Document:

Employment Agreement

 Exhibit 10.1 
 CERTAIN MATERIAL (INDICATED BY ASTERISKS) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 EXECUTION COPY 
 EMPLOYMENT AGREEMENT

 AGREEMENT made effective e as of the 5th day of November, 2007 by and between ACTION PRODUCTS INTERNATIONAL, INC., a Florida corporation,
(the “Company”) and ROBERT L. BURROWS (the “Executive”). 
 WHEREAS, the Company wishes to employ the Executive and the Executive wishes to accept such employment, upon the terms and conditions hereinafter set forth. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, and intending to be legally bound hereby, the
Company and the Executive hereby agree as follows: 
 1. Employment 
 The Company agrees to employ the Executive during the Term specified in Section 2, and the Executive agrees to accept such employment, upon the terms
and conditions hereinafter set forth. 
 2. Term 
 Subject to the provisions contained in Sections 6 and 7, the Executive’s employment by the Company shall be for a term commencing on the date hereof through December 31, 2008 (the “Initial
Term”), and shall automatically renew for successive one (1) year terms thereafter (each a “Renewal Term”, and together with the Initial Term, the “Term”) unless either party delivers written notice of
termination (a “Notice of Termination”) to the other at least 120 days prior to the end of the Initial Term or any Renewal Term, as the case may be. The date on which the Executive ceases to be employed by the Company, regardless of
the reason therefore, is referred to in this Agreement as the “Date of Termination”. 
 3. Duties and
Responsibilities 
 (a) During the Term, the Executive shall have the position of Chief Financial Officer. The Executive shall report
to the Chief Executive Officer and to the Board of Directors of the Company (the “Board”). 

 (b) The Executive shall perform such executive and managerial duties and responsibilities customary to
his position and as are reasonably necessary to the operations of the Company as may be assigned to him from time to time by or under authority of the Board, consistent with his position as designated in or pursuant to Section 3(a). 

(c) The Executive’s employment by the Company shall be full-time, and, during the Term, the Executive agrees that he will (i) devote
substantially all of his business time and attention, his best efforts, and all his skill and ability to promote the interests of the Company, (ii) carry out his duties in a competent and professional manner and serve the Company faithfully and
diligently under the direction of the Chief Executive Officer and the Board, and (iii) work with other employees of the Company and its subsidiaries and affiliates in a competent and professional manner; provided, however, that the
Executive may pursue other business and personal activities not otherwise in material breach of the provisions herein and that do not materially interfere with the performance of his duties under this Agreement. 
 (d) During the Term, the Executive’s services hereunder shall be performed at the offices of the Company located in the City of Orlando, State of
Florida, which such offices shall not be relocated outside of the City of Orlando, State of Florida. The Executive’s duties shall include such travel as is necessary and consistent with his position and duties hereunder. 
 (e) Simultaneous the execution and delivery by the Executive of this Agreement the Executive shall also execute and deliver the Company’s
Proprietary Information and Inventions Agreement (the “Proprietary Information and Inventions Agreement”). 
 4.
Compensation 
 (a) As compensation for his services hereunder, and in consideration of his covenants set forth in Section 8
below, the Company shall pay the Executive during the Term, in accordance with its normal payroll practices, an annualized base salary (“Base Salary”) of One Hundred Eighty Thousand Dollars ($180,000.00). Such Base Salary shall be
reviewed by the Board each year during the Term and may be increased at the discretion of the Board. 
 (b) The Executive shall also receive
a one-time cash bonus equal to twelve and one-half percent (12.5%) of his then-applicable Base Salary upon the Company completing at least one Transaction (as hereinafter defined) during the first 365-day period commencing on the date hereof.
For the purposes of this Section 4(b), the term “Transaction” shall mean the purchase by the Company, outside of the ordinary course of business, of another company or a material portion of its assets, securities or business by
means of a merger, consolidation, joint venture, exchange offer, licensing or purchase or sale of stock or assets that requires the Company filing with the U.S. Securities and Exchange Commission (“SEC”) a Form 8-K under
Item 2.01 of such Form 8-K. Such cash bonus shall be paid within thirty (30) days of the completion of such Transaction, but excluding any Transaction with respect to ***. 
 (c) The Company shall pay, subject to the conditions in this Section 4(c), a cash bonus as follows: 
 (i) If the Company completes a Transaction (other than with respect to ***) during calendar year 2008, and if the Company’s revenues, as reported in
the Company’s Annual Report on Form 10-K or 10-KSB for the year ended December 31, 2008 exceeds Ten Million Dollars ($10,000,000), then the Company shall pay the Executive a cash bonus equal to thirty-seven and one-half percent
(37.5%) of his Base Salary as of December 31, 2008. Such cash bonus shall be paid not later than thirty (30) days after filing such Form 10-K or Form 10-KSB with the SEC. 
  

