UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________

 

FORM 8-K

_________________________

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): December 31, 2020

 

_________________________

 

UPD HOLDING CORP.

(Exact Name of Company as Specified in Charter)

 

 

Nevada   001-10320   81-4397205
(State or Other Jurisdiction   (Commission File Number)   (IRS Employer
of Incorporation)       Identification No.)

 

 

 

75 Pringle Way, 8th Floor, Suite 804

Reno, Nevada

  89502  
  (Address of Principal Executive Offices)   (Zip Code)  

 

 

775-829-7999

(Company’s telephone number, including area code)

 

_________________________

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Company under any of the following provisions:

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this chapter).

Emerging Growth Company o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading Symbol Number of each exchange on which registered
Common UPDC Pink Sheet

 

 

  1  
 

 

UDC Holding Corp. is referred to herein as “we”, “our” or “us’ or the “Company”.

 

 

Cautionary Note Regarding Forward-Looking Statements

 

This Current Report on Form 8-K includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements, other than statements of historical fact, contained in this prospectus constitute forward-looking statements. In some cases you can identify forward-looking statements by terms such as “may,” “intend,” “might,” “will,” “should,” “could,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “project,” “potential,” or the negative of these terms and similar expressions intended to identify forward-looking statements.

 

Forward-looking statements are based on assumptions and estimates and are subject to risks and uncertainties. We have identified below in this Current Report on Form 8-K some of the factors that may cause actual results to differ materially from those expressed or assumed in any of our forward-looking statements. There may be other factors not so identified. You should not place undue reliance on our forward-looking statements. As you read this Current Report on Form 8-K, you should understand that these statements are not guarantees of performance or results.

 

Further, any forward-looking statement speaks only as of the date on which it is made and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors may emerge that may cause our business not to develop as expected. We cannot predict such future events or circumstances. Factors that may cause actual results to differ materially from those expressed or implied by these forward-looking statements include the following:

 

These forward-looking statements include, among other things, statements relating to:

 

· Our anticipated cash needs and estimates regarding our capital expenditures, as well as its capital requirements and need for additional financing;

 

· Our ability to identify and retain personnel;

 

· Our ability to maintain current strategic relationships and develop relationships with new strategic partners;

 

· Our competitive position and its expectations regarding competition from other brewing companies; and

 

· Anticipated trends and challenges in our core business and the markets in which we operate.

 

Item 1.01 Entry Into Material Definitive Agreement

 

Assumption Agreement with Record Street Brewing Company and Jesse Corletto

 

On December 31, 2020, we completed an Assumption Agreement between and among Record Street Brewing Company (“Record Street”) and Jesse Corletto (“Corletto”) (the “Assumption Agreement”). Pursuant to the Assumption Agreement: (i) we assigned to Corletto all of our right, title, and interest in and to all of the capital stock of its wholly owned subsidiary, Record Street; and (ii) Corletto accepted the ownership of Record Street subject to the assumption by Record Street of liabilities in the aggregate amount of $248,967 (See also Item 2.01 below). A copy of the Assumption Agreement is attached to this report as Exhibit 10.1.

 

Debt Settlement Agreement with Property Resource Associates, LLC and Gary Plichta

 

On December 31, 2020, we entered into a Debt Settlement Agreement (the “Settlement Agreement) with Property Resource Associates LLC, a Florida limited liability company (“PRA”), and Gary Plichta (“Plichta”). Pursuant to the Settlement Agreement, PRA and its affiliates agreed to extinguish the outstanding debts and liabilities that we currently owe to PRA and its affiliates in exchange for our payment of 3,900,000 restricted common stock shares to PRA. In connection with the foregoing consideration, the Parties mutually released one another from all actions, causes of actions, claims, suits, debts, judgments, agreements, and otherwise. A copy of the Settlement Agreement is attached to this report as Exhibit 10.2.

 

  2  
 

 

Entry Into Material Definitive Agreement – Consulting Agreement with Sage Intergroup, Inc.

