As filed with the Securities and Exchange Commission on February 14, 1997
Registration No. 333-__________
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM S-8
REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933
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WESTMARK GROUP HOLDINGS, INC.
(Exact name of Registrant as specified in its charter)
DELAWARE 13-3784149
(State or other jurisdiction (I.R.S. Employer
of incorporation or Identification Number)
organization)
355 N.E. Fifth Avenue Mark Schaftlein
Delray Beach, Florida 33483 355 N.E. Fifth Avenue
(561) 243-8010 Delray Beach, Florida 33483
(Address, including zip code, and (Name, address, including zip code,
telephone number, including and telephone number, including
area code of registrant's area code, of agent for service)
principal executive offices)
HEART LABS OF AMERICA
INDEPENDENT CONTRACTOR AGREEMENT
(Full Title of the Plan)
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COPY TO:
Thomas C. Pritchard
Brewer & Pritchard, P.C.
1111 Bagby, 24th Floor
Houston, Texas 77002
Phone (713) 659-1744
Fax (713) 659-2430
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CALCULATION OF REGISTRATION FEE
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Proposed
Proposed Maximum
TITLE OF Maximum Aggregate Amount of
SECURITIES TO BE Amount Being Offering Price Offering Registration
REGISTERED Registered(1) Per Share(2) Price(2) Fee
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Common Stock, par value
$.001 per share........ 25,000 $1.15 $28,750 $100.00
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(1) Pursuant to Rule 416 under the Securities Act of 1933, as amended, the
number of shares of the issuer's Common Stock registered hereunder will be
adjusted in the event of stock splits, stock dividends or similar
transactions.
(2) Estimated solely for the purpose of calculating the amount of the
registration fee pursuant to Rule 457, on the basis of the average of the
last sales price of the Common Stock as reported by the Nasdaq SmallCap
Market for the previous three days.
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 3. INCORPORATION OF DOCUMENTS BY REFERENCE
The following documents filed by Westmark Group Holdings, Inc.
("Company" or "Registrant") with the Securities and Exchange Commission are
incorporated herein by reference:
1. The Company's latest annual report filed pursuant to Section 13(a)
or 15(d) of the Securities Exchange Act of 1934, as amended ("Exchange Act"),
or, either (i) the Company's latest prospectus filed pursuant to Rule 424(b)
under the Securities Act of 1933, as amended ("Securities Act") that contains
audited financial statements for the Company's latest fiscal year for which such
statements have been filed, or (ii) the Company's effective Registration
Statement on Form 10 or Form 10-SB filed under the Exchange Act containing
audited financial statements for the Company's latest fiscal year.
2. All other reports filed pursuant to Section 13(a) or 15(d) of the
Exchange Act since the end of the fiscal year covered by the document referred
to in (1) above.
All documents subsequently filed by the Registrant pursuant to Sections
13(a), 13(c), 14 and 15(d) of the Exchange Act, prior to the filing of a
post-effective amendment to the Registration Statement which indicates that all
shares of common stock offered have been sold or which deregisters all of such
shares then remaining unsold, shall be deemed to be incorporated by reference in
the Registration Statement and to be a part thereof from the date of filing of
such documents.
ITEM 4. DESCRIPTION OF SECURITIES
Under the Company's Certificate of Incorporation, the authorized
capital stock of the Company consists of 60 million shares, of which 50 million
shares are Common Stock and 10 million shares are preferred stock. As of the
date of this Prospectus, the Company had outstanding 4,630,780 shares of Common
Stock and 118,750 shares of Series A Preferred Stock, 300,000 shares of Series B
Preferred Stock, 200,000 shares of Series C Preferred Stock, 50,000 shares of
Series D Preferred Stock held of record by 59 persons, and 130,000 shares of
Series E Preferred Stock. The Company has reserved 218,483 shares for issuance
upon exercise of outstanding Options, 1,671,993 shares for issuance upon
exercise of Warrants, 3,194,994 shares for issuance upon conversion of the
Preferred Stock.
