Document:

ex1021.htm

EXHIBIT 10.21

CONSULTING SERVICES AGREEMENT

This Consulting Services Agreement (“Agreement”), dated January 1, 2010 is made by and between Dorset Solutions Inc., a Canadian corporation, and its representative Philip Clark (collectively referred to as the “Consultant”), whose address is 1246 Upper Village Dr., Mississauga, Ontario L5E 3H6, and Element 21 Golf Company, a Delaware corporation (“Company”), having its principal place of business at 200 Queen’s Quay East, Unit 1, Toronto, Ontario M5A 4K9.

 

 

WHEREAS, Consultant has extensive background and knowledge in the area of federal securities laws and regulations related to accounting issues and accounting knowledge;

WHEREAS, Consultant desires to be engaged by Company to provide information, evaluation and consulting services to the Company in his area of knowledge and expertise on the terms and subject to the conditions set forth herein;

WHEREAS, Company is a publicly held corporation with its common stock shares trading on the NASDAQ Over-the-Counter Bulletin Board (OTCBB) market under the ticker symbol “ETGF,” and desires to further develop its business; and

WHEREAS, Company desires to engage Consultant to provide information, evaluation and consulting services to the Company in his area of knowledge and expertise on the terms and subject to the conditions set forth herein.

NOW, THEREFORE, in consideration for those services Consultant provides to Company, the parties agree as follows:

 

	
1.  

	
Agreement.  The completed and signed Schedules attached to this agreement shall form part of this agreement and shall be governed by this Agreement, unless otherwise specified on the Schedule.

 

	
2.  

	
Services. The Company is retaining the services of the Consultant, to provide consulting services outlined in Schedule A, in accordance with the terms and conditions contained in this Agreement. The Consultant shall provide services in a professional, business-like manner in accordance with applicable law and, if applicable, the company’s workplace policies.  The Company agrees that the Consultant’s services are provided on a best efforts basis within the time constraints of the contract and the Consultant may provide certain recommendations to the Company periodically.

 

	
3.  

	
Term. The term of this Agreement will be for the duration outlined in Schedule A unless this Agreement is terminated earlier in accordance with the termination provisions below in this agreement or extended beyond the term upon mutual written agreement of both Parties. If this Agreement has not been terminated prior to the end of the Term and has not been renewed, it expires at the end of the Term with no obligation whatsoever on the part of either Party.

 

	
4.  

	
Consultant status.  The Consultant’s relationship with the company, as created by this Agreement, is that of an independent consultant for the purposes of the federal Income Tax Act, any similar provincial taxing and employment standards legislation and the common law.  At no point during the term shall the consultant be viewed as the employee of the company.

 

	
5.  

	
Fees. The fees shall be as outlined in Schedule B, exclusive of all applicable federal and provincial sales tax. For greater certainty, the company shall not be liable to provide or pay for any benefits, such as, health, dental or worker’s compensation insurance coverage, pension contributions, vacation time or vacation pay, overtime pay, sick leave or emergency leave on account of the Consultant or termination or severance pay, and the Consultant acknowledges that it is not entitled to any of the foregoing benefits.

 

	
6.  

	
Business Expenses. The company shall reimburse the Consultant for reasonable and necessary expenses incurred by the Consultant, which have been pre-authorized by the company. For greater certainty, the company will not reimburse the Company for expenses related to a home office, tools and equipment, travel to and from the Consultant’s residence and the Company’s place of business.

 

	
7.  

	
Invoices. The Consultant shall invoice the Company for the monthly cash fee, as outlined in Schedule B. The invoice will set out the period of consulting services provided, the total fees payable and, if applicable, GST/HST, along with the GST/HST registration number.

 

 

  

1

  

 

	
  

	
8.

	
Indemnification

	
  

	
(a) Company.  Company agrees to indemnify, defend, and shall hold harmless Consultant and /or his agents, and to defend any action brought against said parties with respect to any claim, demand, cause of action, debt or liability, including reasonable legal fees to the extent that such action is based upon a claim that: (i) is true, (ii) would constitute a breach of any of Company’s representations, warranties, or agreements hereunder, or (iii) arises out of the negligence or willful misconduct of Company, or any Company content to be provided by Company and does not violate any rights of third parties, including, without limitation, rights of publicity, privacy, patents, copyrights, trademarks, trade secrets, and/or licenses.