 

On December 31, 2020, we entered into a Consulting Agreement with Sage Intergroup Inc., a California corporation (“SII”). Pursuant to the Consulting Agreement, SII and its affiliates agree to provide certain busines advisory services and introduce certain business counterparties to us for a term of ninety (90) days in exchange for our one-time payment of 500,000 restricted common stock shares The Consulting Agreement is subject to a mutual indemnification provision between the parties. A copy of the Consulting Agreement is attached to this report as Exhibit 10.3.

 

Incorporation by Reference

 

The foregoing description of the above-referenced Agreements and related transactions in this Item 1.01 does not purport to be complete and is qualified in its entirety by reference to the complete text of the Agreements, which have been filed as Exhibits 10.1, 10.2, 10.3 hereto, and which are incorporated herein by reference.

 

Item 2.01. Completion of Disposition of Assets

 

As of December 31, 2020, the outstanding debts of RSB reflected in our consolidated financial statements totaled $248,967 (the “RSB Debts”). Pursuant to the Assumption Agreement, the RSB Debts were assumed by RSB from us upon the transfer of ownership of RSB to Corletto, together with all other, contingent and non-contingent, known and unknown, rights, assets, and liabilities of RSB. The RSB Debts will be removed from our consolidated financial statements as reflected in future SEC filings. As of December 31, 2020, Corletto was not a related party to, or an affiliate of the Company.

 

Item 3.02. Unregistered Sales of Equity Securities

 

On December 31, 2020, we issued PRA a total of 3,900,000 restricted common stock shares as the consideration to PRA as referenced in Item 1.01 above.

 

On December 31, 2020, we issued SII a total of 500,000 restricted common stock shares as the consideration to SII as referenced in Item 1.01 above.

 

All of the securities issuances reported in this Item 3.02 were made in reliance upon Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”), and Rule 506 of Regulation D under the Act.

 

Item 5.02 Departure of Director; Appointment to Fill Vacancy of Director

 

Resignation of Director Andrew Smith

 

Effective as of December 31, 2020, Andrew Smith resigned as a member of our board of directors (the “Resignation”). As stated in Andrew Smith’s resignation letter, the Resignation is not due to any disagreement with us or our management regarding our operations, policies or practices.

 

Appointment of Dr. George D. Shoenberger to our Board of Directors

 

Following the Resignation and effective as of December 31, 2020, our board of directors consisted of two remaining members, Mark Conte and Kevin Pikero, at which time our Board of Directors appointed Dr. George D. Shoenberger to fill the Board vacancy as a result of Andrew Smith’s resignation as Director. George D. Shoenberger shall serve until the expiration of the remaining term of Andrew Smith’s prior appointment or election to our board.

 

Biography of Dr. George D. Shoenberger

 

Dr. Shoenberger, 46, is a Nevada Licensed Psychologist and since 2015 has served as the Manager of Health Psychology Associates LLC in Reno, Nevada. He obtained both bachelor’s and master’s degrees in psychology at California State University, Chico, and later attended the clinical psychology doctoral program at the University of Nevada, Reno, where he completed a Ph.D. with an emphasis on cognitive-behavioral treatments for anxiety disorders and addictions. Dr. Shoenberger completed his pre-doctoral internship at the Portland VA Medical Center and received specialized training in psychological assessment, behavioral medicine and health psychology, eating disorders treatment, and chronic disease management. He then completed post-doctoral training with an emphasis on behavioral pediatrics and adolescent psychology. In addition to his client practice, Dr. Shoenberger has consulted with several healthcare agencies that specialize in behavioral health and lifestyle change. Dr. Shoenberger has actively practiced as a licensed psychologist since 2009.

