Document:

ex10-2.htm

EXHIBIT 10.2

REVOLVING LINE OF CREDIT NOTE

 

	$600,000 	 	June 7, 2012

 

For value received, BAZI International, Inc., a Nevada corporation (the “Company”), hereby promises to pay to the order of GT Beverage Company, Inc., a Delaware corporation, or its registered assigns (“Holder”), at the address of 1 Technology Drive, Suite C515, Irvine, California 92618, the principal sum of $600,000 on the dates specified herein, with interest as specified herein.

 

This Note is subject to the following additional provisions, terms and conditions:

 

ARTICLE 1. DEFINITIONS.

 

Section 1.1. Certain Definitions.

 

“Applicable Rate” means 1% per annum.

 

“Bankruptcy Law” means Title 11, United State Code or any similar federal or state law for the relief of debtors.

 

“Business Day” means any day that is not a Saturday or Sunday or a day on which banks are required or permitted to be closed in New York, New York.

 

“Collateral” has the meaning set forth in Section 2.6.

 

“Company” has the meaning given to such term in the first paragraph of this Note.

 

“Default Rate” means 15% per annum.

 

“Distribution Event” means any insolvency, bankruptcy, receivership, liquidation, reorganization or similar proceeding (whether voluntary or involuntary) relating to the Company or its property, or any proceeding for voluntary or involuntary liquidation, dissolution or other winding up of the Company, whether or not involving insolvency or bankruptcy.

 

“Holder” has the meaning given to such term in the first paragraph of this Note.

 

“Inventory” has the meaning set forth in the Uniform Commercial Code of New York.

 

“Maturity Date” means the earlier of (i) the Closing Date (as defined in the Merger Agreement) or (ii) 1 day following the termination, for any reason whatsoever, of that certain Merger Agreement to which the Company and Holder are parties, executed on or about the date hereof (the “Merger Agreement”).

 

“Maximum Rate” means the maximum nonusurious interest rate permitted under applicable law.

 

“Note” means this Revolving Line of Credit Note made by the Company payable to Holder, together with all amendments and supplements hereto, all substitutions and replacements hereof, and all renewals, extensions, increases, restatements, modifications, rearrangements and waivers hereof from time to time.

 

“Person” means any individual, corporation, partnership, joint venture, association, limited liability company, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

  

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“Proceeds” has the meaning set forth in the Uniform Commercial Code in the State of New York.

 

“Supporting Obligations” has the meaning set forth in the Uniform Commercial Code in the State of New York.

 

“Transfer” has the meaning set forth in Section 4.2(b).

 

ARTICLE 2. BASIC TERMS.

 

Section 2.1. Principal.

 

(a) Scheduled Repayment.  To the extent not previously paid, the entire unpaid principal balance of this Note shall be due and payable on the Maturity Date.

 

(b)  Prepayment.  The Company may make voluntary prepayments in whole or in part of the unpaid principal hereunder from time to time without penalty or premium, as provided under Section 2.3(a).

 

Section 2.2. Interest.

 

(a) The Company agrees to pay interest in respect of the unpaid principal amount of this Note at a rate per annum equal to the lesser of the Applicable Rate or the Maximum Rate.  Upon the occurrence and during the continuance of an Event of Default, which has not been cured, the Company agrees to pay during the period of the continuance of such Event of Default interest on the unpaid principal amount of this Note at a rate per annum equal to the lesser of the Default Rate and the Maximum Rate.

 

(b) All interest on the unpaid principal balance of this Note shall be due and payable on the Maturity Date or, if earlier, the date this Note is prepaid in full or in part.

 

(c) Interest shall be calculated on the basis of a 365-day year.

 

Section 2.3. Borrowing and Repayment.

 

(a) The Company may from time to time during the term of this Note, on at least five Business Days notice, borrow, partially or wholly repay its outstanding borrowings, and re-borrow, subject to all of the limitations, terms and conditions of this Note and of any document executed in connection with or governing this Note; provided however, that the total outstanding borrowings under this Note shall not at any time exceed the principal amount stated above.  The unpaid principal balance of this obligation at any time shall be the total amounts advanced hereunder by Holder less the amount of principal payments made hereon by or for the Company, which balance may be endorsed hereon from time to time by Holder.

 

(b) Holder is hereby authorized by the Company to endorse on the schedule (or a continuation thereof) attached to this Note, the amount and date of any advance that shall be made by Holder hereunder, and the amount and date of each payment of principal that shall be received by Holder hereunder, provided that any failure by Holder to make any such endorsement shall not affect the obligations of the Company under this Note.

 

(c) Advances hereunder, to the total amount of the principal sum stated above, may be made by Holder at the oral or written request of (i) Debbie Wildrick or Kevin Sherman, any one acting alone, who are authorized to request advances and direct the disposition of any advances until written notice of the revocation of such authority is received by Holder at the office designated above, or (ii) any person, with respect to advances deposited to the credit of any deposit account of the Company, which advances, when so deposited, shall be conclusively presumed to have been made to or for the benefit of the Company regardless of the fact that persons other than those authorized to request advances may have authority to draw against such account.  Holder shall have no obligation to determine whether any person requesting an advance is or has been authorized by the Company.

  

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(d) The initial advance under this Note, as set forth on the schedule hereto, shall be deemed to have been made on the date hereof, and the Company shall be deemed to have immediately used the initial advance to satisfy any and all notes or other instruments of debt from the Company to Partizipant, LLC, Holder, or any and all affiliates thereof, which obligations under such notes and instruments shall be deemed satisfied in full, and such notes and other instruments shall be cancelled and of no further effect as of the date hereof.  Further, Partizipant, LLC and such other affiliates shall be deemed to have repaid any advances from Holder in connection with such notes and other instruments as of the date hereof.

 

(e) Payments from Sales of Bazi Natural Energy Shots.  All receipts from sales of Bazi Natural Energy Shots from the date of this Note shall be remitted to Holder during such times that any principal or accrued interest hereunder is outstanding.  As a precondition to the making of this Note, the Company agrees that all funds from the Company’s merchant processing account and any other accounts through which the Company receives revenue shall be remitted directly to the Company’s Comerica checking account, number 1894647864 and immediately remitted to Holder during such times that any principal or accrued interest from this Note is outstanding.

 

(f) Any and all advances of any amounts from Holder to the Company hereunder shall be subject to the prior approval of Holder, in Holder’s sole discretion.

 

Section 2.4. Payments in General.  All payments of principal and interest on this Note shall be in such coin or currency of the United States of America as at the time of payment shall be legal tender for payment of public and private debts.  If any payment (whether of principal, interest or otherwise) on this Note is due on a day which is not a Business Day, such payment shall be due and payable on the next succeeding Business Day.  All payments under this Note shall be made by wire transfer or check in accordance with Holder’s instructions.

