Document:

United States Securities & Exchange Commission EDGAR Filing

EXHIBIT10.30

PROMISSORY NOTE

		
	$250,000.00

	October 23, 2007

	 
	Wellington, Florida

FOR VALUE RECEIVED, The QUANTUM GROUP, INC., a Nevada corporation (“Quantum” or the “Borrower”) promises to pay to the order of PAULSON INVESTMENT COMPANY, INC., an Oregon corporation (“Lender”) the principal sum of Two Hundred and Fifty Thousand and no/100ths Dollars ($250,000.00) (the “Obligation”). No interest shall accrue during the term of this Note, except as otherwise provided herein. In lieu of interest hereon, Borrower hereby promises to pay to Lender the principal sum of Three Hundred and Thirty Three Thousand Three Hundred Thirty Three and no/100ths Dollars ($333,333.00) as payment in full (the “Principal Payment” or “Principal”). The difference between the Obligation and the Principal Payment shall be shall be treated as “original issue discount” and be reported as interest income over the term of this Note. 

1.

Maturity Date. The Principal Payment shall be due and payable on October 23, 2009.

2.

Prepayment.   Borrower shall prepay any or all amounts due under this Note at the closing of any public or private financing for which the Company receives gross proceeds of at least $10,000,000.

3.

Method of Payment.  Any payment hereunder shall be made by certified or bank cashier’s check unless Lender has provided Borrower with appropriate wire instructions, in which event, the payment shall be made by wire transfer of “same day” funds.  

4.

Default.  In the event of an occurrence of any event of default specified below, the Principal Payment shall become immediately due and payable without notice, except as specified below:

(a)

Borrower files a petition to take advantage of any insolvency act; makes an assignment for the benefit of its creditors; commences a proceeding for the appointment of a receiver, trustee, liquidator or conservator of itself of a whole or any substantial part of its property; files a petition or answer seeking reorganization or arrangement or similar relief under the federal bankruptcy laws or any other applicable law or statute of the United States of America or any state.

(b)

A court of competent jurisdiction enters an order, judgment or decree appointing a custodian, receiver, trustee, liquidator or conservator of Borrower or of the whole or any substantial part of its properties, or approves a petition filed against Borrower seeking reorganization or arrangement or similar relief under the federal bankruptcy laws or any other applicable law or statute of the Untied States of America or any state; or if, under the provisions of any other law for the relief or aid of debtors, a court of competent jurisdiction assumes custody or control of Borrower or of the whole or any substantial part of its properties; or there is commenced against Borrower any proceeding for any of the foregoing relief and such proceeding or petition remains undismissed for a period of 30 days; or if Borrower by any act indicates its consent to or approval of any such proceeding or petition.

Promissory Note

October 23, 2007

Page 2

(c)

If (i) any judgment remaining unpaid, unstayed or undismissed for a period of 60 days is rendered against Borrower which by itself or together with all other such judgments rendered against Borrower remaining unpaid, unstayed or undismissed for a period of 60 days, is in excess of $50,000, or (ii) there is any attachment or execution against Borrower’s properties remaining unstayed or undismissed for a period of 60 days which by itself or together with all other attachments and executions against Borrower’s properties remaining unstayed or undismissed for a period of 60 days is for an amount in excess of $50,000.

5.

Successors and Assigns.  The Note is transferable and assignable by Lender or any subsequent assignee. All covenants, agreements and undertakings in the Note by or on behalf of any of the parties shall bind and inure to the benefit of the respective successors and assigns of the parties whether so expressed or not. 

6.

Notices.  Any and all notices, requests, consents and demands required or permitted to be given hereunder shall be in writing and shall be deemed given and received (i) upon personal delivery, (ii) upon the first business day following the receipt of confirmation of facsimile transmission to the telefax number or e-mail address listed below, or (iii) upon the first business day after deposit with an overnight courier for next morning delivery, or (iv) upon the third business day after deposit in the United States mail, by certified or registered mail, postage prepaid.

If to the Lender:

Paulson Investment Company, Inc.

811 S.W. Naito Parkway, Suite 200

Portland, Oregon 97204

Attn:  Chester L.F. Paulson

Telephone:  (xxx) xxx-xxxx

Facsimile:  (xxx) xxx-xxxx

E-Mail:  xxxxx@xxxxxxxxxxxx with copy to xxxxx@xxxxxxxxxxxx

If to the Borrower:

The Quantum Group, Inc.