The following summary description of the securities of the Company is
qualified in its entirety by reference to the Certificate of Incorporation, a
copy of which is filed as an exhibit to the Registration Statement of which this
Prospectus is a part.
COMMON STOCK
The holders of Common Stock are entitled to one vote per share with
respect to all matters required by law to be submitted to stockholders of the
Company. The holders of Common Stock have the sole right to vote, except as
otherwise provided by law or by the Company's Certificate, including provisions
governing any preferred stock. The Common Stock does not have any cumulative
voting, preemptive, subscription or conversion rights. Election of directors and
other general shareholder action requires the affirmative vote of a majority of
shares represented at a meeting in which a quorum is represented. The
outstanding shares of Common Stock are, and the shares of Common Stock offered
hereby will be, upon payment therefor as contemplated herein, validly issued,
fully paid and non-assessable.
Subject to the rights of any outstanding shares of preferred stock, the
holders of Common Stock are entitled to receive dividends when, as and if
declared by the Board of Directors out of funds legally available therefor. In
the event of liquidation, dissolution or winding up of the affairs of the
Company, the holders of Common Stock are entitled to share ratably in all assets
remaining available for distribution to them after payment or provision for all
liabilities and any preferential liquidation rights of any preferred stock then
outstanding.
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PREFERRED STOCK
The Board of Directors is authorized, without action by the holders of
the Common Stock, to provide for the issuance of the preferred stock in one or
more series, to establish the number of shares to be included in each series and
to fix the designations, powers, preferences and rights of the shares of each
such series and the qualifications, limitations or restrictions thereof. This
includes, among other things, voting rights, conversion privileges, dividend
rates, redemption rights, sinking fund provisions and liquidation rights which
shall be superior to the Common Stock. The issuance of one or more series of the
preferred stock could adversely affect the voting power of the holders of the
Common Stock and could have the effect of discouraging or making more difficult
any attempt by a person or group to attain control of the Company. The Company
has no present plans to issue any additional shares of preferred stock.
SERIES A PREFERRED STOCK. In April 1996, the Board of Directors
established a series of shares setting forth the preferences, rights and
limitations and authorizing the issuance of up to 200,000 shares of series A
cumulative preferred stock ("Series A Preferred Stock"). In April 1996, an
aggregate of 100,000 shares of Series A Preferred Stock were issued with an
aggregate stated value of $400,000 to Mr. Hollenbeck and an aggregate of 18,750
shares of Series A Preferred Stock were issued to an unaffiliated third party.
The Series A Preferred Stock has a liquidation preference of $4 per share, plus
any accrued unpaid dividends, is redeemable by the Company at a redemption price
of $4 per share, plus accrued unpaid dividends to the date of redemption, after
October 1, 1996 the holder can force redemption by the Company upon the same
redemption terms that the Company possesses, and does not have any voting
rights. The shares of Series A Preferred Stock are convertible into shares of
Common Stock at the lessor or (i) $1.50 or (ii) 84% of the closing bid price on
the day prior to conversion (subject to adjustment).
SERIES B PREFERRED STOCK. In April 1996, the Board of Directors
established a series of shares setting forth the preferences, rights and
limitations and authorizing the issuance of up to 300,000 shares of series B
cumulative preferred stock ("Series B Preferred Stock"). In April 1996, an
aggregate of 300,000 shares of Series B Preferred Stock were issued with an
aggregate stated value of $600,000. The Series B Preferred Stock has a
liquidation preference of $2 per share, plus any accrued unpaid dividends, is
redeemable by the Company at a redemption price of $2 per share, plus accrued
unpaid dividends to the date of redemption, and does not have any voting rights.
The shares of Series B Preferred Stock are convertible by the holders in shares
of Common Stock at the lesser of (i) $2.00 or (ii) 84% of the closing bid price
on the day prior to conversion (subject to adjustment). The shares of Series B
Preferred Stock automatically convert, at the above referenced conversion rate,
into shares of Common Stock in April 1998.
