Document:

CREDIT AGREEMENT DATED 23-APR-2004

 EXHIBIT 10.6 
  
 CREDIT AGREEMENT 
  
 THIS CREDIT AGREEMENT (this “Agreement”) is made and entered into effective the 23rd day of April, 2004, by and between Randal J. Kirk (2000) Limited
Partnership, a Delaware limited partnership (“Lender”), and New River Pharmaceuticals Inc., a Virginia corporation (“Borrower”). 
  
 Recitals 
  
 A. Borrower desires to obtain an irrevocable commitment from Lender to extend Borrower credit for such purchases and expenditures aggregating up to US$5,000,000.00, as hereinafter provided. 
  
 B. Borrower is applying all credit provided hereunder for general working capital and
operating expenses (collectively, the “Expenses”) for the development and operation of Borrower’s technologies and business. 
  
 C. Lender is willing to extend such irrevocable credit commitment to Borrower on the terms and subject to the conditions hereinafter set forth. 
  
 Agreement 
  
 NOW, THEREFORE, in reliance upon the recitals set forth above (which are hereby incorporated by reference and made a part of this Agreement)
and for and in consideration of the mutual promises and covenants contained herein and the mutual benefits to the parties to be derived from this Agreement, it is hereby agreed as follows: 
  
 ARTICLE I 
 CREDIT 
  
 1.1 Amount.
Pursuant to the terms of this Agreement, Lender shall extend credit to Borrower from time to time during the term of this Agreement aggregating up to the principal amount of US$5,000,000.00. The credit extended under the Agreement and as evidenced
by this Agreement is to be used by Borrower for Expenses. Borrower agrees that the monthly statements of account provided by the Lender to the Borrower shall serve as prima facie evidence as to the unpaid and funded principal balance owed to Lender
in the event that it should become necessary for Lender to commence an appropriate action seeking to collect the unpaid principal funded balance under this Agreement and interest, costs, and attorneys’ fees in any court of competent
jurisdiction. 
  
 1.2 Interest. All credit provided pursuant to the terms
of this Agreement shall bear interest at twelve percent (12%) per annum from the date hereof until payment in full or renegotiation, whichever may occur first. Any additional extensions of credit by Lender to Borrower shall bear interest at the
foregoing rate from and after the date of such loan. The principal and interest, together with any extensions, modifications, renewals, or additional loans; the performance of the covenants; and agreements of Borrower contained herein shall be
hereinafter referred to collectively as the “Obligation.” 

 1.3 Billing and Payment. 
  

      (a) Borrower may make periodic payments in part or full payment of any amount under the Master Promissory Note, and any such
payments shall be applied first to any interest due. 
  
       (b) The entire amount of credit extended under the Credit Agreement (including all interest and other amounts hereunder) will be due upon the earlier of April 1, 2005, or the date the Borrower shall have
completed a firmly underwritten public offering or shall have completed a private equity financing, or series of financings, in the amount of at least US$25,000,000.00 in the aggregate. 
  
 1.4 Term. This Agreement shall continue in full force and effect until April 1, 2005; or until the date the Borrower shall have
completed a firmly underwritten public offering or shall have completed a private equity financing, or series of financings, in the amount of at least US$25,000,000.00 in the aggregate; or until the entire amount owed by Borrower hereunder is
paid-in-full or has been renegotiated with Lender, whichever is the first to occur. 
  
 ARTICLE II 
 CONDITIONS OF LENDER’S OBLIGATIONS 
  
 All obligations of Lender under this Agreement are subject to the fulfillment, prior to any
credit extended hereunder, of each of the following conditions, any or all of which may be waived in writing in whole or in part by Lender at or prior to execution. 
  
 2.1 Satisfaction of Conditions. Borrower shall have performed and satisfied in all material respects all obligations, conditions, and
covenants required by this Agreement to be performed and satisfied by it at or before the execution of this Agreement. 
  
 2.2 Certain Documents. The obligation of Lender to extend credit to Borrower is subject to the condition that all of the following documents shall have been
received by Lender: 
  
       (a) The Master
Promissory Note in the form of Exhibit A attached hereto, with appropriate insertions, executed as appropriate by Borrower; 
  
       (b) A completed funding request under the Master Promissory Note substantially similar in form to Exhibit B attached hereto,
with appropriate insertions, executed as appropriate by Borrower; and 
  
       (c) This Agreement executed by Borrower and Lender. 
  
