Document:

whdi8k20100119ex10-2.htm

    
      

      

    

    
      Exhibit
10.2

    

       

     

    

    January
13, 2010

    

    

    Edon
Moyal

    6991
Bixbite Place

    Carlsbad,
CA 92009

    

    Dear
Edon:

    

    Who’s
Your Daddy, Inc. (the “Company”) has certain outstanding indebtedness that was
created during the time you were an Executive Officer and/or Director of the
Company.  This indebtedness is detailed below:

    

    
      	
              Unpaid
      payroll taxes – Federal (excludes penalties &
interest)

            	 	$	119,035	 
	
              Unpaid
      payroll taxes – State (excludes penalties & interest)

            	 	 	65,114	 
	
              Settlement
      with Who’s Ya Daddy, Inc.

            	 	 	100,000	 
	
              Settlement
      with Defiance U.S.A., Inc. (including interest)

            	 	 	217,000	 
	
              Total

            	 	$	490,996	 
	 
      	 	 	 	 
	
              In
      addition to the amounts shown above, penalties and interest for Federal
      and State unpaid payroll taxes currently total approximately $75,000 and
      continue to accrue.

            	 

    

    

    The
Company is also indebted to you in the amount of $343,926.64 consisting of
$200,458.33 in accrued and unpaid salary through September 30, 2009 and
$143,468.31 in unpaid loans and advances made by you.  It is agreed
that no salary shall be accrued for you subsequent to September 30,
2009.

    

    This
significant indebtedness noted above has made it extremely difficult to raise
capital and to move the Company forward.  In order to relieve the
Company of some of its debt burden, you have agreed to the
following:

    

    
      	
              1. 
      

            	
              Because
      you have attempted to collect the amounts owed to you described above and
      because the Company has been unable to pay, and continues to be unable to
      pay such amounts, the Company will not repay this debt
      you.  Included in the $200,458.33 amount owed to you is the
      amount of $32,604.00 originally recorded as owed to EP Creations, which
      was reclassified effective June 30, 2009 in accordance with your
      instructions, as being owed to you.

            

    

     

    

    
      
        
          
            Who’s
Your Daddy, Inc., 26381 Crown Valley Parkway, #230, Mission Viejo, CA
92690

            Phone
949.582.5933 ... Fax 949.582.5913

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    
      	
              2. 
      

            	
              You
      will assign to the Company 1,227,199 of unpledged common shares of stock
      of the Company that are held in your name on certificate #4080 (the
      “Transferred Stock”).  It is understood that you will keep
      590,030 shares currently held in your name and that 159,647 shares held in
      your name are pledged to Defiance U.S.A., Inc. as collateral for amounts
      owed to them.  The Company will use its best efforts to sell the
      Transferred Stock and use the proceeds, net of costs of creditor
      settlement (including legal costs) and stock liquidation, to repay debt in
      the following order:

            

    

    

    
      	
               
      

            	
              a. 
      Debt for unpaid payroll taxes

            

    

    
      	
               
      

            	
              b. 
      Debt to Who’s Ya Daddy, Inc.

            

    

    
      	
               
      

            	
              c. 
      Debt to Defiance U.S.A., Inc./Christopher
Wicks

            

    

    

    The
Company cannot assure you that it will be successful in liquidating any of the
Transferred Stock or that, if successful, the net proceeds of the liquidation
will be sufficient to repay any of the indebtedness referred to
above.  As a result, this letter in no way constitutes a release by
the Company of any liability you may have for any of this
indebtedness.  In the event that the Company is unsuccessful in
liquidating any of the Transferred Stock by August 1, 2010, then the
non-liquidated shares shall be returned to you.

    

    If this
letter is in accordance with your understanding of what you have agreed to do,
please sign below and return to me as soon as possible.

    

    Sincerely,

     

    

    Michael
R. Dunn

    CEO 

     

    
 

    ACKNOWLEDGED
AND AGREED.

    

    

    ___________________________

    Edon
Moyal

    

    ___________________________

    Date

     

     

     

    
      
        Who’s
Your Daddy, Inc., 26381 Crown Valley Parkway, #230, Mission Viejo, CA
92690

        Phone
949.582.5933 ... Fax 949.582.5913whdi8k20100119ex10-3.htm

    
      

      

    

    
      Exhibit
10.3

       

    

    SETTLEMENT AGREEMENT AND
GENERAL RELEASE

    

    This
Settlement and General Release Agreement (the “Agreement”) is made and entered
into as of this 15th day
of January, 2010, by and between Who’s Your Daddy, Inc., a Nevada corporation
(the “Company”) and Joseph Conte (the “Claimant”), (individually, a “Party”;
collectively, the “Parties”).

