Document:

Unassociated Document

    

    BOTTLE SUPPLY
AGREEMENT

    

    This
Agreement is made this 15th day of
February 2008 by and between Zuckerman-Honickman, Inc. (“Seller”) and Skinny
Water (“Buyer”). In consideration of the mutual promises herein contained and
intending to be legally bound, both parties agree as follows:

    

    1.           REQUIREMENTS

    

    1.01     
Sale of Products.
Upon the terms and conditions hereinafter set forth, during the term of
this Agreement, Seller agrees to supply and arrange to deliver to Buyer, and
Buyer agrees to purchase, accept from Seller, and pay for, 100% of its
requirements for bottles (collectively, the “Bottles”), of the type, size and
specifications set forth on Schedule “A”
hereto(the “Specifications”), which may be changed from time to time upon
written agreement signed by the Buyer, Seller and approved by the Manufacturer
(as defined in Section 1.02 below)

    

    1.02     
Manufacturer. The
primary Manufacturer of the Bottles to be supplied hereunder shall be Ball
Plastic Container Corp. (the “Manufacturer”). Buyer may not, during the term of
this Agreement, attempt to contract directly with the Manufacturer for the
supply of any bottles.

    

    1.03     
Purchase Price.
The price to be paid by Buyer for each type of Bottle shall be the price
per 1,000 Bottles as set forth in Schedule “B” hereto.
Except for increases or decrease as provided in Schedule “B” and/or Sections
1.04 and/or 1.05 below, the purchase price for each type of Bottle shall remain
firm throughout the term of this Agreement unless Seller and Buyer agree
otherwise in writing.

    

    1.04     
Resin Price Adjustments.
Seller will make adjustments to the price for changes in PET resin price
as and when, and only to the extent that, Manufacturer makes such pricing
changes. Adjustments based on changes in PET resin pricing will be made on a
monthly basis (i so made by Manufacturer) and continue through the Term based on
announced changes in PET resin pricing. Changes will take effect on the date
specified by Manufacturer to Seller. For each $0.01 per pound change in resin
price, the Bottle price per thousand will be adjusted by multiplying the price
change per pound of resin times [****] in the Bottle. The formula
is:

    

    Resin
Price Change x [****] = Price increase per thousand

    Per
(Pound)            
                         Bottles

    

    1.05     
Annual Non-Resin
Producer Price Index Adjustment (PPI). The base price for Bottles may be
increased for non-resin costs on January 1st of each
year of the agreement based on the Producer Price Index – Industrial Commodities
(“PPI”) determined by comparing the arithmetical average of the monthly index,
for the [****] periods beginning on October 1 through September 30.

    

    For
example:

    
      	
               
      

            	
              ·

            	
              Base
      Price is [****]

            

    

    
      	
               
      

            	
              ·

            	
              If
      the monthly Industrial Commodities-PPI average for October 1, 20x1 through
      September 30, 20x2 is [****] and the monthly Industrial Commodities-PPI
      average for October 1, 20x2 through September 30, 20x3 is [****], the
      change in the PPI is [****].

            

    

    

    [*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              ·

            	
              Industrial
      Commodities PPI change = [****]

            

    

    
      	
               
      

            	
              ·

            	
              The
      non-resin portion change equals
[****]

            

    

    
      	
               
      

            	
              ·

            	
              New
      Base Price is [****]

            

    

    

    2.            TERM

    

    2.01     
Term. This
Agreement shall commence on the day of first shipment and shall continue for a
period of 36 month, unless extended pursuant to Section 2.02.

    

    2.02     
Extension of
Term. This Agreement term shall be extended for additional 24 month terms
beyond the term set forth in Section 2.01 unless either party gives written
notice to the other at least 90 days prior to the end of the original term or
any 24 month extension thereof

    

    2.03     
First Right of
Refusal. At the end of Term an Extension of Term, Buyer grants Seller
[****] days to meet a bona fide written offer on a potential Supplier’s
letterhead (the “Offer”). Seller will have the opportunity to match price and
quality contained in Offer or [****]. If at the conclusion of the [****] day
period. Seller matches Offer or [****] Agreement shall continue unchanged
for an added 24 months. If Seller does not match Offer or meet Buyer’s needs,
Buyer shall no longer be bound to Seller

    

    3.           SERVICE

    

    3.01     
Quantity of
Bottles. Subject to the provisions of Section 3.02, during the term this
Agreement Buyer shall purchase a minimum of 100% of Bottles (the “Minimum
Quantity”) from Seller.

    

    3.02     
Forecast. Upon
the signing of this Agreement and prior to the beginning of each calendar year,
Buyer shall provide to Seller a written annual forecast for anticipated Bottles,
with expected seasonality, broken down by month. These annual forecasts are
subject to changes, which shall be contained in 90 day rolling forecasts
provided by Buyer to Seller monthly in writing at least 60 days prior to the
commencement of any such 90 day rolling forecast period. The parties acknowledge
and agree that these rolling forecasts may allow for seasonal fluctuations and
that Buyer will use its best efforts to accurately project such forecasts.
Seller will use commercially reasonable efforts to provide annual and rolling
forecasted quantities. If supplying quantities in excess of either forecasted
quantities would force the Seller to incur additional costs (i.e. freight for
out of region bottle shipments) these projected initial costs will be reviewed
with Buyer. The Buyer will then have the option of accepting these additional
costs or sourcing Bottles that Seller cannot supply from an alternate
Vendor.

    

    3.03     
Ordering. Buyer
may submit actual orders for Bottles by purchase order; provided that no term or
condition set forth on any such purchase order other than quantity and requested
delivery date shall be applicable to any Bottles so ordered.

    

    [*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

     

    
      
        
        

      

      
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    4.           PAYMENT

    

    4.01     
Payment Terms.
Net 30 days from date of invoice. If Buyer fails to make any payment in
accordance with the terms of this Agreement, Seller may, at its sole option and
in addition to any other rights it may have, defer or decline to make any
shipments hereunder except upon receipt of security satisfactory to Seller or
cash payment in advance of delivery. Notwithstanding the foregoing, if Buyer’s
failure to make any payment is due to a good faith dispute regarding a specific
order (for example in terms of quality, quantity, or failure to meet
specifications or warranties) and Buyer makes payment for all orders not in
dispute, Seller must continue to make shipments without requiring additional
security, assurances, or payments in advance.

    

    4.02     
Interest.
Interest on overdue amounts shall be charged at Wall Street Journal “prime rate
of interest” plus [****] per annum. If any payment, including interest thereon,
is not made within any specified time period, Seller shall have the right to
change the payment terms and to refuse to supply any additional Bottles until
such time as any overdue amount is paid in full. If any payment, including all
interest thereon, is not made within ninety (90) days after it is due in
accordance with this Section, Seller shall have the right to terminate this
Agreement by sending a written termination notice to the Buyer. Notwithstanding
the termination of this Agreement in accordance with this Section, Buyer shall
not be relieved of its obligations and liabilities hereunder including, without
limitation, Buyer’s obligation to pay all overdue amounts.

    

    4.03     
Collection Costs.
In the event that Seller incurs collection costs in connection with any
overdue account, Buyer shall be responsible for all reasonable collection costs
(including without limitation attorney’s fees).

    

    4.04     
Storage Charges.
Seller agrees to store Bottles for up to [****] after the later the date of
manufacture or order without charge to Buyer. Storage charges of [****] (one
time in and out fee) and [****]/month along with the shuttle fee to and from the
warehouse will have the right to bill as of the first day of the month following
the [****] period for all Bottles held in inventory in excess of [****] from the
date of manufacture. After six months of storage, Seller will have the right to
invoice Buyer for the sales price for all Bottles stored for six months by
Seller and the Bottles will be either shipped to a destination indicated by
Buyer or destroyed.