 

  3  
 

 

Inclusive of Dr. Shoenberger, no member of our board of directors: (i) is a party to any contract for their service as a director or entitled to any compensation for service as a director at this time; (ii) has any ‘family relationship’ with any of our other officers or directors as that term is defined in Item 401(d) of Regulation S-K (17 CFR 229.401(d)); or (iii) has engaged in a ‘related party transaction’ meeting the dollar value threshold ($120,000) for that term as defined in Item 404(a) of Regulation S-K (17 CFR 229.404(a)) since the beginning of our last fiscal year.

 

There currently are no committees of our board of directors. Each of Messrs. Conte and Pikero serve as our executive officers and have been deemed by our board of directors to be “interested directors”. Neither we nor any of our subsidiaries employ Dr. Shoenberger and he has been deemed by our board of directors to be an independent (i.e., non-interested) director.

 

For the purpose of determining whether a director is ‘interested’ or ‘independent’, our board of directors defines ‘independent’ directors as not ‘interested’ and ‘interested’ directors as an executive officer or employee of the Company or any other individual having a relationship that, in the opinion of the Company’s board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.

 

Item 9.01 Financial Statements and Exhibits

 

The exhibits listed below are filed herewith.

 

Exhibit
Number
  Description
     
10.1   Assumption Agreement, dated December 31, 2020, between UPD Holding Corp. and Jesse Corletto.
10.2   Debt Settlement Agreement, dated December 31, 2020, between UPD Holding Corp. and Property Resource Associates LLC.
10.3   Consulting Agreement, dated December 31, 2020, between UPD Holding Corp. and Sage Intergroup Inc.
5.1   Resignation Letter of Andrew D. Smith, dated December 31, 2020.

 

Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

UPD HOLDING CORP.

 

 

Dated: January 7, 2021 By:/s/ Mark W. Conte Mark W. Conte
   

President and Chief Executive Officer

(Principal Executive Officer)

     
Dated: January 7, 2021 By:/s/ Kevin J. Pikero Kevin J. Pikero
   

Chief Financial Officer

(Principal Financial and Accounting Officer)

 

 

4

 

 

 

 

Exhibit 5.1

 

UPD HOLDING CORP.

 

75 Pringle Way 8th Floor, Suite 804 Reno, NV 89502

 

Resignation from Office

(Director)

 

I, Andrew D. Smith, do hereby resign the position of Director of UPD Holding Corp. (“the Company”, a Nevada corporation, together with any office pertaining thereto to which I previously was appointed or elected in connection with my position and title as a Director, effective as of 11:59 p.m., Pacific Time, on December 31, 2020. My resignation as a Director is not due to any disagreement with the Company or its management regarding the Company’s operations, policies or practices.

 

DATED AT Reno, Nevada, as of the 31st day of December 2020.

 

 

 

  By: /s/Andrew D. Smith
    Andrew D. Smith

 

 

 

 

 

 

 

Exhibit 10.1

 

ASSUMPTION AGREEMENT

 

This Assumption Agreement (this “Agreement”) is entered into as of December 31, 2020 (the “Effective Date”) by, between, and among:

 

i. UPD Holding Corp., a Nevada corporation (“UPD”);
ii. Record Street Brewing Co., a Nevada corporation (“RSB”); and
iii. Jesse Corletto, a Nevada resident (“Corletto”).

 

Each of UPD, RSB, and Corletto may hereinafter be referred to individually as a “Party” or collectively as the “Parties”.

 

RECITALS

 

WHEREAS, UPD acquired RSB from JC and certain third parties to this Agreement on or about December 31, 2017.

 

WHEREAS, RSB is engaged in the beer business through the license of its “Record Street” branded products and utilization of contract brewers and third-party distributors.

 

WHEREAS, RSB has not less than $248,967.38 of outstanding liabilities on its balance sheet, which are reflected on Schedule A attached hereto.

 

WHEREAS, UPD is a publicly traded company that has expressed its intent to enter the substance abuse treatment business.

 

WHEREAS, UPD has determined that the RSB business is substantially incompatible with the substance abuse treatment business.

 

WHEREAS, UPD has determined to dispose of RSB and the RSB business by conveying it to Corletto in exchange for the assumption of RSB together with the RSB liabilities.