SERIES C PREFERRED STOCK. In March 1996, the Board of Directors
established a series of shares setting forth the preferences, rights and
limitations and authorizing the issuance of up to 500,000 shares of series C
cumulative preferred stock ("Series C Preferred Stock"). Effective March 1996,
an aggregate of 200,000 shares of Series C Preferred Stock were issued with an
aggregate stated value of $700,000. Upon the closing of the Westmark-Medical
Industries Agreement, the 200,000 shares of Series C Preferred Stock will be
redeemed by the Company and, for purposes of this Prospectus, are not deemed
outstanding.
SERIES D PREFERRED STOCK. In August 1996, the Board of Directors
established a series of shares setting forth the preferences, rights and
limitations and authorizing the issuance of up to 1,000,000 shares of series D
convertible preferred stock ("Series D Preferred Stock"). In August 1996, an
aggregate of 200,000 shares of Series D Preferred Stock were issued with an
aggregate stated value of $1,000,000. The Series D Preferred Stock pays interest
quarterly at 10% per annum. The Series D Preferred Stock has a liquidation
preference of $5 per share, is redeemable by the Company and does not have any
voting rights. The shares of Series D Preferred Stock are convertible by the
holders in shares of Common Stock at 100% of the closing bid price on the day of
conversion.
SERIES E PREFERRED STOCK. In July 1996, the Board of Directors
established a series of shares setting forth the preferences, rights and
limitations and authorizing the issuance of up to 130,000 shares of series E
convertible preferred stock ("Series E Preferred Stock"). In July 1996, an
aggregate of 130,00 shares of Series E Preferred Stock were issued with an
aggregate stated value of $1,300,000. The 130,000 shares of Series E Preferred
Stock will be converted by the holder at the price of $.45 per share, for the
issuance of 2,888,889 shares of Common Stock upon the closing of the
Westmark-GTB Agreement, and for purposes of this Prospectus are not deemed
outstanding.
SERIES F PREFERRED STOCK. In August 1996, the Board of Directors
established a series of shares setting forth the preferences, rights and
limitations and authorizing the issuance of up to 1,000,000 shares of series F
convertible
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preferred stock ("Series F Preferred Stock"). The Series F Preferred Stock has a
liquidation preference of $5 per share, is redeemable by the Company and does
not have any voting rights. The shares of Series F Preferred Stock are
convertible by the holders in shares of Common Stock at the greater of (i) $1.00
or (ii) the average closing bid price for the five days prior to conversion
(subject to adjustment).
WARRANTS
There are warrants outstanding authorizing the holders to purchase an
aggregate of 1,671,993 shares of Common Stock, currently exercisable and
expiring between one and eight years from the date of this Prospectus at
exercise prices between $1.00 and $9.00.
ITEM 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS
A. The Corporation shall indemnify any person who was or is a party or
is threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative
(other than an action by or in the right of the Corporation) by reason of the
fact that he is or was a director, officer, employee or agent of the
Corporation, or is or was serving at the request of the Corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by him in connection with such action, suit or proceeding if he acted
in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the Corporation, and, with respect to any criminal action
or proceeding, had no reasonable cause to believe his conduct was unlawful. The
termination of any action, suit or proceeding by judgment, order, settlement,
conviction or upon a plea of NOLO CONTENDERE or its equivalent, shall not, of
itself, create a presumption that the person did not act in good faith and in a
manner which he reasonably believed to be in or not opposed to the best
interests of the Corporation, and, with respect to any criminal action or
proceeding, had reasonable cause to believe that his conduct was unlawful.