    

    5.           DELIVERY

    

    5.01     
Packaging. All
Bottles will be bulk packed.

    

    5.02     
Delivery. All
deliveries will be F.O.B. the Manufacturer’s facility. Buyer shall pay all
shipping costs from that point. The responsibility of Seller and the
Manufacturer shall cease and Buyer shall assume all risk of loss upon
Manufacturer’s delivery to and receipt by the common carrier

    

    6.           DUNNAGE

    

    6.01     
Dunnage. All
costs for pallets, frames and tier sheets shall be memo billed to Buyer and
rectified on a quarterly basis. Buyer shall be responsible for the replacement
of those pallets, frames and tier sheets lost or damaged due to Buyer’s
negligence, and for the cost of transportation for all dunnage returns. Buyer is
also required to supply Seller with copies of all Bill of Ladings for dunnage
returns, via fax or e-mail.

    

    [*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

    

    
      
        
        

      

      
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    7.           WARRANTIES

    

      7.01        Warranty. Seller warrants
that, at that time the Bottles are delivered to Buyer, the Bottles:

      

      (a)           will
conform to the applicable Specifications;

      

      (b)           have
been produced in compliance with all applicable laws, including without
limitation the requirements of the Fair Labor Standards Act, as
amended;

      

      (c)           have
been produced free from defects in manufacture.

      

      (d)           shall,
upon payment in full of the applicable purchase price, be conveyed with good
title and free of any lien or encumbrance; and

      

      (e)           (i)
are not adulterated within the meaning of the U.S. Federal Food. Drug and
Cosmetic Act, as amended (the “U.S. Act”), its attendant regulations or within
the meaning of applicable U.S. or State laws or municipal ordinances in which
the definition of adulteration is substantially the same as that contained in
the U.S. Act; and (ii) do not constitute an article which may not due to
adulteration, under the provisions of the U.S. Act, be introduced into
interstate commerce.

      

      7.02        Limitations. THE ABOVE EXPRESS
WARRANTIES SHALL BE IN LIEU OF ALL OTHER WARRANTIES OR REPRESENTATIONS EXPRESS
OR IMPLIED. INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PUROSE, AND THERE ARE NO WARRANTIES EXCEPT AS EXPRESSLY
SET FORTH IN THIS AGREEMENT.

      

      7.03       Disclaimers. Seller
specifically disclaims any warranty or other liability for:

      

      (a)           Foreign
substances of any kind in the goods that have been introduced by Buyer, its
subcontractors, or a party other than Seller or one directed by Seller to handle
Bottles;

      

      (b)           
Bottles that have not been (i) thoroughly cleaned immediately prior to filling,
(ii) filled under sanitary conditions and in accordance with good manufacturing
practices as required by the U.S. Food and Drug Administration and (iii)
suitably sealed immediately after filling with the appropriate
closure;

      

      (c)           Bottles
that have been (i) exposed to any water (warmer, rinser, etc.) with an
alkalinity in excess of 50 ppm and or to line lubes and makeup waters with a
combined alkalinity in excess of 100 parts per million; (ii) exposed to warmer
temperatures in excess of 110°F; (iii) exposed to temperatures in excess of
100°F and or to direct sunlight during transportation or storage; or (iv) abused
or misused by Buyer or Customer; and

      

      (d)           Flavor,
odor and color of the filled beverage unless, in any event; shown to be due to a
failure of a Bottle to comply with the warranties set above.

      

      7.04        Notification. Buyer must
notify Seller of any breach of warranty claims without undue delay. Seller shall
not be liable for any such claims unless Seller receives notice of the claim
within 180 days after the date of delivery of the allegedly defective product.
Failure to make a claim within such period shall constitute a complete and
irrevocable waiver of such claim.

      

      [*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLCED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.]

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      7.05        Preservation. Buyer must
preserve Bottles and other evidence in its possession or control that are
reasonably related to a breach of warranty claim and provide Seller the
opportunity to inspect, test and sample such Bottles and other evidence prior to
destruction or alteration. Failure to comply with this provision shall
constitute a waiver of the warranty claim.

      

      7.06        Exclusive
remedy. As Buyer’s exclusive remedy for a breach of warranty. Seller
shall, at Buyer’s option, replace any defective Bottles or credit Buyer for
Buyer’s total out of pocket cost (including without limitation filling, raw
materials, packaging materials and freight) thereof including, the cost of
inspecting, sorting, reworking, and scrapping the defective Bottles Seller may
rework and/or scrap any defective Bottles, or authorize Buyer to do so, if
Seller agrees (if Buyer so requests).

      

      7.07        Domestic
Use. The above warranties apply only to Bottles manufactured for domestic
use in the United States and Canada. Exporting filled product in Bottles for
domestic use voids all warranties and Seller shall not be liable for any
damages.

      

      8.           INDEMNIFICATION
AND INSURANCE

      

      8.01        General.
Seller agrees to protect, defend, indemnify and hold harmless Buyer from
all liabilities, claims, actions, losses, costs and expenses, including
attorneys’ fees and court costs (“Losses”) incurred by Buyer arising from a
claim by a third party asserted against Buyer for bodily injury, death or
property damage to the extent that such bodily injury, death or property damage
is due to a defect in the design or manufacture of the Bottles or other breach
of warranty by Seller in respect of Bottles as delivered to Buyer. Buyer agrees
to protect, defend, indemnify and hold harmless Seller from all Losses incurred
by Seller arising from a claim by a third party asserted against Seller for
bodily injury, death or property damage to the extent such bodily injury, death
or property damage is due to Buyer’s negligence or willful
misconduct.

      

      8.02        Intellectual Property. Seller
warrants to Buyer that Buyer’s purchase of the Bottles and the use thereof in
the form furnished by Seller (but excluding any labels) will not in itself
infringe any valid United States patent, copyright or trademark. If a claim of
any such patent infringement is asserted by a third party against Buyer and
provided that Seller is promptly notified thereof and offered the opportunity to
assume the complete defense, Seller as its only obligation hereunder agrees to
defend, indemnify and hold Buyer harmless from and against all judgments,
decrees, damages, and out-of-pocket costs and expenses incurred by or imposed
against Buyer as a result of such actual or alleged infringement. Upon the
institution of any suit or action alleging infringement against Buyer, Seller
may, at its option, (i) pay the royalties claimed; (ii) furnish non-infringing
Bottles provided they are reasonably acceptable to Buyer; (iii) terminate this
Agreement upon thirty (30) days written notice provided that such termination
shall not relieve Seller of any obligation accrued hereunder prior to the date
of termination, including deliveries of Bottles on order by Seller; or (iv)
continue to supply the allegedly infringing Bottles provided that in such event,
Seller shall reimburse Buyer for any loss sustained by Buyer on account of
infringement if in such suit or action it is held that the purchase or use of
such Bottles did infringe a valid United States patent, copyright or trademark
Notwithstanding the above, if the Bottles were made in accordance with
materials, designs or specifications furnished or designated by Buyer, Buyer
shall indemnify Seller against any judgment for damages and costs which may be
rendered against Seller in any suit brought on account of alleged infringement
of any United States patent, copyright or trademark by such Bottles and any
labels thereon,

      

      [*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLCED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.]

      
        
           

        

        
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      8.03        Insurance. Seller represents
and warrants that it currently has and will continue to maintain in full force
and effect for the duration of this Agreement commercially reasonable general
liability and product liability insurance. Seller shall supply a new insurance
certificate each year to Buyer upon request.

      

      9.           LIMITATIONS

      

      9.01        Force Majeure. If either party
is unable to perform its obligations under this Agreement (other than the
payment of monies owed), or if the Manufacturer is unable to perform its
manufacturing obligations as contemplated herein as a consequence of a delay or
failure from any cause or event beyond the control of such party, including but
not limited to war, riots acts of God or public enemy, fire, explosion, flood,
earthquake, strikes, lockouts or other labor disturbance, embargo, actions or
any governmental authority, such party (and Seller, if the party unable to
perform is the Manufacturer) shall be excused from the performance of such
obligations for the period of and to the extent of any such cause or event. On
the cessation of any event of force majeure as defined above, the disabled party
shall notify the other party of such cessation or termination. If such cessation
persists for a period of time greater than three months, this Agreement will
terminate upon written notice from either party to the other party.