 

NOW, THEREFORE, in consideration of the mutual promises and agreements herein contained and certain other good and valuable consideration, the Parties agree as follows:

 

1.       Recitals. The foregoing recitals are material, substantive, and integral provisions of this Agreement and are enforceable as if hereinafter restated.

 

2.       Assignments. In consideration for the Assumptions described in Section 3 below, UPD hereby assigns all of its right, title, and interest in and to all of the capital stock of RSB, inclusive of 10,000 shares of RSB common stock, $0.001 par value (the “RSB Shares”), to Corletto as of the Effective Date, and Corletto hereby accepts the RSB Shares and the sole ownership of RSB conveyed thereby (the “Assignments”).

 

3.       Assumptions. In consideration for the Assignments described in Section 2 above, Corletto accepts the RSB Shares subject to the assumption by RSB of all of the liabilities set forth on Schedule A, together with any and all other, current and contingent, known and unknown, rights, assets, and liabilities of RSB that may be asserted on behalf, or to the detriment, of RSB now or at any time in the future (the “Assumptions”).

 

  Page 1 of 4  
Assumption Agreement

 

4.       Third-Party Consents. Each Party agrees that, to the extent the effectiveness of any act or arrangement contemplated by this Agreement is subject to the consent of a third party to this Agreement, each Party will use its best efforts to promptly obtain such third-party consent and deliver the same to the other Parties.

 

5.       Further Instruments. Each Party agrees to execute and deliver such other and further instruments, and to do such other and further acts, as may be necessary or desirable to effect the transactions contemplated in this Agreement and carry out the intent and purpose of this Agreement, including, but not limited to, executing all documents required by any transfer agents or regulatory authorities to transfer title to any securities identified herein.

 

6.       Indemnification. Each Party agrees to indemnify and hold each other Party harmless against any and all liabilities, directly or indirectly, whether accrued, absolute, contingent, or otherwise, including any damages, losses, claims, costs, and expenses (including attorney’s fees) arising out of or resulting from any claims or liabilities against such Party concerning the subject matter hereof prior to the Effective Date. No Party shall have any liability to any other Party under or arising out of any terminated agreement, assigned right, or assumed obligation to which such Party was no longer a party after the Effective Date.

 

7.       Other Agreements Not Affected. No agreement executed by, between, or among any Party or Parties to this Agreement shall be affected by the terms and conditions of this Agreement unless expressly referred to herein.

 

8.       Independent Counsel. Each Party has had a full and complete opportunity to consult with legal counsel or other advisers of its own choosing concerning the terms, enforceability, and implications of this Agreement, and no Party has made any representations or warranties to the other Party concerning the terms, enforceability, and implications of this Agreement other than as reflected in this Agreement.

 

9.       Miscellaneous. Each Party to this Agreement agrees that: (i) this Agreement shall be binding upon and inure to the benefit of the Parties, their respective heirs, devisees, executors, administrators, personal representatives, successors, trustees, receivers, and assigns; (ii) all covenants, warranties, representations, and indemnities herein shall survive this Agreement and the existence of any loans or subject securities; (iii) this Agreement shall be governed by the laws of the State of Nevada, except with regard to the conflicts of law provisions thereof; and (iv) this Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute but one and the same instrument.

 

[Signature Page Follows]

 

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Assumption Agreement

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

 

UPD Holding Corp.   Record Street Brewing Co.
     