3420 Fairlane Farms Road, Suite C

Wellington, Florida 33414

Attn:  Donald B. Cohen

Telephone:  (xxx) xxx-xxxx

Facsimile:  (xxx) xxx-xxxx

E-Mail:  xxxxx@xxxxxxxxxxxx with copy to xxxxx@xxxxxxxxxxxx

Promissory Note

October 23, 2007

Page 3

Any party may change by notice the address to which notices to that party are to be addressed by notifying all of the other parties are provided above.

 

7.

Waiver/Amendment.  Borrower hereby waives presentment for payment, demand, protest and notice of protest for nonpayment of the Note and consents to any extension or postponement of the time of payment or any other indulgence. The Note may only be amended or modified by written agreement signed by Borrower and the Lender.

8.

Expenses.  In any action or proceeding for breach of the Note, including nonpayment, the prevailing party in any such dispute shall be entitled to recover all reasonable costs and attorney fees incurred in connection with such action. In addition, Lender shall be entitled to recover from Borrower all reasonable costs of collection, including without limitation, legal fees and expenses incurred in any bankruptcy and/or state insolvency proceeding.

9.

Choice of Law.  The Note shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of Oregon.  The parties agree that venue for any suit, action, proceeding or litigation arising out of or in relation to this Note will be in any federal or state court in the state of Oregon having subject matter jurisdiction, and the parties hereby submit to the jurisdiction of that Court. 

WITH RESPECT TO ANY CLAIM OR ACTION ARISING UNDER THIS NOTE, BORROWER HEREBY (A) IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE FEDERAL OR STATE COURTS LOCATED IN THE STATE OF OREGON (B) IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY HAVE AT ANY TIME TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE BROUGHT IN ANY SUCH COURT, IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM AND FURTHER IRREVOCABLY WAIVES THE RIGHT TO OBJECT, WITH RESPECT TO SUCH CLAIM, SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT, THAT SUCH COURT DOES NOT HAVE JURISDICTION OVER SUCH PARTY. 

SIGNATURE ON FOLLOWING PAGE

Promissory Note

October 23, 2007

Page 4

IN WITNESS WHEREOF, the Note has been executed and delivered on the date specified on the first page hereof by the duly authorized representative of Borrower.

“BORROWER”

The Quantum Group, Inc.

a Nevada corporation

By:

/s/ Donald B. Cohen

Its:

Vice President, CFO

Accepted:

“LENDER”

Paulson Investment Company, Inc.

an Oregon Corporation

By: /s/ Lorianne MaxField

Its: Sr. VP, Corporate Financeex-10.htm

    
      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      10.1

     

    
      	
              

            	
              Interoffice
                Communication

               

              Elease
                E. Wright

              Senior
                Vice President

              Human
                Resources, RC3A

              (860)
                273-8371

              Fax:  (860)
                560-8721

               

            

    

    

    
      	
               

            	
              August
                6, 2007

            

    

    

    
      	
               

            	
              Craig
                R. Callen

            

    

    
      	
               

            	
              151
                Farmington Avenue

            

    

    
      	
               

            	
              Hartford,
                CT 06156

            

    

    

    Dear
      Mr.
      Callen:

    

    The
      purpose of this document is to confirm the agreement we have reached as a result
      of our discussions regarding your separation from service with Aetna
      Inc. and/or one or more of its affiliated and related entities
      (collectively, the “Company”).  The terms of the agreement are as
      follows:

    

    
      	
              1.

            	
              We
                have agreed that the last day of your employment will be November
                9, 2007.  We have agreed that you will
                work out of the Company’s Hartford office until August 31, 2007 and the
                Company’s New York office beginning September 1, 2007.  You will
                be on Paid Time Off (PTO) from October 22, 2007 through November
                9, 2007,
                thereby using all of your accrued
                PTO.

            

    

    

    
      	
              2.

            	
              From
                November 12, 2007 through
                November 7, 2008 (a period of 52 weeks)
                and subject to paragraph 15 of this Agreement, you will be paid salary
                continuation at your current annual salary of $620,000, in accordance
                with
                the Company’s customary payroll schedule (currently
                bi-weekly).  This is a benefit for which you would not otherwise
                be eligible under current Company plans and policies and is in lieu
                of any
                other separation benefits not specified in this
                Agreement.  However, if you obtain another position within the
                Company at any time before the conclusion of the salary continuation
                period, all payments and benefits under this Agreement will
                cease.