 

Section 2.5. Surrender of Note on Transfer.  This Note shall, as a condition to transfer, be surrendered to the Company in exchange for a new Note in a principal amount equal to the principal amount on the surrendered Note, and with the same terms and conditions as this Note.  In case the entire principal amount of this Note is prepaid and the obligations hereunder terminated, this Note shall be surrendered to the Company for cancellation and shall not be reissued.

 

Section 2.6. Security.  To secure the indebtedness evidenced by this Note, all interest hereon, and all other fees and expenses related to the loan evidenced by this Note, including all costs and expenses incurred by Holder in the collection of the foregoing, the Company hereby grants to Holder a security interest in all of the following property whether now or hereafter acquired (collectively referred to herein as, the “Collateral”):

 

(a) all inventory (the “Inventory”);

 

(b) all books and records pertaining to the foregoing; and

 

(c) to the extent not otherwise included, all Proceeds and products of any and all of the foregoing, including insurance proceeds, all Supporting Obligations in respect of any of the foregoing and all collateral security and guarantees given by any Person with respect to any of the foregoing.

 

Section 2.7. Covenants.

 

(a) The Company agrees to pay all obligations when due and perform fully all of the Company’s duties under and in connection with this Note.

 

(b) The Company agrees to (i) take all actions reasonably requested by Holder to perfect for Holder a first priority security interest in the Collateral, and (ii) refrain from encumbering, or, other than Inventory in the ordinary course of business consistent with past practice, selling any of the Collateral, or permitting the Collateral or any interest in the Collateral to be encumbered, or seized, or, other than Inventory in the ordinary course of business consistent with past practice, transferred or otherwise disposed of.

  

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(c) The Company shall sign and deliver any papers furnished by Holder which are necessary or desirable in the judgment of Holder to obtain, maintain and perfect the obligations under this Note and to enable Holder to comply with any federal or state law in order to obtain or perfect Holder’s interest in the Collateral or to obtain proceeds of the Collateral.  The Company hereby authorizes Holder to file, without the signature of the Company, a Record or Records (as such term is defined in the Uniform Commercial Code of the State of New York), including, without limitation, financing or continuation statements, and amendments thereto, in any jurisdictions and with any filing offices as Holder may determine, in its sole discretion, are necessary or advisable to perfect the security interest granted to Holder under this Note.  Such financing statements may describe the Collateral in the same manner as described in this Note or may contain an indication or description of collateral that describes such property in any other manner as Holder may determine, in its sole discretion, is necessary, advisable or prudent to ensure the perfection of the security interest in the Collateral, including, without limitation, describing such property as “all assets” or “all personal property, whether now owned or hereafter acquired.”  The Company shall furnish to Holder from time to time statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as Holder may reasonably request, all in reasonable detail.

 

(d) No subsidiary of the Company or any affiliate thereof has or shall acquire any Collateral or any interest therein, including Bazi Natural Energy Shots or other beverage products sold by the Company or any of its subsidiaries, and the Company shall acquire all Inventory used in the business of the Company and its subsidiaries.

 

ARTICLE 3. DEFAULT AND REMEDIES.

 

Section 3.1. Events of Default.  An “Event of Default” occurs if:

 

(a) the Company defaults in the payment of principal or interest on the Note when the same becomes due and payable;

 

(b) the Company defaults in the punctual performance of any other obligation, covenant, term or provision contained in this Note and/or the Merger Agreement; or

 

(c) the Company (i) commences a voluntary case concerning itself under any Bankruptcy Law now or hereafter in effect, or any successor thereof; (ii) is the object of an involuntary case under any Bankruptcy Law; or (iii) commences any Distribution Event or is the object of an involuntary Distribution Event.

 

Section 3.2. Remedies.

 

(a) If an Event of Default (other than an Event of Default under Section 3.1(c)) shall occur, Holder may declare by notice in writing given to the Company, the entire unpaid principal amount of the Note, together with accrued but unpaid interest thereon, to be immediately due and payable, in which case the Note shall become immediately due and payable, both as to principal and interest, without presentment, demand, default, notice of intent to accelerate and notice of such acceleration, protest or notice of any kind, all of which are hereby expressly waived, anything herein or elsewhere to the contrary notwithstanding.

 

(b) If an Event of Default under Section 3.1(c) shall occur, the entire unpaid principal amount of the Note, together with accrued but unpaid interest thereon, shall automatically become immediately due and payable, both as to principal and interest, without presentment, demand, default, notice of intent to accelerate and notice of such acceleration, protest or notice of any kind, all of which are hereby expressly waived, anything herein or elsewhere to the contrary notwithstanding.

 

(c) If any Event of Default shall have occurred, Holder may proceed to protect and enforce its rights either by suit in equity or by action at law, or both, and take any of the following actions (but it is expressly agreed and acknowledged that Holder is under no duty to take any such actions):

  

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(i)           require the Company to give possession or control of the Collateral to Holder;

 

(ii)           take control of Proceeds referred to in Section 2.6(c), and use any such cash Proceeds to reduce any part of the indebtedness evidenced by this Note, all interest hereon or related fees and expenses;

 

(iii)           sell, or instruct any agent or broker to sell, all or any part of the Collateral in a public or private sale and apply all proceeds to the payment or other satisfaction of the indebtedness evidenced by this Note, all interest hereon or related fees and expenses in such order and manner as Holder shall, in its discretion, choose;

 

(iv)           take any action the Company is required to take or any other necessary or desirable action to obtain, preserve, and enforce this Note, and to maintain and preserve the Collateral, without notice to the Company;

 

(v)           transfer any of the Collateral, or evidence thereof, into Holder’s own name or that of its nominee and receive the Proceeds therefrom and hold the same as security for the indebtedness evidenced by this Note, interest hereon and related fees and expenses, or apply the same thereon;

 

(vi)           take control of funds generated by the Collateral, and use such funds to reduce any part of the indebtedness evidenced by this Note, interest hereon or related fees and expenses; and

 

(vii)           exercise all other rights that a secured creditor may exercise with respect to any of the Collateral.

 

ARTICLE 4. MISCELLANEOUS.

 

Section 4.1. Amendment.  This Note may be amended, modified, superseded or cancelled, and any of the terms, covenants, representations, warranties or conditions hereof and thereof may be waived, only by a written instrument executed by Holder and the Company.

 

Section 4.2. Successors and Assigns.

 

(a) The rights and obligations of the Company and Holder under this Note shall be binding upon, and inure to the benefit of, and be enforceable by, the Company and Holder, and their respective permitted successors and assigns.

