Document:

EX-10.2

 Exhibit 10.2 
  

					
	

	 		 	

 RESTRICTIVE COVENANT AND CONFIDENTIALITY AGREEMENT 

In exchange for the mutual promises and consideration set forth below, this Restrictive Covenant and Confidentiality Agreement (“Agreement”) is
entered into by and between the Federal Home Loan Mortgage Corporation (“Freddie Mac” or “Company”) and David Brickman (“Executive” or “you”), effective on the date the Executive assigns a personal
signature to page 5 of this Agreement. 
 I.    Definitions 

The following terms shall have the meanings indicated when used in this Agreement. 

A.    Competitor: The following entities, and their respective parents, successors, subsidiaries, and affiliates are competitors:
(i) Fannie Mae (ii) all Federal Home Loan Banks (including the Office of Finance); and (iii) such other entities to which Executive and the Company may agree in writing from time-to-time. 
 B.    Confidential Information: Information or materials in written,
oral, magnetic, digital, computer, photographic, optical, electronic, or other form, whether now existing or developed or created during the period of Executive’s employment with Freddie Mac, that constitutes trade secrets and/or proprietary or
confidential information. This information includes, but is not limited to: (i) all information marked Proprietary or Confidential; (ii) information concerning the components, capabilities, and attributes of Freddie Mac’s business
plans, methods, and strategies; (iii) information relating to tactics, plans, or strategies concerning shareholders, investors, pricing, investment, marketing, sales, trading, funding, hedging, modeling, sales and risk management;
(iv) financial or tax information and analyses, including but not limited to, information concerning Freddie Mac’s capital structure and tax or financial planning; (v) confidential information about Freddie Mac’s customers,
borrowers, employees, or others; (vi) pricing and quoting information, policies, procedures, and practices; (vii) confidential customer lists; (viii) proprietary algorithms; (ix) confidential contract terms; (x) confidential
information concerning Freddie Mac’s policies, procedures, and practices or the way in which Freddie Mac does business; (xi) proprietary or confidential data bases, including their structure and content; (xii) proprietary Freddie Mac
business software, including its design, specifications and documentation; (xiii) information about Freddie Mac products, programs, and services which has not yet been made public; (xiv) confidential information about Freddie Mac’s
dealings with third parties, including dealers, customers, vendors, and regulators; and/or (xv) confidential information belonging to third parties to which Executive received access in connection with Executive’s employment with Freddie
Mac. Confidential Information does not include general skills, experience, or knowledge acquired in connection with Executive’s employment with Freddie Mac that otherwise are generally known to the public or within the industry or trade in
which Freddie Mac operates. 
 II.    Non-Competition 

Executive recognizes that as a result of Executive’s employment with Freddie Mac, Executive has access to and knowledge of critically sensitive
Confidential Information, the improper disclosure or use of which would result in grave competitive harm to Freddie Mac. Therefore, Executive agrees that neither during Executive’s employment with Freddie Mac, nor for the twelve
(12) months immediately following termination of Executive’s employment for any reason, will Executive consider offers of employment from, seek or accept employment with, or otherwise directly or indirectly provide professional services to
any Competitor, if the Executive will be rendering duties, responsibilities or services for the Competitor 

 
that are of the type and nature rendered or performed by you during the past two years of your employment with Freddie Mac. Executive acknowledges and agrees that this covenant has unique,
substantial and immeasurable value to Freddie Mac, that Executive has sufficient skills to provide a livelihood for Executive while this covenant remains in force, and that this covenant will not interfere with Executive’s ability to work
consistent with Executive’s experience, training and education. This non-competition covenant applies regardless of whether Executive’s employment is terminated by Executive, by Freddie Mac, or by a
joint decision. 
 If Executive is a licensed lawyer, this non-competition covenant shall be interpreted in a manner
consistent with any rule applicable to a licensed legal professional in the jurisdiction(s) of the Executive’s licensure or registration that concerns the Executive’s employment as counsel with, or provision of legal services to, a
Competitor. 
 III.    Non-Solicitation and
Non-Recruitment 
 During Executive’s employment with Freddie Mac and for a period of twelve
(12) months after Executive’s termination date, Executive will not solicit or recruit, attempt to solicit or recruit or assist another in soliciting or recruiting any Freddie Mac managerial employee (including manager-level,
Executive-level, or officer-level employee) with whom Executive worked, or any employee whom Executive directly or indirectly supervised at Freddie Mac, to leave the employee’s employment with Freddie Mac for purposes of employment or for the
rendering of professional services. This prohibition against solicitation does not apply if Freddie Mac has notified the employee being solicited or recruited that his/her employment with the Company will be terminated pursuant to a corporate
reorganization or reduction-in-force. 
 If Employee is a licensed lawyer,
this non-solicitation covenant shall be interpreted in a manner consistent with any rule applicable to a licensed legal professional in the jurisdiction(s) of Employee’s licensure or registration. 