(b) Consultant.  Consultant agrees to indemnify, defend, and shall hold harmless Company, its directors, employees and agents, and defend any action brought against same with respect to any claim, demand, cause of action, debt or liability, including reasonable legal’ fees, to the extent that such an action arises out of the gross negligence or willful misconduct of Consultant.

(c) Notice. In claiming any indemnification hereunder, the indemnified party shall promptly provide the indemnifying party with written notice of any claim, which the indemnified party believes falls within the scope of the foregoing paragraphs. The indemnified party may, at its expense, assist in the defense if it so chooses, provided that the indemnifying party shall control such defense, and all negotiations relative to the settlement of any such claim. Any settlement intended to bind the indemnified party shall not be final without the indemnified party's written consent, which shall not be unreasonably withheld.

 

	
  

	
9.

	
Limitation of Liability. Consultant shall have no liability with respect to Consultant’s obligations under this Agreement or otherwise for consequential, exemplary, special, incidental, or punitive damages even if Consultant has been advised of the possibility of such damages. In any event, the liability of Consultant to Company for any reason and upon any cause of action, regardless of the form in which the legal or equitable action may be brought, including, without limitation, any action in tort or contract, shall not exceed ten percent (10%) of the fee paid by Company to Consultant for the specific service provided that is in question.

 

	
8.  

	
Information provided. The Company shall provide all relevant, accurate and timely information relating to financial and accounting purposes including, but not limited to, full disclosure of all contracts, obligations, Board resolutions and issuance of equity and debt instruments.

 

	
9.  

	
Termination of Agreement. This agreement may be terminated before the end of the original term  by either party by any of the following events:

 

	
i)  

	
Two weeks written or verbal notice by either Party to the other, which may be effective immediately or termination effective a mutually agreeable date or

 

	
ii)  

	
Upon the bankruptcy or insolvency of either Party; or

 

	
iii)  

	
Upon the death or incapacity of the Consultant.

 

	
10.  

	
Intellectual and Proprietary Rights. The Consultant recognizes that all rights, including, without limitation, all intellectual and other proprietary rights, and documentation related thereto, which have been provided by the Company to the Consultant in connection with the performance of any of the services, are owned and shall continue to be owned by the Company. The Company also recognizes agrees further that all intellectual and other proprietary rights, in and to any methods, systems, inventions, concepts, ideas, know-how, data and databases, technology, and any enhancements, modifications, or additions to the foregoing or to any products owned, marketed or used by as well as any and all material, documentation, information and goods of the company, which have been created or developed by the Consultant in connection with the performance of the services shall enure to the benefit of the Company.

 

	
11. 

	
 Confidentiality. The Consultant further acknowledges that in the course of providing services under this Agreement he may acquire information confidential to the company which information is the property of the company. As such, the Consultant agrees to treat as confidential and not to use or disclose any such information, except as necessary in the performance of services for the company.

 

	
12.  

	
Assignment. This Agreement is not assignable by the company without the Company’s prior written consent.

 

	
13.  

	
Governing Law. The Parties agree that this Agreement shall be governed by the laws of the Province of Ontario.

 

	 	 	 	 	 
	 	 	 	 	 
	
Name:   N. Hearn                                                                           

	 	 	
Name: Philip Clark

	 
	
Title: CEO   

	 	 	
Title: Director

	 
	 	 	 	 	 
	Element 21 Golf Company	 	 	Dorset Solutions Inc.	 

 

February 17, 2010

 

  

2

  

 

Schedule A

 

Consulting Services

 

Provide services related to and customary to that of a person serving in Chief Financial Officer position, as well as, services related to Securities and Exchange Commission filings and assist in such filings for the next 12 months commencing on January 1, 2010.

All services below are provided on a best efforts basis within the time constraints of this contract. The following functions provide a general understanding of the general services to be provided.  Significant deviation from these listed functions will be mutually agreed upon by both parties and documented accordingly.