 

(b) The Company may not sell, assign (by operation of law or otherwise), transfer, pledge, grant a security interest in or delegate (collectively “Transfer”) any of its rights or obligations under this Note unless Holder has granted its prior written consent and any such purported Transfer by the Company without obtaining such prior written consent shall be null and void ab initio.

 

Section 4.3. Defenses.  Except as expressly set forth herein, the obligations of the Company under this Note shall not be subject to reduction, limitation, impairment, termination, defense, set-off, counterclaim or recoupment for any reason.

 

Section 4.4. Replacement of Note.  Upon receipt by the Company of evidence, satisfactory to it, of the loss, theft, destruction, or mutilation of this Note and (in the cases of loss, theft or destruction) of any indemnity reasonably satisfactory to it, and upon surrender and cancellation of this Note, if mutilated, the Company will deliver a new Note of like tenor in lieu of this Note.  Any Note delivered in accordance with the provisions of this Section 4.4 shall be dated as of the date of this Note.

  

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Section 4.5. Attorneys’ and Collection Fees.  Each party will bear its own fees and expenses incurred in connection with the preparation, execution and performance of this Note and the transactions contemplated hereby, including all fees and expenses of agents, representatives, financial advisors, legal counsel and accountants.  Notwithstanding the foregoing, in the event this Note shall not be paid when due and payable (whether upon demand, by acceleration or otherwise), the Company shall be liable for and shall pay to Holder all collection costs and expenses incurred by Holder, including reasonable attorney’s fees.

 

Section 4.6. Governing Law.  This Note and the validity and enforceability hereof shall be governed by and construed and interpreted in accordance with the laws of the State of New York.

 

Section 4.7. Waivers.  Except as may be otherwise provided herein, the makers, signers, sureties, guarantors and endorsers of this Note severally waive demand, presentment, notice of dishonor, notice of intent to demand or accelerate payment hereof, notice of acceleration, diligence in collecting, grace, notice, and protest, and agree to one or more extensions for any period or periods of time and partial payments, before or after maturity, without prejudice to Holder.

 

Section 4.8. No Waiver by Holder.  No failure or delay on the part of Holder in exercising any right, power or privilege hereunder and no course of dealing between the Company and Holder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

Section 4.9. No Impairment.  The Company will not, by amendment of its certificate of incorporation or through any reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at times in good faith assist in the carrying out of all the provisions of this Note.

 

Section 4.10. Limitation on Interest.  Notwithstanding any other provision of this Note, interest on the indebtedness evidenced by this Note is expressly limited so that in no contingency or event whatsoever, whether by acceleration of the maturity of this Note or otherwise, shall the interest contracted for, charged or received by Holder exceed the maximum amount permissible under applicable law.  If from any circumstances whatsoever fulfillment of any provisions of this Note or of any other document evidencing, securing or pertaining to the indebtedness evidenced hereby, at the time performance of such provision shall be due, shall involve transcending the limit of validity prescribed by law, then, ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity, and if from any such circumstances Holder shall ever receive anything of value as interest or deemed interest by applicable law under this Note or any other document evidencing, securing or pertaining to the indebtedness evidenced hereby or otherwise an amount that would exceed the highest lawful rate, such amount that would be excessive interest shall be applied to the reduction of the principal amount owing under this Note or on account of any other indebtedness of the Company to Holder, and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal of this Note and such other indebtedness, such excess shall be refunded to the Company.  In determining whether or not the interest paid or payable with respect to any indebtedness of the Company to Holder, under any specific contingency, exceeds the highest lawful rate, the Company and Holder shall, to the maximum extent permitted by applicable law, (a) characterize any non-principal payment as an expense, fee or premium rather than as interest, (b) exclude voluntary prepayments and the effects thereof, (c) amortize, prorate, allocate and spread the total amount of interest throughout the term of such indebtedness so that the actual rate of interest on account of such indebtedness does not exceed the maximum amount permitted by applicable law, and/or (d) allocate interest between portions of such indebtedness, to the end that no such portion shall bear interest at a rate greater than that permitted by applicable law.  The terms and provisions of this paragraph shall control and supersede every other conflicting provision of this Note and all other agreements between the Company and Holder.

 

Section 4.11.  Severability.  If one or more provisions of this Note are held to be unenforceable under applicable law, such provision(s) shall be excluded from this Note and the balance of this Note shall be interpreted as if such provision(s) were so excluded and shall be enforceable in accordance with its terms.

  

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Section 4.12.  Construction.  This Note has been freely and fairly negotiated among the parties.  If an ambiguity or question of intent or interpretation arises, this Note will be construed as if drafted jointly by the parties and no presumption or burden of proof will arise favoring or disfavoring any party because of the authorship of any provision of this Note.  Unless the context requires otherwise, any agreements, documents, instruments or laws defined or referred to in this Note will be deemed to mean or refer to such agreements, documents, instruments or laws as from time to time amended, modified or supplemented, including (a) in the case of agreements, documents or instruments, by waiver or consent and (b) in the case of laws, by succession of comparable successor statutes.  All references in this Note to any particular law will be deemed to refer also to any rules and regulations promulgated under that law.  The words “include, “includes” and “including will be deemed to be followed by “without limitation.”  The word “or” is used in the inclusive sense of “and/or” unless the context requires otherwise.  References to a Person are also to its permitted successors and assigns.  Pronouns in masculine, feminine and neuter genders will be construed to include any other gender, and words in the singular form will be construed to include the plural and vice versa, unless the context requires otherwise.  When a reference in this Note is made to an Article, Section, Exhibit, Annex or Schedule, such reference is to an Article or Section of, or Exhibit, Annex or Schedule to, this Note unless otherwise indicated.  The words “this Note,” “herein,” “hereof,” “hereby,” “hereunder” and words of similar import refer to this Note as a whole and not to any particular subdivision unless expressly so limited.

 

Section 4.13.  Right of Setoff.  Notwithstanding the terms of this Note or any other agreement or document, Holder and each of its affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, and without prior notice to the Company, any such notice being expressly waived by the Company, to set off and appropriate and apply any and all obligations and indebtedness (in whatever currency) at any time owing by Holder or such affiliate to or for the credit or the account of the Company against any and all of the obligations of the Company now or hereafter existing under this Note to Holder or its affiliates, whether direct or indirect, absolute or contingent, matured or unmatured, and irrespective of whether or not Holder or its affiliates shall have made any demand under this Note and although such obligations of the Company are owed to a subsidiary, office, or affiliate of Holder different from the subsidiary, office, or affiliate obligated on such obligations or indebtedness.  The rights of Holder and its affiliates under this Section 4.13 are in addition to other rights and remedies (including other rights of set-off) that Holder or such affiliates may have.  Holder agrees to notify the Company promptly after any such set off and appropriation and application; provided, however, that the failure to give such notice shall not affect the validity of such set off and appropriation and application.

