Document:

Prepared by R.R. Donnelley Financial -- General Release Agreement

  
 EXHIBIT 10.2 
  
 GENERAL RELEASE AGREEMENT 
  
 This
General Release Agreement (“Agreement”) is between H. Reg McDaniel (“Employee”) and Mannatech, Incorporated (“Mannatech”), hereinafter known as “parties”. 
  

WHEREAS, Employee was employed by Mannatech; 
  
 WHEREAS, Employee’s employment with Mannatech was terminated effective May 31, 2002 (the “Termination Date”); 
  
 WHEREAS, Mannatech and Employee entered into an Employment Agreement on June 23, 1997; 
  
 WHEREAS, the parties desire to settle fully and finally, in the manner set forth herein, all differences between them which have arisen, or which may arise, prior to, or at the time of, the execution of this Agreement,
including, but in no way limited to, any and all claims and controversies arising out of the employment relationship between Employee and Mannatech and the termination thereof; 
  
 In consideration of these recitals and the promises and agreements set forth in this Agreement, Employee’s employment with Mannatech will terminate upon the following
terms: 
  
 1.    General Release:  Each of Employee and Mannatech, for
themselves and each of their respective parents, subsidiaries affiliates, and the shareholders, directors, officers, employees, agents, attorneys, guardians, successors, assigns, heirs, executors, and administrators IRREVOCABLY AND UNCONDITIONALLY
RELEASES, ACQUITS AND FOREVER DISCHARGES each other and each of their respective parents, subsidiaries affiliates, and the shareholders, directors, officers, employees, agents, attorneys, guardians, successors, assigns, heirs, executors, and
administratorsof and from any and all claims, liabilities, obligations, agreements, damages, causes of action, costs, losses, damages, and attorneys’ fees and expenses whatsoever, whether known or unknown or whether connected with
Employee’s employment by Mannatech or not, including, but not limited to, any dispute, claim, charge, or cause of action arising under the Age Discrimination in Employment Act, 29 U.S.C. § 621, et. seq.,Title VII of the
Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e, et seq., the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101, etseq., the Texas Commission on Human Rights Act, Tex. Labor Code
§ 21.001 et. seq., the Employee Retirement Income Security Act of 1974, as amended 29 U.S.C. § 1001, et seq., and any other municipal, local, state, or federal law, common or statutory, which may have arisen, or which
may arise, prior to, or at the time of, the execution of this Agreement. 
  
 2.    Covenant
Not to Sue:  Notwithstanding any other provision of this Agreement to the contrary, each of Employee and Mannatech also COVENANTS NOT TO SUE, THE OTHER, OR OTHERWISE PARTICIPATE IN ANY ACTION OR CLASS ACTION against, any of the
Releasees based upon any of the claims released in paragraph 1 of this Agreement. 
 

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 3.    Confidentiality:  The parties agree
that they will keep the terms, amount, and existence of this Agreement STRICTLY AND COMPLETELY CONFIDENTIAL, and that they will not communicate or otherwise disclose to any employee or Associate of Mannatech (past or present), or to a member of the
general public, the terms, amount, or existence of this Agreement, except as may be required by law or compulsory process. 
  
 4.    Settlement Terms:  Upon the expiration of seven (7) days of Employee’s execution of this Agreement, Mannatech agrees to pay Employee the total sum of Ninety Thousand Dollars ($90,000)
in non-wage taxable income (the “Proceeds”). Employee acknowledges that Company shall have no continuing obligation to provide any benefits associated with his former employment, including but not limited to medical or dental except as
required by Federal law. 
  
 5.    Indemnification.  The Parties agree that
Mannatech will not withhold any tax from the Proceeds. Mannatech will issue a Form 1099 in relation to the Proceeds reporting the Proceeds to the IRS as non-wage income. McDaniel agrees that he shall be responsible for the payment of any and all
applicable taxes, penalties, and interest due on the Proceeds, and McDaniel expressly warrants and agrees to indemnify Mannatech against, and hold Mannatech harmless from any and all taxes, penalties and/or interest, in any way arising out of, or
resulting from, Mannatech not withholding taxes from the Proceeds. 
  
 6.    Employee
Conduct.  Employee agrees that following the Termination Date, he shall not represent himself to any person or entity as an employee, agent, representative, official, owner of Mannatech (except as a shareholder or Associate of
Mannatech). Each of Employee and Mannatech further agrees that they will not make any public or private statements, comments, or communication in any form, oral, written, or electronic, which would constitute libel, slander, or trade disparagement
of the other; provided, however, that the terms of this Paragraph shall not apply to communications between any party and his or her spouse, clergy, or attorneys, which are subject to a claim of privilege existing under common law, statute,
or rule of procedure, nor shall it apply to truthful statements made in response to a subpoena or during the course of any investigation by any law enforcement authority. 
  