 In the event that the foregoing conditions have been met, Lender shall extend credit to Borrower pursuant to this Agreement. 
  
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF
BORROWER 
  
 In order to obtain Lender’s reliance and agreement to enter into
this Agreement and the transactions contemplated hereby, Borrower makes the following representations and warranties: 
  

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 3.1 No Conflicting Agreements. The execution and delivery of this Agreement and the consummation of the
transactions provided for herein will not violate or conflict with or result in the breach of any provision or covenant or constitute a default or an event which with notice or lapse of time or both would constitute a default under, or accelerate
the performance required by, or result in the termination of any agreement, stipulation, order, judgment, or decree to which Borrower is a party or is subject or which binds any of the properties or assets of Borrower. 
  
 3.2 Litigation. Borrower is not aware of any claim or litigation (either pending or
threatened) that would prevent or encumber its power to execute, deliver, or consummate this Agreement and the transactions contemplated hereby. 
  
 3.3 Binding Obligation. This Agreement (including, without limitation, the Master Promissory Note) has been duly executed and delivered by Borrower and constitutes
a legal, valid, and binding obligation of Borrower and is enforceable against them in accordance with its terms, except as the enforceability may be affected by bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’
rights generally and to the extent the availability of certain remedies may be limited by certain equitable principles of general applicability. 
  
 3.4 No Existing Default. Borrower is not in default, nor has any event occurred that with notice or the passage of time or both would constitute a default under
any agreement, indenture, or contract relating to any material obligation for borrowed money or any form of credit agreement whatsoever, including, without limitation, any installment purchase agreements. 
  
 ARTICLE IV 
 NEGATIVE COVENANTS OF BORROWER 
  
 Borrower agrees that it will not, prior to the satisfaction of all its obligations under the terms of this Agreement, do any of the following: 
  
 4.1 Satisfaction of Existing Obligations. Other than in the ordinary course of business as now conducted, Borrower shall not cause to be created or suffer to exist
any additional lien, mortgage, pledge, charge, security, or other encumbrance on any of its assets or equipment. 
  
 4.2 Amendment of Contracts. Other than in the ordinary course of business as now conducted, Borrower shall not engage in any transaction that would create or
result in any additional indebtedness or pay any obligation or liability or enter into, terminate, or amend any agreement or transfer or grant any rights under any lease, license, or other agreement or in any manner dispose of or acquire any
material amount of assets. 
  
 4.3 Continuation of Business. Borrower shall
use its best efforts consistent with prudent business practices to preserve and maintain the business and business organization of Borrower intact; to preserve its goodwill; to pay its obligations as they mature; and to retain Borrower’s
relationship with its customers. 
  
 4.4 Regulatory Compliance. Borrower
shall not violate in any material respect any law, rule, regulation, order, or ordinance applicable to the conduct of the business of Borrower or relinquish or terminate any rights, qualifications, license, or permits that would materially affect
the financial condition or the business of Borrower. 
  

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 ARTICLE V 
 AFFIRMATIVE COVENANTS OF BORROWER 
  
 5.1 Use
of Credit. Borrower shall utilize 100% of the credit extended hereby for the Expenses. 
  
 5.2 Financial Records. Borrower shall maintain adequate books, accounts, and records in accordance with the practices of prudent businessmen and in accordance with generally accepted accounting principles,
consistently applied, and shall make all such records available for inspection and duplication, by Lender or its agents at any time during reasonable business hours. 
  
 5.3 Insurance. Borrower shall insure and keep insured at all times all of their property of an insurable nature, with insurers who
are financially sound and responsible, against loss or damage from fire and other risks, casualties, or contingencies, and shall carry such public liability as is reasonably prudent in the conducting of Borrower’s business. 
  
 5.4 Compliance With Laws. Borrower shall take whatever actions are necessary to comply
with all statutes and regulations governing the activities and operations of Borrower and maintain its corporate existence and right to carry on business in each state or other jurisdiction in which Borrower now conducts business. 
  
