Document:

ex10x1.htm

Exhibit 10.1

 

 

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

This AGREEMENT made as of the 6th day of June, 2012.

 

BETWEEN:

 

SILVER BULL RESOURCES, INC.

 

(the “Company”)

 

AND:

 

SEAN FALLIS

 

(the “Executive”)

 

WHEREAS:

 

A.                      The Company and the Executive entered into an amended and restated employment agreement, dated April 6, 2011 (the “Original Amended and Restated Employment Agreement”) pursuant to which the parties agreed to the terms and conditions of employment of the Executive.

 

B.                      The Company and the Executive wish to amend and restate the Original Amended and Restated Employment Agreement so that the Executive’s salary is increased and the Executive’s termination provisions are modified.

 

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the forgoing recitals and of the mutual covenants, agreements and representations contained herein and other valuable consideration given by each party hereto to the other, the receipt and sufficiency of which are hereby acknowledged by each of the parties, the parties hereby agree as follows:

 

1.  DEFINITIONS

 

1.1 Unless otherwise defined in the body of this Agreement, defined terms have the meanings ascribed to them in Schedule “A” of this Agreement.

 

2.  EMPLOYMENT

 

2.1  Position. As of April 15, 2011, the Company agrees to employ the Executive as Chief Financial Officer, reporting to the Chief Executive Officer of the Company.  Prior to April 15, 2011, the Company agrees to employ the Executive as Vice President, Finance, reporting to the Chief Financial Officer of the Company. The Executive shall perform, observe and conform to such duties and instructions as from time to time are lawfully assigned or communicated to the Executive on behalf of the Company and on behalf of such affiliated companies designated by the Company as requiring the services of the Executive and as are consistent with his position.

 

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2.2  Service.  During the term the Executive shall:

 

	
(a)  

	
well and faithfully serve the Company and use his best efforts to promote the best interests of the Company;

 

	
(b)  

	
unless prevented by ill health or injury, devote the whole of his working time and attention to the business of the Company;

 

	
(c)  

	
comply in all material respects with any Company policies that may apply to the Executive from time to time; and

 

	
(d)  

	
not, without the prior written consent of the Company, which consent may be withheld in the sole discretion of the Company, engage in any other business, profession or occupation, or become an officer, director, employee, contractor for service, agent or representative of any other corporation, partnership, firm, person, organization or enterprise.

 

2.3  Term.  The term of this Agreement shall be effective from February 7, 2011 (the “Effective Date”) and shall continue until this Agreement and the Executive’s employment are terminated in accordance with Section 4 of this Agreement.

 

3.  COMPENSATION AND BENEFITS 

 

3.1  Salary.  The Company shall pay to the Executive $165,000.00 CDN (“Base Salary”) per annum effective May 1, 2012 for all hours worked discharging the duties of his employment, payable in accordance with the Company’s regular payroll practices or on such other basis as mutually agreed between the Company and the Executive.  The Base Salary may be increased from time to time in the sole discretion of the Board of Directors of the Company.

 

3.2  Annual Bonus.  Within nine (9) months of the Effective Date the Company shall provide the Executive with performance criteria relating to the payment of an annual bonus (the “Annual Bonus”).  Starting in the second year of employment, the Executive shall be eligible to receive an Annual Bonus based upon attaining the set performance criteria.  The terms and conditions of any bonus plan implemented by the Company are subject to modification from year to year by the Board of Directors of the Company in the Company’s sole discretion.

 

3.3  Stock Options.  The Company, as directed by the Board, shall, as soon as practicable after the Effective Date, grant to the Executive 350,000 options to become effective three months after the Effective Date in accordance with the terms of the Stock Option Plan.  Any stock options granted pursuant to this Section or at any time during this Agreement shall vest, terminate and be exercisable on the terms set out in the form of the stock option agreement in use by the Company at the time of such grant and in accordance with the terms of the Stock Option Plan for employees as it exists from time to time, and subject to necessary regulatory and Board approval.

 

3.4  Group Benefits.  The Executive will be eligible to participate in the Company’s employee benefit plans, provided that such participation will be subject to all terms and conditions of such plans (including, without limitation, all waiting periods, eligibility requirements, contributions, exclusions or other similar conditions and limitations).  The introduction and administration of the employee benefit plans is within the Company’s sole discretion, and the Executive agrees that the introduction, deletion or amendment of any of the benefits shall not constitute a breach of this Agreement.

