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Document Preview Business Advisory & Financial Consulting Services Agreement |
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Title: |
Business Advisory & Financial Consulting Services Agreement |
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Entities: |
Ascendiant Capital Group, LLC; Rushmore Financial Group Inc. |
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Date: |
2002 |
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Size: |
Preview shows 11KB of 28KB total |
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Price: |
$37 |
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ID: |
#113755 |
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BUSINESS ADVISORY & FINANCIAL CONSULTING SERVICES AGREEMENT
This Business Advisory and Financial Consulting Services Agreement (the
"Agreement"), is entered into and effective as of the 30th day of July, 2002 by
and between Ascendiant Capital Group, LLC, a Nevada limited liability company
(hereinafter referred to as, "Consultant"), and Rushmore Financial Group,
Incorporated (RFGI) (hereinafter referred to as, "Client"), a Texas corporation
(collectively referred to herein as the "Parties").
Preliminary Statement: The Client desires to be assured of the association and
services of the Consultant in order to avail itself of the Consultant's
experience, skills, abilities, knowledge, and background to facilitate long
range strategic planning, and to advise the Client in business and/or financial
and merger/acquisition matters and is therefore willing to engage Consultant
upon the terms and conditions set forth herein. Consultant desires to be
assured, and Client desires to assure Consultant, that, if Consultant associate
with Client and allocates its resources necessary to provide Client with its
business advisory and consulting services, Consultant will be paid the
consideration described herein and said consideration will be nonrefundable,
regardless of the circumstances.
Consultant agrees to be engaged and retained by Client upon the terms and
conditions set forth herein.
NOW, THEREFORE, in consideration of the foregoing, of the mutual promises
hereinafter set forth and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Parties hereto agree as
follows:
1. Engagement. Client hereby engages Consultant on a non-exclusive basis,
and Consultant hereby accepts the engagement to become a business and
financial Consultant to Client and to render such advice, consultation,
information, and services to the Directors and/or Officers of Client
regarding general financial and business matters including, but not
limited to the following:
1.1 Advice and Counsel. Consultant will provide advice and counsel
regarding Client's strategic business plans, strategy and negotiations
with potential business strategic partnering, corporate planning and or
other general business consulting needs as expressed by Client.
Consultant will review and assess various financing strategies
and solutions with Client. Consultant will help Client
determine desirable financing amounts, terms, and structure.
Consultant will assist Client in determining Client's proper
capital structure. The services which are contemplated under
this Agreement shall not relate in any way to the offer or
sale of securities in any capital-raising transaction and
shall not directly or indirectly promote or maintain a market
for the Client's securities. None of the services contemplated
under this Agreement shall relate in any way to the raising of
capital, promotion of the Client's securities or investor
relations.
Consultant will provide general advice and counsel to Client
regarding mergers and acquisitions. At Client's request,
Consultant is available to be materially involved in
negotiating acquisition terms and structure, and assisting
with due diligence and documentation (see Section 1.3 for
additional details and compensation structure).
Consultant will assist Client in the development and/or
refinement of the strategic growth plan for the next 12-24
months and related communications materials such as the
executive summary and one-page company "snapshot"
presentations.
Consultant will assist Client with corporate governance
structure involving Client's Board of Directors and
committees. Consultant will also assist with the development
and implementation of management and director compensation
programs.
Consultant will assist Client in determining the short-term
and long-term requirements for Client's financial reporting
function and Chief Financial Officer and, if requested, will
assist Client with identifying qualified candidates.
{PAGE}
1.2 Client and/or Client's Affiliate Transaction Due Diligence. Consultant
will participate and assist Client in the due diligence process, where
possible, on all proposed financial transactions affecting Client of
which Consultant is notified in writing in advance, including
conducting investigation of and providing advice on the financial,
valuation and stock price implications of the proposed transaction(s).
1.3 Mergers and Acquisitions. Consultant will provide assistance to Client,
as mutually agreed, in introducing and/or assisting Client in
identifying, acquiring, merging, and/or divesting on a non-exclusive
basis, from time to time, as Consultant deems appropriate in its sole
discretion, assisting in due-diligence, recommending transaction terms
and providing advice and assistance during negotiations, as needed. It
is expressly understood that Consultant shall have no power to bind
Client to any contract or transaction obligation.
Consultant will introduce and/or assist the Client with one or more
parties who might be interested in (whether by way of merger,
consolidation, asset purchase, technology license, or substantially
similar transaction) either, (a) acquiring some or all of Client's
assets or, (b) selling some or all of their own assets to Client
and/or, (c) entering into some form of strategic alliance with Client.
Specifically, Consultant is available to assist Client with the review
of target company financials and due diligence, and with the proposed
valuation and structure of acquisitions. At Client's request,
Consultant will act as Client's agent and sponsor in negotiations with
acquisition targets, demonstrating to target companies that Client has
the support of Consultant as Client pursues growth and development
plans and strategies. Consultant is also available to assist Client
with the documentation of transactions, including letters of intent,
definitive agreements, and other closing documents.
If Consultant is materially involved in a completed transaction with a
company introduced by Client, Client agrees to pay Consultant five
percent (5%) of the total value of the transaction in the same ratio of
cash and/ or stock as the transaction. "Total value" shall include, but
is not limited to cash, cash equivalents, stock, and the value of any
consideration other than cash paid or received by Client. If Consultant
is materially involved in a completed transaction with a company
introduced by Consultant, Client agrees to pay Consultant ten percent
(10%) of the total value of the transaction in the same ratio of cash
and / or stock as the transaction.
1.4 Additional Duties. Client and Consultant shall mutually agree, in
writing, for any additional duties that Consultant may provide to
Client for compensation paid or payable by Client under this Agreement.
Although there is no requirement to do so, such additional agreement(s)
may be attached hereto and made a part hereof by written amendments to
be listed as "Exhibits" beginning with "Exhibit A" and initialed by
both parties.
2. Compensation to Consultant.
2.1 Engagement Fee. As express consideration for Consultant entering into
this Agreement, Client shall issue an aggregate 400,000 shares of its
common stock, par value $.01 per share (the "Engagement Fee"), to
certain affiliates of Consultant in the following amounts (i) 200,000
to Mark Bergendahl and (ii) 200,000 to Bradley J. Wilhite (Messrs.
Bergendahl and Wilhite are each an "Affiliate" and are collectively,
the "Affiliates"). When issued, said shares shall be free trading
shares, registered with the U.S. Securities and Exchange Commission
(the "SEC") on a Form S-8 or a similar registration statement. Such
shares shall be issued and delivered to the Affiliates as soon as
practicable following execution of this Agreement.
2.2 On December 31, 2002, provided that this Agreement has not been
terminated pursuant to Section 7 hereof, Client shall issue to each
Affiliate shares of Client's common stock in an amount equal to
$135,000, the number of such shares to be calculated by dividing (x)
$135,000 by (y) the average closing price of Client's common stock for
the preceding (10) ten trading days. Such shares shall be issued as
compensation for the remaining months of service covered by this
Agreement.
2.3 Warrants. On November 20, 2002, Client shall issue Consultant a warrant
for a number of shares equal to 15% of the shares issued to the
Affiliates. Said warrants shall have a strike price of $0.15, shall
carry a term of three years, shall carry standard piggyback
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