            

    

    

    
      	
              3.

            	
              In
                lieu of participation in or consideration for a 2007 performance
                bonus
                award, you will be paid a lump sum in the gross amount of $386,880,
                less
                tax withholdings and any other legally required
                deductions.  This payment represents a pro-rata award at target
                performance and will be made as soon as practicable after your separation
                from employment.

            

    

    

    
      	
              4.

            	
              You
                will be eligible for continuation of group medical and dental benefits
                during the first nine weeks of the salary continuation period at
                active
                employee rates.  Thereafter, you will be eligible for the
                continuation of group medical and dental benefits for the applicable
                COBRA
                period at regular COBRA rates.

            

    

    

    
      	
              5.

            	
              Vesting
                and exercise of stock options, stock appreciation rights and restricted
                stock units will be governed by the applicable agreements and
                plans.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              Page
                2

            

    

    

    
      	
              6.

            	
              In
                consideration for the Company’s agreement to provide the salary and
                benefits continuation described
                above,

            

    

    

    
      	
               

            	
              you
                (for yourself and any other person claiming or deriving a right from
                you)
                forever release and discharge the Company (and its current and former
                directors, employees, and agents) from any and all liability, claims,
                and
                demands and causes of action (by whatever name called and whether
                known or
                unknown) which you had, have, or may have, arising out
                of:

            

    

    

      
        	 	
                A.

              	
                your
                  employment with the Company;

              
	 	
                B.

              	
                the
                  cessation of such employment; or

              
	 	
                C.

              	
                any
                  act, omission, occurrence, or other matter related to such employment
                  or
                  cessation of employment, up to and including the date you sign
                  this
                  Agreement.

              

      

    

     

    
      	
               

            	
              This
                release includes, but is not limited to, claims and liabilities under
                the
                Americans with Disabilities Act, the Civil Rights Act of 1964, the
                Civil
                Rights Act of 1991, the Age Discrimination in Employment Act, the
                Employee
                Retirement Income Security Act of 1974 (ERISA), any other claims
                under
                federal, state, or local law, and claims for attorney’s fees, costs, and
                the like.  However, this release does not apply to pension or
                401(k) benefits vested as of the effective date of your last day
                of
                employment.

            

    

    

    
      	
               

            	
              Further,
                you promise that you will not institute any lawsuit or file a demand
                for
                arbitration against the Company or its current or former directors,
                employees or agents concerning any claim you have released
                above.  You agree that if you violate this promise, you will not
                be entitled to damages or any other relief, including costs and attorney’s
                fees.

            

    

    

    
      	
              7.

            	
              In
                further consideration for the Company’s agreement to provide the salary
                and benefits continuation described above, you promise
                that:

            

    

    

    
      	
               

            	
              A.

            	
              unless
                required by law, you will not, for yourself or any other person or
                entity,
                directly or indirectly, divulge, communicate or in any way make use
                of any
                confidential, sensitive, or proprietary information acquired in the
                performance of your service for the Company, without the prior written
                consent of an appropriate Company
                officer;

            

    

    

    
      	
               

            	
              B.

            	
              unless
                required by law, you will not disclose to any person or entity any
                information acquired in connection with, this Agreement, without
                the prior
                written consent of an appropriate Company officer, other than your
                legal,
                financial or career advisors, and the members of your immediate family,
                if
                they agree to maintain confidentiality;
                and

            

    

    

    
      	
               

            	
              C.

            	
              you
                shall provide assistance to and shall cooperate with the Company,
                upon its
                reasonable request and without additional compensation, with respect
                to
                matters within the scope of your duties and responsibilities during
                employment. (The Company agrees and acknowledges that it shall, to
                the
                maximum extent possible under then prevailing circumstances, coordinate
                (or cause an affiliate to coordinate) any such request with your
                other
                commitments and responsibilities to minimize the degree to which
                such
                request interferes with such commitments and
                responsibilities.)  The Company agrees that it will reimburse
                you for reasonable travel expenses (i.e., travel, meals, and lodging)
                that
                you may incur in providing assistance to the Company
                hereunder.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              Page
                3

            

    

    

    
      	
              8.