B. The Corporation shall indemnify any person who was or is a party or
is threatened to be made a party to any threatened, pending or completed action
or suit by or in the right of the Corporation to procure a judgment in its favor
by reason of the fact that he is or was a director, officer, employee or agent
of the Corporation, or is or was serving at the request of the Corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise against expenses (including attorneys' fees)
actually and reasonably incurred by him in connection with the defense or
settlement of such action or suit if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the
Corporation and except that no indemnification shall be made in respect of any
claim, issue or matter as to which such person shall have been adjudged to be
liable to the Corporation unless and only to the extent that the Court of
Chancery or the court in which such action or suit was brought shall determine
upon application that, despite the adjudication of liability but in view of all
the circumstances of the case, such person is fairly and reasonably entitled to
indemnity for such expenses which the Court of Chancery or such other court
shall deem proper.
C. To the extent that a director, officer, employee or agent of the
Corporation has been successful on the merits or otherwise in defense of any
action, suit or proceeding referred to in subsections (A) and (B), or in defense
of any claim, issue or matter therein, he shall be indemnified against expenses
(including attorneys' fees) actually and reasonably incurred by him in
connection therewith.
D. Any indemnification under subsections (A) and (B) (unless ordered by
a court) shall be made by the Corporation only as authorized in the specific
case upon a determination that indemnification of the director, officer,
employee or agent is proper in the circumstances because he has met the
applicable standard of conduct set forth in subsections (A) and (B). Such
determination shall be made (i) by a majority vote of the directors who are not
parties to such action, suit or proceeding, even though less than a quorum, or
(ii) if there are no such directors, or if such directors so direct, by
independent legal counsel in a written opinion, or (iii) by the stockholders.
E. Expenses (including attorneys' fees) incurred by an officer or
director in defending any civil, criminal, administrative or investigative
action, suit or proceeding may be paid by the Corporation in advance of the
final disposition of such action, suit or proceeding upon receipt of an
undertaking by or on behalf of such director or officer to repay such amount if
it shall ultimately be determined that he is not entitled to be indemnified by
the Corporation as authorized by the Certificate of Incorporation. Such expenses
(including attorneys' fees) incurred by other employees and agents may be so
paid upon such terms and conditions, if any, as the Board of Directors deems
appropriate.
F. The indemnification and advancement of expenses provided by, or
granted pursuant to, the other subsections of this Article shall not be deemed
exclusive of any other rights to which those seeking indemnification or
advancement of expenses may be entitled under any bylaw, agreement, vote of
stockholders or disinterested directors or otherwise, both as to action in his
official capacity and as to action in another capacity while holding such
office.
G. The Corporation shall have the power to purchase and maintain
insurance on behalf of any person who is or was a director, officer, employee or
agent of the Corporation, or is or was serving at the request of the Corporation
as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise against any liability asserted against
him and incurred by him in any such capacity, or arising out of his status as
such, whether or not the Corporation would have the power to indemnify him
against such liability under the Certificate of Incorporation.
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H. The indemnification and advancement of expenses provided by, or
granted pursuant to, this Article shall, unless otherwise provided when
authorized or ratified, continue as to a person who has ceased to be a director,
officer, employee or agent and shall inure to the benefit of the heirs,
executors and administrators of such a person.
ITEM 8. EXHIBITS
The following exhibits are filed as part of this Registration
Statement:
4.1(1) Form of specimen Common Stock
5.1(2) Opinion Regarding Legality
10.1(2) Settlement Agreement of Gary Phillippe
24.1(2) Consent of Comiskey & Company, P.C.
24.2(2) Consent of Cassidy & Associates (Contained in Exhibit
5.1)
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(1) The information required by this exhibit is incorporated by reference to
the exhibits filed in connection with the Company's Registration
Statement on Form SB-2 (Commission File No. 333-05599)
(2) Filed herewith.
ITEM 9. UNDERTAKINGS
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are
being made, a post-effective amendment to this registration
statement:
i. To include any prospectus required by Section 10(a)(3)
of the Securities Act of 1933;
ii. To reflect in the prospectus any facts or events
arising after the effective date of the registration
statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate,
represent a fundamental change in the information set
forth in the registration statement; and
iii. To include any additional or changed material
information with respect to the plan of distribution.