 7.    Restrictive Covenants:  Each of Employee and Mannatech acknowledges that they have executed a Non-Compete Agreement of even date
herewith. 
  
 8.    Use of Company Property:  Upon termination, Mannatech
authorizes Employee to use the Mannatech equipment and property currently in Employee’s possession. Mannatech’s equipment and property shall be returned to Mannatech upon written notice or upon the expiration of the Non-Compete entered
into between Employee and MannatechWithin thiry days following the execution of this Agreement, McDaniel shall deliver to Mannatech a copy of all Confidential Information contained on the hard drive of any computer’s in McDaniel’s
possession. 
  
 9.    Breach of Agreement:  In the event of a breach of this
Agreement, Mannatech shall notify the Employee of the alleged breach and afford him an opportunity to respond in writing within ten (10) days. 
 

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 10.    In the event of a dispute between the parties and
before any legal action is commenced, the parties agree that the complaining party shall give specific and detailed notice to the other party of the complaint, including the factual basis therefore. The parties shall use their best efforts to
resolve the complaint by face to face meeting conducted within 5 days of such notice of complaint. If the parties cannot arrive at a mutually satisfactory solution to the complaint within 5 business days from the date of such notice of the
complaint, the parties shall attempt to resolve the complaint by non-binding mediation before a neutral mediator agreeable to the parties. The parties shall use best efforts to schedule and conduct such mediation within thirty 10 days after the date
of the face to face meeting. The mediation shall take place at a neutral location in Dallas County, Texas. 
  
 11.    Non-Admissions:  Each of Employee and Mannatech acknowledges that by entering into this Agreement, they do not admit, and do specifically deny, any violation of any local, state, or federal
law. 
  
 12.    Severability:  If any provision of this Agreement is held to be
illegal, invalid, or unenforceable, such provision shall be fully severable and/or construed in remaining part to the full extent allowed by law, with the remaining provisions of this Agreement continuing in full force and effect. 

 
 13.    Revocation:  Either party may revoke this Agreement by notice to the other party,
in writing, within seven (7) days of the date of its execution by Employee) the “Revocation Period”). Employee agrees that he will not receive the benefits provided by this Agreement if he revokes this Agreement. Employee also acknowledges
and agrees that if Mannatech has not received from him notice of his revocation of this Agreement prior to the expiration of the Revocation Period, Employee will have forever waived his right to revoke this Agreement and this Agreement shall
thereafter be enforceable and have full force and effect. 
  
 14.    Entire
Agreement:  This Agreement constitutes the entire agreement between the parties, and supersedes all prior and contemporaneous negotiations and agreements, oral or written except as specifically stated in paragraph 7 of this Agreement.
This Agreement cannot be changed or terminated except pursuant to a written agreement executed by the parties. 
  
 15.    Governing Law:  This Agreement shall be governed by and construed in accordance with the laws of the State of Texas, except where preempted by federal law. 
  
 16.    Statement of Understanding:  By executing this Agreement, Employee acknowledges that (a) he
has had at least twenty-one (21) days to consider the terms of this Agreement and has considered its terms for that period of time or has knowingly and voluntarily waived his right to do so; (b) he has been advised by Mannatech to consult with an
attorney regarding the terms of this Agreement; (c) he has consulted with, or has had sufficient opportunity to consult with, an attorney of his own choosing regarding the terms of this Agreement; (d) he has read this Agreement and fully understand
its terms and their import; (e) except as provided by this Agreement, he has no contractual right or claim to the benefits described herein; (f) the consideration provided for herein is good and valuable; and (g) he is 
 

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 entering into this Agreement voluntarily, of his own free will, and without any coercion, undue influence, threat, or intimidation of any
kind or type whatsoever. 
  
 EXECUTED in Ft. Lauderdale, Florida this day of 22nd June, 2002. 
  
 
	 
	 /s/    H. REG.
MCDANIEL        
 

	 H. REG MCDANIEL
 

 
  
 EXECUTED in Ft. Lauderdale, Florida this day of 22nd June, 2002. 
  
 
	 MANNATECH, INCORPORATED
 
	 
	 By:
 	 	 /s/    SAM CASTER        

	 
	 Its:
 	 	 Chairman of the Board
 

 
  
  
  
 

 4Prepared by R.R. Donnelley Financial -- Purchase Commitment

  
 EXHIBIT 10.3 
  
 THIRD AMENDED AGREEMENT 
  
 This Third
Amendment Agreement (“Third Amendment”) is entered into this 29 day of May, 2002 by and between Caraloe, Inc. (“CARALOE”), with its principal place of business located at 2001 Walnut Hill Lane, Irving, Texas 75038, and Mannatech,
Inc. (“MANNETECH”), with its principal place of business located at 600 South Royal Lane, Suite 200, Coppell, Texas 75019 (hereinafter collectively referred to as the “Parties”). 
  