      

      9.02        SELLER’S LIABILITY. SELLER
WILL HAVE NO LIABILITY FOR ANY BUSINESS LOSSES OF BUYER, INCLUDING, WITHOUT
LIMITATION, LOSS OF REVENUE, PROFIT OR GOODWILL, OR FOR ANY OTHER INDIRECT,
INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES WHATSOEVER, WHETHER ARISING OUT OF
CONTRACT, TORT OR OTHERWISE. IN ANY EVENT SELLER’S MAXIMUM MONETARY LIABILITY IN
CONNECTION WITH THIS AGREEMENT WILL BE THE AMOUNTS PAID TO SELLER
HEREUNDER.

      

      10.         CONFIDENTIALITY

      

      10.01     Confidentiality.
Each party shall use reasonable efforts to cause their respective
employees, agents and other representatives to hold, in confidence, all
Confidential Information (as hereinafter defined), and the parties shall use
their best efforts to ensure that any other person having access to the
Confidential Information shall not disclose the same to any person except in
connection with this Agreement and otherwise as may be reasonably necessary to
carry out the provisions of this Agreement and the transactions contemplated
hereby, or to comply with applicable law. “Confidential Information” means all
information of any kind (including, without limitation, sales and promotional
results) obtained directly or indirectly from either party’s business.
Confidential Information shall not include any information which (i) is
generally available to the public as of the date of this Agreement, or (ii)
becomes generally available to the public after the date of this Agreement, or
(iii) is or becomes known to either party from sources outside of the other
party, provided that such information did not result, directly or indirectly,
from any act, omission or fault of either of the parties to this agreement or
any of their agents with respect to such information.

       

      [*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLCED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.]

    

     

    
      
        
        

      

      
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      11.         ADDITIONAL
PROVISIONS

    

     

    11.01   Assignment. This Agreement and
all of the provisions hereof shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns. Neither party
shall assign this Agreement without the prior written consent of the other
party, such consent not to be unreasonably withheld.

    

    11.02   Notices. Any notice or written
communication regarding this Agreement to Seller, shall be sent by certified
mail, return receipt requested to the following address or to such other
location(s) as the Seller subsequently directs:

    

    Zuckerman-Honickman,
Inc.

    Attention:
President

    191 South
Gulph Road

    King of
Prussia, PA 19406,

    

    Any such
notices to Buyer shall be sent to the following address or to such other
location(s) as the Buyer shall subsequently direct:

    

    Skinny
Water

    Attention:
CEO

    3 Bala
Plaza East, Suite 117

    Bala
Cynwyd, PA 19004,

    

    Notwithstanding
the foregoing, the parties hereto agree that each party hereto shall be entitled
to send purchase orders or invoices to the other via email or facsimile. Any
email or facsimile shall be deemed received by the recipient upon transmission
by the sending party. All notice by mail shall be deemed to have been received
three business days after mailing.

    

    11.03   Entire Understanding. This
Agreement contains the entire understanding between the parties with respect to
the subject matter hereof, superseding all prior written oral understandings or
agreements. This Agreement may only be amended in writing signed by both
parties.

    

    11.04   No Waiver of Rights. This
failure of either party to exercise any right hereunder or to insist upon the
performance of any of the terms or conditions of this Agreement shall not be
construed
as a waiver of such right or a relinquishment of the right to insist upon future
performance
of any such term or condition.

    

    11.05   Further Assurances. The
parties hereto shall, with reasonable diligence, do all such things and provide
all such reasonable assurances as may be required to consummate the transactions
contemplated hereby, and each party shall provide such further documents or
instruments required by any other party as may be reasonably necessary or
desirable to effect the purpose of this Agreement and carry out its
provisions.

    

    11.06   Severability. If any provision
of this Agreement shall be held invalid or unenforceable, such invalidity or
unenforceability shall attach only to such provision and shall not in any manner
affect any other jurisdictions or affect any other provision of this
Agreement.

    

    11.07   Time of Essence. Time shall be
of the essence hereof.

    

    [*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

     

    
      
        
        

      

      
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    11.08   Governing Law. This Agreement
shall be governed by and construed in accordance with the laws of the
Commonwealth of Pennsylvania, without giving effect to principles of conflicts
of law and both parties consent to the exclusive jurisdiction of the Court of
Common Pleas, Montgomery County or the U.S. District Court for the Eastern
District of PA.

    

    11.09   Counterparts. This Agreement
may be signed in counterparts, each of which counterpart so executed shall be
deemed to be an original and such counterparts together shall constitute a
single instrument bearing the date first written above. True and correct copies
of signed originals hereof which are transmitted by facsimile communication may,
in the absence of original signed copies, be considered legally binding and
enforceable documents.

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be execute on
the day and year first above written.

    

    
      
        
          
            
              
                	 	
                        ZUCKERMAN-HONICKMAN,
      INC.

                      	 
      
	 	 
      	 
      
	 	
                        By:

                      	
                        /s/
      Benjamin R. Zuckerman

                      	
                        Date:
      2/18/08

                      
	 	 
      	
                        Benjamin
      R. Zuckerman, President

                      	 
      
	 	 
      	 
      
	 	
                        SKINNY
      WATER

                      	 
      
	 	 
      	 
      
	 	
                        By:

                      	
                        /s/
      DONALD J. McDONALD

                      	
                        Date:
      2/15/08

                      
	 	 
      	
                        DONALD
      J. McDONALD, CEO

                      	 
      

              

            

          

        

      

    

    

    [*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

     

    
      
        
        

      

      
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    SCHEDULE
“A”

    

    SPECIFICATIONS

    

    
      
        
          
            
              	
                      Size:

                    	 
      	
                      18oz

                    
	 	 	 
	
                      Weight:

                    	 
      	
                      40.5
      grams

                    
	 	 	 
	
                      Color:

                    	 
      	
                      Clear

                    
	 	 	 
	
                      Design:

                    	 
      	
                      “Water
      Plus”

                    

            

          

        

      

    

    

    [*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
“B”

    

    PRICING

    

    Price is
[****] per Thousand Bottles.

    

    An
up-charge of [****] per thousand will be added for UV additive.

    

    Pricing
is based on minimum runs of [****] with [****] to take or storage charges per
Section 4.04 can be charged.

    

    Pricing
is F.O.B Manufacturer’s facility as of 2/1/2008.

    

    Pricing
is based on resin costs as of 2/1/2008.

    

    Prices
can change based on factors identified in Section 1.04.

    

    [*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    zuckerman
Honickman

    

    BOTTLE SUPPLY AGREEMENT
ADDENDUM I

    

    The
following is “Addendum I” to the Bottle Supply Agreement dated the 15th
day of
February 2008 between Zuckerman-Honickiman, Inc. (“Seller”) and Skinny
Nutritional Corp (“Buyer”) (the
“Agreement”).

    

    The
purpose of “Addendum I” is to identify agreed upon changes in Term, Sale of
Product, Quantity of Bottles, Manufacturer, Bottle Specifications, Pricing,
Change Parts and Future Bottle Requirement Addendums from the original Bottle
Supply Agreement. All other terms and conditions of the Agreement will remain as
previously agreed.

    

    
      	
              1.

            	
              Change
      to Section 2.01 in Agreement - Term. The term of the
      agreement will extend an additional 48
months.

            

    

    

    
      	
              2.

            	
              Replacement
      of Section 1.01 in Agreement - Sale of Products. Upon
      the terms and conditions hereinafter set forth, during the term of this
      Agreement, Seller agrees to supply and arrange to deliver to Buyer, and
      Buyer agrees to purchase, accept from Seller, and pay for 100%, of 100% of
      its bottle requirements (collectively, the “Bottles”), of the types, sizes
      and specifications set forth currently on Schedule “A”
      and any future Bottles Buyer needs in which specifications are identified
      within the Term or an Extension of Term (the “Specifications”), which may
      be changed from time to time upon written agreement signed by the Buyer,
      Seller and approved by the Manufacturer (as defined in Section 1.02 of
      Agreement).

            

    

    

    
      	
              3.

            	
              Replacement
      of Section 3.01 in Agreement - Quantity of Bottles.
      Subject to the provisions of Section 3.02, during the term of this
      Agreement Buyer shall purchase a minimum of 100% of all bottle needs (the
      “Minimum Quantity”) from Seller, so long as Seller is able to meet Buyer’s
      required needs.