 

	
-  

	
Oversee US and Canadian Tax filings

 

	
-  

	
Setting up accounting structures and processes, including training of staff and/or assist in acquiring the right skill sets in accounting resources

 

	
-  

	
Preparation of budgets and analyze operational expenses against budgets

 

	
-  

	
Recommend policies and procedures for control of operational expenses

 

	
-  

	
Provide guidance on processes for SOX compliance

 

	
-  

	
Assist CEO in negotiations with banking and financing negotiations

 

	
-  

	
Assist CEO in analysis of possible M&A

 

	
-  

	
Work with Auditors to prepare required financial analysis and schedules

 

Every effort will be made by the Company to provide the Consultant’s services for the duration of the aforementioned term.  If, due to unavoidable circumstances, the Consultant cannot complete the aforementioned term in its entirety, Section 12 in the Consulting Services will apply.  At termination, all compensation and incentives due for services will be settled per Schedule B.

 

  

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Schedule B

 

Services Fee schedule

 

The following compensation is based on assumption that the services performed shall be approximately two days a week.  The workload will be reviewed every 3-months.  Should it be determined that the workload average is more than two days per week, the parties shall renegotiate the compensation package.

 

Compensation shall be paid as follows:

 

	
1)  

	
Monthly cash fee (excluding additional time for significant special projects addressed below):

 

$2,000 (two thousand) per month plus applicable taxes billed and payable on the 15th day of the calendar month worked. or

 

	
2)  

	
Quarterly non-cash incentive payable in advance in the form of common stock purchase warrants (excluding additional time for significant special projects addressed below):

 

	Quarterly period	Date of Issue	  Exercise Price	

Common stock purchase

warrant of the Company’s

restricted common stock

	
Jan. 1/10 to Mar.31/10

	
February 17, 2010

	
$0.60

	
75,000 shares

	
Apr. 1/10 to June 30/10

	
April 1, 2010

	
(A)

	
75,000 shares

	
July 1/10 to Sept. 30/10

	
July 1, 2010

	
(A)

	
75,000 shares

	
Oct. 1/10 to Dec. 31/10

	
October 1, 2010

	
(A)

	
75,000 shares

(A) The common stock purchase warrant shall have an exercise price equal to the closing bid price of the Company’s common stock on the date of issue.

 

Common stock purchase warrants (the “Warrant”), upon issuance, shall be fully paid, non-assessable, and free of any restrictions on transfer, but for those restrictions that are the result of state or federal securities laws. The common stock purchase warrants shall be issued to Consultant in the form of a warrant agreement (the "Warrant Agreement"), which shall be in a form and content reasonably satisfactory to the Consultant and its counsel and the Company and its counsel and shall bear a standard ’33 Act restrictive legend, as shall any shares issued upon the exercise thereof. The Warrant Agreement shall provide for, among other provisions, the above terms and the following: (1) The Warrant shall expire three years after the date that the Warrant Agreement is issued; (2) The Warrant shall have customary anti-dilution provisions for stock dividends, splits, mergers, and sale of substantially all assets of the Company; (3) The Consultant may exercise the Warrant at any time after signing the Warrant Agreement (4) The Warrants shall contain a "Cashless Exercise" provision that may be utilized 180 after issuance if there is not an effective Registration Statement covering the underlying common shares; (5) The Company shall reserve, and at all times have available, a sufficient number of shares of its common stock to be issued upon the exercise of the Warrant; and (6) The Company shall grant unlimited "piggy back" registration rights, at the Company's expense, to include the shares of the underlying common stock (to the extent Rule 144 is not then available for a sale of the shares) in any registration statement filed by the Company under the Securities Act of 1933 relating to an underwriting of the sale of shares of common stock or other security of the Company.

 

The Warrant shall be issued in the name of (Names will be provided under separate cover) and mailed to the following address:

Dorset Solutions Inc.

1246 Upper Village Dr.

Mississauga, Ontario

L5E 3H6

416-938-9641

 

In addition to the monthly cash fee and quarterly non-cash incentive, the Consultant is also entitled to the stock option plan set by the Board for the Officers of the Company.

 

Compensation for any additional time required for special projects and/or anomalies in the listed functions will be mutually agreed between both parties. For further clarification, compensation of additional time spent on special significant projects (e.g. M&A due diligence, integration, strategic plan, etc) is subject to additional compensation to be mutually agreed by both parties.