IV.    Treatment of Confidential Information 

A.    Non-Disclosure. Executive recognizes that Freddie Mac is engaged in an extremely
competitive business and that, in the course of performing Executive’s job duties, Executive will have access to and gain knowledge about Confidential Information. Executive further recognizes the importance of carefully protecting this
Confidential Information in order for Freddie Mac to compete successfully. Therefore, Executive agrees that Executive will neither divulge Confidential Information to any persons, including to other Freddie Mac employees who do not have a Freddie
Mac business-related need to know, nor make use of the Confidential Information for the Executive’s own benefit or for the benefit of anyone else other than Freddie Mac. Executive further agrees to take all reasonable precautions to prevent the
disclosure of Confidential Information to unauthorized persons or entities, and to comply with all Company policies, procedures, and instructions regarding the treatment of such information. 

B.    Return of Materials. Executive agrees that upon termination of Executive’s employment with Freddie Mac for any reason
whatsoever, Executive will deliver to Executive’s immediate supervisor all tangible materials embodying Confidential Information, including, but not limited to, any documentation, records, listings, notes, files, data, sketches, memoranda,
models, accounts, reference materials, samples, machine-readable media, computer disks, tapes, and equipment which in any way relate to Confidential Information, whether developed by Executive or not. Executive further agrees not to retain any
copies of any materials embodying Confidential Information. 
 C.    Post-Termination Obligations. Executive agrees that after
the termination of Executive’s employment for any reason, Executive will not use in any way whatsoever, nor disclose any Confidential 

  
 2 

 
Information learned or obtained in connection with Executive’s employment with Freddie Mac without first obtaining the written permission of the Senior Vice President of Human Resources of
Freddie Mac. Executive further agrees that, in order to assure the continued confidentiality of the Confidential Information, Freddie Mac may correspond with Executive’s future employers to advise them generally of Executive’s exposure to
and knowledge of Confidential Information, and Executive’s obligations and responsibilities regarding the Confidential Information. Executive understands and agrees that any such contact may include a request for assurance and confirmation from
such employer(s) that Executive will not disclose Confidential Information to such employer(s), nor will such employer(s) permit any use whatsoever of the Confidential Information. To enable Freddie Mac to monitor compliance with the obligations
imposed by this Agreement, Executive further agrees, in the event Executive voluntary resigns employment, to inform in writing Freddie Mac’s Senior Vice President of Human Resources of the identity of Executive’s subsequent
employer(s) and Executive’s prospective job title and responsibilities prior to beginning employment. Executive agrees that this notice requirement shall remain in effect for twelve (12) months following the Executive’s
voluntary resignation of Freddie Mac employment. 
 D.    Ability to Enforce Agreement and Assist Government Investigations.
Nothing in this Agreement prohibits or otherwise restricts you from: (1) making any disclosure of information required by law; (2) assisting any regulatory or law enforcement agency or legislative body to the extent you maintain a legal
right to do so notwithstanding this Agreement; (3) filing, testifying, participating in or otherwise assisting in a proceeding relating to the alleged violation of any federal, state, or local law, regulation, or rule, to the extent you
maintain a legal right to do so notwithstanding this Agreement; or (4) filing, testifying, participating in or otherwise assisting the Securities and Exchange Commission or any other proper authority in a proceeding relating to allegations of
fraud. 
 V.    Consideration Given to Executive 

In exchange for agreeing to be bound by the terms, conditions, and restrictions stated in this Agreement, Freddie Mac will provide the Executive with
employment as President, which itself is adequate consideration for Executive’s agreement to be bound by the provisions of this Agreement. 

