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8-K - CURRENT REPORT - Viewbix Inc. | mrla8k02252016.htm |
Garden State Securities Inc.
328 Newman Springs Rd.
Red Bank, NJ 07707
February 17, 2016
Emerald Medical Applications Corporation
7 Imber
Street,
Petach Tivka, Israel 4951141
ATT: Lior Wayn, Chief Executive
Officer
Re: Advisory Services Agreement
Dear Mr. Wayn,
This
letter confirms the engagement agreement (the "Advisory Agreement" or the
"Agreement") of Garden State Securities Inc., a FINRA member firm ("GSS"), as a
non-exclusive financial advisor to Emerald Medical Applications Corporation and
its subsidiaries and affiliates (together, referred to as the "Company") for a
period of twelve (12) months commencing on the date of execution and acceptance
of this Advisory Agreement (the "Commencement Date"), subject to the right of
termination on the part of the Company by written notice given not later than
three (3) months from the Commencement Date (the "Termination Notice"), or as
otherwise provided by either the Company or GSS in Section 9 below. GSS and the
Company are sometimes referred to hereinafter collectively, as the "Parties" and
individually, as a "Party." In this regard, the Parties agree to the following
terms and conditions:
1. Engagement. The Company hereby engages and retains GSS as a non-exclusive financial advisor for and on behalf of the Company to perform the Services as defined in Section 2 below and GSS hereby accepts this engagement on the terms and conditions set forth in this Agreement.
2.
Services. In connection with its engagement pursuant to this Agreement, GSS
agrees to perform the following services (the "Services") for the Company:
A.
Advisory Services. As requested from time to time by the Company, GSS shall
provide financial advisory services to the Company pertaining to the Company's
business affairs. Without limiting the foregoing, GSS will assist the Company in
developing, studying and evaluating its financing plan, developing, studying and
evaluating the Company's business plan and capitalization structure, reviewing
strategic and financial alternatives, reviewing merger and acquisition
proposals and assisting in negotiations and discussions pertaining thereto.
Additionally, GSS will assist the Company in preparing an offering document or
presentation materials describing the Company, its operations, its historical
performance and future prospects.
B. GSS agrees to use its best efforts to
make itself available to the Company's officers, at such mutually agreed upon
place and time during normal business hours for reasonable periods of time for
the purpose of advising and assisting the Company in preparing reports,
summaries, corporate and/or transaction profiles, due diligence packages and/or
other material and documentation as shall be necessary, in the opinion of GSS.
Such availability will be subject to reasonable advance notice and mutually
convenient scheduling. In addition, GSS shall make its Investment Banking
personnel available for telephone conferences with the Company's principal
financial sales and/or operating officers during normal business hours upon
reasonable advance notice and mutually agreed upon dates and times to assist
with, and evaluate proposals.
C. GSS will use its best efforts to coordinate
the introduction of the Company to one or more individuals, firms or other
entities (the "Candidates") that may have an interest in pursuing some form of
Business Combination with the Company and in analyzing, structuring, negotiating
and effecting such a Business Combination. As used in this letter, the term
"Business Combination" means (i) any merger, consolidation, reorganization or
other business combination pursuant to which any portion of the business of the
Company is combined with that of another entity, including without limitation
any joint venture, licensing agreement, or product sale or marketing
distribution agreement or (ii) the acquisition, directly or indirectly, of
beneficial ownership of more than 50% of any class of capital stock of the
Company or substantially all of the assets of the Company. Nothing contained
herein shall be deemed or construed as an agreement by GSS to issue any
"fairness opinion" with respect to a Business Combination. In the event that the
Company desires GSS to issue a fairness opinion, the Parties shall negotiate the
terms of a separate agreement with respect thereto
3. Compensation. As
compensation for the Services rendered by GSS to the Company pursuant to this
Agreement and in addition to the expense allowance set forth in Section 4
("Expenses") below, the Company shall pay to GSS as set forth below:
The
Company shall issue to GSS and/or its designees 500,001 restricted shares of the
Company's common stock, par value $0.0001 (the "Shares"), for aggregate
consideration as set forth below: (i) 150,000 Shares delivered within three (3)
business days following the Commencement Date, at a cost of $.01, which shall
immediately vest and be deemed fully-paid and non-assessable upon; and (ii)
38,889 Shares delivered on the first (1st) day of every calendar month, at a
cost of $.01, starting the fourth (4th) month from the date of execution of this
Agreement until the twelfth (12th) month from the date of execution of this
Agreement. The foregoing Shares to be issued on a monthly basis shall vest the
earlier of: (i) six (6) months from date the Shares are required to be
delivered; or (ii) January 1, 2017, and the Shares shall be deemed fully-paid
and non-assessable Shares on the vesting date(s) as defined above. The Parties
acknowledge and agree that in the event the Company elects to terminate this
Advisory Agreement by timely delivery of the Termination Notice on or before a
date three (3) months from the Commencement Date, no monthly installment of
38,889 Shares will be due and payable under this Advisory Agreement.