 ARTICLE VI 
 DEFAULT 
  
 6.1 Events of
Default. Upon the occurrence and during the continuance of any one or more of the events hereinafter enumerated, Lender may forthwith or at any time thereafter during the continuance of any such event, by notice in writing to Borrower, declare
the unpaid balance of the principal and interest then accrued to be immediately due and payable, and the principal and interest shall become and shall be immediately due and payable without presentation, demand, protest, notice of protest, or other
notice of dishonor, all of which are hereby expressly waived by Borrower, such events being as follows: 
  
       (a) Default in the payment of the principal and interest or any portion thereof when the same shall become due and payable, whether at maturity as therein expressed, by
acceleration, or otherwise, unless cured within fifteen (15) days after notice thereof by the Lender to Borrower; 
  
       (b) The creditors under any priority secured indebtedness of Borrower shall declare the amounts due thereunder to be due and payable
following default; 
  
       (c) Default in the due
observance or performance of any other covenant or obligation contained in this Agreement (including, without limitation, the Master Promissory Note) unless observed or performed within fifteen (15) days after notice thereof to Borrower by Lender;
provided, if compliance is not possible within fifteen (15) days, default shall occur upon failure within fifteen (15) days to take steps that will produce compliance as soon as is reasonably practicable; 
  
       (d) Borrower shall file a voluntary petition in
bankruptcy or a voluntary petition seeking reorganization, or shall file an answer admitting the jurisdiction of the court and any material allegations of an involuntary petition filed pursuant to any act of Congress relating to bankruptcy or to any
act purporting to be amendatory thereof, or shall be adjudicated bankrupt, or shall make an assignment for the benefit of creditors, or shall apply for or consent to the appointment 

  

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of any receiver or trustee for Borrower, or of all or any substantial portion of its property, or Borrower shall make an assignment to an agent authorized to
liquidate any substantial part of its assets; or 
  
       (e) An order shall be entered pursuant to any act of Congress relating to bankruptcy or to any act purporting to be amendatory thereof approving an involuntary petition seeking reorganization of Borrower,
or an order of any court shall be entered appointing any receiver or trustee of or for Borrower, or any receiver or trustee of all or any substantial portion of the property of Borrower, or a writ or warrant of attachment or any similar process
shall be issued by any court against all or any substantial portion of the property of Borrower, and such order approving a petition seeking reorganization or appointing a receiver or trustee is not vacated or stayed, or such writ, warrant of
attachment, or similar process is not released or bonded within 60 days after its entry or levy. 
  
 6.2 Procedure on Default. Upon the occurrence of an event of default, and at any time thereafter, Lender may elect to declare the entire Obligation hereby secured immediately due and payable and shall have all
the rights and remedies that may now or hereafter exist at law or equity for the collection of the Obligation and the enforcement of the covenants herein and resort to any remedy provided hereunder or provided by the Virginia Uniform Commercial
Code, or by any other law of the Commonwealth of Virginia, shall not prevent the concurrent or subsequent employment of any other appropriate remedy or remedies. 
  
 6.3 Defaults Upon Prior Indebtedness. Upon the default by Borrower of any term, covenant, or condition required to be performed by it
on any priority secured indebtedness or the receipt by Borrower from any such priority secured creditor of notice of any default under such indebtedness, whether or not repayment of the indebtedness is accelerated, Borrower shall promptly advise
Lender in writing of the nature and amount of default and of the action, if any, threatened by such priority secured creditor. Notwithstanding the Borrower’s obligation to cure any and all such defaults, Lender may, but shall not be obligated
to do so, in the name, place, and stead of Borrower and, in the case of such curative efforts by Lender, succeed to all of the rights, remedies, and security of such priority creditor. 
  
 ARTICLE VII 
 MISCELLANEOUS PROVISIONS 
  
 7.1 Assignment of Agreement. Except
as expressly provided, neither the rights nor the obligations of the parties to this agreement may be assigned or delegated by either party in whole or in part without the prior written consent of the other party. 
  
 7.2 Governing Law. Unless otherwise provided herein, this Agreement shall be governed
by and construed and enforced in accordance with the laws of the Commonwealth of Virginia. 
  