     
By:   /s/ Mark Conte   By:   /s/ Mark Conte
Name:   Mark Conte   Name:   Mark Conte
Title:   President   Title:   President

 

 

Jesse Corletto  
   
   
By:   /s/ Jesse Corletto  
Name:   Jesse Corletto  
Title:   an Individual  

 

  Page 3 of 4  
Assumption Agreement

 

Exhibit A

 

SCHEDULE OF LIABILITIES

 

[Schedule Contents Omitted]

 

 

Page 4 of 4

 

 

 

Exhibit 10.2

 

MUTUAL RELEASE AND SETTLEMENT AGREEMENT

 

This Mutual Release and Settlement Agreement (this “Agreement”) is entered into as of December 31, 2020 (the “Effective Date”) by, between, and among, and for the benefit of each of, the following parties:

 

i. UPD Holding Corp., a Nevada corporation (“UPD”);
ii. Property Resource Associates LLC, a Florida limited liability company (“PRA”);
iii. Gary Plichta, a Florida resident; and
iv. Each of their accountants, legal counsel, predecessors, successors, heirs, agents, representatives, parents, subsidiaries, spouses, and affiliates.

 

Each of the foregoing parties may hereinafter be referred to each as “Party” and, collectively, as the “Parties”.

 

TO ALL WHOM THESE PRESENTS SHALL COME OR MAY CONCERN, know that, for valuable consideration, including, but not limited to the total sum of Ninety-Seven Thousand Five Hundred Dollars ($97,500) payable from UPD to PRA or its designees by the issuance of Three Million Nine Hundred Thousand (3,900,000) shares of UPD common stock, $0.005 par value, the receipt of which is hereby acknowledged, and in exchange for the mutual promises and agreements contained herein, the Parties do hereby release, waive, and forever discharge one another of and from any and all manner of actions, causes of actions, claims, suits, debts, demands, judgments, agreements, and/or obligations of any nature whatsoever, at law or in equity, whether known or unknown, suspected, or asserted, matured or unmatured, accrued or unaccrued, direct or indirect, which it ever had, now has, or which it hereafter can, shall, or may have, or claim to have, for or by reason of any cause, matter, event, occurrence, or thing whatsoever from the beginning of the world to the Effective Date asserted in or which could have been asserted by the Parties or a third party in relation to the mutual business dealings and personal interactions of the Parties, including, but not limited to, the lending of funds and extension of credit by PRA and Plichta, jointly and severally, to UPD in the amounts set forth in Schedule A attached hereto (collectively, the “Outstanding Debts”), or in any mediation, arbitration, administrative, or regulatory proceeding, tribunal, or court of law arising out of or connected with, directly or indirectly, any and all dealings, contracts, agreements, transactions, events, or other activities by, between, or among the Parties or any third parties.

 

The Parties hereto shall execute and deliver all documents, provide all information, and take or forbear from all such action as may be necessary or appropriate to achieve the purposes of this Agreement. PRA and its designees agree to complete such accredited investor questionnaires and execute such subscription documents as are customary and necessary for the issuance of capital stock by UPD in reliance upon Rule 506 of Regulation D promulgated under the Securities Act of 1933, as amended.

 

  Page 1 of 4  
 

 

Each Party hereby agrees to safeguard and hold confidential from disclosure to unauthorized parties all non-public information relating to this Agreement and the Mutual Business Dealings. For purposes of the foregoing, only officers, directors, and employees of either Party or its affiliates, including accountants, auditors, and attorneys, shall be authorized parties on a “need to know basis” consistent with their respective positions, legal obligations, and responsibilities. Each Party agrees that it will not make any statements or representations, or otherwise communicate, directly or indirectly, in writing, orally, or otherwise, or take any action which may, directly or indirectly, disparage any Party, its affiliates, or their respective officers, directors, employees, advisors, businesses, or reputations. Notwithstanding the foregoing, nothing in this Agreement shall preclude a Party from making truthful statements or disclosures that are required by applicable law, regulation, or legal process.

