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EXHIBIT 10.2
June 20, 2005
PRIVATE AND CONFIDENTIAL
International Microcomputer Software, Inc.
100 Rowland Way
Novato, CA 94945
Attention: Martin Wade, CEO
Martin:
This letter agreement (the
“Agreement”) confirms our understanding that International
Microcomputer Software, Inc. (the “Company”) has engaged Baytree
Capital Associates, LLC (“Baytree”) to act as its exclusive
financial advisor with respect to the merger, consolidation or any other
business combination, of the Company with America’s Media, Inc.
(“AM”) in one or a series of transactions, involving a substantial
amount of the business, securities or assets of the Company (the
“Transaction”).
As discussed, we propose to undertake
certain services on your behalf, to the extent requested by you, which shall
consist of the following: (i) assisting you in analyzing the Company’s
operations and future prospects both without the Transaction and pro forma for
the Transaction; (ii) assisting you in conducting due diligence on AM; (iii) negotiating
the financial aspects of the Transaction under your guidance; and (iv)
reviewing and aiding in the preparation of all documentation related to the
Transaction.
As compensation for the services to be
provided by Baytree hereunder, the Company agrees to pay to Baytree five
percent (5.0%) of the aggregate value of the consideration issued to AM with
such consideration to be in the same form as that paid to AM. In addition, the
Company agrees to pay to Baytree for ongoing consulting services one (1.0) million
shares of the Company’s common stock with such consulting services to be
rendered by Baytree through June 30, 2008. Further, upon the request of
Baytree, the Company agrees to reimburse Baytree for all out-of-pocket expenses
incurred by Baytree in connection with its engagement hereunder, whether or not
a Transaction is consummated. As Baytree will be acting on your behalf, the
Company agrees to the indemnification and other obligations set forth in
Schedule I attached hereto, which Schedule is an integral part hereof.
The Company shall make available to
Baytree all financial and other information concerning its business and
operations that Baytree reasonably requests as well as any other information
relating to the Transaction prepared by the Company or any of its other
advisors. In performing its services hereunder, Baytree shall be entitled to
rely without investigation upon all information that is available from public
sources as well as all other information supplied to it by or on behalf of the
Company or its advisors.
International Microcomputer
Software, Inc.
June 20, 2005
Page 2
Any advice, written or oral, provided by
Baytree pursuant to this Agreement will be treated by the Company as
confidential, and will not be reproduced, summarized, described or referred to,
or furnished to any other party, except in each case with our prior written
consent.
This Agreement may be terminated by either the Company or Baytree upon receipt of written notice to that effect by the other party. Upon any termination of this Agreement, Baytree will be entitled to prompt payment of all fees accrued prior to such termination, and reimbursement of all out-of-pocket expenses as described above. In addition, if at any time prior to twelve (12) months after the termination by the Company of this Agreement, the Transaction is consummated, Baytree will be entitled to payment in full of t