            

    

    

    
      	
              4.

            	
              Replacement
      of Section 1.02 in Agreement - Manufacturer. The
      primary Manufacturer of the Bottles to be supplied hereunder may vary
      based on the specifications of each Bottle requested (the “Manufacturer”).
      Buyer may not, during the term of this Agreement, attempt to contract
      directly with a Manufacturer for a Bottle in which that Manufacturer is
      actively providing.

            

    

    

    
      	
              5.

            	
              Replacement of
      “Schedule A” in Agreement - Current
      Bottle Specifications.

            

    

    

    
      
        	
                Size

              	 
      	
                l6oz

              
	 
      	 
      	 
      
	
                Weight

              	 
      	
                36.5
      grams

              
	 
      	 
      	 
      
	
                Color

              	 
      	
                Clear

              
	 
      	 
      	 
      
	
                Manufacturer

              	 
      	
                Amcor
      PET North America

              
	 
      	 
      	 
      
	
                Design

              	 
      	
                Heat
      Set Stock

              

      

    

    

    [*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	
              6.

            	
              Replacement
      of “Schedule B” in Agreement - Current Bottle
      Pricing.

            

    

    

    Price is
[****] per thousand Bottles

    

    An
up-charge of [****] per thousand will be added for UV additive.

    

    Pricing
if F.O.B. Manufacturer’s facility as of 8/1/2008.

    

    Pricing
is based on resin costs as of 8/1/2008.

     

    
      A
surcharge for East Coast shipments/deliveries is [****] per thousand and [****]
per thousand for West Coast shipments/deliveries.

    

     

    Pricing,
surcharges, and up-charges may change based on factors identified in the
February 15th
Agreement.

    

    
      	
              7.

            	
              Added
      Section - Change Parts. The Buyer
      acknowledges that the Seller has paid for 2 labelers, filler (linker), and
      tray maker and packer (the “Change Parts”) at a cost of [****] on behalf
      of Buyer. Buyer will reimburse Seller the [****] (interest free) back to
      Seller in [****] installments of [****] beginning September 1st
      2008, and ending with the last payment being received by Seller on August
      1st
      2009.

            

    

    

    
      	
              8.

            	
              Added
      Section - Future Bottle
      Requirements. All Future Bottle Requirements by Buyer will have the
      Specifications, Pricing, Term and other varied information identified on
      future Addendums when needed.

            

    

    

    
      	
              9.

            	
              Added
      Section - [****]. Based on [****] in the previous contract year
      (which runs from February 15, 20x1 to February 14, 20x2), and the [****],
      Seller will [****][****]. Such [****][****] prior to March 15th
      following the [****]. [****] will be documented and communicated prior to
      the upcoming year. The format of the [****] will be as
      follows:

            

    

    

    [****]

    

    [****]

    [****]

    [****]

    [****]

    

    Agreed to
on the date written below:

    

    
      
        
          
            
              
                	
                        ZUCKERMAN-HONICKMAN,
      INC.

                      	 	
                        SKINNY
      NUTRITIONAL CORP.

                      
	 
      	 
      	 	 
      	 
      
	
                        By:

                      	/s/
      Benjamin R. Zuckerman  	 	
                        By:

                      	/s/
      Donald J. McDonald  
	 
      	
                        Benjamin
      R. Zuckerman, President

                      	 	 
      	
                        Donald
      J. McDonald, CEO

                      
	 
      	 
      	 	 
      	 
      
	
                        Date:

                      	
                        9-14-08

                      	 	
                        Date:

                      	
                        9/10/08

                      

              

            

          

        

      

    

    

    [*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    BOTTLE SUPPLY AGREEMENT
ADDENDUM II

    
       

      The
following is “Addendum II” to the Bottle Supply Agreement dated the 15th day of
February 2008 between Zuckerman-Honickman, Inc. (“Seller”) and Skinny
Nutritional Corp (“Buyer”) (the “Agreement”). 

    

     

    The
purpose of “Addendum II” is to identify agreed upon changed associated to adding
a [****] Section and replacing to the original Bottle Supply Agreement. All
other terms and conditions of the Agreement and Addendum I will remain as
previously agreed.

    

    
      	
              1.

            	
              Added
      Section – [****]. Based on the [****] [****] in the previous
      contract year which runs from February 17, 20x1 to February 16, 20x2
      (“Annum”). First Annum begins 2/17/09 and ends 2/16/10. Such [****] prior
      to March 17th
      following the [****] each Annum of the Agreement. The format of the [****]
      will be as follows:

            

    

    

    [****]

    

    [****]

    [****]

    [****]

    

    
      	
              2.

            	
              Replacement
      of “Schedule B” in Agreement and Section 6 of Addendum I - Current Bottle
      Pricing.

            

    

    

    Price is
[****] per thousand Bottles.

    

    An
up-charge of [****] per thousand will be added for UV additive.

    

    Pricing
is F.O.B. Manufacturer’s facility as of 2/1/2009.

    

    Pricing
is based on resin costs as of 2/1/2009.

    

    Pricing,
surcharges, and up-charges may change based on factors identified in the
February 15th
Agreement.

    

    Prices
can change based on factors identified in Section 1.04 of
Agreement.

    

    Agreed to
on the date written below:

    

    
      
        	
                ZUCKERMAN-
      HONICKMAN, INC.

              	 
      	
                SKINNY
      NUTRITIONAL CORP.

              
	 
      	 
      	 
      
	
                By:

              	/s/
      Benjamin R. Zuckerman  	 
      	
                By:

              	
                /s/
      Donald J. McDonald

              
	 
      	
                Benjamin
      R. Zuckerman, President

              	 
      	 
      	
                Donald
      J. McDonald, CFO

              
	 
      	 
      	 
      
	
                Date:_____________

              	 
      	
                Date:_____________

              

      

    

    

    [*CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT, EACH SUCH
PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH ASTERISKS [****], HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]Unassociated Document

    EMPLOYMENT
AGREEMENT

    

    This Employment Agreement (“Agreement”)
is entered into by and between Skinny Nutritional Corp. (the “Company”) and
Michael Salaman (“Employee”) on this 12th day of
August, 2010.

    

    Article
1.  Position and Duties.

    

    Section 1.01.  The
Company hereby continues the employment of the Employee and the Employee hereby
accepts continued employment pursuant to the terms of this Agreement. Your
employment under this Agreement will take effect on August 12, 2010 (the
“Effective Date”) and will continue until the third anniversary of the Effective
Date; provided
that the term of this Agreement shall automatically be extended for one (1)
additional year on the first anniversary of the Effective Date and each
anniversary thereafter, unless, not less than ninety (90) days prior to each
such date, either party shall have given notice to the other that it does not
wish to extend the term.  You will be employed by the Company on a
full-time basis in the position of Chief Executive Officer and President. In
addition, you will serve as an officer of one or more of the Company’s
Affiliates without further compensation, as you are requested from time to
time.

    

    During
the term of this Agreement (the “Term”), the Company shall nominate Employee,
and use its best efforts to have him elected, to the Board of Directors of the
Company (the “Board”) throughout
the term of this Agreement and shall include him in the management slate for
election as a director at every stockholders meeting during the Term at which
his term as a director would otherwise expire. Employee agrees to accept
election, and to serve during the Term, as director of the Company.

    

    Section 1.02.  You
agree to perform the duties of your position and such other duties as reasonably
may be assigned to you from time to time by the Board; provided, however, that you
shall not be assigned duties that are inconsistent with your position, duties,
responsibilities and status with the Company immediately prior to the Effective
Date.  You also agree that, while employed by the Company, you will
devote your full business time and your best efforts, business judgment, skill
and knowledge to the advancement of the business and interests of the Company
and its Affiliates and to the discharge of your duties and responsibilities for
them.  This provision does not prevent you from serving on the board
of any business, church, non-profit or charitable organization; provided that such
service does not give rise to a conflict of interest; provided further that such
activities do not materially detract from your performance of your duties
hereunder and that as a precondition the Board of Directors of the Company (the
“Board”) has been notified of your service on such board, and has agreed in
writing to permit such service.