 

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3.5  Vacation.  The Executive shall be entitled to take four (4) weeks of paid vacation per year.  The timing of vacation will be subject to the Company’s business needs at the time.  The amount of paid vacation may be increased from time to time in the sole discretion of the Board of Directors of the Company.

 

3.6  Expenses.  The Executive shall be reimbursed by the Company for all reasonable expenses incurred in connection with the Executive’s employment within a reasonable time after receipt of the appropriate invoice or other documentation related to such expenses.

 

3.7  Other Perquisites.  The Company agrees to pay all reasonable costs associated with Spanish language tutoring, annual professional development fees and membership dues incurred by the Executive related to the Executive’s employment and to provide the Executive with reasonable time off of work to attend certified accountant professional development courses.

 

3.8  Statutory Deductions.  The Company shall have the right to deduct and withhold from the Executive’s compensation any amounts required to be deducted and remitted under the applicable provincial laws or federal laws of Canada.

 

4.  TERMINATION OF AGREEMENT AND EMPLOYMENT

 

4.1  Termination by Executive. The Executive may terminate his employment with the Company by giving not less thirty (30) days written notice of resignation to the Company.  At the time the Executive provides the Company with notice of resignation, or at any time thereafter, the Company shall have the right to elect to terminate the Executive’s employment at any time prior to the effective date of the Executive’s resignation, and upon such election, shall provide to the Executive a lump sum payment equal to the Base Salary then in effect for the number of days that remain outstanding to the effective date of the Executive’s resignation.

 

4.2  Termination by Company Without Cause.  The Company may terminate this Agreement without Cause at any time by providing the Executive with written notice of termination equal to:

 

	
(a)  

	
no notice if the Executive’s employment is terminated less than three (3) months from the Effective Date;

 

	
(b)  

	
four (4) months if the Executive’s employment is terminated more than three (3) months from the Effective Date but less than thirty-six (36) months from the Effective Date; or

 

	
(c)  

	
for six (6) months if the Executive’s employment is terminated more than thirty-six (36) months from the Effective Date.

 

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At the time that the Company provides notice of termination to the Executive pursuant to this Section or at any time during the above applicable period of notice (the “Notice Period”), the Company shall have the right to elect to pay the Executive a lump sum payment equal to the Base Salary then in effect for the balance of the Notice Period that remains outstanding at the time of the Company’s election.  In the event of such election, the Company shall continue to provide only those benefits that it is permitted or able to provide under the applicable rules of the relevant plans during the Notice Period or such proportion of the Notice Period that remains outstanding at the time of the Company’s election.

 

4.3  Termination By Executive Following a Change of Control.  The Executive may elect, within three (3) months of a Change of Control of the Company to terminate his employment and this Agreement upon providing written notice of termination to the Company.  Upon receipt of such notice of termination in accordance with this, the Company shall pay the Executive’s Base Salary then in effect for twelve (12) months plus the previous year bonus.

 

4.4  Termination by the Company for Just Cause.  Notwithstanding any other provision of this Agreement, the Company may on written notice to the Executive immediately terminate this Agreement and the Executive’s employment with the Company at any time for Cause, without notice or pay in lieu of notice or any other form of compensation, severance pay or damages.

 

4.5  Directorship and Offices.  Upon the termination of his employment with the Company, the Executive shall immediately resign any directorship or office held in the Company or any respective parent, subsidiary or affiliated companies of the Company and, except as provided in this Agreement, the Executive shall not be entitled to receive any written notice of termination or payment in lieu of notice, or to receive any severance pay, damages or compensation for loss of office or otherwise, by reason of the resignation or resignations referred to in this Section 4.5.

 

4.6  Annual Bonus Upon Termination.  The Executive’s participation in any and all annual bonus plans shall cease immediately on the date the Executive receives or gives notice of termination of this Agreement and the Executive shall only be entitled to receive any Annual Bonus prorated to the date the Executive receives or gives notice of termination.

 

4.7  Stock Options on Termination.  The vesting and exercise of any stock options granted to the Executive in the event the Executive’s employment with the Company or this Agreement is terminated, for any reason, shall be governed by the terms of the Stock Option Plan and any applicable stock option agreement in effect between the Company and the Executive at the time of termination.