            	
              This
                Agreement shall not in any way be construed as an admission by the
                Company
                or any of its agents that they have acted wrongfully with respect
                to you
                or any other person.

            

    

    

    
      	
              9.

            	
              You
                represent that all documents and property of the Company, including
                those
                containing confidential, sensitive or proprietary information, have
                been
                returned to the Company.  In addition, you confirm that no
                charge, complaint or action filed by you or on your behalf against
                the
                Company or any of its agents exists in any forum or form.  If
                any such charge, complaint or action has been or is filed, you will
                not be
                entitled to damages or any other relief, including costs and attorney’s
                fees.

            

    

    

    
      	
              10.

            	
              The
                provisions of any prior written agreement between you and the Company,
                including stock option and long-term incentive compensation award
                agreements, regarding arbitration of employment-related disputes,
                cooperation with the Company, solicitation of company employees and/or
                others, and/or disclosure of confidential information shall remain
                in
                effect and are incorporated by reference into this
                Agreement.  In addition, you shall promptly notify the Company’s
                General Counsel if you are contacted by a regulatory or self-regulatory
                agency with respect to matters pertaining to the Company or by an
                attorney
                or other individual who informs you that he/she has filed, intends
                to
                file, or is considering filing a claim or complaint against the
                Company.

            

    

    

    
      	
              11.

            	
              If
                there is a prior written agreement between you and the Company regarding
                arbitration of employment-related disputes, the provisions of that
                agreement will apply to any claim or controversy with respect to
                compliance with or the interpretation of this
                Agreement.

            

    

    

    
      	
              12.

            	
              This
                Agreement shall be construed in accordance with the laws of
                Connecticut.  Any actions brought under this Agreement that are
                not required to be submitted to arbitration shall be exclusively
                brought
                in the state and federal courts in Connecticut.  Both parties
                hereto irrevocably consent to the personal jurisdiction of such
                courts.

            

    

    

    
      	
              13.

            	
              Notwithstanding
                any provision of this agreement to the contrary, to the extent that
                you
                are a “Specified Employee” within the meaning of Section 409A of the
                Internal Revenue Code and applicable regulations at the time of your
                separation from service, deferred compensation payments to which
                you would
                otherwise be entitled during the first six months following your
                separation of service shall be deferred and accumulated for a period
                of
                six months and paid in a lump sum on the first day of the seventh
                month
                with the seventh month’s payment.  In addition, no payment that
                constitutes deferred compensation may be
                accelerated.

            

    

    

    
      	
              14.

            	
              The
                entire agreement between you and the Company is set out in this Agreement
                or incorporated by reference.  No other promises or
                representations have been made, and there is no oral understanding
                or
                agreement between you and the Company that is not contained, or
                incorporated by reference, in this
                Agreement.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              Page
                4

            

    

    

    
      	
              15.

            	
              You
                acknowledge that you:

            

    

    

    
      	
               

            	
              A.

            	
              have
                been advised to consult an attorney before signing this Agreement
                and that
                you have had an opportunity to consult with an attorney of your
                choice;

            

    

    

    
      	
               

            	
              B.

            	
              have
                read this Agreement in its entirety, understand its terms and knowingly
                and voluntarily consent to its terms and conditions;
                and

            

    

    

    
      	
               

            	
              C.

            	
              have
                had the opportunity to consider the Agreement for at least 21 days
                and
                have elected to sign it on the date noted below; to the extent that
                this
                Agreement differs in any way, whether material or not, from any proposal
                previously communicated, verbally or in writing, to you, you have
                had
                sufficient time to consider this Agreement, and you waive any right
                you
                may have to additional time to review
                it.

            

    

    

    This
      Agreement will become effective on the eighth day following the day you execute
      it.  After signing both copies of this Agreement, please return one
      copy to me and retain a copy for your records.  You may revoke this
      Agreement at any time prior to its effective date by giving written notice
      to
      me.

    

    Aetna
      Inc.

    

    
      	
              By:

            	
              /s/
                Elease E. Wright

            	 	
              8/6/2007

            
	 	
              Elease
                E. Wright

            	 	
              Date

            
	 	
              Senior
                Vice President, Human Resources

            	 	 

    

    

    
      	
               

            	
              Agreed:

            

    

    

    
      	
              /s/
                Craig R. Callen

            	 	
              8/6/2007

            
	
              Craig
                R. Callen

            	 	
              Date

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