VI.    Reservation of Rights 

Executive agrees that nothing in this Agreement constitutes a contract or commitment by Freddie Mac to continue Executive’s employment in any job position
for any period of time, nor does anything in this Agreement limit in any way Freddie Mac’s right to terminate Executive’s employment at any time for any reason. 

VII.    Compliance with the Code of Conduct and Corporate Policies & Procedures, Including Personal Securities Investments
Policy 
 As a Freddie Mac employee, Executive will be subject to Freddie Mac’s Code of Conduct (“Code”) and to Corporate Policy 3-206, Personal Securities Investments Policy (“Policy”) that, among other things, limit the investment activities of Freddie Mac employees. Executive agrees to fully comply with the Code and the Policy,
copies of which are enclosed for Executive’s review. 
 Executive agrees to consult with Freddie Mac’s Chief Compliance Officer as soon as
practical prior to beginning employment about any investments that Executive or a “covered household member,” as that term is defined in the Policy, may have that may be prohibited by the Policy. Executive also agrees to disclose
prior to beginning employment any other matter or situation that may create a conflict of interest as such term is defined in the Code. 

  
 3 

 In addition, prior to beginning employment, Executive agrees to disclose to Freddie Mac’s Human
Resources Division the terms of any employment, confidentiality or stock grant agreements to which Executive may currently be subject that may affect Executive’s future employment or recruiting activities so that Freddie Mac may ensure that
Executive’s employment by Freddie Mac and conduct as a Freddie Mac employee are not inconsistent with any of their terms. 

VIII.    Absence of Any Conflict of Interest 

Executive represents that Executive does not have any confidential information, trade secrets or other proprietary information that Executive obtained as the
result of Executive’s employment with another employer that Executive will be using in Executive’s position at Freddie Mac. Executive also represents that Executive is not subject to any employment, confidentiality or stock grant
agreements, or any other restrictions or limitations imposed by a prior employer, which would affect Executive’s ability to perform the duties and responsibilities for Freddie Mac in the job position offered, and further represents that
Executive has provided Freddie Mac with copies of any non-competition, non-solicitation or similar agreements or limitations that have not expired, so that
Freddie Mac can make an independent judgment that Executive’s employment with Freddie Mac is not inconsistent with any of its terms. 

IX.    Enforcement 

A.    Executive acknowledges that Executive may be subject to discipline, up to and including termination of employment, for
Executive’s breach or threat of breach of any provision of this Agreement. 
 B.    Executive agrees that irreparable injury will
result to Freddie Mac’s business interests in the event of breach or threatened breach of this Agreement, the full extent of Freddie Mac’s damages will be impossible to ascertain, and monetary damages will not be an adequate remedy for
Freddie Mac. Therefore, Executive agrees that in the event of a breach or threat of breach of any provision(s) of this Agreement, Freddie Mac, in addition to any other relief available, shall be entitled to temporary, preliminary, and permanent
equitable relief to restrain any such breach or threat of breach by Executive and all persons acting for and/or in concert with Executive, without the necessity of posting bond or security, which Executive expressly waives. 

C.    Executive agrees that each of Executive’s obligations specified in this Agreement is a separate and independent covenant, and
that all of Executive’s obligations set forth herein shall survive any termination, for any reason, of Executive’s Freddie Mac employment. To the extent that any provision of this Agreement is determined by a court of competent
jurisdiction to be unenforceable because it is overbroad, that provision shall be limited and enforced to the extent permitted by applicable law. Should any provision of this Agreement be declared or determined by any court of competent jurisdiction
to be unenforceable or invalid under applicable law, the validity of the remaining obligations will not be affected thereby and only the unenforceable or invalid obligation will be deemed not to be a part of this Agreement. 

