Form 8-K for RG GLOBAL LIFESTYLES INC
June 28 2007 ITEM 1.01 ENTRY INTO A MATERIAL DEFINTIVE AGREEMENTOn June 22, 2007, Catalyx Fluid Solutions ("CFS"), a division of RG Global Lifestyles, Inc. ("RGBL"), signed a five-year agreement with Yates Petroleum Corporation ("Yates") whereby CFS will construct and operate a water treatment plant in Wyoming utilizing RGBL's proprietary Catalyx ion exchange technology that removes contaminants from the produced water associated with Yates' coal bed methane (CBM) production. The agreement calls for the project to be implemented in three phases, which are expected to be completed and operational within eighteen months of the date of agreement. In the aggregate, RGBL will be paid royalties on a per barrel basis of clean water discharged from the plant, which at full capacity should result in gross revenues to RGBL of $20-22 million over the term of the agreement. Yates has the right to extend the term of the contract beyond the first five years at its discretion if the regulatory authorities extend the relevant discharge permits for the plant.