 

Each Party further agrees that: (i) it has had a full and complete opportunity to consult with legal counsel or other advisers of its own choosing concerning the terms, enforceability, and implications of this Agreement, and no Party has made any representations or warranties to any other Party concerning the terms, enforceability, and implications of this Agreement other than as reflected in this Agreement; (ii) it has had a full and fair opportunity to review, comment, and make compromise revisions to this Agreement; (iii) this Agreement shall be governed by and interpreted in accordance with the laws of the State of Nevada without giving effect to the conflicts of laws principals thereof; (iv) it hereby submits to the jurisdiction and venue of the courts located in Washoe County, Nevada, for purposes of any arbitration or litigation related to this Agreement; (v) each provision of this Agreement is severable, and the unenforceability or invalidity of any provision of this Agreement shall not affect the validity or enforceability of the remaining provisions of this Agreement; provided, however, that each Party shall use reasonable efforts to give effect to the economic or other intended purpose of any provision that is unenforceable or invalid; (vi) this Agreement may be executed in counterparts, each of which when executed and delivered shall be deemed an original, but all of which shall constitute one and the same instrument; and (vii) this Agreement may be executed by original, facsimile, and electronic signatures, each of which when affixed shall be deemed to be an original that is enforceable against the executing Party.

 

Subject to any limitations of applicable law, this Agreement shall continue in full force and effect from the Effective Date until the end of time and to the bounds of the universe unless earlier terminated by the written agreement of the Parties, or any of them; provided, however, that no termination shall be binding upon any non-terminating Party.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement as of the Effective Date.

 

UPD HOLDING CORP.   GARY PLICHTA
         
         
By: /s/ Mark Conte   By: /s/ Gary Plichta
Name:  Mark Conte   Name:  Gary Plichta
Title:  Chief Executive Officer   Title:  (an individual)

 

PROPERTY RESOURCE ASSOCIATES LLC
     
     
By: /s/ Gary Plichta  
Name:  Gary Plichta  
Title:  Manager  

 

  Page 3 of 4  
 

 

Schedule A

 

OUTSTANDING LIABILITIES

 

[Schedule Contents Omitted]

 

 

Page 4 of 4

 

 

 

Exhibit 10.3

 

CONSULTING AGREEMENT

 

This consulting agreement (this “Agreement”) is entered into by and between the undersigned issuer (the “Issuer”) and consultant (the “Consultant”) as of December 31, 2020 (the “Effective Date”). Each of Issuer and Consultant may be referred to hereinafter as a “Party” or, collectively, as the “Parties”.

 

WHEREAS, Consultant is in the business of assisting public companies as a financial and business advisor and introducer of business opportunities; and

 

WHEREAS, Issuer wishes to engage the services of Consultant in relation to the development and execution of certain business introductory services for Issuer.

 

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

1. DUTIES AND INVOLVEMENT

 

Issuer hereby engages Consultant to provide Consultant's services, and Consultant hereby accepts such engagement. The services shall include, but not be limited to: (i) recommending financing options and sources; and (ii) introducing business counterparties to Issuer (the “Services”).

 

2. LIMITATION ON DUTIES

 

Consultant agrees to: (i) not disseminate any press release until it has been approved for dissemination by Issuer; and (ii) ensure that Issuer has filed or has arranged to file the required disclosure on Form 8-K with the Securities and Exchange Commission prior to the dissemination of any and all press releases.

 

3. INSIDER INFORMATION

 

Consultant acknowledges that, pursuant to this Agreement, Consultant may receive confidential insider information about Issuer and its subsidiaries. Consultant agrees not to disclose such information to anyone, including, but not limited to, Consultant's family, friends, business associates, or affiliates, until such information has been approved for release by Issuer and is released to the general public. Consultant shall not use such confidential insider information to arrange for or solicit to buy or sell shares of Issuer either directly or indirectly through any person, until such information has been approved for release by Issuer and is released to the general public.

 

4. RELATIONSHIP AMONG THE PARTIES

 

Nothing contained in this Agreement shall be construed to: (i) constitute the parties as joint venturers, partners, co-owners, or otherwise as participants in a joint undertaking; (ii) constitute Consultant as an agent, legal representative, or employee of Issuer; or (iii) authorize or permit Consultant or any director, officer, employee, agent, or other person acting on its behalf to incur on behalf of the other party any obligation of any kind, either express or implied, or do, sign, or execute any things, deeds, or documents that may have the effect of legally binding or obligating Issuer in any manner in favor of any individual, business, trust, unincorporated association, corporation, partnership, joint venture, limited liability company, or other entity of any kind. Issuer and Consultant agree that the relationship between the Parties shall be that of an independent contractor.