 

Should significant changes arise in the operations of the company’s operations that change the scope of the services during the term or for continuance subsequent to the end of the term, the parties may enter into discussions to mutually agree to change the aforementioned fee schedule.

 

Company shall pay to Consultant all fees within fifteen (15) days of the due date.  Failure of Company to finally pay any fees within fifteen (15) days after the applicable due date shall be deemed a material breach of this Agreement, justifying suspension of the performance of the “Services” provided by Consultant, will be sufficient cause for immediate termination of this Agreement by Consultant. Any such suspension will in no way relieve Company from payment of fees, and, in the event of collection enforcement, Company shall be liable for any costs associated with such collection, including, but not limited to, legal costs, legals’ fees, courts costs, and collection agency fees.

 

 

4exhibit10_1stdstll-oct152010.htm

 

Exhibit 10.1 

 

STANDSTILL AGREEMENT

 

This Standstill Agreement (this “Agreement”), dated as of October 14, 2010, is by and between Schiff Nutrition International, Inc., a Delaware corporation (the “Company”) and TPG STAR SNI, L.P., a Delaware limited partnership (the “Purchaser”).

 

RECITALS

 

WHEREAS, simultaneously with the execution of this Agreement (a) pursuant to the terms of that certain Stock Purchase Agreement by and between the Purchaser, on the one hand, and Weider Health and Fitness, a Nevada corporation (“Weider”) on the other hand, dated as of the date hereof (together with all exhibits, schedules, and other attachments, and as amended, restated, or otherwise modified from time to time, the “Purchase Agreement”), the Purchaser is entering into an agreement to purchase shares of the Company’s Class A Common Stock (the “Purchased Stock”), and (b) pursuant to the terms of that certain Stockholders Agreement by and between the Purchaser and Weider, as in effect on the date hereof (together with all exhibits, schedules, and other attachments as of the date hereof, the “Stockholders Agreement”), Weider and the Purchaser have entered into certain agreements regarding governance of the Company by its stockholders and representation on the Company’s board of directors by designees of the Purchaser;

 

WHEREAS, the Company’s Board of Directors or a duly constituted committee thereof has, prior to the date hereof, and in accordance with the terms set forth in Delaware General Corporation Law Section 203, unanimously approved the transactions contemplated by the terms set forth in the Purchase Agreement and the Stockholders Agreement; and

 

WHEREAS, the Company has requested in connection with such approval, that the Purchaser enter into this Agreement in order to set forth certain restrictions with respect to the Purchased Stock and the actions taken or to be taken by the Purchaser, its Affiliates and each of its Representatives, and the Purchaser is so willing.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the representations and warranties, covenants, agreements, and other promises set forth herein, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1. DEFINITIONS.

 

As used in this Agreement, the following terms shall have the meanings set forth below:

 

  

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“Action” means any claim, action, cause of action or suit (whether in contract or tort or otherwise), litigation (whether at law or in equity, whether civil or criminal), controversy, assessment, arbitration, investigation, hearing, charge, complaint, demand, notice or proceeding to, from, by or before any United States federal, state or local or any foreign government, or political subdivision thereof, or any multinational organization or authority or any authority, agency or commission entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power, any court or tribunal (or any department, bureau or division thereof), or any arbitrator or arbitral body.

 

“Affiliate” shall mean, with respect to any first Person, any second Person directly or indirectly controlling, controlled by, or under common control with such first Person where, for purposes of this definition, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of Voting Securities, by contract or otherwise.

 

“Agreement” shall have the meaning set forth in the preamble.

 

“Beneficial Owner” shall have the meaning given it in Rule 13(d)-3 under the Exchange Act, and “Beneficially Own” and “Beneficial Ownership” shall apply to securities held by a Beneficial Owner of such securities; provided, however, that the Purchaser shall not be deemed to Beneficially Own any securities owned directly, as of the date of determination of such Beneficial Ownership, by Weider.