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 (ii) If the Company does not complete a Transaction (other than with respect to ***) during
calendar year 2008, then the Company shall pay the Executive a cash bonus as follows: 
 (A) If the Company’s revenues, as reported in
the Company’s Annual Report on Form 10-K or 10-KSB for the year ended December 31, 2008 exceeds Seven Million Five Hundred Thousand Dollars ($7,500,000), then the Company shall pay the Executive a cash bonus equal to twelve and one-half
percent (12.5%) of his Base Salary as of December 31, 2008; 
 (B) If the Company’s revenues, as reported in the
Company’s Annual Report on Form 10-K or 10-KSB for the year ended December 31, 2008 exceeds Eight Million Five Hundred Thousand Dollars ($8,500,000), then the Company shall pay the Executive, in addition to the cash bonus under
Section 4(c)(i)(A), a cash bonus equal to twelve and one-half percent (12.5%) of his Base Salary as of December 31, 2008; and 
 (C) If the Company’s revenues, as reported in the Company’s Annual Report on Form 10-K or 10-KSB for the year ended December 31, 2008 exceeds Nine Million Five Hundred Thousand Dollars ($9,500,000), then the Company shall pay
the Executive, in addition to the cash bonuses under Sections 4(c)(i)(A) and (B), a cash bonus equal to twelve and one-half percent (12.5%) of his Base Salary as of December 31, 2008. 
 (iii) Any such cash bonus under this Section 4(c) shall be paid not later than thirty (30) days after filing such Form 10-K or Form 10-KSB
with the SEC. All cash bonuses under Section 4(b) and Section 4(c) are collectively referred to as the “Initial Annual Bonus”). 
 (d) For each fiscal year after December 31, 2008, the Compensation Committee of the Board, or if no such Committee exists, then the Board shall establish an annual performance-based cash bonus up to one–half
of the annual Base Salary as of the first day of such fiscal year (the “Subsequent Annual Bonus”). 
 5. Expenses;
Fringe Benefits  
 (a) The Company agrees to pay or to reimburse the Executive for all reasonable, ordinary, necessary and documented
business or entertainment expenses incurred during the Term in 

  

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the performance of his services hereunder in accordance with the policy of the Company as from time to time in effect. The Executive, as a condition
precedent to obtaining such payment or reimbursement, shall provide to the Company any and all statements, bills or receipts evidencing the travel or out-of-pocket expenses for which the Executive seeks payment or reimbursement, and any other
information or materials, as the Company may from time to time reasonably require. 
 (b) During the Term, the Executive and his spouse and
dependents shall be eligible to participate in and receive all benefits under any welfare benefit plans and programs (including without limitation, medical, disability and group life insurance) provided by the Company to its employees generally,
subject, however, to the generally applicable eligibility and other provisions of the various plans and programs in effect from time to time; provided, however, that medical and dental benefits will be provided at no cost to the Executive.

 (c) During the Term, the Executive shall be entitled to participate in all retirement plans and programs provided by the Company to its
employees generally, subject, however, to the generally applicable eligibility and other provisions of the various plans and programs in effect from time to time. The Executive shall be allowed to participate in the Company’s 401(k) plan as of
the earliest date permitted by the plan, but in no event later than ninety (90) days after the date hereof. 
 (d) The Executive shall
be entitled to four weeks paid vacation annually to be taken at such times as shall not, in the reasonable judgment of the Board, materially interfere with the Executive’s fulfillment of his duties hereunder. In addition, the Executive shall be
entitled to as many paid holidays, sick days and personal days as are in accordance with the Company’s policy then in effect generally for its employees, and shall be entitled to paid time-off for religious observances. 
 6. Termination 
 (a) The
Company, by direction of the Board, shall be entitled to terminate the Executive’s employment and to discharge the Executive with or without “cause,” in either case effective immediately upon the giving of written notice of such
termination. The term “cause” shall be limited to the following grounds: 
 (i) the Executive’s willful failure to
(A) materially perform his duties and responsibilities as set forth in Section 3 hereof or (B) abide in all material respects by the reasonable directives of the Board in accordance with Section 3, in each case if such failure or
refusal is not cured (if curable) within thirty (30) days after written notice thereof to the Executive by the Board; 
 (ii) the
Executive’s willful misappropriation of material funds or property of the Company; 
 (iii) the conviction of the Executive in a court
of law of, or entering by the Executive to a plea of guilty or no contest to, any felony or any crime involving moral turpitude, dishonesty or theft; or 
  