 

4.8  No Additional Payments. The Executive acknowledges and agrees that unless otherwise expressly agreed in writing between the Executive and the Company, the Executive shall not be entitled, by reason of the Executive’s relationship with the Company or by reason of any termination of his employment by the Company, for any reason, to any remuneration, compensation or other benefits other than those expressly provided for in this Agreement.  The Executive further acknowledges and agrees that any amounts paid to the Executive pursuant to this Section 4 are inclusive of any amounts that may be payable under any statute of Canada in respect of compensation for length of service, notice of termination or severance pay.

 

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5.  

	
CONFIDENTIAL INFORMATION

 

5.1  The Executive acknowledges that, by reason of the Executive’s employment by the Company, the Executive will have access to Confidential Information of the Company that the Company has spent time, effort and money to develop and acquire.  For the purposes of this Agreement any reference to the “Company” shall mean the Company, and such respective affiliates and subsidiaries as may exist from time to time.

 

5.2  The Executive acknowledges that the Confidential Information is a valuable and unique asset of the Company and that the Confidential Information is and will remain the exclusive property of the Company.

 

5.3  The Executive agrees to maintain securely and hold in strict confidence all Confidential Information received, acquired or developed by the Executive or disclosed to the Executive as a result of or in connection with the Executive’s employment with the Company.  The Executive agrees that, both during his employment with the Company and after the termination of his employment with the Executive, the Executive will not, directly or indirectly, divulge, communicate, use, copy or disclose or permit others to use, copy or disclose, any Confidential Information to any person, except as such disclosure or use is required to perform his duties hereunder or as may be consented to by prior written authorization of the Company.

 

5.4  The obligation of confidentiality imposed by this Agreement shall not apply to information that appears in issued patents or printed publications, that otherwise becomes generally known in the industry through no act of the Executive in breach of this Agreement, or that is required to be disclosed by court order or applicable law.

 

5.5  The Executive understands that the Company has from time to time in its possession information belonging to third parties or which is claimed by third parties to be confidential or proprietary and which the Company has agreed to keep confidential.  The Executive agrees that all such information shall be Confidential Information for the purposes of this Agreement.

 

5.6  The Executive agrees that documents, copies, records and other property or materials made or received by the Executive that pertain to the business and affairs of the Company, including all Confidential Information which is in the Executive’s possession or under the Executive’s control are the property of the Company and that the Executive will return same and any copies of same to the Company immediately upon termination of the Executive’s employment or at any time upon the request of the Company.

 

	
6.

	
RESTRICTED ACTIVITIES

 

6.1  Restriction on Competition. The Executive covenants and agrees with the Company that the Executive will not, without the prior written consent of the Company, at any time during his employment or for a period of six (6) months following the termination of the Executive’s employment, for any reason, either individually or in partnership or in conjunction with any person, whether as principal, agent, shareholder, director, officer, employee, investor, or in any other manner whatsoever, directly or indirectly, advise, manage, carry on, be engaged in, own or lend money to, or permit the Executive’s name or any part thereof to be used or employed by any person managing, carrying on or engaged in a business anywhere in Gabon, West Africa or the province of Coahuila, Mexico or other jurisdiction in which the Company is carrying on active business which is in direct competition with the business of the Company.  The restrictions set forth in this Section 6.1 shall terminate in the event the Executive’s employment is terminated following a Change of Control.

 

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6.2  Restriction on Solicitation.  The Executive shall not, at any time during his employment or for a period of six (6) months after the termination of the Executive’s employment, for any reason, without the prior written consent of the Company, for his account or jointly with another, either directly or indirectly, for or on behalf of himself or any individual, partnership, corporation or other legal entity, as principal, agent, employee or otherwise, solicit, influence, entice or induce, attempt to solicit, influence, entice or induce:

 

	
(a)  

	
any person who is employed by the Company to leave such employment; or

 

	
(b)  

	
any person, firm or corporation whatsoever, who is or was at any time in the last twelve (12) months of the Executive’s employment a customer or supplier of the Company or any affiliate or subsidiary of the Company, to cease its relationship with the Company or any affiliate or subsidiary of the Company.

 

6.3  Corporate Opportunities. During the term of this Agreement, the Executive will offer to the Company any investment or other opportunity generally in the geographic area (in either the country of Gabon, West Africa or the province of Coahuila, Mexico), and the business in which the Company operates, of which he may become aware.  If after 10 working days the Board of Directors of the Executive refuses the opportunity to participate in the investment or venture, the Executive is free to seek other alternatives only during his private time.

 

6.4  Restriction on Investments.  The Executive may make passive investments in companies involved in industries in which the Company operates, provided any such investment does not exceed a 5% equity interest, unless Executive obtains consent to acquire an equity interest exceeding 5% by consent of the Chief Executive Officer and the Chairman of the Company.