 

“Change of Control” shall mean (a) the acquisition by a Third Party of more than 50% of the Company’s then outstanding Voting Securities, excluding however, the acquisition by an underwriter or group of underwriters pursuant to an Underwriting Agreement (or similar agreement) in a registered public offering to the public, (b) the consummation of a merger, acquisition, consolidation or reorganization or series of such related transactions involving the Company, unless both (i) immediately after such transaction or transactions, the Beneficial Owners of the Company immediately prior to such transaction shall Beneficially Own at least 50% of the outstanding Voting Securities of the Company (or, if the Company shall not be the surviving company in such merger, consolidation or reorganization, the Voting Securities of the surviving corporation issued in such transaction in respect of Voting Securities of the Company shall represent at least 50% of the Voting Securities of such surviving company), and (ii) the Company is not subject to an agreement that provides that individuals who are directors of the Company immediately prior to such transaction (or individuals designated by the Company at or before the closing of such transaction) shall constitute less than a majority of the directors of the Company (or such surviving company, as the case may be) after the closing of such transaction, (c) a change or changes in the membership of the Company’s Board of Directors that represents a change of a majority or more of such membership during any twelve (12) month period (unless such change or changes in membership are caused by the actions of the then-existing Board of Directors or the Purchaser), (d) an Insolvency Proceeding (as defined below), or (e) the consummation of a sale of all or substantially all of the Company’s assets unless, immediately after such transaction, the Beneficial Owners of the Company immediately prior to such transaction shall Beneficially Own at least 50% of the Voting Securities of the acquiring company.

  

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“Company” shall have the meaning set forth in the preamble.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

“Group” shall mean two or more Persons acting as a partnership, limited partnership, limited liability company, syndicate or other group for the purposes of acquiring, holding, or disposing of securities or material assets of an issuer.

 

“Insolvency Proceeding” shall mean (a) an assignment by the Company for the benefit of creditors, (b) the filing by the Company of a petition to have the Company adjudged insolvent, bankrupt, or which seeks a reorganization or liquidation under any law relating to bankruptcy, insolvency or receivership, (c) an appointment of a receiver or trustee for all or substantially all of the assets of the Company, unless appointed without the Company’s consent, and such appointment has not been vacated or stayed after ninety (90) days, or (d) a public admission in writing of the Company’s inability to pay its debts as they come due.

 

“Person” shall mean an individual, corporation, partnership, association, trust, unincorporated organization or other entity.

 

“Purchase Agreement” shall have the meaning set forth in the preamble.

 

“Purchased Stock” shall have the meaning set forth in the preamble.

 

“Purchaser” shall have the meaning set forth in the preamble.

 

“Representatives” shall mean, as to any Person, such Person’s members, directors, officers, employees, agents and advisors (including, without limitation, attorneys, accountants, consultants, bankers, financial advisors and prospective sources of capital or financing).

 

“Stockholders Agreement” shall have the meaning set forth in the preamble.

 

“Term” is defined in Section 2.1.

 

“Third Party” shall mean any Person (other than Weider or the Purchaser or its Affiliates) or Group (other than any Group that includes Weider, or the Purchaser or its Affiliates).

 

“Voting Securities” of any Person shall mean any securities entitled to vote generally in the election of directors of such Person, or any direct or indirect rights or options or warrants to acquire any such securities or any securities (including, without limitation, the Purchased Stock) convertible or exercisable into or exchangeable for such securities, whether or not such securities are so convertible, exercisable or exchangeable at the time of determination.

 

  

- 3 -

  

 

“Weider” shall have the meaning set forth in the preamble.

 

2. TERM AND SUSPENSION OF RESTRICTIONS.

 

2.1. Term.  The term (the “Term”) of this Agreement shall commence on the date hereof and shall continue until the earliest to occur of the following:

 

(a) the third (3rd) anniversary of the date of the Purchase Agreement; and

 

(b) a Change of Control of the Company.