    

    Article
2.  Compensation and Benefits.  During your
employment, as compensation in full for all services performed by you for the
Company and its Affiliates, the Company will provide you the following pay and
benefits.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    Section 2.01.  Base Salary.  The
Company will pay you a base salary at the rate of $150,000 per year, payable in
accordance with the regular payroll practices of the Company and subject to
increase from time to time by the Board in its discretion. This salary will
increase by an amount to be determined by the Board or Compensation
Committee based on benchmarks set by the Board or Compensation Committee on
each anniversary of the Effective Date.  Whether any such increase
will be paid in cash or shares of Common Stock is in the discretion of the Board
or its designated committee (the “Committee”).  In the event the Board
or the Committee elects to pay such increase in shares of the Company’s common
stock (the “Common Stock”), the number of shares of Common Stock to be issued in
satisfaction of such obligation shall be determined by reference to the fair
market value of the Company’s Common Stock, which shall be determined as
follows: (i) if the Company’s Common Stock is listed on a national securities
exchange (including the Nasdaq Stock Market, LLC) or is quoted on the OTC
Bulletin Board, the last sale price of the Common Stock in the principal trading
market for the Common Stock on such date, as reported by the exchange or the OTC
Bulletin Board, as the case may be, or if no sale was reported on that date,
then on the last preceding date on which such sale took place; (ii) if the
Common Stock is not listed on a national securities exchange or quoted on the
OTC Bulletin Board, but is traded in the residual over-the-counter market, the
last sale price of the Common Stock on such date, as reported by Pinksheets, LLC
or similar publisher of such information, or if no sale was reported on that
date, then on the last preceding date on which such sale took place; and (iii)
if the fair market value of the Common Stock cannot be determined pursuant to
clause (i) or (ii) above, such price as the Board or Committee shall determine
in good faith.

    

    Section 2.02.  Bonus
Compensation.  For each fiscal year completed during your
employment with the Company, you will be eligible to be considered by the Board
for an annual cash performance bonus, the actual amount of any bonus awarded to
you will be determined by the Board or its designated committee.

    

    Section 2.03.  Equity
Rights.

    

    
      	
               
      

            	
              (a)

            	
              In
      the event the Company proposes to issue new shares of Common Stock (or
      Common Stock Equivalents, as such term is defined below) in a transaction
      for the principal purpose of raising capital, then in order to prevent the
      dilution of your then-current percentage interest in the Company (as
      determined in accordance with the applicable provisions of Regulation 13D,
      adopted by the Securities and Exchange Commission, as it currently exists
      and as it may be amended or replaced during the Term), you will be given
      the opportunity to purchase up to a maximum of such number of newly-issued
      shares of Common Stock (or such other Common Stock Equivalents) as would
      enable you to maintain such then-current percentage interest in the
      Company. Such purchase would occur at the same time, and under the same
      terms and conditions, as such shares are offered for purchase by other
      persons.

            

    

    

    
      	
               
      

            	
              (b)

            	
              As
      used herein, the term “Common Stock Equivalents” shall mean any securities
      of the Company which would entitle the holder thereof to acquire at any
      time Common Stock, including, without limitation, any debt, preferred
      stock, rights, options, warrants or other instrument that is at any time
      convertible into or exercisable or exchangeable for, or otherwise entitles
      the holder thereof to receive, Common
Stock.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (c)

            	
              For
      the purpose of clarity, the following issuances of Common Stock or Common
      Stock Equivalents shall not be subject to the provisions of this Section
      2.03: (a) the issuance of shares of Common Stock or Common Stock
      Equivalents to employees, consultants, officers or directors of the
      Company pursuant to any equity compensation plan duly adopted by a
      majority of the non-employee members of the Board or a majority of the
      members of a committee of non-employee directors established for such
      purpose (including the issuance of shares of Common Stock upon exercise of
      Common Stock Equivalents granted pursuant to a Company plan subsequent to
      the date hereof ); (b) the issuance of Common Stock upon the exercise or
      exchange of or conversion of Common Stock Equivalents which are issued and
      outstanding on the date of this Agreement; (c) the issuance of shares of
      Common Stock (or Common Stock Equivalents) to consultants, vendors,
      lessors, distributors or similar persons, as consideration for services or
      assets provided to the Company (and the shares of Common Stock which may
      be issued upon exercise or conversion of securities issued to the class
      persons specified in this clause); (d) securities issued pursuant to
      mergers, acquisitions, consolidations, or reorganizations, the primary
      purpose of which transaction is not to raise capital; and (e) shares of
      Common Stock or other securities issued in connection with any stock split
      or stock dividend of the Company.

            

    

    

    
      	
               
      

            	
              (d)

            	
              Upon
      either the occurrence of a Change of Control or in the event of the
      termination of Employee’s employment either (i) by the Company without
      Cause or (ii) by the Employee for Good Reason, then effective as of the
      consummation of such Change of Control or termination date, and
      notwithstanding anything herein or in any stock option agreement to the
      contrary, (A) the Employee’s right to purchase shares of Common Stock of
      the Company pursuant to any stock option or stock option plan (whether
      granted before or subsequent to the Effective Date) shall immediately
      fully vest and become exercisable, (b) the exercise period in which
      Employee may exercise his options to purchase Company Common Stock under
      such options shall be extended to the duration of their original term, as
      if Employee remained an employee of the Company, and the terms of such
      options shall be deemed amended to take into account the foregoing
      provisions.

            

    

    

    Section 2.04.  Employee
Benefits.  While holding the position of Chief Executive Officer
and President, you will be entitled to participate in the employee benefit plans
maintained by the Company of general applicability to other senior executives of
the Company, including but not limited to the disability plan currently in place
for senior executives which the Company shall continue for your
benefit.

    

    Section 2.05.  Paid Time
Off.  You will be entitled to earn paid time off at the rate
of  three (3) weeks per year, in addition to holidays observed by the
Company, and to use such paid time off in accordance with the policies of the
Company generally applicable to its executives, as in effect from time to
time.  In addition, the Company shall pay you $800 per month as an
automobile allowance during the Term.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
 

    Section 2.06.  Business
Expenses.  The Company will pay or reimburse you for all
reasonable business expenses incurred or paid by you in the performance of your
duties and responsibilities for the Company, subject to any maximum annual limit
and other restrictions on such expenses set by the Company and to such
reasonable substantiation and documentation as it may specify from time to
time.

    

    Section 2.07.  Signing
Bonus.  Upon execution of this Agreement, the Company shall
issue to Employee 3,000,000 shares of the Company’s Common Stock as a signing
bonus.  This bonus shall constitute good and valuable consideration,
the sufficiency of which is acknowledged by your signature below.

    

    Article
3.  Confidential Information and Restricted
Activities.

    

    Section 3.01.  Confidential
Information.  During the course of your employment with the
Company, you will learn of Confidential Information, as defined below, and you
may develop Confidential Information on behalf of the Company.  You
agree that you will not use or disclose to any Person (except as required by
applicable law after notice to the Board or for the proper performance of your
regular duties and responsibilities for the Company) any Confidential
Information obtained or developed by you incident to your employment or any
other association with the Company or any of its Affiliates.  You
understand and agree that this restriction shall continue to apply after your
employment terminates, regardless of the reason for such termination. Further,
Employee covenants and agrees that all Confidential Information shall be kept
secret and confidential at all times during or after the Term and shall not be
used or divulged by him outside the scope of his employment as contemplated by
his Agreement. In the event
that Employee is requested in a judicial, administrative or governmental
proceeding to disclose any of the Confidential Information, Employee will
promptly so notify the Company so that the Company may seek a protective order
of other appropriate remedy and/or waive compliance with this Agreement. If
disclosure of any of the Confidential Information is required, Employee may
furnish the material so required to be furnished, but Employee will furnish only
that portion of the Confidential Information that legally is
required.