 

	
7.

	
ENFORCEMENT

 

7.1  The Executive acknowledges and agrees that the covenants and obligations under Sections 5 and 6 are reasonable, necessary and fundamental to the protection of the Company’s business interests, and the Executive acknowledges and agrees that any breach of these Sections by the Executive would result in irreparable harm to the Company and loss and damage to the Company for which the Company could not be adequately compensated by an award of monetary damages.  Accordingly, the Executive agrees that, in the event the Executive violates any of the restrictions referred to in Sections 5 or 6, the Company shall suffer irreparable harm and shall be entitled to preliminary and permanent injunctive relief and any other remedies in law or in equity which the court deems fit.

 

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8.

	
GENERAL PROVISIONS

 

8.1  Cooperation and Assistance.  The Executive agrees that he shall, both during the term of this Agreement and thereafter, fully co-operate with and assist the Company in the resolution of complaints, claims or disputes against the Company, including without limitation civil, criminal or regulatory proceedings.

 

8.2  Use of Likeness.  The Executive hereby grants to the Company, its parent, subsidiary and affiliated companies, during the term of the Executive’s employment with the Company, and for a period of one (1) year after the termination of that employment for any reason, the right to use the Executive’s name, likeness and biography in connection with the advertising, sale and/or marketing of the Company’s, or its parent or affiliated company’s, products or services.

 

8.3  Severability.  If any provision of this Agreement is declared unenforceable or invalid for any reason whatsoever, such unenforceability or invalidity shall not affect the enforceability or validity of any remaining portion of this Agreement, which remaining portion shall remain in full force and effect with such unenforceable or invalid provisions shall be severed from the remainder of this Agreement.

 

8.4  Survival.  The Company and the Executive expressly acknowledge and agree that the provisions of this Agreement, which by their express or implied terms extend beyond the termination of the Executive’s employment hereunder, or beyond the termination of this Agreement, shall continue in full force and effect notwithstanding the termination of the Executive’s employment or the termination of this Agreement for any reason.

 

8.5  Entire Agreement.  The provisions of this Agreement constitute the entire agreement between the parties and, except as specifically provided in any incentive plans that may be implemented from time to time after the Effective Date of this Agreement, supersede and cancel all previous communications, representations and agreements, whether oral or written, between the parties with respect to the Executive’s employment by the Company.

 

8.6  Amendment.  This Agreement may not be amended or modified except by written instrument signed by the Company and the Executive.

 

8.7  Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the province of British Columbia and the federal laws of Canada applicable therein, which shall be deemed to be the proper law hereof.  The parties hereby attorn to and submit to the jurisdiction of the courts of British Columbia.

 

8.8  Enurement.  This Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors, personal representatives and permitted assigns.

 

8.9  Assignment of Rights.  The Company shall have the right to assign this Agreement to another party as a successor employer, provided that any such successor or assignee expressly assumes in writing the Company’s obligations under this Agreement.  The Executive shall not assign his rights under this Agreement or delegate to others any of his functions and duties under this Agreement without the express written consent of the Company which may be withheld in its sole discretion.

 

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8.10   Affiliated Corporations.  The Executive acknowledges and agrees that all of the Executive’s covenants and obligations to the Company, as well as the rights of the Company under this Agreement, shall run in favour of and shall be enforceable by the parent, subsidiary and affiliated companies of the Company.  The Executive acknowledges that notwithstanding references in this Agreement to affiliated companies of the Company, this Agreement is between the Executive and the Company.  The Executive shall have no right to enforce this Agreement against any party other than the Company unless this Agreement is assigned to any entity in accordance with Section 8.9 of this Agreement.

 

8.11    Legal Advice.  The Executive acknowledges this Agreement has been prepared by the Company and that the Executive has had sufficient time to review these documents thoroughly, including enough time to obtain independent legal advice concerning the interpretation and effect of these documents prior to their execution.  By signing these documents, the Executive represents and warrants that he has read and understood these documents and that he executes them of his own free will and act.

 

 

 

 

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    IN WITNESS WHEREOF the parties have hereto have duly executed this agreement as of the day and year first above written.

 

	 	
SILVER BULL RESOURCES, INC.