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 (iv) any breach by the Executive of the Proprietary Information and Inventions Agreement if such failure
or refusal is not cured (if curable) within thirty (30) days after written notice thereof to the Executive by the Chief Executive Officer or the Board. 
 Any notice required to be given by the Board pursuant to clause (i) or clause (iv) above shall specify the nature of the claimed breach and the manner in which the Company requires such breach to be cured (if curable). In the
event that the Executive is purportedly terminated for cause and the arbitrator appointed pursuant to Section 14 determines that “cause” as defined herein was not present, then such purported termination for cause shall be deemed a
termination “without cause” pursuant to Section 6(c) and the Executive’s rights and remedies will be governed by Section 6(c), in full satisfaction and in lieu of any and all other or further remedies the Executive may have.
For purposes of this Agreement, “willful” shall mean done, or omitted to be done, by the Executive, not in good faith and without reasonable belief that his action or omission was in the best interest of the Company. 
 (b) In the event of the termination of the employment of the Executive by the Board for “cause”, the Executive shall be entitled to the
following payments and benefits: (i) unpaid salary and accrued vacation compensation through, and any unpaid reimbursable expenses outstanding as of, the Date of Termination; and (ii) all benefits, if any, that had accrued to the Executive
through the Date of Termination under the plans and programs described in Sections 5(b) and (c) above. 
 (c) In the event of a
termination of the employment of the Executive by the Board “without cause” or the Company delivers a Notice of Termination under Section 2, the Executive shall be entitled to the following payments and benefits: 
 (i) as severance, (A) an amount equal to one hundred fifty percent (150%) of his annual Base Salary in effect as of the Date of Termination,
and (B) either (x) if the Date of Termination is on or before December 31, 2008, then the amount of the Initial Annual Bonus (whether or not the respective performance criteria was met) multiplied by the number of days from the date
hereof to the Date of Termination divided by 432, and (y) if the Date of Termination is after December 31, 2008, then the amount of the Subsequent Annual Bonus (whether or not the performance criteria was met) multiplied by the number of
days from January 1 of the calendar year in which the Date of Termination shall occur to the Date of Termination divided by the total number of days in such calendar year (any employment or consulting income earned by the Executive during such
period shall not reduce the Company’s obligations under this clause (i)); 
 (ii) unpaid salary and accrued vacation compensation
through the Date of Termination; 
 (iii) any unpaid reimbursable expenses outstanding as of the Date of Termination; 
  

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 (iv) all benefits, if any, that had accrued to the Executive through the Date of Termination under the
plans and programs described in Sections 5(b) and (c) above; and 
 (v) coverage under the “employee welfare benefit plans”
(as defined in Section 3(l) of ERISA) provided by the Company to comparable executives. In lieu of such coverage, the Company may reimburse the Employee on a net after-tax basis, for the cost of individual insurance coverage for the Executive
and the Executive’s dependents under a policy or policies that provide benefits not less favorable than the benefits provided under such employee welfare benefit plans through the date one (1) year after the Date of Termination, or the
Executive securing coverage of similar benefits by another employer or other source. 
 (d) The Executive shall have the right to terminate
this Agreement and his employment hereunder for “good reason”, if (i) the Executive shall have given the Company prior written notice of the reason therefor and (ii) a period of ten (10) business days following receipt by
the Company of such notice shall have lapsed and the matters which constitute or give rise to such “good reason” shall not have been cured or eliminated by the Company. In the event the Company shall not take such action within such
period, the Executive may send another notice to the Company electing to terminate his employment hereunder and, in such event, the Executive’s employment hereunder shall terminate and the effective date of such termination shall be the third
business day after the Company shall have received such notice. In the event of such termination, the Executive shall be entitled to receive the same payments and benefits as would be provided under Section 6(c) in the event of termination
without cause. For the purpose of this Agreement, “good reason” shall only mean the occurrence of any of the following without the Executive’s prior written consent: 
 (i) a material change by the Company in the nature of Executive’s title, duties, authority and responsibilities set forth in this Agreement;
provided, however, that a change in the Executive’s title shall not constitute good reason provided such change does not (A) materially reduce the Executive’s authority or (B) require the Executive to report to anyone
other than the Chief Executive Officer or the Board; 
 (ii) a reduction in the nature of the Executive’s compensation as established
under this Agreement; 
 (iii) a material breach by the Company of any of its obligations under this Agreement; 
 (iv) a requirement that the Executive engage in any act or requirement that the Executive not act which is illegal or which would reasonably likely be
materially damaging or detrimental to the Executive’s reputation; or 
 (v) a Change of Control, as defined in Section 6(f), as a
result of which the Executive is not offered the same or comparable position in the surviving company on substantially the same terms as in this Agreement, or is offered such position but within twenty-four (24) months 