 

2.2. Suspension of Restrictions.  The limitations provided in Section 3 shall immediately be suspended until the expiration of the time period provided below in this Section 2.2, upon the occurrence of any of the following events, but only so long as neither the Purchaser, nor any of its Affiliates or Representatives directly or indirectly assisted, facilitated, encouraged or participated in any such events:

 

(a) on the tenth (10th) business day (as such term is defined in Rule 14d-1 under the Exchange Act) following the commencement (as defined in Rule 14d-2 of the Exchange Act) by any Third Party of a tender or exchange offer seeking to acquire Beneficial Ownership of fifty percent (50%) or more of the outstanding shares of Voting Securities of the Company, but only if the Company has not, on or prior to such tenth (10th) business day, publicly recommended that such offer be rejected;

 

(b) on the execution of a definitive agreement that, if consummated, would result in a Change of Control of the Company;

 

(c) on the tenth (10th) business day (as such term is defined in Rule 14d-1 under the Exchange Act) following the filing of a preliminary proxy statement by any Third Party with respect to the commencement of a bona fide proxy or consent solicitation subject to Section 14 of the Exchange Act to elect or remove a majority of the directors of the Company that is not publicly opposed by the Company’s Board of Directors and that, if successful, would result in a change in the composition of a majority of the Board of Directors of the Company; or

 

(d) on the adoption by the Board of Directors of a plan of liquidation or dissolution.

 

Upon (i) any withdrawal or lapsing of any such tender or exchange offer referred to in Section 2.2(a) in which such Third Party does not acquire more than fifty percent (50%) of the outstanding Voting Securities of the Company, (ii) the termination of the agreement referred in Section 2.2(b) without a Change in Control having occurred, (iii) the withdrawal or termination or failure of the solicitation referred to in Section 2.2(c), or (iv) the termination of the plan of liquidation referenced in Section 2.2(d), as the case may be, the limitations provided in 

  

- 4 -

  

Section 3 (except to the extent then suspended as a result of any other event specified in this Section 2.2) shall again be applicable for so long as and only to the extent provided in this Agreement without any extension of the Term.

 

3. STANDSTILL PROVISIONS.

 

3.1. General Standstill.  The Purchaser agrees, that during the Term, unless specifically invited in writing by the Company, neither the Purchaser nor any of its Affiliates, nor any of its or their Representatives acting on its or their behalf with respect to the actions described in this Section 3, will in any manner (other than as expressly permitted and set forth in the Stockholders Agreement), singly or as part of a Group, directly or indirectly, (a) effect or seek, offer or propose (whether publicly or otherwise) to effect, or announce any intention to effect or cause or participate in or in any way directly or indirectly cause any other Person to effect or seek, offer or propose (whether publicly or otherwise) to effect or participate in (i) any acquisition of the Beneficial Ownership of any Voting Securities in excess of one percent (1%) of the aggregate number of Voting Securities that are, as of the date hereof, issued and outstanding, or any assets or businesses of the Company or any of its subsidiaries (except the acquisition of Voting Securities in respect of Purchased Stock pursuant to a stock split, stock dividend, recapitalization, reclassification or similar transaction of the Company or the acquisition of Voting Securities directly from the Company), (ii) any tender or exchange offer, merger or other business combination involving the Company, any of its subsidiaries or the assets of the Company or its subsidiaries constituting a significant portion of the consolidated assets of the Company or its subsidiaries, (iii) any dissolution or other extraordinary transaction with respect to the Company or any of its subsidiaries, or (iv) a “solicitation” of “proxies” (as such terms are used in the proxy rules of the Securities and Exchange Commission) or consent to vote any Voting Securities of the Company or any of its subsidiaries or Affiliates; (b) form, join or in any way participate in a “group” (as defined under the Exchange Act) with respect to the Company or otherwise act in concert with any Person in respect of any such Voting Securities; (c) otherwise act, alone or in concert with any Person, to seek representation on or to control or influence the management, Board of Directors or policies of the Company or to obtain representation on the Board of Directors of the Company; (d) take any action which would or would reasonably be expected to force the Company to make a public announcement regarding any of the types of matters set forth in clause (a) above; or (e) enter into any discussions or arrangements with any Third Party with respect to any of the foregoing.  The Purchaser agrees that during the Term, the Purchaser, and its Representatives and Affiliates, shall not request that the Company, directly or indirectly, amend or waive any provision of this Section 3.

 

3.2. Voting Securities Acquired in Violation of this Agreement.  If the Purchaser or any of its Affiliates or its or their Representatives acting on its or their behalf violates Section 3.1 of this Agreement, the Purchaser shall notify the Company and Voting Securities acquired in violation of this Agreement shall, within sixty (60) days (exclusive of any time the Purchaser or any of its Affiliates is in possession of any material, non-public material relating to the Company) be disposed of to Persons other than the Purchaser or Affiliates thereof; provided, however, that the Company may also pursue any other available remedy to which it may be entitled as a result of such violation.