 

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Consulting Agreement

 

5. EFFECTIVE DATE, TERM, AND TERMINATION

 

The term (the “Term”) of this Agreement shall commence on the Effective Date and continue for a period of ninety (90) days or until terminated by Issuer in its sole discretion. Issuer may terminate this Agreement at any time by providing written notice of same to Consultant.

 

6. COMPENSATION AND PAYMENT OF EXPENSES

 

(a)           Issuer agrees to pay Consultant or its designee(s) the following compensation (the “Compensation”):

 

A one-time payment of five hundred thousand (500,000) shares of Issuer's common stock, $0.005 par value, at a deemed value of $0.025 per share, issuable within five (5) business days from the Effective Date and deliverable to Consultant in accordance with Issuer's standard transfer agent protocols.

 

(b)          Issuer shall cause to be delivered the applicable share certificates or direct registered shares statement for the shares described in subsection (a) above (the “Securities”) to Consultant. Issuer represents and warrants that, when issued, the Securities will be issued free and clear of all liens, charges, and encumbrances of any kind whatsoever, subject only to the re-sale restrictions under applicable securities laws.

 

(c)          The Parties agree that the Compensation hereunder shall be inclusive of any and all fees or expenses incurred by Consultant pursuant to this Agreement, including, but not limited to, the costs of providing the Services. Consultant shall not have any right or authority to, and shall not, employ any person in any capacity, or contract for the purchase or rental of any service, article, or material, nor make any commitment, agreement, or obligation whereby Issuer shall be required to pay any monies or other consideration without Company's prior consent in each instance.

 

(d)          For the purposes of receiving the Securities, Consultant makes the following covenants, representations and warranties:

 

(i)           Consultant acknowledges and agrees that Securities will not be registered under the Securities Act of 1933 (the “U.S. Securities Act”) and may not be offered or sold in the United States or to U.S. persons (other than distributors) unless the Securities are registered under the U.S. Securities Act, or unless an exemption from the registration requirements of the U.S. Securities Act is available. Consultant further acknowledges and agrees that hedging transactions involving the Securities may not be conducted unless in compliance with the U.S. Securities Act.

 

  Page 2 of 5  
Consulting Agreement

 

(ii)          Consultant acknowledges and agrees that Issuer shall refuse to register any transfer of the Securities not made pursuant to registration under the U.S. Securities Act or pursuant to an available exemption from registration;

 

(iii)         Consultant agrees not to engage in stock lending or hedging transactions with regard to the Securities.

 

(iv)         Consultant acknowledges and agrees that no information furnished by Issuer constitutes investment, accounting, legal, or tax advice. Consultant is relying solely upon itself and its professional advisors, if any, for any such advice.

 

(v)         Consultant acknowledges and agrees that the certificates representing the Securities shall bear a legend restricting transfer of the Securities.

 

7. SERVICES NOT EXCLUSIVE

 

Consultant agrees that it shall, at all times, faithfully and in a professional manner perform all of the duties that may be reasonably required of Consultant pursuant to the terms of this Agreement. Issuer acknowledges that Consultant is engaged in other business activities, and that it shall continue such activities during the term of this Agreement. Consultant shall not be restricted from engaging in other business activities during the term of this Agreement.

 

8. CONFIDENTIALITY

 

Consultant shall not disclose, without the consent of Issuer, any financial and business information concerning the business, affairs, plans, and programs of Issuer that are delivered by Issuer to Consultant in connection with Consultant's services hereunder (the “Confidential Information”). Consultant shall not be bound by the foregoing limitation in the event: (i) the Confidential Information is otherwise disseminated and becomes public information; or (ii) Consultant is required to disclose the Confidential Informational pursuant to a subpoena or other judicial process.