    

    Section 3.02.  Protection
of Documents.  All documents, records and files, in any media
of whatever kind and description, relating to the business, present or
otherwise, of the Company or any of its Affiliates, and any copies, in whole or
in part, thereof (the “Documents”), whether or not prepared by you, shall be the
sole and exclusive property of the Company.  You agree to safeguard
all Documents and to surrender to the Company, at the time your employment
terminates or at such earlier time or times as the Board or its designee may
specify, all Documents and other property of the Company and its Affiliates then
in your possession or control.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
 

    Section
3.03.  Non-Competition.  You acknowledge that in your
employment with the Company you have had, and will continue to have, access to
Confidential Information which, if disclosed, would assist in competition
against the Company and its Affiliates; and that you also have generated and
will continue to generate goodwill for the Company and its Affiliates in the
course of your employment.  You further acknowledge that you are
receiving under this Agreement new consideration that is good and valuable and
fully sufficient to support your covenants set forth in this Section
3.  Therefore, you agree that the following restrictions on your
activities during and after your employment are necessary to protect the
goodwill, Confidential Information and other legitimate interests of the Company
and its Affiliates:

    

    
      
        	
              	
                a)

              	
                While
      you are employed by the Company and during the one (1) year immediately
      following termination of your employment (in the aggregate, the
      “Non-Competition Period”), you shall not, directly or indirectly, whether
      as owner, partner, investor, consultant, agent, employee, co-venturer or
      otherwise, compete with the Business of the Company within the United
      States.  Specifically, but without limiting the foregoing, you
      agree not to work or provide services, in any capacity, whether as an
      employee, independent contractor or otherwise, whether with or without
      compensation, to any Person that is engaged in any business that is
      competitive with the Business of the Company in the United
      States.  For purposes of this Agreement, the “Business of the
      Company” means the business in which the Company is engaged in the United
      States during your
employment.

              

      

    

    

    
      
        	
              	
                b)

              	
                You
      agree that during the Non-Competition Period, you will not (A) hire any
      employee of the Company or any of its Affiliates or seek to persuade any
      employee of the Company or any of its Affiliates to discontinue
      employment, (B) solicit or encourage any customer of the Company or any of
      its Affiliates or independent contractor providing services to the Company
      or any of its Affiliates to terminate or diminish its relationship with
      them or (C) seek to persuade any customer or prospective customer of the
      Company or any of its Affiliates to conduct with anyone else any business
      or activity that such customer or prospective customer conducts or could
      conduct with the Company or any of its Affiliates.  For purposes
      of your obligations hereunder after termination of your employment, an
      employee, independent contractor, customer or prospective customer shall
      mean any natural person or entity that was such at any time during the
      last six (6) months of your employment with the
  Company.

              

      

    

    

    Section 3.04.  Assignment
of Intellectual
Property.  You agree to promptly and fully disclose to the
Company all Intellectual Property, as defined below.  You hereby
assign and agree to assign to the Company (or as otherwise directed by the
Company) your full right, title and interest in and to all Intellectual
Property.  You further agree to execute any and all applications for
domestic and foreign patents, copyrights and other proprietary rights and do
such other acts (including, among others, the execution and delivery of
instruments of further assurance or confirmation) requested by the Company to
assign the Intellectual Property to the Company and to permit the Company to
enforce any patents, copyrights and other proprietary rights in the Intellectual
Property.  You agree that you will not charge the Company for time
spent in complying with these obligations, including after your employment
ends.  All copyrightable works that you create shall be considered
“work made for hire” and shall be the property of the Company.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Section 3.05.  Enforcement.  In
signing this Agreement, you give the Company assurance that you have carefully
read and considered all the terms and conditions of this Agreement, including
the restraints imposed on you under this Section 3.  You agree without
reservation that these restraints are necessary for the reasonable and proper
protection of the Company and its Affiliates and that each and every one of the
restraints is reasonable in respect to subject matter, length of time and
geographic area.  You represent and warrant to the Company that these
restrictions will not, individually or in the aggregate, prevent you from
obtaining other suitable employment after your employment with the Company
terminates and that you will not, and will not permit anyone acting on your
behalf, to take any position to the contrary in any forum hereafter and you give
the Company those assurances with the understanding that the Company will rely
upon them in continuing your employment and in providing you access to
Confidential Information and to its other employees and its
customers.  Further, you agree that, were you to breach any of the
covenants contained in this Section 3, the damage to the Company and its
Affiliates would be irreparable.  You therefore agree that the
Company, in addition to any other remedies available to it, shall be entitled to
preliminary and permanent injunctive relief against any breach or threatened
breach by you of any of those covenants, without having to post
bond.  You and the Company further agree that, in the event that any
provision of this Section 3. is determined by any court of competent
jurisdiction to be unenforceable by reason of its being extended over too great
a time, too large a geographic area or too great a range of activities, that
provision shall be deemed to be modified to permit its enforcement to the
maximum extent permitted by law.  It is also agreed that each of the
Company’s Affiliates shall have the right to enforce all of your obligations to
that Affiliate under this Agreement, including without limitation, pursuant to
this Section 3.

    

    
      Article
4.  Termination of Employment.  Your
employment under this Agreement shall continue until terminated pursuant to this
Article 4, unless earlier terminated pursuant to Section
1.01.

    

    

    
      	
               
      

            	
              Section
      4.01.

            

    

    

    (a) Without Cause or for Good
Reason.   In the event that your employment with the
Company hereunder is terminated by the Company, other than for Cause and other
than as a result of death or Disability, or if Employee terminates his
employment for Good Reason, then the Company will provide you the following
severance pay and benefits, subject to your signing and returning a timely and
effective release of claims in a form reasonably satisfactory to the
parties  and subject also to your meeting in full your obligations as
set forth in Section 3 of this Agreement: In addition to base salary for the
final payroll period of your employment, through the date your employment with
the Company terminates, which amounts shall be payable at the Company’s next
regular payday following such termination, the Company (i) will pay you
severance pay of  an amount equal to the sum of your base salary for
the amount of time remaining in the Term of this Agreement and the Bonus
Compensation paid for the fiscal year immediately preceding termination, either
in accordance with the Company’s regular pay periods or in a lump-sum payment in
the sole discretion of the Board; and (ii) provided that you and your eligible
dependents exercise your rights to continue participation in the Company’s group
health plans under the federal law generally known as COBRA (or any successor
law), the Company will pay the premium cost of your participation and that of
your eligible dependents in the Company’s group health plans and will make
payments to your Health Savings Account (“HSA”), if any, in accordance with
Company policy until the sooner to occur of (Y) the expiration of the Severance
Pay Period (as defined below) and (Z) the date you become eligible to enroll in
any health plan of another employer; provided, however, that if your
continued participation in the Company’s group health plans is not possible
under the terms of those plans (other than as a result of your becoming eligible
to participate in a health plan of another employer), the Company shall instead
arrange to provide you and your eligible dependents substantially similar
benefits upon reasonably comparable terms or pay you an amount during the
Severance Pay Period equal to the premiums the Company would have paid if you
had continued to participate in the Company’s group health
plans.  Payments pursuant to clause (ii) of this Section 4.01(a) shall
be made on the first day of each month during the Severance Pay Period (or
sooner, if required by applicable law). You are not required to mitigate damages
or the amount of any payment provided for under this Section 4.01(a) by seeking
other employment or otherwise, but the amount of any payment provided for under
this Section 4.01(a) shall be reduced by any compensation you earn as the result
of employment by another employer during the Severance Pay
Period.  The Release creates legally binding obligations and the
Company advises you to consult an attorney prior to signing the
Release.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (b) Severance Pay
Period.  The Severance Pay Period shall be the period of time
commencing on the date of termination of this Agreement for the reasons
specified in Section 4.01(a) and ending on the third anniversary of the
termination of the Agreement.