 

  

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4. MISCELLANEOUS.

 

4.1. Notices.  All notices, requests, demands, claims and other communications required or permitted to be delivered, given or otherwise provided under this Agreement must be in writing and must be delivered, given or otherwise provided:

 

(a) by hand (in which case, it will be effective upon delivery);

 

(b) by facsimile (in which case, it will be effective upon receipt of confirmation of good transmission); or

 

(c) by overnight delivery by a nationally recognized courier service (in which case, it will be effective on the next weekday, not including any weekday on which banks in New York, New York are authorized or required to be closed, after being deposited with such courier service);

 

in each case, to the address (or facsimile number) listed below:

 

If to the Company, to it at:

 

Schiff Nutrition International, Inc.

2002 South 5070 West

Salt Lake City, UT 84104-4726

Telephone number: (801) 975-5000

Facsimile number: (801) 975-1924

Attention: General Counsel

 

with a copy to:

 

Latham & Watkins LLP

650 Town Center Drive

Costa Mesa, CA 92626

Telephone number: (714) 540-1235

Facsimile number: (714) 755-8290

Attention: Charles K. Ruck

 

  

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If to the Purchaser, to it at:

 

c/o TPG Growth, LLC

345 California Street, Suite 3300

San Francisco, CA 94104

Attn: Ransom A. Langford

Facsimile: (415) 438-1329

 

with a copy to:

 

Ropes & Gray LLP

1211 Avenue of the Americas

New York, New York 10036-8704

Telephone number:  (212) 841-0623

Facsimile number: (646) 728-1523

Attention: Carl P. Marcellino

 

Each of the parties to this Agreement may specify a different address or telecopy number by giving notice in accordance with this Section 4.1 to each of the other parties hereto.

 

4.2. Succession and Assignment; No Third-Party Beneficiary.  Subject to Section 4.2.1 and 4.2.2, this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns, each of which such successors and permitted assigns shall be deemed to be a party hereto for all purposes hereof.  Except as expressly provided herein, this Agreement is for the sole benefit of the parties and their permitted successors and assignees and nothing herein expressed or implied shall give or be construed to give any Person, other than the Parties and such successors and assignees, any legal or equitable rights hereunder.

 

4.2.1. The Purchaser may not assign, delegate or otherwise transfer either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the Company; provided, however, that nothing set forth in this Agreement shall limit the Purchaser’s ability to transfer Voting Securities to any Person; provided, further, that, notwithstanding any such transfer, the Purchaser shall continue to be bound by its obligations under this Agreement).  Except for Affiliates of the Purchaser, the terms and provisions of this Agreement shall not be binding upon any transferee of the Purchaser that purchases any securities subject to this Agreement.

 

4.2.2. The Company may not assign, delegate or otherwise transfer either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the Purchaser, except that the Company may assign all or part of this Agreement and its rights, interests and obligations hereunder to the successor or an assignee of substantially all of the Company’s business without such prior written approval.

 

  

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4.3. Amendments and Waivers.  No amendment or waiver of any provision of this Agreement shall be valid and binding unless the same shall be in writing and signed, (a) in the case of an amendment, by the Company and the Purchaser, (b) in the case of a waiver that is to be effective against the Company, by the Company, or (c) in the case of a waiver that is to be effective against the Purchaser, by the Purchaser.  No waiver by any party of any breach of any provision hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent breach of any such provision hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.  No delay or omission on the part of any party in exercising any right, power or remedy under this Agreement shall operate as a waiver thereof.

 

4.4. Entire Agreement.  This Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes any and all prior discussions, negotiations, proposals, undertakings, understandings and agreements, whether written or oral, with respect thereto.

 

4.5. Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute but one and the same instrument.  This Agreement shall become effective when each party hereto shall have received counterparts hereof signed by the other parties hereto.

 

4.6. Severability.  Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.  In the event that any provision hereof would, under applicable law, be invalid or unenforceable in any respect, each party hereto intends that such provision shall be construed by modifying or limiting it so as to be valid and enforceable to the maximum extent compatible with, and possible under, applicable law.