	 
	 	 	 	 
	
 

	
Per:

	/s/ Brian Edgar	 
	 	 	
Authorized Signatory

	 
	 	 	 	 

	 	 	 	 
	
 

	
Per:

	/s/ Sean Fallis	 
	 	 	SEAN FALLIS	 
	 	 	 	 
	 	 	 	
 

 

 

 

 

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SCHEDULE “A”

 

DEFINITIONS

 

The following terms shall have the following definitions:

 

	
(a)  

	
“Board” means the Board of Directors of the Company;

 

	
(b)  

	
“Cause” has the meaning commonly ascribed to the phrase “cause” or “just cause for termination” at common law and, without limiting the foregoing, includes any of the following acts or omissions:

 

	
(a)  

	
the Executive’s gross default or misconduct during the Executive’s employment in connection with or effecting the business of the Company;

 

	
(b)  

	
the Executive’s continued refusal or willful misconduct to carry out the duties of his employment after receiving written notice from the Company of the failure to do so and having had an opportunity to correct same within a reasonable period of time from the date of receipt of such notice;

 

	
(c)  

	
theft, fraud, dishonesty or misconduct of the Executive involving the property, business or affairs of the Company or in the carrying out of the duties of his employment; or

 

	
(d)  

	
any material breach of this Agreement including any breach Sections 5, 6 or 7 of this Agreement;

 

	
(c)  

	
“Change of Control” means the occurrence of one or more of the following events after the Effective Date of this Agreement:

 

	
(i)  

	
any Person or combination of Persons acting jointly or in concert acquires or becomes the beneficial owner of, directly or indirectly, more than 50% of the voting securities of the Company, whether through the acquisition of previously issued and outstanding voting securities, or of voting securities that have not been previously issued, or any combination thereof or any other transaction having a similar effect; or

 

	
(ii)  

	
the sale or transfer of more than 50% of the operating assets of the Company to an entity not controlled by the Company;

 

	
(d)  

	
“Confidential Information” means all trade secrets, proprietary information and other data or information (and any tangible evidence, record or representation thereof), whether prepared, conceived or developed by an employee of the Company (including the Executive) or received by the Company from an outside source which is maintained in confidence by the Company or any of its employees, contractors or customers including, without limitation:

 

 

 

  

  

  

	
(i)  

	
any ideas, drawings, maps, improvements, know-how, research, geological records, drill logs, inventions, innovations, products, services, sales, scientific or other formulae, core samples, processes, methods, machines, procedures, tests, treatments, developments, technical data, designs, devices, patterns, concepts, computer programs or software, records, data, training or service manuals, plans for new or revised services or products or other plans, items or strategy methods on compilation of information, or works in process, or any inventions or parts thereof, and any and all revisions and improvements relating to any of the foregoing (in each case whether or not reduced to tangible form) that relate to the business or affairs of the Company or that result from its marketing, research and/or development activities;

 

	
(ii)  

	
any information relating to the relationship of the Company with any personnel, suppliers, principals, investors, contacts or prospects of the Company and any information relating to the requirements, specifications, proposals, orders, contracts or transactions of or with any such persons;

 

	
(iii)  

	
any marketing material, plan or survey, business plan, opportunity or strategy, development plan or specification or business proposal;

 

	
(iv)  

	
financial information, including the Company’s costs, financing or debt arrangements, income, profits, salaries or wages; and

 

	
(v)  

	
any information relating to the present or proposed business of the Company.

 

	
(e)  

	
 “Person” means an individual, partnership, association, company, body corporate, trustee, executor, administrator, legal representative and any national, provincial, state or municipal government; and

 

	
(f)  

	
“Stock Option Plan” means the 2010 Stock Option and Stock Bonus Plan for Silver Bull Resources, Inc. as amended from time to time.reg8kex101_672012.htm

 

Exhibit 10.1

 

 

CONFIDENTIAL SETTLEMENT AGREEMENT

AND MUTUAL GENERAL RELEASE

 

 

This Confidential Settlement Agreement and Mutual General Release (hereinafter the “Agreement”) is entered into as of June 4, 2012 by and between Regeneca, Inc., a Nevada corporation (the “Corporation”) and Matthew Nicosia (“Nicosia”). The Corporation and Nicosia shall be collectively referred to herein as the “Parties.”