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment
shall be deemed to be a new registration statement relating
to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial
BONA FIDE offering thereof.
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which
remain unsold at the termination of the offering.
(b) The undersigned Registrant hereby undertakes that, for purposes of
determining liability under the Securities Act, each filing of the Registrant's
annual report pursuant to Section 13(a) or 15(d) of the Exchange Act (and, where
applicable, each filing of an employee benefit plan's annual report pursuant to
Section 15(d) of the Exchange Act) that is incorporated by reference in the
registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial BONA FIDE offering thereof.
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(c) Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or otherwise,
the registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant will, unless in
the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will
be governed by the final adjudication of such issue.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form SB-2 and authorized this Registration Statement
to be signed on its behalf by the undersigned, thereunto duly authorized, in the
City of Delray, State of Florida, on the 14th day of February, 1997.
Westmark Group Holdings, Inc.
By//S// MARK SCHAFTLEIN
Mark Schaftlein, President, Chief
Executive Officer and Director
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Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities and on the dates indicated:
SIGNATURE TITLE DATE
//S// MARK SCHAFTLEIN President, Chief Executive February 14, 1997
Mark Schaftlein Officer and Director
//S// NORMAN H, BIRMINGHAM Director and Chief Financial February 14, 1997
Norman J. Birmingham Officer
//S// TODD WALKER Director February 14, 1997
Todd Walker
//S// LOUIS RESWEBER Director February 14, 1997
Louis Resweber
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EXHIBIT 5.1
[CASSIDY & ASSOCIATES LETTERHEAD]
February 11, 1997
Board of Directors
Westmark Group Holdings, Inc.
355 N.E. Fifth Avenue
Delray Beach, Florida 33483
Gentlemen:
This opinion letter is submitted to you in conformance with Item 601 of
Regulation S-B of the Securities and Exchange Commission with respect to the
registration on Form S-8 (the "Registration Statement") by Westmark Group
Holdings, Inc., a Delaware corporation, ("the Company") of 25,000 shares of
Common Stock, $.001 par value per share ("the Shares"), to be issued to Gary
Phillippe.
We have examined the original, certified, conformed, photostatic,
electronic, facsimile or other forms of such corporate records, resolutions,
certificates, authorizations or other documents as we have considered relevant
to our opinion. In all such examinations, we have assumed the genuiness of all
signatures on original documents and the conformity to originals and certified
documents of all copies submitted to us as conformed, photostatic, electronic or
facsimile copies. In reviewing corporate records and other documents, we have
assumed the accuracy of those records and documents. We have consulted with such
officers, directors, employees, and advisors of the Company in regard to
questions of material fact as we have considered relevant to our opinion, and
have relied upon the accuracy and completeness of the statements and
representations of such persons. We have examined such laws, statutes, judicial
or administrative decrees, interpretations and opinions, and such other sources
as we have considered material to the legal issues relevant to our opinion.
Based upon and in reliance on the foregoing, we are of the opinion that the
Shares have been duly authorized for issue and that the Shares, when issued as
authorized by the Board of Directors of the Company, will be duly authorized and
validly issued, fully paid and non-assessable.
<PAGE>
We hereby consent to the inclusion of this opinion letter in the
Registration Statement to be filed with the Securities and Exchange Commission.
Sincerely,
Cassidy & Associates
By /s/ JAMES MICHAEL CASSIDY
James Michael Cassidy, Esq.
EXHIBIT 10.1
HEART LABS OF AMERICA
INDEPENDENT CONTRACTOR AGREEMENT
This Independent Contractor Agreement ("Agreement") by and between Heart Labs of
America ("Company") and ECS International, Inc., a Nevada corporation
("Contractor") is entered into this 19th day of April, 1996, at Valley Springs,
California.