    

    (c) Cause; Without Good
Reason.  If the Company terminates Employee’s employment for
Cause, or if Employee resigns as an employee of the Company for reasons other
than an event of Good Reason (not including death or Disability), then the
Company shall pay to Employee the Accrued Compensation (defined below) but shall
have no obligation to pay Employee any amount, whether for salary, benefits,
bonuses, or other compensation or expense reimbursements of any kind, accruing
or vesting after the end of the Term, and such rights shall, except as otherwise
required by law or pursuant to the applicable award agreement or plan, be
forfeited immediately upon the end of the Term, except that in the event the
Employee resigns for other than Good Reason (not including death or Disability),
than his
right to purchase shares of Common Stock of the Company pursuant to any stock
option or stock option plan to the extent vested as of the termination date
shall remain exercisable for a period of three months following the termination
date, but in no event after the expiration of the exercise period of such
option(s).  As used herein, “Accrued Compensation” shall mean an
amount which shall include all amounts earned or accrued by Employee through the
date of termination of this Agreement but not paid as of such date, including
(i) base salary, (ii) reimbursement for business expenses incurred by the
Employee on behalf of the Company, pursuant to the Company’s expense
reimbursement policy in effect at such time, (iii) vacation pay per Company
policy, and (iv) bonuses and incentive compensation solely to the extent earned
and awarded prior to the date of termination. Accrued Compensation shall be paid
on the first regular pay date after the date of termination (or earlier, if
required by applicable law).

     

    
      
        
        

      

      
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      Section 4.02.  You may elect
to terminate your employment under this Agreement other than for Good Reason at
any time upon thirty (30) days’ notice to the Company; provided, however, that the
Company may elect to waive some or all of the notice given by paying you your
base salary for that portion of the first thirty (30) days of notice which it
elects to waive.

    

    

    
      Section 4.03.  This
Agreement shall automatically terminate in the event of your death at any time
during the Term of your employment and the Company may terminate your employment
hereunder by written notice in the event of Disability, as defined below. In the
event that Employee’s employment terminates as a result of his death, the
Employee’s estate shall be entitled to the same benefits and payments as if his
employment had been terminated by the Company for Cause except that any vested
options shall remain exercisable to the extent provided in the applicable option
agreement. In the event that the Company terminates Employee’s employment as a
result of Disability, Employee shall be entitled to the same benefits and
payments pursuant to Section 4.01(a) as if his employment had been terminated by
the Company without Cause except that (1) the amount of severance payable to
Employee would be equal to (A) an amount equal his then-current base salary for
a period of twelve months from the date of termination payable in accordance
with the Company’s regular pay periods or in a lump-sum payment in the sole
discretion of the Board and (B) the benefits described in clause (ii) of Section
4.01(a), except that the “Severance Pay Period” would be deemed reduced to a
period of 12 months from the date of termination and (2) any vested options
shall remain exercisable to the extent provided in the applicable option
agreement.

    

    

    Except as
provided above, it is agreed that, notwithstanding anything to the contrary
contained in this Agreement, any right to compensation and continued
participation in Company benefit plans during any period of leave of absence
granted you by the Company during your employment hereunder whether resulting
from a Disability, as defined in this Agreement, or from other illness, injury
or condition, shall be governed by any paid sick leave or other policies of the
Company generally applicable to its executives, and by applicable law, as in
effect from time to time.  If any question shall arise as to whether
you are disabled by illness, injury or condition to the extent that you are
unable to perform substantially all of your duties and responsibilities for the
Company as determined in the reasonable discretion of the Board of Directors,
you shall, at the Company’s request, submit to a medical examination by a
physician selected by the Company  to determine whether you are so
disabled and such determination shall for the purposes of this Agreement be
conclusive of the issue.  If such a question arises and you fail to
submit to the requested medical examination, the Company’s determination of the
issue shall be binding on you. In the event the Company elects to terminate this
Agreement due to the Disability of Employee, it shall give Employee written
notice of termination which shall take effect thirty (30) days after the date it
is sent to Employee unless Employee shall have returned to the performance of
his duties hereunder during such thirty (30) day period (whereupon such notice
shall become void).

     

    
      
        
        

      

      
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      Article V.  Effect
of Termination of Employment.

    

    

    Section
5.01.  Except as otherwise expressly provided in Section 4.01.
and except for payment of base salary for waiver of some or all of your notice
of termination other than for Good Reason pursuant to Section 4.02., the Company
shall have no obligation or liability to you hereunder following termination of
your employment, howsoever occurring, other than for payment of any unpaid base
salary earned by you during the last payroll period of your employment, through
the date of termination.

    

    Section
5.02.  Except for any right you may have under COBRA (or any
successor law) to continue participation in the Company’s group health plans,
all benefits shall terminate in accordance with the terms of the applicable
benefit plans based on the date of termination of your employment, without
regard to any continuation of base salary or other payment to you following
termination.  Except as expressly provided in Section 4.01., any
continuation in the Company’s group health plans under COBRA shall be at your
cost.

    

    Section
5.03.  Provisions of this Agreement shall survive any
termination if so provided in this Agreement or if necessary or desirable to
accomplish the purposes of other surviving provisions, including without
limitation your obligations under Article 3 of this Agreement.  The
obligation of the Company to make payments to you, or on behalf of you or your
eligible dependents under Section 4.01, is expressly conditioned upon your
continued full performance of obligations under Article 3, hereof.

    

    Article
VI.  Definitions.  For
purposes of this Agreement, the following definitions apply:

    

    Section 6.01.  “Affiliates”
means all persons and entities directly or indirectly controlling, controlled by
or under common control with the Company, where control may be by management
authority, contract, or equity interest.

    

    Section
6.02.  “Cause,” as used in this Agreement, means (i) the
commission of fraud, embezzlement, theft or other dishonesty in the performance
of your duties for, or responsibilities to, the Company, (ii) willful, or
repeated or negligent failure to adequately perform your duties for, or
responsibilities to the Company as reasonably determined by the Board or
material breach of this Agreement, and after reasonable notice from the Board
setting forth in reasonable detail the nature of such failure or breach and you
shall not have remedied such failure within thirty (30) days of receiving such
notice; or (iii) a breach of your fiduciary duty to the Company; or (iv)
personal dishonesty injurious to the Company.

     

    
      
        
        

      

      
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Section
6.03.  “Change of Control” means (i) a sale of all or
substantially all of the Company’s business or assets in one transaction or a
series of related transaction, (ii) the consummation by the Company of any
merger, consolidation, or other business combination transaction of the Company
with or into or otherwise involving another corporation, entity or person, other
than a transaction in which the holders of at least a majority of the shares of
voting capital stock of the Company outstanding immediately prior to such
transaction continue to hold (either by such shares remaining outstanding or by
their being converted into shares of voting capital stock of the surviving
entity) a majority of the total voting power represented by the shares of voting
capital stock of the Company (or the surviving entity) outstanding immediately
after such transaction, (iii) the direct or indirect acquisition (including by
way of a tender or exchange offer) by any person, or persons acting as a group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act of
1934), other that the Company or any subsidiary of the Company, of beneficial
ownership or a right to acquire beneficial ownership of shares representing a
majority of the voting power of the then outstanding shares of capital stock of
the Company, (iv) a contested election of Directors, as a result of which or in
connection with which the persons who were Directors before such election or
their nominees cease to constitute a majority of the Board, or (v) a dissolution
or liquidation of the Company.

    

    Section
6.04.  “Confidential Information” means any and all information
of or concerning (i) the Company, its Affiliates and employees and their work on
behalf of the Company  and (ii) any other Person with which the
Company does or may do business, which is not generally known or readily
available to those Persons with whom the Company or any of its Affiliates
competes or does business or with whom the Company or any of its Affiliates
plans to compete or do business.  Confidential Information also
includes any information received by the Company or any of its Affiliates from
any Person with any understanding, express or implied, that it will not be
disclosed.

    

    Section 6.05.  “Good
Reason,” as used in this Agreement, means the occurrence of any of the following
without your express written consent at any time during your employment, provided that you
have complied with the Good Reason Process: (i) the assignment to you by the
Company of duties materially inconsistent with your position, duties,
responsibilities and status with the Company or a material adverse change in
your titles or offices, or any removal of you from or any failure to reelect you
to any of such positions, including but not limited to your position as a
director of the Company, except in connection with the termination of your
employment for Disability or Cause or as a result of your death or by you other
than for Good Reason; (ii) a relocation of the Company’s principal executive
offices to a location outside of Metropolitan Philadelphia,
Pennsylvania, except for required travel by you on the Company’s business
to an extent substantially consistent with your business travel obligations at
the time of the Acquisition; or (iii) a breach of any of the material terms or
conditions of this Agreement by the Company that is not cured within 30 days
after written notice thereof.