 

RECITALS

 

A.           WHEREAS, the Corporation owes to Nicosia certain debts and obligations including but not limited to unpaid salary, unreimbursed expenses, unpaid vacation and other compensation related expenses (the “Nicosia Obligations”); and

 

B.           WHEREAS, in order to settle the Nicosia Obligations the Corporation proposes to sell, exchange and transfer to Nicosia certain assets of the Corporation listed on Schedule A (the “Assets”);

 

C.           WHEREAS, as additional consideration for the sale and exchange of the assets, Nicosia will agree to assume and indemnify the Corporation against the debts the Corporation owes to certain third parties listed on Schedule B (the “Third Party Obligations”); and

 

D.           WHEREAS, Nicosia holds certain shares of the Corporation’s Common Stock, options and/or warrants to purchase shares of Common Stock (the “Nicosia Equitable Interests”);

 

E.           WHEREAS, the Corporation and Nicosia now desire to satisfy the Nicosia Obligations in exchange for the transfer of  the Assets, the cancellation of the Nicosia Equity Interests and the assumption by Nicosia of the Third Party Obligations; and

 

E.           WHEREAS, subject to the terms and conditions set forth in this Agreement, the Parties hereto desire to settle all claims between them upon complete performance of all terms under this Agreement;

 

NOW, THEREFORE, in consideration of the mutual covenants, conditions, and promises contained herein, the Parties agree as follows:

 

SETTLEMENT TERMS

 

1.           Consideration of Nicosia.

 

1.1           Nicosia hereby agrees to cancel, release and terminate all of the Nicosia Obligations and to transfer or cancel all of the Nicosia Equity Interests for assignment by the Corporation to Nicosia of all of the Corporation’s right, title and interest, in and to the Assets.

 

1.2           Nicosia further agrees to assume, pay, discharge or settle, and to hold the Corporation harmless from, the Third party Obligations.

 

  

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1.3           Nicosia agrees to provide to Dwight D. Baron without any compensation, consulting services as required by the Settlement Agreement between the Corporation and Dwight D. Baron up to ten hours per month for a period of six months.

 

1.4           Nicosia agrees to provide the Corporation, without any compensation, consulting services to the Corporation regarding E-cig up to ten hours per month for a period of six months.

 

2.           Consideration of the Corporation.

 

2.1           The Corporation hereby agrees to assign to Nicosia all of its right, title and interest, in and to the Assets.  The Corporation agrees to execute and deliver such other agreements, instruments, documents and assignments as may be reasonably necessary to effectuate the transfer of the Assets.

 

2.2           The Corporation shall permit Nicosia (and his affiliates) to occupy the current corporate offices of the Corporation without any payment of rent or expenses until June 30, 2012.

 

3.           Transfer of Nicosia Equity Interests.  Upon execution of this Agreement, Nicosia will immediately tender to the Corporation any certificates or agreements representing the Nicosia Equity Interests and will do all that is necessary to endure that the transfer of the Nicosia Equity Interests are completed and in compliance with all applicable laws, covenants and restrictions.

 

4.           Non-Disparagement. The parties agree not to disparage one another, including disparagement of their shareholders, members, partners, officers, directors and employees.

 

5.           Covenant Not to Compete.  The Corporation hereby covenants that for two years from the date of the execution of this Agreement it will not engage in any activity that competes with the business conducted by Nicosia using the Assets.

 

6.           Return of Corporation Property.  Within five days of executing this Agreement, Nicosia shall return all Corporation property currently in his possession, including, but not limited to equipment and other items, and all documents of any kind, including all originals or copies, which pertain, relate or refer to the Corporation.

 

7.           Assignment of Intellectual Property.  Concurrent with the execution of this Agreement, the Corporation assigns, transfers and conveys to Nicosia all rights, title, and interest in and to all intellectual property used, incorporated, employed or included in the Assets, and agrees to execute such other agreements, acknowledgments, documents or instruments necessary or advisable to evidence such assignment, transfer and conveyance,

 

8.           Mutual Release of Claims.

 

8.1           It is understood and agreed, by and among all of the Parties to this Agreement that, in consideration for the mutual promises and covenants undertaken herein, and after consultation with legal counsel, the Parties do hereby, for themselves and for their heirs,

 

  

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attorneys, legal representatives, agents, successors-in-interest and assigns, irrevocably and unconditionally release and forever discharge one another and their parent companies, subsidiaries, affiliates, predecessors, successors or assigns, shareholders, members, partners, officers, attorneys, agents and employees from any and all causes of action, claims, actions, rights, judgments, obligations, damages, demands, accountings or liabilities of whatever kind and character, which each has or may have against the other by reason of, or arising out of any and all other matters of whatever kind, nature or description, whether known or unknown, occurring prior to the date of execution of this Agreement.