RECITALS
1. The Company is the parent company of Green World Technologies, Inc., a Nevada
corporation (hereinafter referred to as "Subsidiary"). Subsidiary has contracted
for the license to the patent rights of Patent No. 5,425,956 issued on June 27,
1995 for a refrigerant system efficiency amplifying apparatus commonly known as
"the Talon" ("System") and related services ("Services"). The Company's business
is to market and sell the System and Services to Customers worldwide.
2. The Contractor has substantial knowledge and experience in the design,
manufacture and marketing of the System.
3. It is the express intent of the parties that the relationship of the
Contractor to the Company is and remain throughout the term of this Agreement
Independent Contractor and not employee.
TERMS AND CONDITIONS
FOR VALUABLE CONSIDERATION GIVEN and the receipt of which is acknowledged, the
parties agree as follows:
1. DEFINITIONS.
a. CUSTOMER. "Customer" is defined as either (i) a prospective buyer of the
System and/or Services, (ii) a ready, willing and able buyer of the System
and/or Services, or (iii) a purchaser of the System and/or Services depending on
the specific context in the Agreement in which the word is used.
b. HOME OFFICE. "Home Office" is defined as the principal place of business
of the Company or such other place as the Company may designate in writing from
time to time.
2. DUTIES OF CONTRACTOR. The Contractor shall provide technical assistance to
the Company for a period of one year from the date of execution of this
Agreement. It is anticipated that Contractor will be available to provide
Company with the services contemplated herein up to 40 hours per month. The
Company acknowledges that the compensation to Contractor is earned upon the
execution of this Agreement and that any advice provided by Contractor shall not
constitute legal, accounting or tax advice.
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3. NO WARRANTIES, REPRESENTATIONS AND PROMISES. In assisting Customers of the
System and/or Services to Customers, the Contractor shall not make nor give any
representations, warranties, or promises of any kind, scope or nature with
respect to the System and/or the Services unless otherwise expressly authorized
by the Company in writing prior to the Contractor making or giving such
representations, warranties, or promises to the Customer.
4. CONTRACTOR'S RESPONSIBILITIES. The Contractor is solely and exclusively
responsible, without equity or debt financing, assistance, advice, compensation
or reimbursement by the Company under any circumstances or conditions, for the
following:
a. The Contractor's general business, travel, lodging, food and/or
entertainment expenses;
b. The Contractor's place or places of business, equipment, materials,
supplies, furniture, furnishings, transportation, employees, or agents;
c. The Contractor's insurance of any kind, scope or nature;
d. The Contractor's injury or death;
e. The Contractor's medical, dental or retirement needs either for
himself/herself or family;
f. The Contractor's licenses and/or permits of any kind, scope or nature as
may be required by local ordinances or state or federal laws and regulations;
g. The Contractor's federal and state income taxes, Social Security and
Medicare taxes, unemployment taxes, workman's compensation insurance, local
taxes, payment of estimated taxes, withholding, and the filing of required tax
forms; and
5. INDEPENDENT CONTRACTOR STATUS. It is expressly understood and acknowledged
by the Company and the Contractor that the Contractor is not an employee,
partner, affiliate, associate, co-venturer, or in any way connected to the
Company other than what is and to the extent set forth herein. The Contractor
warrants and represents that it shall in no manner and by no means hold itself
out to third parties as an employee, partner, affiliate, associate, or
co-venturer with the Company, or represent that it is in any manner or by any
means connected to the Company other than what is and to the extent set forth
herein. The terms and conditions of this Agreement shall be interpreted to the
maximum extent permitted by law as reflecting an Independent Contractor
relationship and not an employer-employee relationship.
