Document:

exv10w1

 

Exhibit 10.1

AGREEMENT

     This Agreement is made among the plaintiffs identified in Schedule A and Matrixx Initiatives,
Inc. and Zicam LLC (“defendants”). The parties to this Agreement have agreed to resolve all claims which exist between plaintiffs and defendants by discontinuing the lawsuits
filed by the plaintiffs in their entirety as to all defendants and potential defendants and by
entering into the “Settlement Program” identified below. Counsel for plaintiffs agree that
Schedule A of the Agreement shall include all individuals who have retained their firms to
represent their interests regarding Zicam claims as of the date the Agreement is signed by the
parties. However, individuals listed on Schedule A whose claims arise solely from the use of the
Zicam® swab product shall not be entitled to compensation under the Settlement Program or obligated
to discontinue their lawsuits.

     Now, therefore, in consideration of the obligations and mutual promises set forth herein, it
is agreed as follows:

	 	1.	Defendants will fund a Settlement Program as follows:

	 	(a)	 	No later than January 13, 2006, defendants will pay $5,950,000 into the escrow account
identified below;
	 
	 	(b)	 	On February 21, 2006 defendants will pay $5,950,000 into that escrow count;
	 
	 	(c)	 	No later than January 13, 2006, defendants will pay $100,000 into the escrow account for
administrative expenses involved in the management of the Settlement Program; and
	 
	 	(d)	 	The amounts identified in Sections 1(a), (b) and (c) are the only payments defendants will
have to make as part of the settlement of the litigation.

	 	2.	The escrow account will be maintained at a financial institution in Arizona. The
institution shall be chosen by the attorneys for the plaintiffs subject to the approval of
defendants, such consent not to be unreasonably withheld. The financial institution and any fund
manager it may engage will enter into a written escrow agreement respecting management of the
funds. This escrow agreement shall first be approved by the parties to this Agreement.
	 
	 	3.	The lawsuits brought by the plaintiffs shall be dismissed with prejudice as to all parties
and without costs, expenses or attorneys’ fees upon the payment by the defendants of the amounts
due to be paid on or before January 13 and on February 21, 2006. A copy of the Stipulation of
Dismissal is attached as Schedule B. No further action will be taken by the parties in those
lawsuits other than to implement their dismissal.

 

 

	 	4.	Plaintiffs will provide defendants with a duly executed release from each plaintiff by
April 3, 2006. No payment shall be made to any plaintiff who has not executed such a release. The
release shall be in the form attached as Schedule C. “Plaintiffs” in this Agreement means all
persons who claim a loss as a result of any harm of any kind claimed to have resulted from use of
defendants’ products. Thus, spouses qualify as one plaintiff. So do all persons who claim any
loss as a result of the death or injury of a person. In summary, spouses, children and/or heirs,
together with the person who sustained the claimed injury or death, constitute a single plaintiff.
	 
	 	5.	In order for the Settlement Program to become active, 95% of the plaintiffs identified in
Schedule A must have enrolled in the Program. The number of individuals whose claims arise solely
from the use of Zicam® swabs shall be subtracted from the denominator in determining whether the
95% threshold has been met.
	 
	 	6.	Counsel for plaintiffs will prepare a settlement distribution plan defining how the
Settlement Program will distribute awards to plaintiffs who qualify for a recovery.
	 
	 	7.	Upon signing the Agreement, the parties shall notify Judge Pendleton Gaines, Superior Court
of Arizona, Maricopa County, of the settlement and request that he retain jurisdiction to resolve
any disputes which may arise in the course of implementing the Agreement.

	 	 	 	 	 
	 	 	 
	 	 
	Barry Reed 	 
	Charles Zimmerman

Hart L. Robinovitch

Zimmerman Reed P.L.L.P

14646 N. Kierland Blvd., Suite 145

Scottsdale, AZ 85254 	 
	 
	 	 	 
	 	 
	Kenneth W. Lewis 	 
	Bush, Lewis & Roebuck P.C.

1240 Orleans Street

Beaumont, TX 77706 	 
	 
	 	 	 
	 	 
	Michael L. Williams 	 
	Brian Campf

Williams Love O’Leary Craine & Powers, P.C.

9755 SW Barnes Road, Suite 450

Portland, OR 97225 	 
	 

 

 

	 	 	 	 	 
	 	 	 
	 	 
	Mitchell A. Toups 	 
	Weller, Green, Toups & Terrell, LLP

Bank of America Tower

2615 Calder Street, Suite 400

Beaumont, TX 77702 	 
	 
	 	 	 
	 	 
	William Audet 	 
	Joshua Ezrin

Alexander, Hawes & Audet, LLP

300 Montgomery Street, Suite 400

San Francisco, CA 94104 	 

Attorneys for Plaintiffs

	 	 	 	 	 
	 
	 
	 	 	 