  

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after the Executive accepts such position, the Executive’s employment is terminated either without cause or for good reason described in subsections
(i), (ii) or (iv) of this Section 6(d) or in subsection (iii) as to the employment agreement then applicable to the Executive. 
 (e) The Executive shall be entitled to terminate this Agreement and his employment hereunder without good reason by giving the Company prior written notice to that effect. The termination of employment shall be effective on the date
specified in such notice, or earlier, at the determination of the Company, in which event such termination shall remain classified as a termination by the Executive without good reason. In the event that the Executive terminates this Agreement
without good reason or delivers a Notice of Termination under Section 2, the Executive shall be entitled to receive the same payments and benefits as would be provided under Section 6(b). 
 (f) The term “Change or Control” shall mean (i) any “person” (as such term is used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other than a trustee or other fiduciary holding securities of the Company under an employee benefit plan of the Company, (A) becomes the “beneficial
owner” (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of (x) the outstanding shares of common stock of the Company or (y) the combined
voting power of the Company’s then-outstanding securities, and (B) became the beneficial owner of such securities other than with the affirmative vote by at least a majority of the Incumbent Directors, (ii) the Company is party to a
merger or consolidation, or series of related merger or consolidation transactions, which results in the voting securities of the Company outstanding immediately prior thereto failing to continue to represent (either by remaining outstanding or by
being converted into voting securities of the surviving or another entity) at least fifty (50%) percent of the combined voting power of the voting securities of the Company or such surviving or other entity outstanding immediately after such
merger or consolidation, (iii) the sale or disposition of all or substantially all of the Company’s assets (or consummation of any transaction, or series of related transactions, having similar effect), (iv) there occurs a change in
the composition of the Board within a two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors, (v) the dissolution or liquidation of the Company, or (vi) any transaction or series of related
transactions that has the substantial effect of any one or more of the foregoing. “Incumbent Directors” will mean directors who either (A) are directors of the Company as of the date hereof, or (B) are elected, or
nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but will not include an individual whose election or nomination is in connection with an
actual or threatened proxy contest relating to the election of directors to the Board). 
 (g) In the event that the severance and other
benefits provided for in this Agreement or otherwise payable to the Executive (i) constitute “parachute payments” within the meaning of Section 280G (as such section may be amended or replaced) of the Internal Revenue Code
of 1986, as amended or replaced (the “Code”) and (ii) but for this Section 6(g), would be subject to the excise tax imposed by Section 4999 (as such section may be amended or replaced) of the Code (the “Excise
Tax”), then the Executive’s benefits hereunder shall be either (i) provided to 

  

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the Executive in full, or (ii) provided to the Executive only as to such lesser extent which would result in no portion of such benefits being subject
to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable Federal, state and local income taxes and the Excise Tax, results in the receipt by the Executive on an after-tax basis, of the greatest amount of benefits,
notwithstanding that all or some portion of such benefits may be taxable under the Excise Tax. Unless the Company and the Executive otherwise agree in writing, any determination required under this Section 6(g) shall be made in writing in good
faith by the Company’s independent public accountants (the “Accountants”). In the event of a reduction in benefits hereunder, the Executive shall be given the choice of which benefits to reduce. For purposes of making the
calculations required by this Section 6(g), the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of the Code. The
Company and the Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section 6(g). The Company shall bear all costs the Accountants may
reasonably incur in connection with any calculations contemplated by this Section 6(g). 
 7. Disability; Death