 

[Signature Page Follows]

  

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EXECUTED as of the date first written above.

 

BAZI INTERNATIONAL, INC.

By:_/s/ Debbie Wildrick__________________

Name:  Debbie Wildrick

Title: Chief Executive Officer

Holder hereby accepts as of the date first written above.

GT BEVERAGE COMPANY, INC.

By: _/s/ Dan Kerker      __________________

Name:  Dan Kerker

	
  

	
Title:  Chief Financial Officer

 

  

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Schedule to Revolving Line of

Credit Promissory Note

Dated June 7, 2012

ADVANCES

	
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$254,185

	
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PAYMENTS

	
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________________ex10-1.htm

Exhibit 10.1

SEPARATION AND RELEASE AGREEMENT

THIS SEPARATION AND RELEASE AGREEMENT (the “Agreement”) is entered into as of the 11th day of June, 2012, by and between Jeffrey Himmel (the “Employee”) and Chromadex Corporation and any parents, subsidiaries or affiliates thereof, including, without limitation, Chromadex, Inc. and ChromaDex Analytics, Inc. (collectively referred to herein as the “Company”).

WHEREAS, Employee and the Company are parties to an Executive Employment Agreement, dated as of February 7, 2012 and effective as of January 22, 2012 (the “Employment Agreement”);

WHEREAS, Employee is currently employed as the Chief Executive Officer and President of the Company and is a member of the Company’s Board of Directors;

WHEREAS, this Agreement governs the terms of Employee’s separation from the Company.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereby agree as follows:

1. Effective Date of Cessation of Employment.  Employee acknowledges that, as of the date of this Agreement, he has voluntarily resigned from his employment as the Chief Executive Officer of the Company, and that such voluntary resignation is not for “Good Reason” (as such term is defined in the Employment Agreement), and that he further hereby voluntarily resigns from his position as a member of the Company’s Board of Directors and as its President.  Employee agrees to execute any and all documents as may be reasonably necessary to confirm his separation as an employee and resignation as a director.  Employee understands and agrees that, as of the date hereof, he is no longer authorized to conduct any business on behalf of the Company or to hold himself out as an officer, employee, agent or representative of the Company or to incur any expenses, obligations, or liabilities on behalf of the Company.  Notwithstanding the cessation of employment, Employee or his designated representative shall be entitled to reasonable access to his former office and to the Company’s Palm Beach Garden offices to remove and collect personal items and other items he is entitled to retain under this Agreement, provided, however, that such access shall be done under the supervision of a person designated by the Company.

 

2. Severance.  As severance, the Company shall pay to Employee $253,333.00 (the “Severance Payment”), which amount shall be deposited by the Company on or about the date hereof into escrow in accordance with that certain escrow agreement attached hereto as Exhibit A (the “Escrow Agreement”).  In addition, the Company shall pay Employee all accrued and unpaid salary and vacation benefits earned through the date hereof in the aggregate amount of $31,940.17 (the “Earned Payment” and with the Severance Payment, the “Payment”), which figure shall (i) shall be deposited by the Company into escrow in accordance with the Escrow Agreement, and (ii) be subject to any and all applicable taxes and withholdings, and consistent with the Company’s past practice, the Company shall not withhold any amount for federal or local income taxes from the Payment.  The Payment shall be released by the escrow agent on the eighth (8th) day following Employee’s execution of this Agreement, provided that Employee has not revoked his acceptance of this Agreement pursuant to Section 16 below.  The Payment will be subject to any and all applicable taxes and withholdings, and consistent with the Company’s past practice, the Company shall not withhold any amount for federal or local income taxes from the Payment.

 

Employee acknowledges and agrees that the Payment provided to him, as set forth within the above paragraph, exceeds any and all payments and/or benefits that would otherwise be due to the Employee as severance and unpaid salary and benefits, and that Employee is not entitled to any other payments, salary, commissions, compensation or benefits from the Company aside from what is set forth within this paragraph.

In consideration for the receipt of the Payment, the Employee agrees to make himself available in and at a mutually convenient time and manner, to perform those consulting services that may be mutually agreed upon related to the transition of Employee’s former duties and responsibilities during the period commencing on the date hereof and terminating three (3) months herefrom.

  

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3. Registration Rights.  If at any time after the date of this Agreement the Company proposes to file a registration statement with respect to its shares of common stock (the “Common Stock”) other than in connection with a primary offering of its securities, a transaction contemplated by Rule 145 promulgated under the Securities Act  of 1933, as amended (the “Securities Act”) or pursuant to Form S-8 or any equivalent form, the Company shall notify Employee at least twenty (20) days prior to the filing of such registration statement and will offer to include in such registration statement all or any portion of the 100,000 shares of Common Stock owned by the Employee (the “Shares”).  In a written notice to be delivered to the Company within twenty (20) days after receipt of any such notice from the Company, the Employee shall state the number of the 100,000 Shares that he wishes to register for resale and distribution publicly under the proposed registration statement.  The Company will also use its commercially reasonable efforts, through its officers, directors, auditors and counsel in all matters necessary or advisable, to include within the coverage of each such registration statement (except as hereinafter provided) the number of Shares that Employee has advised Company that Employee wishes to register pursuant to such registration statement for resale and distribution and to cause such registration statement to become effective as promptly as practicable.  Notwithstanding the foregoing, the Company makes no representation or warranty as to its ability to have any registration statement declared effective.  In the event the Company is advised by the staff of the SEC, or any applicable self-regulatory or state securities agency that the inclusion of the Shares will prevent, preclude or materially delay the effectiveness of a registration statement filed, the Company, in good faith, may amend such registration statement to exclude the Shares without otherwise affecting the Employee’s rights with respect to any other registration statement.  The Company shall bear the entire cost and expense of any registration of the Shares.  In the event Employee desires to sell all or any portion of the Shares pursuant to a valid exemption from registration, then the Company shall direct its counsel to issue, at the Company’s expense, a reasonably acceptable opinion of counsel to facilitate the sale of the Shares by Employee pursuant to a valid exemption from registration.

4. Treatment of Securities.  Jeffrey Himmel Declaration of Trust dated June 1, 2006, as Amended and Restated (the “Trust”) has entered into that certain Stock Purchase Agreement dated of even date herewith providing for the purchase by the purchaser named therein of 1,333,333 shares (the “Purchase Shares”) at a purchase price of $0.65 per share (the “Purchase Agreement”), which Purchase Agreement is appended hereto as Exhibit B.  This Agreement is subject to, conditioned upon, and shall not be effective until, the closing of the transactions set forth in the Purchase Agreement.  In the event the transactions contemplated under the Purchase Agreement are not consummated, then this Agreement shall be null and void and of no force and effect.