	 	 
	Charles F. Preuss 	 
	Drinker Biddle & Reath LLP

50 Fremont Street, 20th Floor

San Francisco, CA 94105 	 

Attorneys for Defendants<PAGE>

Exhibit 10.1 Fee Agreement dated August 6, 2004

[Letterhead of Weed & Co. LLP]

                                 August 6, 2004

Mr. Scott R. Sand, C.E.O & Chairman Creative Recycling Technologies, Inc. Ingen
Technologies, Inc.
285 E. County Line Road
Calimesa, CA 92320

Tel. 800-259-9622 Tel. 909-675-3266 Fax 800-777-1186

         RE: CRTZ.PK

Dear Mr. Sand:

The purpose of this letter is to memorialize a fee agreement for legal services.
This fee agreement is between Creative Recycling Technologies, Inc., a Georgia
corporation, ("CRTZ") (subject to administrative dissolution by the Georgia
Secretary of State and counterparty to a Plan and Agreement of Merger with Ingen
Technologies, Inc., a Nevada corporation dated March 29, 2004), and Weed & Co.
LLP, a California limited liability partnership ("Weed LLP").

Weed LLP shall render the following legal services described in Exhibit A
attached hereto and CRTZ may engage Weed LLP on any new matters referenced in
Exhibit A in exchange for payment of fees determined in accordance with this
agreement. Weed LLP makes no promises or guarantees regarding the outcome of
matters upon which Weed LLP is engaged to represent CRTZ.

To protect both of the parties and to comply with professional obligations, we
have already discussed with each other and resolved any potential conflicts of
interest with present or former clients. The services that Weed LLP will provide
shall be in accordance with the following terms and conditions. We advise you to
seek the advice of independent counsel before signing this agreement.

PROFESSIONAL FEES

Fees are based upon the reasonable value of Weed LLP's services as determined in
accordance with the American Bar Association Model Code of Professional
Responsibility and the California & Texas Rules of Professional Conduct. Fees
are based on the rates charged by Weed LLP.

<PAGE>

Weed LLP's rate is $300 per hour. It is anticipated that CRTZ and Weed LLP will
agree on a fixed fee for special projects from time to time. The fixed fee
arrangements for special projects will be agreed to in writing. Weed LLP's fees
will be paid in cash or as follows:

INITIAL RETAINER

To commence the relationship and to insure the availability of Weed LLP, CRTZ
shall provide a cash retainer of $2,000 within 10 days of signing this
agreement.

TERMS FOR PAYMENT IN STOCK INSTEAD OF CASH.

As a non-cash alternative form of payment for professional services, beginning
August 10, 2004, CRTZ has proposed and Weed LLP has agreed that CRTZ place an
initial block of 500,000 shares of CRTZ's stock in Richard O. Weed's name, as
designee for Weed LLP. At least once a month, Weed LLP will send CRTZ a
statement for fees and costs. Unless objection is made to the bill, sufficient
stock, net of commission, shall then be liquidated forthwith at the prevailing
market rate to satisfy such statement.

In the course of Weed LLP's representation of CRTZ, if all the initial block of
stock is liquidated, a new block of stock sufficient to cover projected fees, in
an amount contemporaneously agreed to by the parties, will again be placed with
Weed LLP, under the terms and conditions outlined above. At the conclusion of
Weed LLP's representation of Client and the payment of all final fees and costs,
any unused stock shall forthwith be returned to CRTZ.

CRTZ has agreed to promptly register such blocks of stock pursuant to a
registration statement filed at its own expense.

CRTZ shall cause any subsidiary or parent corporation to adopt and be bound by
this agreement and all its provisions.

STOCK OPTION

As an incentive for Weed LLP to represent CRTZ and to increase Weed LLP's
proprietary interest in the success of CRTZ, thereby encouraging him to maintain
the relationship with CRTZ, CRTZ hereby grants to Richard O. Weed, as designee
for Weed LLP options to purchase shares of CRTZ common stock. As an initial
option, CRTZ hereby grants Richard O. Weed the right to purchase 1,000,000
shares of CRTZ common stock at a price of ten cents ($.10) per share. Further,
every six months following the date hereof that this agreement remains in
effect, CRTZ shall grant to Richard O. Weed an option to purchase an additional
1,000,000 shares of CRTZ common stock at a price equal to 125% of the average

<PAGE>

closing bid price for the 10 days immediately prior to the date of the grant.
All stock options are non-transferable and will expire unless exercised on or
before December 31, 2008 or 5 years from the date of the grant, whichever is
later. CRTZ has agreed to promptly register the shares of common stock
underlying the stock options at its own expense.

The options granted will not be subject to dilution (i.e. no adjustment to the
number of shares or the exercise price) based upon any reverse split of the
CRTZ's common stock. The stock options shall be exercisable in whole or in part
with a promissory note of less than 45 days duration or upon common "cashless
exercise" terms.