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6. COMPENSATION. Upon execution of this Agreement, Contractor shall have a
right to receive Fifty Thousand (50,000) shares of Company's common stock. The
Contractor will be paid as follows:
(a) Company will issue Contractor 12,500 shares of common stock upon the
execution of this Agreement;
(b) Company will issue Contractor 12,500 shares of common stock on or before
7/19, 1996;
(c) Company will issue Contractor 12,500 shares of common stock on or before
10/19, 1996;
(d) Company will issue Contractor 12,500 shares of common stock on or before
1/19, 1997;
7. NON-CIRCUMVENTION. Neither party to this Agreement shall in any manner or by
any means, directly or indirectly, circumvent or cause the circumvention of the
terms and conditions of this Agreement.
8. NON-DISCLOSURE. All information, documents, records, customer lists, files,
data, studies, plans, analyses, research, drafts, charts, reports, designs,
disks, tapes, papers, manuals, software, hardware, and any and all other
materials of like-kind or similar nature pertaining to or relating to the
System, Services, or to the marketing and sale of same in the possession or
knowledge of arising out of or being incidental to the Contractor's performance
under this Agreement, whether by inadvertence, mistake, or intent of either or
both parties, is and shall remain the property of the Company, and is and shall
remain confidential, and Contractor warrants and represents to the Company that
it shall not in any manner or by any means, directly or indirectly, disclose or
deliver same to third parties without the express, prior, written and informed
consent of the Company; and Contractor understands and acknowledges that all use
of same by the Contractor shall be by license of the Company revocable at will
by the Company. The Company reserves the right and power to condition, limit and
restrict such disclosure or delivery as it deems prudent in its sole discretion
from time to time. Contractor warrants and represents to the Company that
Contractor shall not in any manner or by any means, directly or indirectly,
copy, alter or modify the System or the Services or cause or allow such copying,
altering or modifying by anyone under any circumstances or under any conditions.
This provision is independent and severable and shall expressly survive the
termination of this Agreement.
9. CONTRACTOR'S PRIOR AND OTHER IDEAS. Except for Patent No. 5,426,956,
Contractor shall own all processes, inventions, patents, copyrights, trademarks,
and other intangible rights conceived or developed by Contractor, either alone
or with others, during the
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terms of Contractor's employment, whether or not conceived or developed during
Contractor's working hours, which
(a) result from work performed by Contractor for Company,
(b) relate to Company's business or Company's actual or demonstrably
anticipated research and development, or
(c) have used Company's equipment, supplies, facilities, or trade secrets.
Contractor shall not be required to disclose to the Company any inventions
conceived during the term of this contract.
10. TERMINATION. Company may terminate this Agreement on 30 day's written notice
to the Contractor with or without cause; provided however, that the Company
shall remain obligated to issue the common stock as described in Paragraph 6
and payment of full contract of this Agreement.
11. APPLICABLE LAW. The terms and conditions of this Agreement shall be
interpreted and governed by the laws of the State of California, U.S.A.
12. CHOICE OF FORUM. This Agreement may be enforced in the Superior Court of the
State of California for the County of Sacramento or in U.S. District Court,
Eastern District of the State of California.
13. HEADINGS. The headings used are for convenience only and shall not be used
to interpret or construe any provisions of this Agreement.
14. INTERPRETATION. The terms and conditions of this Agreement shall not be
strictly construed against one party or the other but shall be construed in such
a manner as is fair, just and reasonable to both parties.
15. AMENDMENTS. This Agreement may not be modified or amended unless by a
writing signed by both parties hereto.
16. PARTIES BOUND. Subject to the prohibition against assignment and delegation,
this Agreement shall inure to the benefit of and be binding upon the parties'
respective successors, assign, heirs, and personal representatives.
17. ASSIGNMENT. This Agreement is personal to the parties hereto. Neither party
has the right or the power to assign or delegate any of the duties of this
Agreement unless express, prior, written and informed consent is obtained from
the other party. Such consent cannot be unreasonably withheld. Notwithstanding
the
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foregoing, Contractor may assign, sell, pledge or otherwise transfer the shares
of common stock referred to in paragraph 6, or any portion thereof, upon
Contractor being the shareholder of record.