 

Subsequent to the consummation of the Purchase Agreement and other than with respect to the Shares, the Employee hereby relinquishes any and all rights and claims to any shares of Common Stock or options to purchase such shares of Common Stock and hereby cancels, waives, relinquishes and disclaims in all respects any and all claims and/or rights to record or beneficial ownership in and to such shares or options. The Secretary of the Company shall record such cancellations and shall have the full power and authority to direct the transfer agent for the Company to cancel such shares and options on the books and records of the Company as attorney-in-fact for the Employee.

 

5. Employee Release.  In exchange for the consideration provided for in this Agreement and the Purchase Agreement, Employee (i) will (a) contemporaneously with the execution of this Agreement provide the Company’s counsel with an executed Stipulation of Discontinuance with Prejudice in the form annexed hereto as Exhibit C, relating to the Summons with Notice, Index No. 153282/12 filed in the Supreme Court of the State of New York, County of New York (the “Summons”), which Stipulation of Discontinuance with Prejudice the Company’s counsel will hold in escrow in accordance with the terms of the Escrow Agreement and (b) within two (2) business days after the release of the Payment from escrow under the Escrow Agreement, the Company may file the Stipulation of Discontinuance with Prejudice in the Supreme Court of the State of New York, County of New York, without any further notice to Employee (provided, however, that in the event the Payment is not received by Employee for any reason, then the Company agrees that notwithstanding any termination or revocation of this Agreement, (x) the Stipulation of Discontinuance with Prejudice shall not be filed and (y) any suit or proceeding arising directly and/or indirectly pursuant to or under the Employment Agreement shall be brought solely in state court located in the City, County and State of New York); and (ii) irrevocably and unconditionally releases the Company, its predecessors, parents, subsidiaries, affiliates, and past, present and future officers, directors, agents, consultants, employees, representatives, and insurers, as applicable, together with all successors and assigns of any of the foregoing (collectively, the “Company Releasees”), of and from all claims, demands, actions, causes of action, rights of action, contracts, controversies, covenants, obligations, agreements, damages, penalties, interest, fees, expenses, costs, remedies, reckonings, extents, responsibilities, liabilities, suits, and proceedings of whatsoever kind, nature, or description, direct or indirect, vested or contingent, known or unknown, suspected or unsuspected, in contract, tort, law, equity, or otherwise, under the laws of any jurisdiction, that the Employee or his predecessors, legal representatives, heirs, successors or assigns, ever had, now has, or hereafter can, shall, or may have, against the Company Releasees, as set forth above, jointly or severally, for, upon, or by reason of any matter, cause, or thing whatsoever from the beginning of the world through, and including, the date of this Agreement (“Claims”).

  

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Such release includes, but is not limited to, the violation of any express or implied contract; any federal, state or local laws, restricting an employer’s right to terminate employees, or otherwise regulating employment; workers compensation, wage and hour, or other employee relations statutes, executive orders, ordinance, or regulations, including any rights or claims under Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991, the Americans with Disabilities Act of 1990, the Rehabilitation Act of 1973, the Family and Medical Leave Act of 1993, the Civil Rights Act of 1866, the Employee Retirement Income Security Act of 1974, the Age Discrimination in Employment Act of 1967, the Fair Labor Standards Act, the WARN Act, the California Wage Orders, the California Labor Code Sections 207, 1183, and 6404.5, the California Occupational Safety and Health Act; AB 1825; the California Family Rights Act and/or any other state or local laws covering the same subject matter; tort (including, without limitation, negligent conduct, invasion of privacy and defamation); any federal, state, or local laws providing recourse for retaliation, wrongful discharge, dismissal or other obligations arising out of public policy, physical or personal injury, fraud, negligent misrepresentations, and similar or related claims. The laws referred to in this section include statutes, regulations, other administrative guidance, and common law doctrines. Any and all claims and/or disputes arising out of or relating to any of the foregoing shall be, and are, finally compromised, released and settled.

Notwithstanding the foregoing, this release does not include: (A) Employee’s right to enforce the terms of this Agreement, the Purchase Agreement and the relevant escrow agreements; (B) claims that may not be released as a matter of law; and (C) any rights under that certain indemnification agreement by and between the Company and the Employee dated as of on or around January 22, 2012 (the "Indemnification Agreement").  Employee understands that this Agreement releases claims that he may not know about. This is Employee’s knowing and voluntary intent, even though Employee recognizes that someday he might learn that some or all of the facts that he currently believes to be true are untrue and even though he might then regret having signed this Agreement.

Except to enforce this Agreement, the Purchase Agreement, the relevant escrow agreements and the Indemnification Agreement, Employee agrees that he will not pursue, file or assert or permit to be pursued, filed or asserted any civil action, suit or legal proceeding seeking equitable or monetary relief (nor will he seek or in any way obtain or accept any such relief in any civil action, suit or legal proceeding) in connection with any matter concerning his employment relationship with the Company and/or the termination thereof with respect to all of the claims released herein arising from the beginning of the world up to and including the date of execution of this Agreement (whether known or unknown to him and including any continuing effects of any acts or practices prior to the date of execution of this Agreement). Except for the payments and benefits set forth herein and in the Purchase Agreement, Employee acknowledges that he has been paid all wages and other amounts due to him and that he is not entitled to any other payments or benefits of any kind.

If Employee should bring any action arising out of the subject matter covered by this Agreement, except to enforce this Agreement, the Purchase Agreement, the relevant escrow agreements, or the Indemnification Agreement, he understands and recognizes that he will, at the option of the Company, be considered in breach of this Agreement and shall be required to immediately return any and all funds received pursuant to this Agreement.  Furthermore, if the Company should prevail concerning any or all of the issues so presented, Employee shall pay to the Company all of the costs and expenses associated with prosecuting a claim for breach, including attorneys’ fees.

The Employee agrees that this Agreement does not constitute any admission by the Company that any personnel action it took with respect to the Employee was wrongful, unlawful, tortious, in contravention to the laws or public policies of the State of New York or California, in breach of any written or oral contract, or in violation of any federal statute, regulation, and/or constitutional provision.