The
Shares shall be issued in the name of GSS and/or certain affiliates/employees of
GSS pursuant to written instructions delivered to the Company by GSS with
respect to each issuance, commencing with the initial issuance of 150,000 Shares
within three (3) business days following the Commencement Date and each
subsequent issuance, if any, setting forth the names of and the number of Shares
to be issued to the designees who are employees and/or affiliates of GSS. The
Company shall deliver to GSS and the Company's transfer agent, legal opinion
letters for GSS and for each designee, at the time that the Shares are eligible
to be sold pursuant to SEC Rule 144, upon GSS's request. However, the Company
will also inform its transfer agent that it can rely on an outside legal opinion
provided by GSS at the time the Shares are eligible to be sold pursuant to SEC
Rule 144, if GSS and/or its employees/affiliates, decide to provide an outside
legal opinion and provided that the form of such outside legal opinion is in a
form and substance customary for such SEC Rule 144 legal opinions. It is
understood that the total value of GSS's compensation pursuant to the Services
rendered under this Agreement will not be recognized and can't be valued until
after GSS and its designees receive the proceeds from the sale of all of the
Shares. Notwithstanding the foregoing, the Parties acknowledge that the Company,
as a public reporting company under the Securities Exchange Act of 1934 (the
"Exchange Act") may be required to value the Shares issued to GSS and/or its
designees during any quarterly period as compensation expense in the Company's
reports filed with the SEC under the Exchange Act.
4. Expenses. In addition to the compensation in Section 3, "Compensation" above, the Company agrees to reimburse GSS, upon written request made from time to time, for its reasonable out-of-pocket expenses incurred by GSS in connection with its activities related to the Services under this Agreement; provided, however, that GSS shall not incur any expense in excess of $500 per week without the prior written consent of the Company. These expenses include but are not limited to long distance phone charges, airfare, hotel lodging and meals, transportation, outside consultants, printing, and overnight express mail incurred by GSS in fulfilling its duties under this Agreement.
5. Confidentiality and Non- Disclosure. The
Company is prepared to make available to GSS upon GSS's request, certain
confidential information concerning the business, financial condition,
operations, assets and liabilities of the Company in connection with the
performance of its duties hereunder. As a condition to such information being
furnished to GSS and its employees or agents, GSS agrees to treat any
information concerning the Company (whether prepared by the Company, its
advisors, attorneys, investors or otherwise and irrespective of the form of
communication) which is furnished to GSS or to its employees or agents now or in
the future by or on behalf of the Company (herein collectively referred to as
the "Evaluation Material") in accordance with the provisions of this Agreement.
GSS shall take or abstain from taking certain actions with respect to the
Evaluation Material as hereinafter set forth. The term "Evaluation Material"
also shall be deemed to include all notes, analyses, compilations, studies,
interpretations or other documents prepared by GSS, its employees or agents
which contain, reflect or are based upon, in whole or in part, the information
furnished to GSS, its employees or agents by the Company, its advisors,
attorneys, investors or otherwise pursuant hereto. The term "Evaluation
Material" does not include information which (i) is or becomes generally
available to the public other than as a result of a disclosure by GSS, its
employees or agents, or (ii) becomes available to GSS on a non-confidential
basis from a source other than the Company (including, without limitation, any
of the Company's directors, officers, employees or agents), or any of its
attorneys, accountants, investors, consultants, bankers and financial advisors
(collectively, the "Representatives"), provided that such source is not bound by
a confidentiality agreement with or other contractual, legal or fiduciary
obligation of confidentiality to the Company or any other Party with respect to
such information.
GSS hereby agrees that GSS, its employees and agents shall
use the Evaluation Material solely for the purposes contemplated by and in
connection with the Services to be rendered under this Agreement, that the
Evaluation Material will be kept confidential and that GSS, its employees and
agents will not disclose any of the Evaluation Material in any manner
whatsoever; provided, however, that GSS may make any disclosure, consistent with
GSS' duties under this Agreement, of the Evaluation Material to which the
Company give its prior written consent, in each instance.
However, the
Company will not provide GSS or any GSS affiliate with any material non-public
information without prior written notice to GSS, in which event GSS will only
accept receipt of such material non-public information after the signing of a
separate non-disclosure agreement between the Company and GSS.
6.
Indemnification.
A. The Company agrees to indemnify GSS and its affiliates
and their respective directors, officers, employees, agents and controlling
persons (each such person being an "GSS Indemnified Party") from and against any
and all losses, claims, damages and liabilities, joint or several, related to or
arising out of any Business Combination, or the engagement of GSS pursuant to,
and the performance by GSS of the Services contemplated by, this Agreement and
will reimburse any GSS Indemnified Party for all expenses (including fees and
costs of counsel) as they are incurred in connection with the investigation of,
preparation for or defense of any pending or threatened claim or any action or
proceeding arising therefrom, whether or not such GSS Indemnified Party is a
party and whether or not such claim, action or proceeding is initiated or
brought by or on behalf of the Company.