 7.3 Notices. Any notices or other communications required or permitted hereunder shall be sufficiently given if personally delivered to it or, if sent by facsimile transmission or other electronic communication
confirmed by registered or certified mail, postage prepaid, or if sent by prepaid telegram addressed as follows: 
  

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 If to Lender: 
  
 Randal J. Kirk (2000) Limited Partnership 
 The Governor Tyler 
 1881 Grove Ave 
 Radford, VA 24141 
 Attn: Managing General Partner 
 Fax: (540) 633-7939 
  
 If to Borrower: 
  
 New River Pharmaceuticals Inc. 
 The Governor Tyler 
 1881 Grove Ave 
 Radford, VA 24141 
 Attn: Secretary 
 Fax: (540) 633-7939 
  
 or such other addresses as shall be furnished in writing by any party in the manner for giving notices hereunder, and any such notice or
communication shall be deemed to have been given as of the date so delivered or sent by facsimile transmission or other electronic communication, three days after the date so mailed, or one day after the date so telegraphed or sent by overnight
delivery. 
  
 7.4 Title and Captions. Section titles or captions to this
Agreement are for convenience and reference only and shall not be deemed part of this Agreement and shall not be interpreted to define, limit, augment, extend, or describe the scope, content, or intent of any part or parts of this Agreement.

  
 7.5 Pronouns and Plurals. Whenever the context may require, all
pronouns used herein shall include the corresponding masculine, feminine, or neuter forms and the singular form of pronouns and verbs shall include the plural and vice versa. Each of the foregoing genders and plurals is understood to refer to a
corporation, partnership, or other legal entity when the context so requires. 
  
 7.6 Further Action. The parties shall execute and deliver all documents or instruments, provide all information, and take or forebear from all such action as may be necessary or appropriate to achieve the purpose of this Agreement.

  
 7.7 Binding Effect Upon Successors. This Agreement shall be binding
upon, and inure to the benefit of, the parties and their respective heirs, executors, administrators, successors, legal representatives, and assigns; provided, that this provision shall not be construed as permitting assignment, substitution,
delegation, or other transfer of rights or obligations, except strictly in accordance with the provisions of the other sections of this Agreement. 
  
 7.8 Creditors. Unless expressly provided in this Agreement, none of the provisions of this Agreement shall be for the benefit of, or enforceable by, any creditors
of any party hereto. 
  
 7.9 Waiver. No failure by any party to insist upon
the strict performance of any covenant, duty, promise, or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute a waiver of any such breach or any other covenant, duty, promise, or
condition. Any party may, by notice delivered in the manner provided in this 
  

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 Agreement, but shall be under no obligation to, waive any of its rights or any conditions to its obligations hereunder,
or any duty, obligation, or covenant of any other party. No waiver shall affect or alter the remainder of this Agreement, but each and every other covenant, duty, promise, and condition hereof shall continue in force and effect with respect to any
other then existing or subsequently occurring breach. Borrower hereby expressly waives its right to a jury trial in any proceeding arising under or in connection with this Agreement or the transactions contemplated herein. 
  
 7.10 Severability. In the event that any condition, covenant, or other provision
herein contained is held to be invalid or void by any court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall in no way affect any other covenant or condition herein contained. If such
condition, covenant, or other provision shall be deemed invalid due to its scope or breadth, such provision shall be deemed valid to the extent of the scope or breadth permitted by law. 
  
 7.11 Entire Agreement. This Agreement contains the entire understanding of the parties with respect to the subject matter hereof, and
supersedes all prior and contemporaneous discussions, agreements and understandings with respect thereto. All exhibits annexed to this Agreement and any documents to be delivered herewith are expressly made a part of this Agreement as fully as
though completely set forth in it. All references to this Agreement, either in the Agreement itself or in any of such writings, shall be deemed to refer to and include this Agreement itself or in any of such exhibits or writings. Any breach of or
default under any provision of any of such writing shall, for all purposes, constitute a breach or default under this Agreement and all other such writings. 
  
 7.12 Attorneys’ Fees. Should either party take any legal action to enforce any of the terms or provisions of this Agreement, or any costs are incurred by
reason of breach or default in any of the covenants, representations, warranties, terms, or conditions of this Agreement, the non-defaulting party shall be entitled to recover any costs, including attorneys’ fees incurred in enforcing the
obligations of the other party under the terms of this Agreement or in collecting any judgment that may be entered. 
  