 

8.2           The Parties agree to waive and release any claim for damages occurring at any time after the date of execution of this Agreement because of alleged continuing effects of any alleged acts or omissions involving the Parties which occurred on or before the date of this Agreement.

 

8.3           Notwithstanding the foregoing, Nicosia does not waive or relinquish any right, entitlement or claim for indemnification from the Corporation to which Nicosia is entitled under the Articles of Incorporation, Bylaws ;and agreements.  The Corporation agrees to indemnify, defend and hold harmless Nicosia from and against any claims, damages, liabilities, fees (including reasonable attorneys’ fees) and other expenses arising from or relating to his service as an officer or director of the Corporation.  This indemnification obligation shall continue for a period of five years from the date of this Agreement.

 

9.           Waiver of California Civil Code Section 1542

 

9.1           The Parties do hereby, for themselves, and for their heirs, attorneys, legal representatives, agents, successors-in-interest and assigns, expressly waive and relinquish all rights and benefits afforded by Section 1542 of the Civil Code of California and do so understanding and acknowledging the significance and consequences of such specific waiver of Section 1542.

 

9.2           The Parties acknowledge that they are being represented in this matter by legal counsel, and acknowledge that they are familiar with the provisions of California Civil Code Section 1542, which provides as follows:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

Thus, notwithstanding the provisions of Section 1542, and for the purpose of implementing a full and complete release and discharge of all claims, the Parties expressly acknowledge that this Agreement is also intended to include in its effect, without limitation, all claims which they do not know or expect to exist in their favor at the time of execution hereof, and that this Agreement contemplates the extinguishment of any such claim or claims.

 

  

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REPRESENTATIONS & WARRANTIES

 

10.           Representation by Counsel.  The Parties represent and agree that they have carefully read and fully understand all of the provisions of this Agreement, and the terms and conditions set forth herein, and that they are voluntarily entering into this Agreement.  The Parties affirm that, prior to execution of this Agreement, they have consulted with legal counsel concerning the terms and conditions set forth herein.

 

11.           No Assignment.  The Parties represent that they have not assigned, transferred, or granted, or purported to assign, transfer, or grant, any of the claims, demands, causes of action, obligations, agreements, liens, judgments, orders, damages, liabilities, losses, costs, or expenses of any kind, in law or equity, whether known or unknown, that one of them now holds, will ever hold, or has ever held against the other.

 

12.           Corporate Authority.  If any Party to this Agreement is a corporation, partnership, or other entity, the person signing this Agreement warrants that he is authorized and has authority to sign this Agreement on behalf of the corporation, partnership or other entity.

 

13.           No Reliance.  Neither party nor any officer, agent, employee, representative, or attorney for either party has made any statement, representation, or promise to the other regarding any facts relied upon in entering into this Agreement.  The Parties represent, warrant and agree that they have not relied and do not rely upon any statement, representation or promise of the other, or of any officer, agent, employee, representative, or attorney for the other in executing this Agreement, or in making the settlement provided for herein, except as expressly stated in this Agreement.

 

14.           Nicosia Equity Interests.  The Nicosia Equity Interests represent all the shares of capital stock of the Corporation that Nicosia owns, and Nicosia has no other right, option or warrant ort other right to acquire any shares of capital stock of the Corporation.  Nicosia hereby represents that Nicosia owns all of the Nicosia Equity Interests, and that he has not sold, transferred, hypothecated, pledged, lent, gifted or otherwise disposed of any of the Nicosia Equity Interests.  No other person has any right to acquire any of the Nicosia Equity Interests. Nicosia agrees that he will indemnify and defend all other Parties against any and all claims against any of them by individuals and entities later asserting ownership of shares of the Corporation obtained from Nicosia.

 

GENERAL PROVISIONS

 

15.           Choice of Law.  This Agreement shall be deemed to have been executed and delivered within the State of California and the rights and obligations of the Parties hereto shall be construed and enforced in accordance with, and shall be governed by, the laws of the State of California.

 

16.           Whole Agreement.  This Agreement contains all the terms and conditions agreed upon by the Parties hereto regarding the subject matter of this Agreement.  Any prior agreements, promises, negotiations, or representations, either oral or written, relating to the subject matter of this Agreement not expressly set forth in this Agreement are of no force or

 

  

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effect.  This Agreement is executed without reliance upon any representation by any person concerning the nature or extent of injuries or damages or legal liability.

 

17.           Execution in Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, all of which together shall constitute one and the same instrument.  Facsimile signature pages shall be acceptable as if original signature pages.