6. Company Release.  In exchange for the Employee’s release set forth above and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company on behalf of itself, its predecessors, parents, subsidiaries, affiliates, and past, present and future officers, directors, shareholders, agents, consultants, employees, representatives, and insurers, as applicable, and Michael Brauser and Barry Honig, together with all successors and assigns, hereby irrevocably and unconditionally releases the Employee, Himmel Management Co. LLC, Himmel Media LLC and The Himmel Group and their respective predecessors, parents, subsidiaries, affiliates, and past, present and future officers, directors, agents, consultants, employees, representatives, and insurers, as applicable, together with all heirs, successors and assigns of any of the foregoing (collectively, the “Himmel Releasees”), of and from all claims, demands, actions, causes of action, rights of action, contracts, controversies, covenants, obligations, agreements, damages, penalties, interest, fees, expenses, costs, remedies, reckonings, extents, responsibilities, liabilities, suits, and proceedings of whatsoever kind, nature, or description, direct or indirect, vested or contingent, known or unknown, suspected or unsuspected, in contract, tort, law, equity, or otherwise, under the laws of any jurisdiction, that the Company or Company Releasees, or Michael Brauser or Barry Honig, ever had, now has, or hereafter can, shall, or may have, against the Himmel Releasees, as set forth above, jointly or severally, for, upon, or by reason of any matter, cause, or thing whatsoever from the beginning of the world through, and including, the date of this Agreement (“Company Claims”).

  

-3-

  

Such release includes, but is not limited to, the violation of any express or implied contract; any federal, state or local laws, tort (including, without limitation, negligent conduct, invasion of privacy and defamation); any federal, state, or local laws providing recourse for retaliation, obligations arising out of public policy, physical or personal injury, fraud, negligent misrepresentations, and similar or related claims.  This release referred to in this section includes statutes, regulations, other administrative guidance, and common law doctrines. Any and all claims and/or disputes arising out of or relating to any of the foregoing shall be, and are, finally compromised, released and settled.

 

Notwithstanding the foregoing, this release does not include: (A) Company’s right to enforce the terms of this Agreement and the relevant escrow agreements and (B) claims that may not be released as a matter of law.  Company understands that this Agreement releases claims that it may not know about. This is the Company’s knowing and voluntary intent, even though the Company recognizes that someday it might learn that some or all of the facts that it currently believes to be true are untrue and even though it might then regret having signed this Agreement.

 

Except to enforce this Agreement, the Purchase Agreement, the relevant escrow agreements and the Indemnification Agreement, Company agrees that it will not pursue, file or assert or permit to be pursued, filed or asserted any civil action, suit or legal proceeding seeking equitable or monetary relief (nor will it seek or in any way obtain or accept any such relief in any civil action, suit or legal proceeding) in connection with any matter concerning Employee’s employment relationship with the Company and/or the termination thereof with respect to all of the claims released herein arising from the beginning of the world up to and including the date of execution of this Agreement (whether known or unknown to the Company and including any continuing effects of any acts or practices prior to the date of execution of this Agreement). Company acknowledges that it is not owed any payments of any kind.

 

If Company should bring any action arising out of the subject matter covered by this Agreement, except to enforce this Agreement, it understands and recognizes that it will, at the option of the Employee, be considered in breach of this Agreement.  Furthermore, if the Employee should prevail concerning any or all of the issues so presented, Company shall pay to the Employee all of the costs and expenses associated with prosecuting a claim for breach, including attorney’s fees.

 

The Company agrees that this Agreement does not constitute any admission by the Employee that any action Employee took with respect to the Company was wrongful, unlawful, tortious, in contravention to the laws or public policies of the State of New York or California, in breach of any written or oral contract, or in violation of any federal statute, regulation, and/or constitutional provision.

 

7. Restrictions on Competition and Solicitation.  Subject to Section 8 and Section 9 hereof, Employee and the Company agree that section 12 of the Employment Agreement shall be terminated and be of no further force or effect, provided, however, that section 11 of the Employment Agreement shall not terminate but remain in full force and effect.  Nothing contained herein shall be construed to impair or impede Employee's rights to continue to engage in the occupation in which he was engaged prior to becoming an Employee of the Company.

  

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8. Company Information and Property.  Employee agrees to immediately return to the Company all Company property and information in his possession including, but not limited to, Company reports, customer lists, supplier lists, consultant lists, formulas, files, manuals, memoranda, computer equipment, access codes, discs, software, and any other Company business information or records, in any form in which they are maintained, including records or information regarding Company customers, suppliers and vendors, and Company products and product development (collectively, the “Company Property”), and agrees that he will not retain any copies, duplicates, reproductions, or excerpts thereof in any form, provided, however, Employee shall be entitled to retain (i) papers and other materials of a personal nature, including, but not limited to, photographs, correspondence of a personal nature, personal diaries, calendars, personal files and phone books, (ii) information showing his compensation or relating to reimbursement of expenses, (iii) information that he reasonably believes may be needed for tax purposes and (iv) copies of plans, programs and agreements relating directly to his employment, or termination thereof, with the Company, provided, however, that none of the foregoing refers in any way, shape or form to any Company Information, as such term is hereinafter defined.  Employee further agrees that he will not, in any manner, make use of any Company Property or Company Information in any future dealings, business or otherwise, and acknowledges that any use of Company Property or Company Information in any future dealings, business or otherwise, would constitute a breach of this Agreement.  Employee acknowledges that any breach of this section would cause irreparable injury to the Company for which there is no adequate remedy at law and in addition to any remedies that may be available to the Company in the event of a breach or threatened breach of this section by Employee, including monetary damages, the Company shall be entitled to obtain a temporary restraining order and/or a preliminary or permanent injunction which would prevent Employee from violating or attempting to violate the provisions of this section of the Agreement.  In seeking such an order, any requirement to post a bond or other undertaking shall be waived.  In any such action, the Company shall be entitled to an award of all reasonable costs and fees incurred in bringing such an action, including reasonable attorneys’ fees.  The Company acknowledges that notwithstanding the foregoing, Employee, through his extensive experience and contacts in the consumer products, marketing, sales and media industries (including without limitation, media relationships and contacts) was already in possession of significant information, relationships and know how regarding the consumer products, marketing, sales and media industries (the “Employee Information”), that Employee used such existing Employee Information in the performance of his duties for the Company, that such Employee Information belongs to Employee, and that nothing herein or in section 11 of the Employment Agreement shall be deemed to restrict Employee from disclosing or using any Employee Information or from disclosing or using any information (a) from or related to media relationships or contacts to the extent introduced by Employee to the Company, or  (b) any of the product acquisition and licensing opportunities disclosed in a letter delivered by Employee to the Company on the date hereof.  Employee acknowledges that the Company’s information includes (and Employee makes no claim of right to use or disclose) the confidential information related to: (a) phytochemical testing and testing laboratories; (b) nutraceutical and botanical certification; (c) all catalogues, manuals and similar materials related to phytochemicals, phytochemical reference standards, botanical reference materials and research grade materials and services for the natural products, cosmetic, food and beverage, animal health and pharmaceutical industries; (d) formulae and know-how related to ingredients for dietary supplements, cosmetic, food and beverage, animal health, and pharmaceuticals, including dermatology (e) any new products (including ingredients) in the development pipeline at any stage of commercialization or research; (f) the details of the Company’s business model for identifying, licensing and developing novel ingredients or products; and (g) raw material customers, sales leads, raw material suppliers, partners, consultants, collaborators and any and all intellectual property identified by the Company the rights to which have not yet been acquired by the Company (collectively, the “Company Information”), all of which is expressly excluded from the term “Employee Information.”