 WITNESSETH: 
  
 WHEREAS, on August 14, 1997 the Parties entered into a non-exclusive Supply Agreement pertaining to the purchase by MANNATECH of CARALOE’s proprietary blend of bulk mucilaginous polysaccharide from Aloe vera L., otherwise
known under the production name of Manapol® powder (Exhibit “A” hereto, the “Supply
Agreement”); 
  
 WHEREAS, contemporaneously upon entering into the Supply Agreement, the Parties also entered
into a Trademark License Agreement in connection with the advertising and sale of Manapol® for
inclusion as a primary ingredient in the MANNATECH product line (Exhibit “B” hereto, the “License Agreement”); 
  
 WHEREAS, on January 12, 2000, the Parties entered into a Letter Agreement extending the License and Supply Agreements and modifying the projected usage and purchase requirements for fiscal years 2000 and 2001, as attached
hereto as Exhibit “C” (‘First Amendment”); 
  
 WHEREAS, on February 14, 2001, the Parties entered
into a subsequent agreement whereby the minimum quantities of Manapol® powder that MANNATECH was
obligated to purchase were decreased on a short-term basis to compensate for a diminution in expected sales in the international marketplace as indicated and attached hereto as Exhibit “D” (“Second Amendment”); and 

 
 WHEREAS, the Parties are desirous of extending the term of the Supply and License Agreements while again decreasing the monthly
purchase requirement; 
  
 NOW, THEREFORE, in consideration of the premises and mutual covenants and agreements
contained herein, the Parties hereto agree as follows: 
  

	1.
	 
	Term.  The terms of the Supply and License Agreements shall, as to each, be extended for an additional twelve and one-half (l21⁄2) months
from August 14, 2002 to August 31, 2003 (“Extended Term”), unless earlier terminated in accordance with the terms of the original Supply and/or License Agreement(s) or this Third Amendment, as the case may be. 

 

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	2.
	 
	Exclusivity 
 

  

	 	(a)
	 
	The Parties agree that the Supply and License Agreements shall be exclusive to the extent that CARALOE may not sell or distribute Manapol® in bulk or wholesale form for sale or otherwise, to anyone whom MANNATECH has by written notice to CARALOE
identified as (and who is), an Independent Associate of MANNATECH (“Associate”), or whom CARALOE knows or should have known to be an Associate of Mannatech. For purposes of this paragraph 2, the words “bulk or wholesale” shall
refer only to a sale of one (1) kilogram or more of Manapol® raw material. 

	 	(b)
	 
	CAROLE agrees to discontine making bulk or wholesale sales or distributions of Manapol® raw material to any Associate within thirty (30) days after receipt of written notice from MANNATECH identifying such Associate. 

  

	3.
	 
	Minimum Purchase Requirement.  Beginning January 2002 and monthly thereafter-MANNATECH shall purchase not less than 250 Kg of
Manapol® powder until the end of the Extended Term of the Supply and License Agreements. CARALOE
agrees that MANNATECH may increase its monthly orders, incrementally, in amounts not to exceed 20% more than the prior month’s order, subject to ninety (90) days prior written notice to CARALOE. In the event that MANNATECH reasonably
anticipates that it shall require more than 20% more Manapol® than its prior monthly order, CARALOE
will exert its best reasonable effort to deliver but will guarantee delivery if MANNATECH gives CARALOE at least 180 days prior written notice thereof. 
 

  

	4.
	 
	Pricing.  The price per kilogram payable by MANNATECH to CARALOE for Manapol® shall be dependent on the total quantity of Manapol® ordered by MANNATECH during a calendar month and shall be as follows: 
 

  
 
	 Total Monthly Quantity
 
	  	 Price/Kg
 

	 200-300 Kg
 	  	 $
 	 1,225/Kg
 
	 301-400 Kg
 	  	 $
 	 1,200/Kg
 
	 401-500 Kg
 	  	 $
 	 1,150/Kg
 
	 501-600 Kg
 	  	 $
 	 1,125/Kg
 
	 601 and above
 	  	 $
 	 1,100/Kg
 

 
  

	5.
	 