     

    
      
        
        

      

      
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    Section
6.06.  “Good Reason Process”
shall mean that (A) you reasonably determine in good faith that a “Good Reason”
event has occurred; (B) you notify the Company in writing of the occurrence of
the Good Reason event within five (5) days of its occurrence); (C) you
cooperate in good faith with the Company’s efforts, for a period not less than
thirty (30) days following such notice, to modify your employment situation in a
manner acceptable to you and the Company; and (D) notwithstanding such efforts,
one or more of the Good Reason events continues to exist and has not been
modified in a manner acceptable to you.

    

    Section
6.07.  “Intellectual Property” means any invention, formula,
process, discovery, development, design, innovation or improvement (whether or
not patentable or registrable under copyright statutes) made, conceived or first
actually reduced to practice by you solely or jointly with others, during your
employment by the Company; provided, however, that, as
used in this Agreement, the term “Intellectual Property” shall not apply to any
invention that you develop on your own time, without using the equipment,
supplies, facilities or trade secrets or Confidential Information of the Company
or any of its Affiliates, unless such invention relates at the time of
conception or reduction to practice of the invention (i) to the business of the
Company or any of its Affiliates, (ii) to the actual or demonstrably anticipated
research or development of the Company or any of its Affiliates or (iii) results
from any work performed by you for the Company or any of its
Affiliates.

    

    Section
6.08.  “Person” means an individual, a corporation, a limited
liability company, an association, a partnership, an estate, a trust or any
other entity or organization, other than the Company or any of its
Affiliates.

    

    Section
6.09.  “Disability” means (i) Employee’s incapacity due to
physical or mental illness that results in his being substantially unable to
perform his duties hereunder for six consecutive months (or for six months out
of any nine month period) or (ii) a qualified independent physician mutually
acceptable to the Company and Employee determines that Employee is mentally or
physically disabled so as to be unable to regularly perform the duties of his
position and such condition is expected to be of a permanent duration. During a
period of Disability while he remains an employee of the Company, Employee shall
continue to receive his base salary hereunder, provided that if the Company
provides Employee with disability insurance coverage, payments of Employee’s
base salary shall be reduced by the amount of any disability insurance payments
received by Employee due to such coverage.

    

    Article
VII.  Conflicting Agreements.  You
hereby represent and warrant that your signing of this Agreement and the
performance of your obligations under it will not breach or be in conflict with
any other agreement to which you are a party or are bound and that you are not
now subject to any covenants against competition or similar covenants or any
court order that could affect the performance of your obligations under this
Agreement.  You agree that you will not disclose to or use on behalf
of the Company any proprietary information of any Person without that Person’s
consent.

     

    
      
        
        

      

      
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    Article
VIII.  Withholding.  All
payments made by the Company under this Agreement shall be reduced by any tax or
other amounts required to be withheld by the Company under applicable
law.

    

    Article
IX.  Assignment.  Neither
you nor the Company may make any assignment of this Agreement or any interest in
it, by operation of law or otherwise, without the prior written consent of the
other; provided, however, that the
Company may assign its rights and obligations under this Agreement without your
consent to one of its Affiliates or to any Person with whom the Company shall
hereafter affect a reorganization, consolidate with, or merge into or to whom it
transfers all or substantially all of its properties or assets.  This
Agreement shall inure to the benefit of and be binding upon you and the Company,
and each of our respective successors, executors, administrators, heirs, and
permitted assigns.

    

    Article
X.  Severability.  If
any portion or provision of this Agreement shall to any extent be declared
illegal or unenforceable by a court of competent jurisdiction, then the
remainder of this Agreement, or the application of such portion or provision in
circumstances other than those as to which it is so declared illegal or
unenforceable, shall not be affected thereby, and each portion and provision of
this Agreement shall be valid and enforceable to the fullest extent permitted by
law.

    

    
      Article XI.  Indemnity.  The
Company hereby agrees to indemnify, defend, and hold harmless  the
Employee for any and all claims arising from or related to his employment by the
Company at any time asserted, at any place asserted, to the fullest extent
permitted by law, except for claims based on Employee’s fraud, deceit or
willfulness.  The Company shall maintain such insurance as is
necessary and reasonable to protect the Employee from any and all claims arising
from or in connection with his employment by the Company during the term of
Employee's employment with the Company. The provisions of this Article XI are in
addition to and not in lieu of any indemnification, defense or other benefit to
which Employee may be entitled by statute, regulation, common law or
otherwise.

    

    

    Article
XII.  Miscellaneous.

    

    Section 12.01.  This
Agreement sets forth the entire agreement between you and the Company and
supersedes any and all prior and contemporaneous communications, agreements and
understandings, written or oral, with respect to the terms and conditions of
your employment Agreement”); provided, however, that this
Agreement shall not supersede or otherwise terminate any effective assignment
you have made of any invention or other intellectual property to the Company or
any of its Affiliates on or before the Effective Date or otherwise with respect
to confidentiality, non-competition, non-solicitation or the like prior to the
Effective Date, all of which assignments and rights shall remain in full force
and effect.

    

    Section 12.02.  This
Agreement may not be modified or amended, and no breach shall be deemed to be
waived, unless agreed to in writing by you and an expressly authorized
representative of the Board.  The headings and captions in this
Agreement are for convenience only and in no way define or describe the scope or
content of any provision of this Agreement.  This Agreement may be
executed in two or more counterparts, each of which shall be an original and all
of which together shall constitute one and the same instrument.

     

    
      
        
        

      

      
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    Section 12.03.  This
is a Pennsylvania
contract and shall be governed and construed in accordance with the laws of the
Commonwealth of
Pennsylvania, without regard to the conflict of laws principles
hereof.

    

    Section 12.04.  Upon
execution of this Agreement we will pay all reasonable attorneys’ fees which you
incur for the review and negotiation of this Agreement and any ancillary
documents and agreements relating thereto.

    

    Section
12.05.   It is the intention of the parties that this
Agreement comply  strictly with the provisions of Section 409A of the
Internal Revenue Code, as amended, and Treasury Regulations and other Internal
Revenue Service guidance promulgated thereunder (the “409A Rules”). Consistent
with that intention, all references hereunder to termination of the Employee’s
employment with the Company shall mean separation from the service of the
service recipient under the 409A Rules.  Further, to the extent the
Company determines in good faith that the Employee is a specified employee under
the 409A Rules, any payments of deferred compensation within the meaning of the
409A Rules will be deferred for a period of six (6) months and one (1) day,
unless the Employee dies within such period, in which event payment will be made
pursuant to Section 4.03.  Accordingly, this Agreement, including, but
not limited to, any provisions relating to severance payments, may be amended
from time to time as may be necessary or appropriate to comply with the 409A
Rules without obtaining any additional consent from Employee, so long as such
amendment or modification does not materially affectthe net present value of the
compensation or benefits to which Employee otherwise would be entitled under
this Agreement.

    

    Section
12.06.   The respective rights and obligations of the
parties hereunder shall survive any termination of this Agreement to the extent
necessary to the intended preservation of such rights and
obligations.

    

    Section
12.07.  Except as otherwise expressly provided in this
Agreement, any notices provided for in this Agreement shall be in writing and
shall be effective when delivered in person, consigned to a reputable national
courier service or deposited in the United States mail, postage prepaid, and
addressed to you at your last known address on the books of the Company or, in
the case of the Company, to it at its principal place of business, attention of
the Chair of the Board, or to such other address as either party may specify by
notice to the other actually received.

    

    Signature
page follows.

     

    
      
        
        

      

      
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    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first written above.

     

    
      
        	 	
                Skinny
      Nutritional Corp.

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Donald J.
      McDonald	 
	 	 	Name: 	 
	 	 	Title:	 
	 	 	 	 
	 	Employee	 
	 	 	 	 
	 	 	
                /s/
      Michael Salaman

              	 
	 	 	
                Michael
      Salaman

              	 
	 	 	 	 
	 	 	 	 

      

    

     

    
      
         

      

      
        14

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