18. ATTORNEY'S FEES. In the event this Agreement is the subject of any
proceeding to interpret or enforce its terms or conditions, or to remedy a
breach thereof, the prevailing party shall be entitled to reasonable attorney's
fees and costs.
19. INVALIDITY. In the event that any portion of this Agreement is held invalid
by a Court of competent jurisdiction the remaining portions of the Agreement
shall continue in full force and effect.
20. GOOD FAITH AND FAIR DEALING. Each party to this Agreement shall satisfy the
conditions and perform the terms thereof in good faith and with fair dealing to
the other party.
21. COOPERATION, DILIGENCE, AND EFFORT. Each party shall fully cooperate with
the other party and exercise due diligence and reasonable efforts in the
satisfaction of the conditions and in the performance of the terms of this
Agreement.
22. FURTHER ACTS. Each party shall do such and further acts as are reasonably
necessary to satisfy the conditions and to perform the terms of this Agreement.
23. COMPLIANCE WITH LAW. Each party in the satisfaction of the conditions and in
the performance of the terms of this Agreement shall comply with all applicable
local, state and federal law.
24. REPRESENTATIONS AND WARRANTIES. Each party represents and warrants to the
other party that it has the full right, power and authority to enter into this
Agreement and shall not as the result of the execution or performance of this
Agreement be in knowing violation of any private contract, or federal or state
law, regulation, ruling, order, or decree. The Company represents it is a
corporation in good standing in the State of _______________. The Company has
the right, power, legal capacity, and authority to enter into, and perform its
respective obligations under this Independent Contractor Agreement, and no
approvals or consent of any persons or than as specified herein are necessary in
connection with this Agreement. The Execution and delivery of this Agreement by
the Company has been duly authorized as appropriate. To the extent required,
this Agreement will constitute a meeting of the shareholders and board of
directors of the Company, notice being waived, approving all of the terms and
conditions set forth herein.
25. HOLD HARMLESS. Each party shall hold the other party harmless from any
liability whatsoever arising out of or being incidental to such party's, its
employees or agents, negligent or intentional acts, and shall fully indemnify
the other party for any and all
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resulting damages, expenses, attorney's fees, and costs incurred by such party
whether by way of any proceeding, arbitration, settlement, hearing, trial, or
appeal process.
26. NOTICES AND COMMUNICATIONS. All notices and communications made by the
parties to each other under or pursuant to this Agreement shall be made to the
following address, telephone and FAX number:
The Company:
Heart Labs of America
(Attention: Norman Birmingham)
2650 N Military Tr Ste 230
Telephone # 407-241-7851
FAX # 407-241-7862
The Contractor:
Name: ECS International, Inc.,
Attention: Gary Phillippe
Address: 7263 Larchmont Dr. No. Highlands, Tx 75660
Telephone #: 916-334-9123
Fax #916-334-9131
Each party must immediately notify the other party in writing any time any of
the above is changed for any reason.
27. ENTIRE AGREEMENT. This Agreement is the parties' final and complete
agreement. All prior and/or contemporaneous agreements, understandings and/or
representations between the Contractor and the Company, whether in writing or
verbal, have been merged or incorporated herein.
IN WITNESS WHEREOF the parties cause this Agreement to be executed on the day
and year first written above.
HEART LABS OF AMERICA
By: /s/ NORMAN H. BIRMINGHAM
Title: President
CONTRACTOR:
ECS International, INC.
By: /s/ GARY PHILLIPPE
Title: President
EXHIBIT 24.1
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
We consent to the incorporation by reference in this Form S-8 registration
statement of our report, dual dated March 20, 1996 and April 19, 1996, on the
financial statements of Westmark Group Holdings, Inc., and to reference to our
firm under the caption "experts" in the prospectus.
Aurora, Colorado
February 11, 1997 COMISKEY & COMPANY, A
PROFESSIONAL CORPORATION