D.    This Agreement is governed by, and will be construed in accordance with, the laws of the Commonwealth of Virginia, without regard to
its or any other jurisdiction’s conflict-of-law provisions. Executive agrees that any action related to or arising out of this Agreement shall be brought
exclusively in the United States District Court for the Eastern District of Virginia, and Executive hereby irrevocably consents to personal jurisdiction and venue in such court and to service of process by United States Mail or express courier
service in any such action. 
 E.    If any dispute(s) arise(s) between Freddie Mac and Executive with respect to any matter which is
the subject of this Agreement, the prevailing party in such dispute(s) shall be entitled to recover from the other party all of its costs and expenses, including its reasonable attorneys’ fees. 

  
 4 

 Executive has been advised to discuss all aspects of this Agreement with Executive’s private
attorney. Executive acknowledges that Executive has carefully read and understands the terms and provisions of this Agreement and that they are reasonable. Executive signs this Agreement voluntarily and accepts all obligations contained in this
Agreement in exchange for the consideration to be given to Executive as outlined above, which Executive acknowledges is adequate and satisfactory, and which Executive further acknowledges Freddie Mac is not otherwise obligated to provide to
Executive. Neither Freddie Mac nor its agents, representatives, directors, officers or employees have made any representations to Executive concerning the terms or effects of this Agreement, other than those contained in this Agreement. 

 

											
	By:	 	 /s/ David Brickman
	 		 	Date:	 	 9/6/2018
	 	
		 	David Brickman	 		 		 		 	

  
 5Exhibit 10.01

 

WARRANT AMENDMENT AGREEMENT

This Warrant Amendment Agreement (“Agreement”) is dated as of September 5, 2018 (“Effective Date”) and is entered into by and among Sabby Healthcare Master Fund, Ltd. (“Sabby Healthcare”), Sabby Volatility Warrant Master Fund, Ltd. (“Sabby Volatility”, and together with Sabby Healthcare, the “Holders”), and RiceBran Technologies, a California corporation (the "Company").  The parties hereto agree as follows:

 

RECITALS

 

A.          The Company and the Holders are parties to a Securities Purchase Agreement, dated as of September 30, 2014 (“2014 Purchase Agreement”), pursuant to which the Company issued to each of the Holders a warrant to purchase 425,000 shares of the Company’s common stock (each, a “2014 Warrant”, and together, the “2014 Warrants”).

 

B.          Each of the 2014 Warrants currently has an Exercise Price per share of $5.27 and a Termination Date of April 3, 2020.

 

C.          The resale of the 2014 Warrant Shares acquired upon exercise of the 2014 Warrants has been registered pursuant to a registration statement on Form S-3 (File No. 333-199646) (“2014 Registration Statement”).

 

D.          The Company and the Holders are parties to a Securities Purchase Agreement, dated as of February 17, 2016 (“2016 Purchase Agreement”), pursuant to which the Company issued to Sabby Healthcare a warrant to purchase 1,773,333 shares of the Company’s common stock and to Sabby Volatility a warrant to purchase 886,667 shares of the Company’s common stock (collectively, the “2016 Warrants”).  The current per share exercise price of the 2016 Warrants is $2.00.

 

E.          The resale of the shares of the Company’s common stock that underlie the 2016 Warrants (“2016 Warrant Shares”) has been registered pursuant to a registration statement on Form S-3 (File No. 333-212658) (“2016 Registration Statement”, and together with the 2014 Registration Statement, the “Registration Statements”).

 

F.          On the terms and conditions set forth herein, the parties hereto desire to amend the 2014 Warrants to (i) reduce the Exercise Price, (ii) reduce the number of shares issuable upon exercise of the 2014 Warrants and (iii) change the Termination Date of the 2014 Warrants to an earlier date, and the Holders desires to exercise the 2016 Warrants .

 

G.          For purposes of this Agreement, the (i) terms “Exercise Price” and “Termination Date” shall have the meanings given to those terms in the 2014 Warrants, as applicable, (ii) the term “2014 Warrant Shares” shall have the meaning given to the term “Warrant Shares” in the 2014 Warrants, as applicable, and (iii) the term “Trading Day” shall have the meaning given to that term in the 2014 Purchase Agreement.

 

AGREEMENT

1.           Amendment to 2014 Warrants.  Each of the 2014 Warrants hereby is amended to provide as follows:

(a)          Exercise Price.  The per share Exercise Price of the 2014 Warrants shall change from $5.27 per share to $3.30 per share, subject to future adjustment as provided in the 2014 Warrants.