9. Confidentiality.  Employee agrees that he will not disclose, directly or indirectly, the underlying facts that led up to this Agreement or the terms or existence of this Agreement. Employee represents that he has not and will not, in any way, publicize the terms of this Agreement and agrees that its terms are confidential and will not be disclosed by him except that he may discuss the terms of this Agreement with his attorneys, financial advisors, accountants, and members of his immediate family, or as required by law.  Employee understands and agrees that should he violate this provision of the Agreement, he will be responsible to the Company for liquidated damages in the amount of any and all funds payable pursuant to this Agreement and understands that such monetary relief shall not be a bar to the Company’s pursuit of injunctive relief.  Similarly, Company, and its affiliates, employees, directors officers, agents and representatives agree that they will not disclose, directly or indirectly, the underlying facts that led up to this Agreement or, other than as required by law, the terms or existence of this Agreement; in connection herewith, Employee explicitly understands and agrees that the Company is obligated by the Securities Exchange Act of 1934, as amended, to disclose the principal terms of this Agreement on a Current Report on Form 8-K (the “Current Report”) to be filed with the Securities and Exchange Commission and to include a form of this Agreement as an exhibit to such Current Report.  Company represents that it has not and will not, in any way, publicize the terms of this Agreement and agrees that its terms are confidential and will not be disclosed by Company, except that it may discuss the terms of this Agreement with its attorneys, financial advisors and accountants, and employees, officers or directors on a need-to-know basis provided they agree to the terms of this section 9, or as required by law.  Company understands and agrees that should it violate this provision of the Agreement, Employee shall be permitted to seek injunctive relief, which shall not be a bar to any action for monetary damages.  Notwithstanding the foregoing, the parties agree that the Company shall issue the press release attached hereto as Exhibit D, which shall be included as an exhibit to the Current Report, and shall not issue any further press release concerning Employee or Employee’s separation from the Company, without the prior written consent of Employee.

  

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10. Non-disparagement.  Employee represents and agrees that he shall refrain from making any written or oral statements to any person or entity with whom the Company (to the Employee’s reasonable knowledge) or Employee has had or may have a business or social relationship which may reasonably be expected to impugn or degrade the character, integrity, ethics or business practices of the Company, its affiliates, employees, directors, officers, agents, representatives or clients, or which may reasonably be expected to damage the business, image or reputation of the Company, its affiliates, employees, directors, officers, agents, representatives, or clients.

 

The Company represents and agrees that it, Michael Brauser and Barry Honig shall refrain from making any written or oral statements to any person or entity with whom the Employee (to the Company’s or such other persons’ reasonable knowledge) or the Company has had or may have a business or social relationship which may reasonably be expected to impugn or degrade the character, integrity, ethics or business practices of the Employee or any person actually known by the Company, Michael Brauser or Barry Honig to be a Himmel Releasee.  Should there be any inquiry as to the Employee’s employment with the Company, the Company, Michael Brauser and Barry Honig agree to provide only the following information: dates of Employee’s employment with the Company, position held by Employee and the reason for Employee’s departure (i.e., voluntary resignation), and (consistent with Company policy) will not otherwise comment about the Employee or about the Employee’s performance of his duties and responsibilities while employed by the Company.

 

11.  D&O Insurance; Indemnity.  The Company agrees for a period of six (6) years that is shall cover Executive under the Company's directors' and officers' liability insurance on the same basis as it covers other senior executive officers and directors of the Company and covenants to renew such coverage in June 2012 and to extend coverage to the Employee for as long as it maintains such directos' and officers' liability insurance for other senior executive officers and directors.  A certificate, executed and delivered by an executive officer of the Company, confirming such coverage shall be furnished to Employee each year promptly after renewal thereof upon written request.  Further, the Company and Employee acknowledge that the Indemnification Agreement, shall, in accordance with the terms thereof, expressly survive the separation of Employee as an officer and director of the Company.

 

12. Future Cooperation.  Employee agrees to reasonably cooperate with the Company, its financial and legal advisors, at the Company’s expense in connection with any claims, investigations, administrative proceedings or lawsuits which relate to the Company and for which Employee may possess relevant knowledge or information.  Any travel and accommodation expenses incurred by the Employee as a result of such cooperation will be advanced prior to the incurrence of any expenses by Employee.

The Company agrees to reasonably cooperate with Employee and his financial and legal advisors in connection with any claims, investigations, administrative proceedings or lawsuits which relate to Employee and for which the Company may possess relevant knowledge or information.  Employee shall reimburse the Company for any expenses incurred under this paragraph, but only to the extent such matter is not directly related to any claim or matter for which Employee is entitled to indemnification under the Indemnification Agreement.

13. Applicable Law and Jurisdiction. The Company and the Employee hereby expressly and irrevocably agree that this Agreement shall be governed by and construed solely and exclusively in accordance with the laws of the State of New York without regard to the conflicts of laws principles thereof. The Company and the Employee hereby expressly and irrevocably agree that any suit or proceeding arising directly and/or indirectly pursuant to or under this instrument or the consummation of the transactions contemplated hereby, shall be brought solely in a federal or state court located in the City, County and State of New York. By its execution hereof, the Company and the Employee hereby covenant and irrevocably submit to the in personam jurisdiction of the federal and state courts located in the City, County and State of New York and agree that any process in any such action may be served upon each of them personally, or by certified mail or registered mail upon them or their agent, return receipt requested, with the same full force and effect as if personally served upon them in New York City. The Company and the Employee waive any claim that any such jurisdiction is not a convenient forum for any such suit or proceeding and any defense or lack of in personam jurisdiction with respect thereto.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

  

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14. Entire Agreement.  This Agreement may not be changed or altered, except by a writing signed by both parties. Until such time as this Agreement has been executed and subscribed by both parties hereto: (i) its terms and conditions and any discussions relating thereto, without any exception whatsoever, shall not be binding nor enforceable for any purpose upon any party; and (ii) no provision contained herein shall be construed as an inducement to act or to withhold an action, or be relied upon as such.  This Agreement constitutes an integrated, written contract, expressing the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes any and all prior agreements and understandings, oral or written, between the parties, including the Employment Agreement, except as otherwise provided herein.