B. GSS agrees to indemnify the
Company and its directors, officers, employees, agents and controlling persons
(each such person being an "Company Indemnified Party") from and against any and
all losses, claims, damages and liabilities, joint or several, suffered by the
Company as a result of gross negligent acts and omissions by GSS pursuant to
and/or in furtherance of the performance by GSS and its affiliates and their
respective directors, officers, employees, agents and controlling persons of the
Services contemplated by this Agreement. In connection with any and all losses,
claims, damages and liabilities, joint or several, suffered by the Company
Indemnified Party, GSS will reimburse any Company Indemnified Party for all
expenses (including fees and costs of counsel) as they are incurred in
connection with the investigation of, preparation for or defense of any pending
or threatened claim or any action or proceeding arising therefrom, whether or
not such Company Indemnified Party is a party and whether or not such claim,
action or proceeding is initiated or brought by or on behalf of the GSS.
C.
If the indemnification of any Indemnified Party referred to above and as
provided for in this Agreement is for any reason held unenforceable, the Company
and /or GSS, as the case may be, agrees to contribute to the losses, claims,
damages and liabilities for which such indemnification is held unenforceable is
such proportion as is appropriate to reflect the relative benefits to the
Company, on the one hand, and GSS, on the other hand; provided, however, that in
no event shall the GSS Indemnified Parties be required to contribute an
aggregate amount in excess of the aggregate fees actually paid to GSS under this
Agreement based upon the closing bid price of the Shares on the date the Shares
are eligible to be sold pursuant to Rule 144 if the Shares haven't been sold or
the price the Shares were sold, in both cases less the amount of any taxes owed.
The Company and GSS, as the case may be, agree that it or they will not settle,
compromise or consent to the entry of any judgment in any pending or threatened
claim, action or proceeding in respect of which indemnification could be sought
under the indemnification provision of this Agreement (whether or not GSS, the
Company or any of their respective Indemnified Parties is an actual or potential
party to such claim, action or proceeding), unless such settlement, compromise
or consent includes an unconditional release of each Indemnified Party from all
liability arising out of such claim, action or proceeding.
7. Independent Contractor. The Company acknowledges that GSS has been retained to act solely as a financial advisor to the Company. In such capacity, GSS shall act as an independent contractor, and any duties of GSS arising out of its engagement pursuant to this Agreement shall be owed solely to the Company. GSS shall be responsible for the payment of all federal, state and local taxes which may be payable in connection with the receipt of compensation hereunder.
8. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York. Each of GSS and the Company (a) agrees that any legal suit, action or proceeding arising out of or relating to this Agreement shall be instituted exclusively in New York State Supreme Court, County of New York, or in the United States District Court for the Southern District of New York, or such other court of competent jurisdiction in and for New York County, State of New York, (b) waives any objection which the Company or GSS may have now or hereafter to the venue of any such suit, action or proceeding, and (c) irrevocably consents to the jurisdiction of the foregoing named courts in any such suit, action or procedure. Each of the Company and GSS further agrees to accept and acknowledge service of any and all process which may be served in any suit, action or proceeding in the foregoing courts, and agrees that service of process upon the Company or GSS mailed by certified mail to the address of the recipient otherwise appearing in this Agreement shall be deemed in every respect effective service of process upon the Company in any such suit, action or proceeding. In the event of litigation between the Parties arising hereunder, the prevailing Party shall be entitled to costs and reasonable attorney's fees.
9. Term and Termination. This Agreement shall be effective upon its execution by the Company, which date is defined above as the Commencement Date, and shall remain in effect for twelve (12) months from the date of written acceptance and execution by the Company, subject to the right of the Company, in its sole discretion, to terminate this Advisory Agreement by delivery of the Termination Notice on or before three (3) months from the Commencement Date. In addition, either the Company or GSS may terminate GSS's engagement and responsibilities hereunder with a twenty (20) day advance written notice at any time after three (3) months from the Commencement Date. However, no termination of this Agreement shall in any way effect the Shares already delivered to GSS and/or its designees and the right of GSS to receive any accrued or vested Shares for the Services rendered hereunder and the fees that have already been paid or accrued prior to termination. In addition, Section 6, "Indemnification," Section 7, "Independent Contractor," and Section 8, "Governing Law" shall survive any termination of this Agreement.
11. Entire Agreement. This Agreement contains the entire Agreement and understanding between the Parties with respect to its subject matter and supersedes all prior discussion, agreements and understandings between them with respect thereto. This Agreement may not be modified except in a writing signed by both of the Parties.
12. Assignment. Neither this Agreement nor the rights of either Party hereunder shall be assigned by either Party without the prior written consent of the other Party.
13. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
14. Press Releases/Public Announcements. Neither Party shall issue any press release or public announcement of this Agreement or the terms hereof without the prior consent of the other Party; provided, however, the Company may make filings under applicable federal and state securities laws as required under applicable law but shall provide GSS with a reasonable opportunity to review and comments upon any proposed filing.
Garden State Securities, Inc.
By: /s/:
Ernest Pellegrino
Name: Ernest Pellegrino
Title: Director of Corporate
Finance
Agreed and Accepted:
Date: February 17, 2016
By: /s/: Lior
Wayn
Name: Lior Wayn
Title: CEO, Emerald Medical Applications Corp.