    

    RECITALS

    

    WHEREAS, Claimant contends
that the Company is indebted to it in the amount of $183,981.28 consisting of
accrued and unpaid salary of $178,683.58 plus loans and advances made by you of
$5,297.70; and

    

    WHEREAS, the Company is
indebted to various taxing authorities for unpaid payroll withholdings and taxes
in the approximate amount of $258,000.00 (including penalties and interest) for
which Claimant would bear some financial responsibility in his former position
as an Executive Officer of the Company; and

    

    WHEREAS, the Parties and their
attorneys, if so chosen, have had a sufficient opportunity to evaluate the
merits of their respective positions; and

    

     WHEREAS, in order to avoid the
time, expense and uncertainty of collection or litigation in this matter, the
Parties have agreed to settle their differences on the terms and in the manner
set forth in this Agreement.

    

    NOW, THEREFORE, in
consideration of the mutual covenants and agreements contained herein, and for
other good and valuable consideration, the adequacy of which is acknowledged by
the Parties hereto, and intending to be legally bound, the Parties agree as
follows:

    

    1.     
       SETTLEMENT

    

    In full
settlement of their differences, the Company agrees to pay to Claimant all
amounts described in Exhibit A attached hereto.

    

    
      2.            
GENERAL
RELEASE BY THE PARTIES OF ALL KNOWN AND UNKNOWN CLAIMS

    

    

    The
Parties hereto do hereby jointly and severally irrevocably and unconditionally
release and forever discharge each other, their agents, directors, officers,
employees, business partners, representatives, attorneys, insurers,
affiliates/subsidiaries, parent corporations, sister corporations, (and agents,
directors, officers, employees, representatives, attorneys of such
affiliates/subsidiaries, parent corporations, sister corporations), and their
predecessors, successors, heirs, executors, administrators, and assigns, and all
persons and entities acting by, through, under or in concert with any of them
(hereinafter collectively the “Releasees”), or any of them, from any or all
actions, causes of action, suits, debts, charges, complaints, claims,
liabilities, obligations, promises, agreements, controversies, damages and
expenses (including attorneys’ fees and costs actually incurred), of any nature
whatsoever, in law or equity, known or unknown, suspected or unsuspected, which
either party ever had, now has, or may now have against each other by reason of
any act, event, or omission concerning any matter or thing, including, without
limiting the generality of the foregoing, any matters claimed or alleged
relating to the account of the Company, or which could have been raised relating
to the same, or which may be based upon or connected with the
same.  Notwithstanding anything herein set forth to the contrary, no
provision of this Agreement shall constitute or be construed as a release or
discharge of any obligations, claims or causes of action hereafter arising out
of the breach of any of the terms, provisions or conditions of this
Agreement.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    3. 
           CLAIMANT
REPRESENTATION

    

    In the event that any part of the
settlement amount in Exhibit A is in the form of common stock of the Company
(the “Shares”), Claimant represents that:

    

    (a)         Claimant
is experienced in evaluating companies such as the Company, is able to fend for
itself in transactions such as the one contemplated by this Agreement, has such
knowledge and experience in financial and business matters such that Claimant is
capable of evaluating the merits and risks of Claimant’s prospective investment
in the Company, and has the ability to bear the economic risks of the
investment;

    

    (b)         Claimant
is accepting the Shares for Claimant’s own account and not with the view to, or
for resale in connection with, any distribution thereof.  Claimant
understands that the Shares have not been registered under the Securities Act of
1933 (the “Securities Act”) by reason of a specific exemption from the
registration provisions of the Securities Act which depends upon, among other
things, the bona fide nature of the investment intent as expressed
herein.  Claimant further represents that it does not have any
contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participation to any third person with respect to any of the
Shares.  Claimant understands and acknowledges that the offering of
the Shares pursuant to this Agreement will not be registered under the
Securities Act on the ground that the sale provided for in this Agreement and
the issuance of securities hereunder is exempt from the registration
requirements of the Securities Act;

    

    (c)         Claimant
acknowledges that it is an “Accredited Investor” as defined in Rule 501 of
Regulation D as promulgated by the Securities and Exchange Commission, as can be
viewed on the internet at www.sec.gov;

    