There may be risks inherent in the issuance of securities to Richard O. Weed
and/or Weed & Co. LLP as compensation for services in lieu of cash. Such risks
may include that the securities may ultimately be worth more or less than the
value of our services or that by the exercise of our options, we may be in a
position earn more than our hourly rate or exert some degree of control over the
company. Further, the issuance of securities as compensation may dilute the
percentage of ownership of your existing shareholders in the company and change
the value of their shares. Moreover, the GAPP accounting treatment is frequently
different when a company issues securities in lieu of cash for services. This
occurs when shares are issued in exchange for services and the price of the
shares fluctuates during the service period. A declining share price may require
the company to issue additional securities to us and cause the company's income
statement to reflect higher expenses for professional services in subsequent
accounting periods than cash payment for services. Similarly, an increase in the
company's share price may cause the company's income statement to reflect lower
expenses for professional services in subsequent accounting periods than cash
payment for services.

The decision about whether or not to exercise any stock options is subject to
our control. In the past, although not required, this decision was made
following consultation with the company's management. It is anticipated that we
will continue to consult with management concerning the timing and amount of the
exercise of any stock options.

COSTS AND EXPENSES

CRTZ understands that in the course of representation, it may be necessary for
Weed LLP to incur certain costs or expenses. CRTZ will reimburse Weed LLP for
certain costs or expenses actually incurred and reasonably necessary for
completing the assigned matter, as long as the charges for costs and expenses
are competitive with other sources of the same products or services and approved
by CRTZ in advance. More particularly, CRTZ will reimburse Weed LLP in
accordance with the following guidelines:

<PAGE>

1. COMPUTER-RELATED EXPENSES - CRTZ will reimburse Weed LLP for computerized
research and research services. However, any charges over $500 per month will
require approval. CRTZ also encourages Weed LLP to utilize computer services
that will enable Weed LLP to more efficiently manage the projects.

2. TRAVEL - CRTZ will reimburse Weed LLP for expenses in connection with out of
town travel. However, CRTZ will only reimburse for economy class travel and,
where necessary, for the reasonable cost of a rental car. All related travel
expenses, i.e., lodging and meals, must be reasonable under the circumstances.

3. FILING FEES & COURT COSTS - CRTZ will reimburse Weed LLP for expenses
incurred in connection with filing fees and court costs, if any, but will not be
responsible for sanctions or penalties imposed due to the conduct of Weed LLP.

CRTZ shall pay and hold Weed LLP harmless from all such costs and expenses
incurred on CRTZ's behalf. Weed LLP may, but shall not be obligated to, advance
funds on CRTZ's behalf. In such event, CRTZ agrees to reimburse Weed LLP upon
demand for the amounts advanced. Substantial outside fees (such as state filing
fees or SEC filing services) may be referred to CRTZ for direct payment.

BILLING

All bills will include a summary statement of the kinds of services rendered
during the relevant period. CRTZ expects that Weed LLP will maintain back-up
documentation for all expenses. CRTZ expects to be billed monthly or at the
conclusion of each project and agrees to pay Weed LLP's invoices within fifteen
days of receipt. Weed LLP shall bill in increments of one-quarter (1/4) hour
unless otherwise agreed in writing.

DELAY IN PAYMENT

In the event that any of Weed LLP's bills remain unpaid for more than 30 days
after receipt by CRTZ, Weed LLP shall have the right to discontinue rendering
further services to CRTZ in connection with any matter then being handled for
CRTZ by Weed LLP and to take appropriate action to collect such fees.

INVOLVEMENT OF CRTZ

CRTZ expects to be kept closely involved with the progress of Weed LLP's
services in this matter. Weed LLP will keep CRTZ apprised of all material
developments in this matter, and will provide sufficient notice to enable a
representative to attend meetings, conferences, and other proceedings.

<PAGE>

There may be times when Weed LLP will need to obtain information from CRTZ. All
requests for access to documents, employees, or other information shall be
granted without unreasonable delay.

TERMINATION

CRTZ shall have the right to terminate Weed LLP's engagement by written notice
at any time. Weed LLP has the same right to terminate this engagement, subject
to an obligation to give CRTZ reasonable notice to permit it to obtain
alternative representation or services and subject to applicable ethical
provisions. Weed LLP will be expected to provide reasonable assistance in
effecting a transfer of responsibilities to the new service provider.

DISPUTES

The laws of the State of California shall govern the interpretation of this
agreement, including all rules or codes of ethics that apply to the provision of
services. All disputes between us arising out of this engagement that cannot be
settled shall be resolved in a federal or state court located in Orange County,
California.

If the foregoing accurately reflects our agreement regarding professional
services, please sign and return a duplicate copy of this letter by facsimile.
Thank you in advance for your prompt attention to this matter.

                                                     Very truly yours,

                                                     /s/ Richard O. Weed
                                                     Richard O. Weed
                                                     Managing Partner
Approved and Agreed
Creative Recycling Technologies, Inc.

By: /s/ Scott R. Sand
Name: Scott R. Sand
Title: Chairman & CEO
Date: August 20, 2004

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}]]