 In the event the Executive shall be unable to perform his duties hereunder by virtue of illness or physical or mental incapacity or
disability (from any cause or causes whatsoever) in substantially the manner and to the extent required hereunder prior to the commencement of such disability (all such causes being herein referred to as “disability”) and the
Executive shall fail to perform such duties for periods aggregating 60 days, whether or not continuous, in any continuous period of 180 days, the Company shall have the right to terminate the Executive’s employment hereunder upon prior written
notice to him. In the event of the Executive’s death, the Date of Termination shall be the date of the Executive’s death. In the event the Company terminates the Executive pursuant to this Section 7, the Executive, or in the case of
his death, his heirs, beneficiaries or estate, shall be entitled to receive the entitlements set forth in Section 6(b) of this Agreement. In addition, in the event the Company terminates the Executive pursuant to this Section 7 for
disability, and the Executive elects to continue coverage under COBRA for the applicable statutory period under the employee healthcare benefit plan in which he participated in accordance with the terms thereof, then the Company shall pay the same
portion of the premium it would have paid had the Executive remained an employee, continuing for the period ending on the earlier of (i) the termination of the applicable statutory period, or (ii) the first anniversary of the Date of
Termination. In the event of the Executive’s death, if the Executive’s family members covered by the employee healthcare benefit plan on which the Executive participated elect to continue coverage under COBRA for the applicable statutory
period under such plan in accordance with the terms thereof, then the Company shall pay the same portion of the premium it would have paid had the Executive remained an employee, continuing for the period ending on the earlier of (i) the
termination of the applicable statutory period, or (ii) one year from the Date of Termination. 
 8. Assignment

 Subject to Section 6(d), the Company and the Executive agree that the Company shall 

  

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have the right to assign this Agreement, and, accordingly, this Agreement shall inure to the benefit of, and may be enforced by, any and all successors and
assigns of the Company, including, without limitation, by asset assignment, stock sale, merger, consolidation or other corporate reorganization; provided, however, that any assignment by the Company shall not relieve the Company of any of its
obligations to the Executive under this Agreement. The Company and the Executive agree that the Executive’s rights and obligations under this Agreement are personal to the Executive, and the Executive shall not have the right to assign or
otherwise transfer his rights or obligations under this Agreement, and any purported assignment or transfer shall be void and ineffective. The rights and obligations of the Company hereunder shall be binding upon and run in favor of the successors
and assigns of the Company. 
 9. Modification 
 This Agreement may not be orally canceled, changed, modified or amended, and no cancellation, change, modification or amendment shall be effective or binding, unless in writing and signed by the parties to this
Agreement, and approved by the Board. 
 10. Severability; Survival 
 In the event any provision or portion of this Agreement is determined to be invalid or unenforceable for any reason, in whole or in part, the remaining
provisions of this Agreement shall nevertheless be binding upon the parties with the same effect as though the invalid or unenforceable part had been severed and deleted or reformed to be enforceable. The respective rights and obligations of the
parties hereunder shall survive the termination of the Executive’s employment to the extent necessary to the intended preservation of such rights and obligations. 
 11. Notice 
 Any notice, request, instruction or other document to be given hereunder by any
party hereto to another party shall be in writing and shall be deemed effective (a) upon personal delivery, if delivered by hand, or (b) three days after the date of deposit in the mails, postage prepaid if mailed by certified or
registered mail, or (c) on the next business day, if sent by prepaid overnight courier service, and in each case, addressed as follows: 
 If to the Executive: 
 Robert L. Burrows 
 11474 Swift Water Cir. 
 Orlando Florida 32817 
 If to the Company: 
 Action Products International, Inc. 
 Attention: Ronald S. Kaplan 
 1101 N. Keller Rd., Suite E 
 Orlando, Florida 32810 
  

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 Any party may change the address to which notices are to be sent by giving notice of such change of address to the other
party in the manner herein provided for giving notice. 
 12. Applicable Law 
 This Agreement shall be governed by, enforced under, and construed in accordance with the laws of the State of Florida without application of conflict of
law provisions applicable therein. 
 13. Entire Agreement 
 This Agreement represents the entire agreement between the Company and the Executive with respect to the employment of the Executive by the Company, and
all prior agreements, plans and arrangements relating to the employment of the Executive by the Company are nullified and superseded hereby. 
 14. Arbitration 
 (a) The parties hereto agree that any dispute, controversy or claim arising out of, relating to, or
in connection with this Agreement (including, without limitation, any claim regarding or related to the interpretation, scope, effect, enforcement, termination, extension, breach, legality, remedies and other aspects of this Agreement or the conduct
and communications of the parties regarding this Agreement and the subject matter of this Agreement) shall be settled by arbitration at the offices of the American Arbitration Association or a successor organization for binding arbitration in City
of Orlando, State of Florida by a single arbitrator. The arbitrator may grant injunctions or other relief in such dispute or controversy. All awards of the arbitrator shall be binding and non-appealable. Judgment upon the award of the arbitrator may
be entered in any court having jurisdiction. The arbitrator shall apply Florida law to the merits of any dispute or claims, without reference to the rules of conflicts of law applicable therein. Suits to compel or enjoin arbitration or to determine
the applicability or legality of arbitration shall be brought in the United States District Court, in the City of Orlando, State of Florida, or if that court lacks jurisdiction, in a state court located within the geographic boundaries thereof.
Notwithstanding the foregoing, no party to this Agreement shall be precluded from applying to a proper court for injunctive relief by reason of the prior or subsequent commencement of an arbitration proceeding as herein provided. 
 (b) The Executive has read and understands this Section 14 which discusses arbitration. The Executive understands that by signing this Agreement,
the Executive agrees to submit any claims arising out of, relating to, or in connection with this Agreement, or the interpretation, validity, construction, performance, breach or termination thereof, or his employment or the termination thereof, to
binding arbitration, and that this arbitration provision constitutes a waiver of the Executive’s right to a jury trial and relates to the resolution of all disputes relating to all aspects of the employer/employee relationship. 

