Northeast General Corporation (A)
In 1988, Northeast General Corporation entered into an agreement with Wellington Advertising, Inc. whereby Northeast agreed to act “as a non-exclusive independent investment banker and business consultant for the purposes of finding and presenting candidates for purchase, sale, merger or other business combination.” The agreement further provided that Northeast General would be entitled to a finder’s fee, based on the size of the transaction, if a transaction were completed within three years of Wellington’s introduction to the “found” buying party. In the course of his discussion with Northeast’s new president, Dunton, Wellington’s president, Arpadi, had confided that he was “terrified” he “would lose everything” in a bad merger.