 7.13 Time of Essence. Time is of the essence in the performance of the duties, covenants, or obligations of the parties under the terms of this Agreement.

  
 [SIGNATURES ON THE FOLLOWING PAGE] 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. 
  

			
	LENDER:	  	BORROWER:
		
	 Randal J. Kirk (2000) Limited Partnership
	  	New River Pharmaceuticals Inc.
		
	 By: /s/ Randal J.
Kirk                    
	  	By: /s/ Marcus E. Smith                
	             Randal J. Kirk
	  	             Marcus E. Smith
	             Managing General Partner
	  	             Secretary

  

 Page 8Revised Employment Agreement with Stephen M. Kasprisin

 Exhibit 10.53 
  
 EMPLOYMENT AGREEMENT 
  
 THIS REVISED EMPLOYMENT AGREEMENT (this “Agreement”) is entered into by and between NATURADE, INC., a Delaware corporation (the
“Company”), and Stephen Kasprisin (the “Employee”) as of June 1, 2004 (the “Effective Date”). 
  
 I. Employment 
  
 The Company employs the Employee and the Employee accepts employment (hereinafter, the “Employment”) upon the terms and conditions of this
Agreement. 
  
 II. Duties 
  
 Employee shall perform the duties of Chief Operating Officer, and such other
duties of a responsible nature consistent with his position as may be prescribed from time to time by the Board of Directors of the Company (the “Board”). Employee is to devote all of his working time and efforts to the business and
affairs of the Company. During the Employment, Employee shall report to the Chief Executive Officer of the Company and the Board 
  
 III. Term 
  
 The term of this Agreement shall begin on (the Effective Date and, subject to extension and termination as provided herein, shall expire on June 01, 2005
(the “Initial Termination Date”). The period commencing on the Effective Date and expiring on the Initial Termination Date shall be referred to hereinafter as the “Initial Term” and, together with any extension thereof, the
“Term.” Notwithstanding the foregoing, this Agreement and the Employment shall be automatically extended after the Initial Term for an indefinite period. The effective date of any termination hereunder is referred to hereinafter as the
“Termination Date.” 
  
 IV.
Compensation 
  
 1. Base Salary 
  
 The Company shall pay the Employee for all services rendered a salary of
$178,000.00 per year; payable in such manner as the Company shall pay its executives. 

 2. Annual Incentive Compensation 
  
 Kasprisin shall be entitled to a bonus opportunity for each fiscal year in an amount directly related to the Company’s
performance for said fiscal year. The company shall utilize the following formula for the purposes of determining the annual bonus in any fiscal year in which the Company has positive net income: Actual net income/budgeted net income x 35% x BASE
SALARY. Actual net income must be at least 100% of budgeted net income for any bonus payout to occur. Said bonus shall be paid to Kasprisin in a lump sum within 60 days of the end of the fiscal year upon confirmation by the CEO of Kasprisin’s
performance. 
  
 3. Automobile Allowance 
  
 The company shall also provide Kasprisin with an automobile allowance of
$300.00 per month, to enable Kasprisin to perform his duties under this AGREEMENT. 
  
 4. Stock Options 
  
 Upon
commencement of the Employment, the Board of Directors will grant the Employee the option to purchase 50,000 shares of the Company’s common stock (the “Options”) subject to the terms and conditions of the Company’s Stock Option
Agreement to be executed by the Company and the Employee (the “Option Agreement”). Such Options shall be granted at Fair Market Value (as defined in the Option Agreement) and shall vest in accordance with the following vesting schedule:

  

			
	 Number of Options

	  	 Vesting Date

	 12,500
	  	Six Month from Effective Date
	 12,500
	  	Twelve Months from Effective Date
	 12,500
	  	Eighteen Months from Effective Date
	 12,500
	  	Twenty-four Months from Effective Date

  
 The Options shall
terminate in accordance with the terms and conditions of the Option Agreement. 

 5. Fringe Benefits 
  
 Employee and his dependents shall be eligible for all fringe benefits provided to its employees. In addition, the Employee
shall be entitled to four (4) weeks paid vacation during each year of the Term. 
  