 

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 15. Headings 
 The headings contained in this Agreement are for reference purposes only, and shall not affect the meaning or interpretation of this Agreement. 
 16. Withholdings 
 The Company
may withhold from any amounts payable under this Agreement such federal, state or local taxes as shall be required to be withheld pursuant to any applicable law or regulation. 
 17. No Strict Construction 
 The language used in this Agreement will be deemed to be the language chosen by the Company and the Executive to express their mutual intent, and no rule of law or contract interpretation that provides that in the case of ambiguity or
uncertainty a provision should be construed against the draftsman will be applied against any party hereto. 
 [remainder of page
intentionally left blank] 
  

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 IN WITNESS WHEREOF, the parties have executed this Employment Agreement as of the day and year
first above written. 
  

			
	 /s/ ROBERT L. BURROWS

	Robert L. Burrows
	
	ACTION PRODUCTS INTERNATIONAL, INC.
		
	By:	 	 /s/ RONALD S. KAPLAN

		 	Ronald S. Kaplan
		 	Chief Executive Officer

  

 12Proprietary Information and Inventions Agreement

 Exhibit 10.2 
 EXECUTION COPY 
 ACTION PRODUCTS INTERNATIONAL, INC. 
 PROPRIETARY INFORMATION 
 AND
INVENTIONS AGREEMENT 
 In consideration of my retention by ACTION PRODUCTS
INTERNATIONAL, INC., a Florida corporation, (the “Company”), and the compensation paid to me, I hereby agree as follows (each capitalized term used herein and not otherwise defined herein shall have
the meaning as defined in my Employment Agreement (as defined herein).: 
 1. Nondisclosure. 
 1.1 Recognition of Company’s Rights; Nondisclosure. At all times during the Term and thereafter, I will hold in strictest
confidence and will not disclose or use any of the Company’s Proprietary Information (defined below), except as such disclosure or use may be required in connection with my work for the Company, or unless the Board of directors expressly
authorizes such in writing. I hereby assign to the Company any rights I may have or acquire in such Proprietary Information and recognize that all Proprietary Information shall be the sole property of the Company and its assigns. 
 1.2 Proprietary Information. The term “Proprietary Information” shall mean any and all confidential and/or
proprietary knowledge, data or information of the Company. By way of illustration but not limitation, “Proprietary Information” includes (a) trade secrets, inventions, mask works, ideas, processes, formulas, source and object
codes, data, programs, other works of authorship, know-how, improvements, discoveries, developments, designs and techniques (hereinafter collectively referred to as “Inventions”); and (b) information regarding plans for
research, development, new products, marketing and selling, business plans, budgets and unpublished financial statements, licenses, prices and costs, suppliers and customers; and (c) information regarding the skills and compensation of
employees of the Company. Notwithstanding the foregoing, it is understood that, at all such times, I am free to use information which is generally known in the trade or industry, which is not gained as a result of a breach of this Agreement, and my
own, skill, knowledge, know-how and experience to whatever extent and in whichever way I wish. 
 1.3 Third-Party
Information. I understand, in addition, that the Company has received and in the future will receive from third parties confidential or proprietary information (“Third-Party Information”) subject to a duty on the
Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. During the Term and thereafter, I will hold Third-Party Information in the strictest confidence and will not disclose to anyone
(other than Company personnel who need to know such information in connection with their work for the Company) or use, except in connection with my work for the Company, Third-Party Information unless expressly authorized by the Board of directors
in writing. 
  