15. Assignment.  Neither Employee nor Company has assigned or transferred any Claim or Company Claims released hereunder, nor has either purported to do so.  If any provision in this Agreement is found to be unenforceable, all other provisions will remain fully enforceable. This Agreement binds Employee’s heirs, administrators, representatives, executors, successors, and assigns, and will inure to the benefit of all Company Releasees and their respective heirs, administrators, representatives, executors, successors, and assigns.  Similarly, this Agreement binds Company’s administrators, representatives, executors, successors, and assigns, and will inure to the benefit of all Himmel Releasees and their respective heirs, administrators, representatives, executors, successors, and assigns.

16. Binding Effect.  This Agreement will be deemed binding and effective immediately upon its execution by the Employee; provided, however, that in accordance with the Age Discrimination in Employment Act of 1967 (“ADEA”) (29 U.S.C. § 626, as amended), Employee’s waiver of ADEA claims under this Agreement is subject to the following: Employee may consider the terms of his waiver of claims under the ADEA for twenty-one (21) days before signing it and may consult legal counsel if Employee so desires. Employee may revoke his waiver of claims under the ADEA within seven (7) days of the day he executes this Agreement. Employee’s waiver of claims under the ADEA will not become effective until the eighth (8th) day following Employee’s signing of this Agreement. Employee may revoke his waiver of ADEA claims under this Agreement by delivering written notice of his revocation, via facsimile and overnight mail, before the end of the seventh (7th) day following Employee’s signing of this Agreement to: Mr. Thomas Varvaro, Chief Financial Officer, 10005 Muirlands Blvd., Suite G, Irvine, California 92618 (fax: 949-606-8763).  In the event that Employee revokes his waiver of ADEA claims under this Agreement prior to the eighth (8th) day after signing it, this Agreement shall be null and void and of force and effect, and the obligation of the Company to provide the payments and benefits set forth in Section 2 of this Agreement shall be null and void. Employee further understands that if Employee does not revoke the ADEA waiver in this Agreement within seven (7) days after signing this Agreement, his waiver of ADEA claims will be final, binding, enforceable, and irrevocable.

 

EMPLOYEE UNDERSTANDS THAT FOR ALL PURPOSES OTHER THAN HIS WAIVER OF CLAIMS UNDER THE ADEA, THIS AGREEMENT WILL BE FINAL, EFFECTIVE, BINDING, AND IRREVOCABLE IMMEDIATELY UPON ITS EXECUTION.

17. Rights under the Consolidated Omnibus Budget Reconciliation Budget Reconciliation Act.  The Employee’s rights under the Consolidated Omnibus Benefit Reconciliation Act (hereinafter “COBRA”) shall commence upon the signing of this Agreement.  The Employee will be eligible for COBRA continuation of the Company’s group medical insurance plan for the period of eighteen (18) months following the execution date of this Agreement.  At the conclusion of the eighteen (18) month period, it is understood and agreed that Employee shall have no additional rights to continued health insurance coverage.

 

18. Acknowledgement.  Employee acknowledges that he: (a) has carefully read this Agreement in its entirety; (b) has been presented with the opportunity to consider it for at least twenty-one (21) days; (c) has been advised to consult and has been provided with an opportunity to consult with legal counsel of his choosing in connection with this Agreement; (d) fully understands the significance of all of the terms and conditions of this Agreement and has discussed them with his independent legal counsel or has been provided with a reasonable opportunity to do so; (e) has had answered to his satisfaction any questions asked with regard to the meaning and significance of any of the provisions of this Agreement; and (f) is signing this Agreement voluntarily and of his own free will and agrees to abide by all the terms and conditions contained herein.

  

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19.           Additional Acknowledgement.  The Employee hereby acknowledges that Sichenzia Ross Friedman Ference LLP has previously served as counsel to the Company and in the future may serve as counsel to the Company.  Such firm does not represent the Employee.  The Employee has been advised by the foregoing counsel that in connection with this Agreement and the matters described herein, Employee should retain counsel of his choice with respect to this Agreement and the matters herein, and to obtain the advice of other counsel inasmuch as important rights may be involved or affected relative to the matters herein.  No presumption against any party to this Agreement shall be asserted as a result of the drafting of or in connection with the drafting and negotiation of this Agreement and ancillary agreements.

20.           Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile prior to 5:30 p.m. (Eastern Time) on a Business Day, (b) the next Business Day after the date of transmission, if such notice or communication is delivered via facsimile on a day that is not a Business Day or later than 5:30 p.m. (Eastern Time) on any Business Day, (c) the 2nd Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given.  As used herein, “Business Day” shall mean any day other than Saturday, Sunday or other day on which commercial banks in the City of New York are authorized or required by law to remain closed.  Copies of all notices to Employee shall be sent to Employee’s counsel: Tashlik, Kreutzer, Goldwyn & Crandell P.C., 40 Cuttermill Road, Suite 200, Great Neck , NY 11021, Attn.: Martin M. Goldwyn, facsimile: (516) 829-6509.  Copies of all notices to the Company shall be sent to the Company’s counsel: Sichenzia Ross Friedman Ference LLP, 61 Broadway, 32nd Floor, New York, NY 10006, Attn.: Harvey Kesner, facsimile: (212) 930-9725.

 

21.           Counterparts.  This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

[signatures on next following page]

  

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IN WITNESS WHEREOF, the Parties hereto have entered into this Agreement as of the 11th day of June, 2012.

 

	 	 	 	 
CHROMADEX CORPORATION

	 	 	 	 	 
	 	 	 	By: 	 
	 	 	 	 	Chief Financial Officer
	 	 	 	 	 
	By:	 	 	 	 
	 	Jeffrey Himmel 	 	 	 
	 	 	 	 	 
	 	With respect solely to Section 6 and 10: 	 	 	 
	 	 	 	 	 
	By:	 	 	 	 
	 	Michael Brauser	 	 	 
	 	 	 	 	 
	By:	 	 	 	 
	 	Barry Honig 	 	 	 

  

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STATE OF _________}

 

}ss.:

 

COUNTY OF ________}

 

On the ____ day of June, 2012, before me personally appeared Jeffrey Himmel, personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed on the within instrument and acknowledged to me that he executed the same.

_______________________________

Notary public

 

STATE OF _______}

 

}ss.:

 

COUNTY OF ______}

 

On the ____ day of June, 2012, before me personally appeared Thomas C. Varvaro, personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed on the within instrument and acknowledged to me that he executed the same.

_______________________________

Notary public

STATE OF _________}

 

}ss.:

 

COUNTY OF _______}

 

On the ____ day of June, 2012, before me personally appeared Michael Brauser, personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed on the within instrument and acknowledged to me that he executed the same.

_______________________________

Notary public

 

STATE OF _________}

 

}ss.:

 

COUNTY OF _______}

 

On the ____ day of June, 2012, before me personally appeared Barry Honig, personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed on the within instrument and acknowledged to me that he executed the same.

_______________________________

Notary public

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