 V. Extent of Services 
  
 During the Term, Employee shall not, without the prior written consent of the Company, be engaged in any other business activity whether or not such
business activity is pursued for gain, profit or other pecuniary advantage. This shall not be construed as preventing Employee from investing his assets in such form or manner as will not require the performance of services of Employee in the
operation of the affairs of the enterprises or companies in which said investments are made. 
  
 VI. Competitive Activities 
  
 During the Term, Employee shall not, directly or indirectly, either as an employee or employer, consultant, agent, principal, partner, stockholder (of
more than 5% of the outstanding stock on any entity), corporate officer, director, or in any other individual or representative capacity, engage or participate in any business that is in competition with the business of the Company. The parties
agree that the terms of this paragraph are reasonable and in compliance with applicable law and, in that regard, anything to the contrary appearing in this Agreement notwithstanding, if a court shall determine that the scope of this paragraph shall
be unenforceable, such court is hereby authorized and empowered to restrict the geographic area and the scope of activities to which this paragraph pertains to the minimum extent necessary so that this paragraph as so restricted shall be rendered
enforceable. 

 VII. Non-Disclosure; Nonsolicitation; Nondisparagement 
  
 1. Employee shall not during the Term or at any time thereafter (i) disclose
to any person not employed by the Company or any person, firm or corporation engaged to render services to Company except during the Term for the benefit of Company, or (ii) use for the benefit of himself, or others, any Confidential Information (as
defined below) obtained by Employee prior to the Effective Date, during the Term or any time thereafter, including, without limitation, “know-how”, trade secrets, details of the Company’s contracts with third parties, pricing
policies, financial data, operational methods, marketing and sales information or strategies, product development techniques or plans or any strategies relating thereto, technical processes, designs and design projects, and other proprietary
information of Company (“Confidential Information”); 
  
 provided, however, that this provision shall not preclude Employee from (x) upon advice of counsel and after reasonable notice to Company, making any disclosure required by any applicable law or (y) using or disclosing
information known generally to the public (other than information known generally to the public as a result of any violation of this paragraph VII by or on behalf of Employee). 
  
 2. As requested by the Company from time to time and upon the termination of the Employment for any reason, Employee will
promptly deliver to the Company all copies and embodiments, in whatever form, of all Confidential Information in Employee’s possession or within Employee’s control (including, but not limited to, written records, notes, photographs,
manuals, notebooks, documentation, program listings, flow charts, magnetic media, disks, diskettes, tapes and all other materials containing any such Confidential Information) regardless of the location or form of such material and, if requested by
the Company, will provide the Company with written confirmation that all such materials have been delivered to the Company. 
  
 3. The Employee shall not, either directly or indirectly, call on, solicit or take away or assist to be called on, solicited or taken away, any of the
customers, employees or independent contractors of the Company on whom the Employee called or with whom the Employee became acquainted during the Employee’s employment with or hiring by the Company, either for the Employee’s own benefit,
or for the benefit of any other person, firm or corporation. The Employee shall not disclose the name of any employee, customer, sales representative or other employee of the Company to any third party, unless the disclosure occurs during the
Employee’s employment with the Company and is reasonably required by the Employee’s position with the Company. The Employee shall not now or in the future disrupt, damage, impair or interfere with the business of the Company in any manner,
including, without limitation, inducing an employee to leave the employ of the Company or inducing an employee, a consultant, a sales representative or an independent contractor to sever that person’s relationship with the Company either by
interfering with or raiding the Company’s employees or sales representatives, disrupting its relationships with customers, agents, independent contractors, representatives or vendors, or otherwise. 

 In the event of a breach or threatened breach by Employee of the provisions of paragraph VI above or this
paragraph VII, the Company will be entitled to injunctive or other equitable relief restraining Employee from any breach or threatened breach of paragraph VI above or this paragraph VII. Nothing herein shall be construed as prohibiting the Company
from pursuing any other remedies available to the Company for such breach or threatened breach, including the recovery of damages from Employee. 
  
 VIII. Expenses 
  
 The Employee may incur reasonable expenses, in accordance with Company policies for such expenses, for promoting the Company’s business, including
expenses for entertainment, travel and similar items. The Company will reimburse the Employee for all such expenses upon the Employee’s presentation of an itemized account of such expenditures and supporting documentation, in accordance with
Company policy. 
  