	Mannatech Confidential Information.  CARALOE recognizes and acknowledges that MANNATECH’s tradename(s), trademarks, copyrights, patents,
marketing plans, identity of and related information regarding its Associates, product formulations and other proprietary product information and any information relating to the management/operations of MANNATECH are valuable assets belonging to
MANNATECH and as such are the sole property and may constitute trade secrets of Mannatech. Prior to and during the performance of the Supply and License Agreements, as amended hereby, that CARALOE may have or had access to certain confidential
information pertaining to MANNATECH. CARALOE specifically agrees CARA.LOE will not at any time, during or after the performance of the Supply and License Agreements, as amended hereby, in any manner, either directly or indirectly, use, divulge,
disclose, or communicate to any person, firm or corporation, any confidential 
 

 

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	information of any kind, nature, or description concerning any matters affecting or relating to the business of MANNATECH (hereinafter referred to as
“Mannatech Confidential Information”). Mannatech Confidential Information includes but is not limited to: MANNATECH genealogies (being the information held by MANNATECH or by any current or former Associate of MANNATECH related to its
Associates including without limitation its relationship with each of its Associate’s, the Associate’s name, upline and downline, charts, data reports, proprietary product information which may from time-to-time be made known to CARALOE,
the names or practices of any of MANNATECH’s customers or Associates; MANNATECH’s marketing methods and related data; the names of MANNATECH’s vendors or suppliers; costs of materials; costs of its products generally, the prices
MANNATECH obtains or has obtained or at which it sells or has sold its products or services; manufacturing and sales costs; lists or other written records used in N4ANNATECH’s business; compensation paid to its Associates, details of training
methods, new products or new uses for old products, merchandising or sales techniques, contracts and licenses, business systems, computer programs, or any other confidential information of, about, or concerning the business of MANNATECH; its manner
of operation or other confidential data of any kind, nature or description. 
 

  
 CARALOE agrees to
use the Mannatech Confidential Information only for MANNATECH business and shall return copies of any written Mannatech Confidential Information in CARALOE’s possession to MANNATECH forthwith upon written demand and upon termination of the
Supply and License Agreements for whatever reason. 
  
 Notwithstanding anything to the contrary contained in this
Third Amendment or in the Supply Agreement or the License Agreement, 

	 	(a)
	 
	CARALOE shall have no obligation to maintain in confidence or return to MANNATECH any information (i) that was known to CARALOE prior to its disclosure to
CARALOE by MANNATECH or any of its current or former Associates and that did not become known to CARALOE through disclosure by a person who was then known actually by CARALOE to have obtained such information or made such disclosure in violation of
any obligation to MANNATECH, (ii) that is now in or hereafter enters the public domain other than due to a breach by CARALOE of this paragraph 5, (iii) that is disclosed to CARALOE by a third party who is not actually known by CARALOE to have
obtained or disclosed such information in violation of any obligation to MANNATECH, or (iv) that is independently developed by CARALOE without the aid, application or use of any Mannatech Confidential information disclosed to CARALOE; and

 

	 	(b)
	 
	CARALOE may make any disclosure of Mannatech Confidential Information (i) that it is necessary or appropriate to make in order to carry out its obligations
under any written agreement with MANNATECH, (ii) that it is required or permitted to make pursuant to any written consent of or written agreement with MANNATECH or (iii) that it is required by law to make. 
 

 

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	6.
	 
	Remedies.  CARALOE acknowledges that MANNATECH has devoted considerable time and resources in connection with the development of its sales
force and products and establishment of goodwill associated with the same. CARALOE acknowledges that a breach by CARALOE of paragraph 5 would cause MANNATECH to suffer irreparable harm, for which damages would be difficult to assess and further
agrees that MANNATECH shall be entitled to injunctive relief in addition to any other right or remedy MANNATECH may have, including without limitation, the recovery of damages for the breach of this or any other surviving provision(s) in the Supply
Agreement and License Agreement. 
 

  

	7.
	 
	Effect of Third Amendment.  This Third Amendment shall be effective on and after January 1, 2002 and shall supersede the First Amendment and
the Second Amendment. Except as expressly amended by this Third Amendment, the terms of the Supply Agreement and the License Agreement shall remain in full force and effect. In the event of any inconsistencies between the terms of this Third
Amendment and the terms of the Supply Agreement or the License Agreement, the terms of this Third Amendment shall control. 
 

  
 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date first above written. 
  
 
	 CARALOE, INC.
 
	 
	 By:
 	 	 /s/    WALTER C. JONES
 

	  	 	 Walter C. Jones
 President
 

 
  
 
	 MANNATECH, INC.
 
	 
	 By:
 	 	 /s/    ROBERT M. HENRY
 

	  	 	 Robert M. Henry
 Chief
Executive Officer
 

 
 

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