(b)          Termination Date.  The Termination Date of the 2014 Warrants shall change from April 3, 2020 to April 3, 2019, and the 2014 Warrants may not be exercised after April 3, 2019.

(c)          2014 Warrant Shares.  The number of 2014 Warrant Shares that are subject to each 2014 Warrant shall change from 425,000 to 300,000, subject to future adjustment as provided in the 2014 Warrants.  The parties agree that the number of Warrant Shares shall not increase as a result of decreasing the Exercise Price as provided in Section 1(a) above.

2.           Exercise of 2016 Warrants.  The Holders agree to exercise the 2016 Warrants in full by “cash” exercise, and the Holders execution and delivery of this Agrement shall constitute the Holders’ execution and delivery to the Company on the Effective Date of the Notices of Exercise annexed to the 2016 Warrants with respect to all 2016 Warrant Shares underlying the 2016 Warrants.  The aggregate exercise price for such exercise of the 2016 Warrants (“Aggregate Exercise Price”) shall equal the product of (i) the number of 2016 Warrant Shares underlying the 2016 Warrants on the Effective Date and (ii) $2.00.  The 2016 Warrant Shares issuable upon such exercise of the 2016 Warrants shall be issued as provided in the 2016 Purchase Agreement and the 2016 Warrants, and all of the 2016 Warrant Shares shall be delivered electronically through the Depository Trust Company within the time periods specified therein after the Company receives the Aggregate Exercise Price for the exercised 2016 Warrants, which Aggregate Exercise Price shall be paid to the Company no later than two trading days after the Effective Date.  Notwithstanding anything herein to the contrary, in the event the Warrant Exercise would otherwise cause the Holder to exceed the beneficial ownership limitations (“Beneficial Ownership Limitation”) in the 2016 Warrants, the Company shall only issue such number of 2016 Warrant Shares to the Holder that would not cause such Holder to exceed the maximum number of 2016 Warrant Shares permitted thereunder with the balance to be held in abeyance until notice from such Holder that the balance (or portion thereof) may be issued in compliance with such limitations.

3.           Public Disclosure.  

 

(a)          The Company shall file a Current Report on Form 8-K with the Securities and Exchange Commission disclosing all material terms of the transactions contemplated hereunder within two Trading Days following the Effective Date.  To the extent that the Company complies with this Section 3(a), the Company shall be deemed to have complied with its obligation to publicly disclose the terms contained herein pursuant to the 2014 Purchase Agreement, the 2016 Purchase Agreement and any other agreements or instruments to which the Company and either Holder is a party.

 

2

(b)          The Company may file a prospectus supplement to each of the Registration Statements to disclose the effect of this Agreement on the 2014 Warrants,  the 2014 Warrant Shares, the 2016 Warrants and the 2016 Warrant Shares.

 

4.           No Changes.  Except as amended by this Agreement, all other terms of the 2014 Warrants and the 2014 Purchase Agreement shall continue in full force and effect.

 

5.           Conflict.  If the terms of this Agreement conflict with the terms of the 2014 Warrants, the terms of this Agreement shall control.

 

6.           Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be an original and all of which shall together constitute one and the same document.  In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

 

3

IN WITNESS WHEREOF, the parties have caused this Warrant Amendment Agreement to be executed as of the date first set forth above.  

	
RICEBRAN TECHNOLOGIES

	 
	 	 	 
	
By: 

	/s/ Brent Rystrom	 
	 	
Brent Rystrom, 

	 
	 	
Chief Financial Officer

	 
	 	 	 
	
SABBY HEALTHCARE MASTER FUND, LTD.

	 
	 	 	 
	
By:  

	/s/ Robert Grundstein	 
	 	
Name: Robert Grundstein,

	 
	 	
Authorized Signatory

	 
	 	 
	
SABBY VOLATILITY WARRANT MASTER FUND, LTD.

	 
	 	 	 
	
By:  

	/s/ Robert Grundstein	 
	 	
Name: Robert Grundstein,

	 
	 	
Authorized Signatory

	 

 

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00287-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00287-of-00352.parquet"}]]