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 2. Assignment of Inventions. 
 2.1 Proprietary Rights. The term “Proprietary Rights” shall mean all trade secret, patent, copyright, and other
intellectual property rights or “moral rights” throughout the world. “Moral rights” refers to any rights to claim authorship of an Invention or to object to or prevent the modification of any Invention, or to withdraw from
circulation or control the publication or distribution of any Invention, and any similar right, existing under judicial or statutory law of any country in the world, or under any treaty, regardless of whether or not such right is denominated or
generally referred to as a “moral right.” 
 2.2 Assignment of Inventions. I hereby assign and agree to assign
in the future (when any such Inventions or Proprietary Rights are first reduced to practice or first fixed in a tangible medium, as applicable) to the Company all my right, title and interest in and to any and all Inventions (and all Proprietary
Rights with respect thereto) whether or not patentable or registrable under copyright or similar statutes, made or conceived or reduced to practice or learned by me, either alone or jointly with others, in the course and scope of my services to the
Company. Inventions assigned to the Company, or to a third party as directed by the Company pursuant to this Section 2, are hereinafter referred to as “Company Inventions.” 
 2.3 Works for Hire. I acknowledge that all original works of authorship which are made by me (solely or jointly with others) within
the course and scope of my services to the Company and which are protectable by copyright are “works made for hire,” pursuant to United States Copyright Act (17 U.S.C., Section 101). 
 2.4 Enforcement of Proprietary Rights. I will assist the Company in every proper way to obtain, and from time to time enforce,
United States and foreign Proprietary Rights relating to Company Inventions in any and all countries. To that end I will execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the Company may
reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such Proprietary Rights and the assignment thereof. In addition, I will execute, verify and deliver assignments of such Proprietary Rights to the
Company or its designee. My obligation to assist the Company with respect to Proprietary Rights relating to such Company Inventions in any and all countries shall continue beyond the Term, but the Company shall compensate me at a reasonable rate
after the Term for the time actually spent by me at the Company’s request on such assistance. 
 2.5 Power of
Attorney. In the event the Company is unable for any reason, after reasonable effort, to secure my signature on any document needed in connection with the actions specified in the preceding paragraph, I hereby irrevocably designate and
appoint the Company and its duly authorized officers and agents as my agent and attorney in fact, which appointment is coupled with an interest, to act for and in my behalf to execute, verify and file any such documents and to do all other lawfully
permitted acts to further the purposes of the preceding paragraph with the same legal force and effect as if executed by me. I hereby waive and quitclaim to the Company any and all claims, of any nature whatsoever, which I now or may hereafter have
for infringement of any Proprietary Rights assigned hereunder to the Company. 
  

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 3. Restrictive Covenants. 
 3.1 No Solicitation of Employees, Consultants, Contractors or Customers. I agree that during the Term and for one (1) year
thereafter, I will not, either directly or through others, (i) solicit or attempt to solicit any employee of the Company to end his or her relationship with the Company; and (ii) solicit any consultant, contractor, or customer of the
Company, with whom I had contact or whose identity I learned as a result of my services to the Company to diminish or materially alter its relationship with the Company. The parties agree that for purposes of this Agreement, a customer is any person
or entity to which the Company has provided goods or services at any time during the period commencing six (6) months prior to the Term and ending at the end of the Term. 
 3.2 Non-Compete Provision. I agree that during the Term, I will not provide services similar to those I provide to the Company, to
any person or entity in competition with the Company within any state, province, or similar political unit in which the Company has or solicits employees, consultants, contractors, or customers; or provides or solicits products or services. The
parties agree that the geographic scope of the noncompete is reasonable in light of the geographically broad scope of doing business through direct marketing and the Internet. I acknowledge that this non-compete provision is limited to the types of
activities and services I provided in my services to the Company. The parties understand that the scope and nature of my activities and services, and the Company’s business, products or services, may change as the Company develops. It is the
intent of the parties that the scope of this provision will change to cover any changes in my activities or services as well as any changes in the Company’s business, products or services, during the Term. The parties therefore agree that for
purposes of this Agreement, a person or entity is in competition with the Company if it develops or provides services or products similar to those presently provided by the Company or developed or provided by the Company during the Term. 

3.3 Injunctive Relief. If I commit a breach, or threaten to commit a breach, of any of the provisions of Sections 3.1 and 3.2,
the Company shall have the right and remedy (i) to have the provisions of Sections 3.1 and 3.2 specifically enforced by any court having jurisdiction, it being acknowledged and agreed by me that the services being rendered hereunder to the
Company are of a special, unique and extraordinary character, that the Company’s business is of a highly competitive nature, and that any such breach or threatened breach will cause irreparable injury to the Company and that money damages will
not provide an adequate remedy to the Company; and (ii) to require me to account for and pay over to the Company all damages suffered by the Company as the result of any transactions constituting a breach of any of the provisions of Sections
3.1 and 3.2, and I hereby agree to account for and pay over such damages to the Company. 
 3.4 Non-exclusivity. Each of
the rights and remedies enumerated in Section 3 shall be independent of the other, and shall be severally enforceable, and such rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available to the
Company under law or equity. In connection with any legal action or proceeding arising out of this Section 3, the prevailing party in such action or proceeding shall be entitled to be reimbursed by the other party for the reasonable
attorneys’ fees and costs incurred by the prevailing party. 
  