 

9. INDEMNIFICATION

 

(a)           Company agrees to indemnify and hold harmless Consultant and its respective agents and employees, against any losses, claims, damages, or liabilities incurred or suffered by Consultant that result from any untrue statement or alleged untrue statement of any material fact contained in any registration statement or prospectus of Issuer, or that arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein, or that are necessary to make the statements therein not misleading.

 

(b)           Consultant agrees to indemnify and hold harmless Issuer, its partners, financiers, parent, affiliated and related companies, and all of their respective individual shareholders, directors, officers, employees, licensees, and assigns from and against any claims, actions, losses, and expenses (including legal expenses) occasioned by any breach of Consultant's representations and warranties contained in, or by any breach of any other provision of, this Agreement by Consultant.

 

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Consulting Agreement

 

10. MISCELLANEOUS PROVISIONS

 

(a)           Currency. All currency referred to in this Agreement is in U.S. dollars.

 

(b)          Further Action. The Parties hereto shall execute and deliver all documents, provide all information, and take or forbear from all such action as may be necessary or appropriate to achieve the purposes of this Agreement.

 

(c)           Good Faith, Cooperation, and Due Diligence. The Parties hereto covenant, warrant and represent to each other good faith, complete cooperation, due diligence, and honesty-in-fact in the performance of all obligations of the parties pursuant to this Agreement. All promises and covenants are mutual and dependent.

 

(d)           Assignment. This Agreement may not be assigned by either Party hereto without the written consent of the other but shall be binding upon the successors of the parties.

 

(e)           Notices. All notices required or permitted to be given under this Agreement shall be given in writing and shall be delivered, either personally or by express delivery service, to the Party to be notified. Notice to each Party shall be deemed to have been duly given upon delivery, personally or by courier, addressed to the attention of the officer at the address set forth heretofore, or to such other officer or addresses as either Party may designate upon at least ten (10) days written notice to the other Party.

 

(f)            Entire Agreement. This Agreement contains the entire understanding and agreement among the Parties. There are no other agreements, conditions, or representations, oral or written, express or implied, with regard thereto. This Agreement may be amended only in writing signed by both Parties.

 

(g)           Waiver. A delay or failure by any party to exercise a right under this Agreement, or a partial or single exercise of that right, shall not constitute a waiver of that or any other right.

 

(h)           Counterparts. This Agreement may be executed in duplicate counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement. In the event that the document is signed by one Party and faxed (or emailed) to another Party, the Parties agree that a faxed (or emailed) signature shall be binding upon the Parties to this Agreement as though the signature was an original.

 

(i)            Choice of Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Nevada without giving effect to the conflicts of laws principals thereof.

 

(j)            Jurisdiction and Venue. Each Party hereby submits to the jurisdiction and venue of the state and federal courts located in Washoe County, Nevada for purposes of any mediation, arbitration, or litigation related to this Agreement.

 

(k)           Severability. Each provision of this Agreement is severable, and the unenforceability or invalidity of any provision of this Agreement shall not affect the validity or enforceability of the remaining provisions of this Agreement; provided, however, that each Party shall use reasonable efforts to give effect to the economic or other intended purpose of any provision that is unenforceable or invalid.

 

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Consulting Agreement

 

(l)            Independent Counsel. Each Party has had a full and complete opportunity to consult with legal counsel or other advisers of its own choosing concerning the terms, enforceability, and implications of this Agreement, and no Party has made any representations or warranties to the other Party concerning the terms, enforceability, and implications of this Agreement other than as reflected in this Agreement.

 

IN WITNESS WHEREOF, this Agreement has been executed by the parties to it as of the Effective Date.

 

ISSUER:   CONSULTANT:
     
UPD Holding Corp.,   Sage Intergroup Inc.,
a Nevada corporation   a California corporation
     
     
By: /s/ Mark Conte     By: /s/ Richard Gavzie  
Name: Mark Conte   Name: Richard Gavzie
Title: President   Title: President

 

 

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