 IX. Termination by the
Company for Cause 
  
 This Agreement may be terminated by the
Company under any of the following circumstances: 
  
 1. Upon the
death of Employee; or 
  
 2. Upon the inability of Employee to
perform all of his duties hereunder by reason of illness, physical, mental or emotional disability or other incapacity, which inability shall continue for more than three (3) successive months or six (6) months in the aggregate during any period of
twelve (12) consecutive months, or 
  
 3. For cause, defined as:

  

	 	(i)	the willful failure of Employee (other than for the reasons described in subparagraph IX(2) above) to (a) substantially perform his duties hereunder, or (b) comply materially with
reasonable directives of the Company, in either case which remains uncured following ten (10) days after written notice thereof has been provided to the Employee by the Company. No act, or failure to act, on Employee’s part shall be considered
“willful” unless done, or omitted to be done, by him not in good faith and without reasonable belief that his action or omission was in the best interest of the Company; 

	 	(ii)	conviction of a crime involving a felony, fraud embezzlement or the like, 

  

	 	(iii)	the engaging by Employee in conduct, or the taking by Employee of any action, which is materially injurious to the Company and remains uncured following ten (10) days after written
notice thereof has been provided to the Employee by the Company, 

  

	 	(iv)	habitual insobriety or habitual abuse of a controlled substance, 

  

	 	(v)	misappropriation of the Company’s funds, or 

  

	 	(vi)	the failure of Employee to comply with the provisions of Paragraphs V, VI or VII above. 

  
 X. Termination by Employee for Good Reason 
  
 This Agreement may be terminated by Employee under any of the following circumstances (“Good Reason”): 

 
 1. The failure of the Company to observe or comply with any of the
material terms or provisions of this Agreement after written notice from Employee to Company specifying the grounds for termination and the Company fails within ten (10) days after receipt of such notice to cure such failure; 
  
 2. A “Change of Control” (as defined in Exhibit A hereto) pursuant
to which the Employee is not retained by the Company (or other surviving or successor entity following such Change of Control) on substantially the same terms as provided herein. 
  
 XI. Termination Without Cause 
  
 This Agreement may be terminated by either party without cause upon thirty (30) days’ prior written notice to the other
party. 
  
 XII. Severance 
  
 In the event this Agreement is terminated by the Company without cause
pursuant to paragraph XI, or in the event this Agreement is terminated by the Employee for Good Reason as provided in paragraph X, the Company shall continue to pay the Employee his then current Base Salary and provide the 

 benefits set forth in paragraph IV above during the period commencing on the Termination Date and ending
six (6) months thereafter. In the event of termination prior to year-end, the Employee shall not be entitled to (i) payment of Incentive Bonus payable for such year (unless such termination was without cause or for Good Reason, in which event the
Employee shall be entitled to the Incentive Bonus pro-rated through the Termination Date and payable at the time set forth in paragraph IV(B) above), or (ii) stock options which have not vested as of the Termination Date; provided that if
such termination occurs as a result of a Change of Control as provided in paragraph X(B), all Options which have not then vested shall immediately vest prior to the effectiveness of any such termination. 
  
 XIII. Waiver of Breach 
  
 The waiver by either party of a breach of any provision of this Agreement by
the other shall not operate or be construed as a waiver of any subsequent breach. 
  
 XIV. Arbitration 
  
 Any dispute arising out of or relating to this Agreement or the transactions contemplated hereby shall be finally resolved and determined by mandatory,
binding arbitration before a single arbitrator in Irvine, California, in accordance with the then-prevailing commercial arbitration rules of the American Arbitration Association; provided, however, that no claim for specific
performance or injunctive relief shall be required to be submitted to arbitration; provided, further, that the arbitrator shall apply the internal laws of the State of California. Each of the parties hereto submits to the jurisdiction of the
arbitrator appointed in accordance with such rules and (without limiting the effect of the foregoing arbitration clause) to the jurisdiction of any state or federal court sitting in Orange County, California, in any action or proceeding arising out
of or relating to this Agreement and agrees that all claims in respect of the action or proceeding may be heard and determined in any such court. Each of the parties hereto waives any defense of inconvenient forum to the maintenance of any action or
proceeding so brought and waives any bond, surety, or other security that might be required of any other party with respect thereto. 