 

4.7. Headings.  The headings contained in this Agreement are for convenience purposes only and shall not in any way affect the meaning or interpretation hereof.

 

4.8. Construction.

 

4.8.1 The parties have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.  The parties intend that each provision contained herein shall have independent significance.  If any party has breached any provision contained herein in any respect, the fact that there exists another provision relating to the same subject matter (regardless of the relative levels of specificity) which the party has not breached shall not detract from or mitigate the fact that the party is in breach of the first provision.

 

  

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4.8.2 Each reference in this Agreement to the Exchange Act, provisions thereof and rules promulgated thereunder shall be construed as a reference to such act, provision or rule as such may be amended or modified from time to time; provided, however, that in the event that any provision of or rule promulgated under the Exchange Act is replaced with a new provision or rule, the reference in this Agreement shall be deemed to be a reference to such successor provision or rule.

 

4.9. Governing Law.  This Agreement and any dispute arising out of or relating in any way to this Agreement, whether in contract, tort, or otherwise, shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to, or otherwise giving effect to, any body of law or other rule that would cause or otherwise require the application of the laws of any other jurisdiction.

 

4.10. Jurisdiction and Venue; Service of Process.

 

4.10.1 Jurisdiction and Venue.  Any Action against either party relating in any way to this Agreement may be brought exclusively in the courts of the State of Delaware located in Wilmington, Delaware, or (to the extent subject matter jurisdiction exists therefore) the United States District Court for the District of Delaware, and each of the parties hereto irrevocably submits to the jurisdiction of both such courts in respect of any such Action.  Any Action to enforce a judgment issued by one of the foregoing courts may be enforced in any jurisdiction.

 

4.10.2 Service of Process.  Each party hereby (a) consents to service of process in any Action between the parties arising in whole or in part under or in connection with this Agreement in any manner permitted by Delaware law, (b) agrees that service of process made in accordance with Section 4.1(a) or made by registered or certified mail, return receipt requested, at its address specified pursuant to Section 4.1, shall constitute good and valid service of process in any such Action, and (c) waives and agrees not to assert (by way of motion, as a defense, or otherwise) in any such Action any claim that service of process made in accordance with clause (a) or (b) of this Section 4.10.2 does not constitute good and valid service of process.

 

4.11. Specific Performance.  Each party hereto acknowledges that monetary damages would not be an adequate remedy in the event that each and every one of the covenants or agreements in this Agreement are not performed in accordance with their terms, and it is therefore agreed that, in addition to, and without limiting any other remedy or right it may have, the non-breaching party will have the right to an injunction, temporary restraining order, or other equitable relief in any court of competent jurisdiction enjoining any such breach and enforcing specifically each and every one of the terms and provisions hereof.  Each party hereto agrees not to oppose the granting of such relief in the event a court determines that such a breach has occurred, and to waive any requirement for the securing or posting of any bond in connection with such remedy.

 

  

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4.12. Waiver of Jury Trial.  TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, EACH OF THE PARTIES HERETO HEREBY WAIVES AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT, OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ACTION (WHETHER IN CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF, OR BASED UPON, THIS AGREEMENT OR THE SUBJECT MATTER HEREOF, OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE TRANSACTIONS CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING.  EACH OF THE PARTIES HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTY THAT THIS SECTION 4.12 CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH IT IS RELYING, AND WILL RELY IN ENTERING INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY.  EACH OF THE PARTIES HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 4.12 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

 

 

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IN WITNESS WHEREOF, each of the undersigned has executed this Agreement as an agreement under seal as of the date first above written.

 

COMPANY:

 

SCHIFF NUTRITION INTERNATIONAL, INC.

 

	
 By: 

	/s/ Bruce J. Wood
	 Name: 	Bruce J. Wood
	 Title: 	President and CEO

  

  

  

IN WITNESS WHEREOF, each of the undersigned has executed this Agreement as an agreement under seal as of the date first above written.

 

PURCHASER:

 

TPG STAR SNI, L.P.

 

By: TPG STAR ADVISORS, L.L.C.,

 

its general partner

 

	
 By: 

	/s/ Ronald Cami
	 Name: 	Ronald Cami
	 Title: 	Vice President

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