the Indemnified Parties, on the other hand, in connection with the statements, acts or omissions which resulted in the losses, claims,
damages, liabilities and costs giving rise to the indemnification claim and other relevant equitable considerations shall be considered; and further provided that in no event will the Indemnified Parties’ aggregate contribution for all losses,
claims, damages, liabilities and expenses with respect to which contribution is available hereunder exceed the amount of fees actually received by the Indemnified Parties pursuant to the Agreement. No person found liable for a fraudulent
misrepresentation shall be entitled to contribution hereunder from any person who is not also found liable for such fraudulent misrepresentation. 
  

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 Indemnification Agreement – World Health Alternatives, Inc., September 1, 2005 
  

 E. In the event the Company and A&M seek judicial approval for the assumption of the Agreement or authorization
to enter into a new engagement agreement pursuant to either of which A&M would continue to be engaged by the Company, the Company shall promptly pay expenses reasonably incurred by the Indemnified Parties, including attorneys’ fees and
expenses, in connection with any motion, action or claim made either in support of or in opposition to any such retention or authorization, whether in advance of or following any judicial disposition of such motion, action or claim, promptly upon
submission of invoices therefore and regardless of whether such retention or authorization is approved by any court; provided, however, the Company shall not be required to pay more than $5000 in expenses for any such retention application .

  
 The Company will also promptly pay the Indemnified Parties for any expenses
reasonable incurred by them, including attorneys’ fees and expenses, in seeking payment of all amounts owed it under the Agreement (or any new engagement agreement) whether through submission of a fee application or in any other manner, without
offset, recoupment or counterclaim, whether as a secured claim, an administrative expense claim, an unsecured claim, a prepetition claim or a postpetition claim; provided, however, the Company shall not be required to pay more than $2500 in expenses
per fee application. 
  
 F. Neither termination of the Agreement nor termination
of A&M’s engagement nor the filing of a petition under Chapter 7 or 11 of the United States Bankruptcy Code (nor the conversion of an existing case to one under a different chapter) shall affect these indemnification provisions, which shall
hereafter remain operative and in full force and effect. 
  
 G. The rights
provided herein shall not be deemed exclusive of any other rights to which the Indemnified Parties may be entitled under the certificate of incorporation or bylaws of the Debtors, any other agreements, any vote of stockholders or disinterested
directors of the Debtors, any applicable law or otherwise. 
  

							
	WORLD HEALTH ALTERNATIVES, INC.	 	ALVAREZ & MARSAL, LLC
				
	By:	 	 /s/ John Sercu

 John Sercu
 Interim CEO
	 	By:	 	 /s/ Scott K. Phillips

 Scott K. Phillips
 Managing Director

  

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