 

18.           Severability.  The provisions of this Agreement are contractual, and not mere recitals.  The Agreement shall be considered severable, such that if any provision or part of the Agreement is ever held invalid under any law or ruling, that provision or part of the Agreement shall remain in force and effect to the extent allowed by law, and all other provisions or parts shall remain in full force and effect.

 

19.           Amendment.  Any amendment or modification of this Agreement must be in writing and signed by the Parties.

 

20.           Attorneys’ Fees.  If any party hereto brings a legal action to protect or enforce its rights hereunder, the prevailing party in such litigation shall be entitled to recover reasonable attorneys' fees, expenses, and other costs incurred in the conduct of such litigation and any appeal therefrom.

 

21.           Waiver of Breach.  No waiver by any party of any breach of any term or provision of this Agreement shall be construed to be, nor be, a waiver of any preceding, concurrent or succeeding breach of the same, or any other term or provision hereof.

 

22.           Binding.  This Agreement is binding upon and shall inure to the benefit of the Parties hereto, their respective divisions, affiliates, parents, subsidiaries, predecessor and successor corporations, and the past and present directors, officers, shareholders, agents, servants, employees, representatives, administrators, partners, general partners, managing partners, limited partners, assigns, heirs, successors or predecessors in interest, and attorneys.

 

23.           Construction of Ambiguous Terms.  It is agreed and understood that the general rule that ambiguities are to be construed against the drafter shall not apply to this Agreement.  In the event any language of this Agreement is found to be ambiguous, each party shall have an opportunity to present evidence as to the actual intent of the Parties with respect to any such ambiguous language, consistent with the parole evidence rule.

 

 [Signature Page Follows]

 

  

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IN WITNESS WHEREOF, the Parties hereto have executed this Confidential Settlement Agreement and Mutual General Release.

 

	
DATED:  June 4, 2012

	
MATTHEW NICOSIA

 

/s/ Matthew Nicosia                                                                

 

 

 

	
DATED:  June 4, 2012

	
REGENECA, INC.

 

 

By:               /s/ James Short                                                  

Name:               James Short

Its:               Director

 

	  	  

 

  

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SCHEDULE A

 

List of Assets

 

1.      All assets relating to or used in the business of offering and selling Regeneca products the “Business”) identified as “Regeneca”, “RegenaSlim”, “RegeneaBoost” and RegenaBlend” (the “Products”), including but not limited to:

 

a.           All intellectual property, trademarks, tradenames, formulas, copyrights, ingredientlists, know-how and moral right in and to the Products;

 

b.           All software developed or licensed from third parties for use by the Business,including all databases, and an assignment of any licensing agreements to usesuch software (including any prepaid licensing fees);

 

c.           All network information, including all distributor information, customer lists andmarketing and sales processes, methods and procedures.

 

d.           All inventory , raw material and work in progress;

 

e.           All agreements or relationships with suppliers, manufacturers, distributors andshippers; and

 

f.            All furniture and equipment used in the Business, including computers, servers,printers and related equipment.

 

  

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SCHEDULE B

 

List of Assumed Third Party Liabilities

 

 

	
Creditor/Payee

 

	
Description

	
Estimated Amount

	
Daniel Kerker

	
Compensation Related Expenses

	
$75,000

	
David R. Shute

	
Compensation Related Expenses

	
$35,000

	
Douglas Platt

	
Compensation Related Expenses

	
$2,500

	
James C. Short

	
Compensation Related Expenses

	
$27,500

	
Robert Van Boereum

	
Compensation Related Expenses

	
$37,500

	
Sediji Design Studio

	
AP Design

	
$32,000

	
Sheri Sharman

	
Compensation Related Expenses

	
$25,000

	
SPExpress

	
AP Shipping

	
$7,900

	
Tracey Jacobsen

	
Compensation Related Expenses

	
$5,000

	
Val Krapf

	
Compensation Related Expenses

	
$5,600

	
Wilson, Haglund & Paulsen/Wilson & Oskam

	
Legal Fees

	
$77,000

	
Hector Minjarez

	
Compensation Related Expenses

	
$5,000

	
Vivakor

	
AP Product

	
$50,000

	
IME Capital

	
Debt

	
$130,000

	
Max International

	
Judgment

	
$100,000

	
Wellman & Wells LLP

	
Legal Fees

	
$27,500

	  	
Total

	
$642,000

 

 

 

 

 

- 8 -

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