 Nothing in this paragraph XIV, however, shall affect the right of any party to bring any action or
proceeding arising out of or relating to this Agreement or the transactions contemplated hereby in any other court or to serve legal process in any other manner permitted by law or at equity, for the purposes of compelling arbitration, enforcing any
award in arbitration, or seeking specific performance or injunctive relief. Any party hereto may make service on any other party by sending or delivering a copy of the process to the party to be served at the address and in the manner provided for
the giving of notices in paragraph XVII hereof. Each party hereto agrees that a final award in any such arbitration or final judgment in any such action or proceeding so brought shall be conclusive and may be enforced by entry of such award in any
court of competent jurisdiction, suit on the award or judgment, or in any other manner provided by law or at equity. In the event of legal action or arbitration to construe or enforce this Agreement, the prevailing party (as determined by the court
or arbitrator, as applicable) shall be entitled to recover its reasonable attorneys’ fees and costs. 
  
 XV. Assignment 
  
 The rights and obligations of the Company under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of the
Company, but the rights and obligations of Employee are personal and may not be assigned or delegated without the Company’s prior written consent. 
  
 XVI. Entire Agreement 
  
 This Agreement and all Exhibits attached hereto contain the entire agreement of the parties and may not be changed orally, but only by an agreement in
writing executed by the party against whom enforcement of any waiver, change, modification, extension or discharge is sought. 
  
 XVII. Law Applicable 
  
 This Agreement shall be governed in all respects, whether as to validity, construction, capacity, performance or otherwise, by the internal laws of the
State of California. In the event any provision of this Agreement shall be held invalid by a court with jurisdiction over the parties to this Agreement, such provision shall be deleted from the Agreement, which shall then be construed to give effect
to the remaining provisions thereof. 

 XVIII. Notices 
  
 Any notice or other communication required or permitted hereunder shall be in writing and shall be delivered personally or
sent by facsimile transmission and shall be deemed given when so delivered personally or sent by facsimile transmission, if to the Company addressed to the Chief Executive Officer of the Company at its then principal place of business and if to the
Employee at his home address then shown in the Company’s records. For the purpose of determining compliance with any time limit in this Agreement, a notice shall be deemed to have been duly given (a) on the date of service or delivery, if
served personally on the party to whom notice is to be given or sent by facsimile, or (b) on the second business day after mailing, if mailed to the party to whom the notice is to be given in the manner provided in this paragraph. 

 IN WITNESS WHEREOF, the parties intending to be legally bound, have executed this Agreement as of the day
and year first above stated. 
  

			
	 NATURADE, INC.
	 	EMPLOYEE
		
	 /s/ Bill D. Stewart

	 	 /s/ Stephen Kasprisin

	 Bill D. Stewart,
	 	Stephen Kasprisin
	 Chief Executive Officer
	 	 

 EXHIBIT A 
  
 As used in this Agreement, the phrase “Change in Control” shall mean: 
  

(a) Except as provided by subparagraph (b) hereof, the acquisition by any person, entity or “group”, within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of the combined voting power of the then
outstanding securities entitled to vote generally in the election of directors of the Company; or 
  
 (b) Approval by the Board of a reorganization, merger or consolidation of the Company with any other person, entity or corporation, other than:

  
 (i) a merger or consolidation which would result in the
voting securities of the Company immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of another entity) more than 50% of the combined voting power of the securities entitled
to vote generally in the election of directors of the Company or such other entity outstanding immediately after such merger or consolidation; or 
  
 (ii) a merger or consolidation effected to implement a recapitalization of the Company or similar transaction in which no person, entity or group acquires
beneficial ownership of 50% or more of the combined voting power of the securities entitled to vote generally in the election of directors of the Company outstanding immediately after such merger or consolidation; or 
  
 (iii) Approval by the Board of a plan of complete liquidation of the Company
or an agreement for the sale or other disposition by the Company of all or substantially all of the Company’s assets (other than a liquidation or sale pursuant to which all or substantially all of the Company’s assets continue to be owned
by an affiliate of the Company).

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