 3 

 3.5 Duration of Covenant. If I violate any covenant contained in Sections 3.1 and
3.2, the duration of such covenant so violated shall be automatically extended for a period of time equal to the period of such violation. 
 3.6 Severability. If any provision of Sections 3.1 and 3.2 is held to be unenforceable because of the scope, duration or area of its applicability, the tribunal making such determination shall have the power to modify
such scope, duration, or area, or all of them, and such provision or provisions shall then be applicable in such modified form. 
 4.
Return of Company Documents. When my services to the Company ends, I will deliver to the Company any and all drawings, notes, memoranda, specifications, devices, formulas, and documents, together with all copies thereof, and any
other material containing or disclosing any Company Inventions, Third Party Information or Proprietary Information of the Company. I further agree that any property situated on the Company’s premises and owned by the Company, including disks
and other storage media, filing cabinets or other work areas, is subject to inspection by Company personnel at any time with or without notice. 
 5. Legal and Equitable Remedies. I recognize that in the course of my services to the Company, I will have access to Proprietary Information, to Third Party Information, and to employees, consultants, contractors,
clients, and customers of the Company. I also recognize that the services I will provide are personal and unique. I understand that because of this the Company may sustain irreparable injury if I violate this Agreement. In order to limit or
prevent such irreparable injury, the Company shall have the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable relief, without bond and without prejudice to any other rights and remedies
that the Company may have for a breach of this Agreement. 
 6. Notices. Any notices required or permitted hereunder
shall be given in the same manner as under the Employment Agreement. 
 7. General Provisions. 
 7.1 Governing Law; Consent to Personal Jurisdiction. This Agreement shall be governed, interpreted and construed in accordance with
the laws of the State of Florida applicable to agreements entered into and to be performed entirely therein, without to conflict of laws principles. Any suit, action or proceeding with respect to this Agreement shall be brought exclusively in the
courts of the State of Florida or in the United States courts located in Orlando, Florida. If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement, the prevailing party in such action shall be entitled
to reasonable attorneys’ fees. I hereby expressly consent to the personal jurisdiction of the state and federal courts located in Orlando, Florida for any lawsuit filed there against me by Company arising from or related to this Agreement.

 7.2 Severability. In case any one or more of the provisions contained in this Agreement shall, for any reason, be
held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable

  

 4 

 
provision had never been contained herein. If moreover, any one or more of the provisions contained in this Agreement shall for any reason be held to be
excessively broad as to duration, geographical scope, activity or subject, it shall be construed by limiting and reducing it, so as to be enforceable to the extent compatible with the applicable law as it shall then appear. 
 7.3 Successors and Assigns. This Agreement will be binding upon my heirs, executors, administrators and other legal representatives
and will be for the benefit of the Company, its successors, and its assigns. 
 7.4 Survival. The provisions of this
Agreement shall survive the termination of my services to the Company and the assignment of this Agreement by the Company to any successor in interest or other assignee. 
 7.5 Waiver. No waiver by the Company of any breach of this Agreement shall be a waiver of any preceding or succeeding breach. No waiver by the Company of any right under this Agreement shall be
construed as a waiver of any other right. The Company shall not be required to give notice to enforce strict adherence to all terms of this Agreement. 
 The term “Employment Agreement” shall mean the Employment Agreement between me and the Company dated November 5, 2007, as amended from time to time. This Agreement shall be effective as of
November 5, 2007. 
 I HAVE READ THIS AGREEMENT CAREFULLY
AND UNDERSTAND ITS TERMS. 
  

	
	Dated: November 5, 2007
	
	 /s/ ROBERT L. BURROWS

	(Signature)
	
	Robert L. Burrows
	(Printed Name)

 ACCEPTED AND AGREED TO: 
 ACTION PRODUCTS INTERNATIONAL, INC. 
  

			
	By:	 	 /s/ RONALD S. KAPLAN

		 	Ronald S. Kaplan
		 	Chief Executive Officer
	
	Dated: November 5, 2007

  

 5

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