    (d)         Claimant
acknowledges that, because the indebtedness to Claimant is more than six months
old, the Company will endeavor to obtain an opinion from counsel confirming that
the Shares need not contain a legend substantially as follows:

    

    THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR UNDER
APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AVAILABLE EXEMPTIONS FROM SUCH REGISTRATION,
PROVIDED THAT THE SELLER DELIVERS TO THE COMPANY AN OPINION OF COUNSEL (WHICH
OPINION IS REASONABLY SATISFACTORY TO THE COMPANY) CONFIRMING THE AVAILABILITY
OF SUCH EXEMPTION.  THE FOREGOING RESTRICTIONS EXPIRE WITHOUT FURTHER
ACTION SIX MONTHS FROM THE DATE OF ORIGINAL ISSUANCE OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    
      	
              4.

            	
              CONFIDENTIALITY

            

    

    

    The
Parties to this Agreement and their attorneys, if so chosen, agree to keep
confidential the identity of the Parties and the amount paid under this
Agreement, and not to publicize, advertise, communicate, or otherwise disclose
voluntarily to the media, members of the public, and/or any legal publication,
the identity of the Parties and the amounts paid under this
Agreement.  It is understood and agreed that this Agreement of
confidentiality is important and valuable consideration for the above-stated
payments.

    

    
      	
              5.

            	
              WAIVER
      OF CIVIL CODE SECTION 1542

            

    

    

    Each of
the Parties to this Agreement warrants and represents that it is their intention
in executing this Agreement that it shall be effective as a bar to each and
every claim, demand, suit, action, cause of action and debt hereinabove
specified; and in furtherance of this intention, they each HEREBY EXPRESSLY
WAIVE ANY AND ALL RIGHTS AND BENEFITS CONFERRED UPON THEM BY THE PROVISIONS OF
SECTION 1542 OF THE CIVIL CODE OF CALIFORNIA WHICH PROVIDES AS
FOLLOWS:

    

    A
general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which
if known by him or her must have materially affected his or her settlement with
the debtor.

    

    Notwithstanding
Section 1542 of the Civil Code of California, each of the Parties to this
Agreement expressly agrees that this Agreement shall be given full force and
effect according to each and all of its express terms and provisions, including
as well, those relating to unknown and unspecified claims, demands, suits,
actions, causes of action and debts, if any, and those relating to any other
claims, demands, suits, actions, causes of action and debts hereinabove
specified.

    

    6.     
       NO ASSIGNMENT/NO ACTIONS
FILED

    

    Claimant
represents and warrants that it has made no assignment, and will make no
assignment, of any claim, chose in action, right of action, or any right of any
kind whatsoever, embodied in any of the claims and allegations which are being
released, as set forth herein, and that no other person or entity of any kind
had or has any interest in any of the demands, obligations, actions, causes of
action, debts, liabilities, rights, contracts, damages, attorneys’ fees, costs,
expenses, losses, or claims referred to herein.

    

    7.      
      ASSUMPTION OF RISK OF DIFFERENT
FACTS

    

    The
Parties acknowledge that they may hereafter discover facts different from or in
addition to those they now know or believe to be true with respect to the
claims, demands, causes of action, obligations, damages, and liabilities of any
nature whatsoever that are the subject of this Agreement, and the parties
expressly agree to assume the risk of the possible discovery of additional or
different facts, and agree that this Agreement shall be and remain effective in
all respects regardless of such additional or different facts.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    8. 
           GOVERNING
LAW

    

    This
Agreement and its terms and provisions shall be interpreted, enforced and
governed by and under the laws of the State of California.

    

    9.   
         SEVERABILITY

    

    If any
portion of this Agreement shall be held invalid or inoperative, insofar as
reasonable and possible, the remainder of this Agreement shall be considered
valid and operative and effect shall be given to the intent manifested by the
portion held invalid or inoperative, and the parties authorize any modifications
necessary to these provisions held invalid or inoperative so the parties’ intent
may be carried out.

    

    10.           ENTIRE
AGREEMENT/MODIFICATION

    

    This
Agreement supersedes any and all agreements, either oral or written, between the
Parties hereto and contains all of the covenants and agreements between the
Parties.  Each Party to this Agreement acknowledges that no
representations, inducements, promises, or agreements, oral or otherwise, have
been made by any Party, or anyone acting on behalf of any Party, which are not
embodied herein, and that no other agreement, statement, or promise not
contained in this Agreement shall be valid or binding.  Any
modification of this Agreement will be effective only if it is in writing signed
by each of the Parties hereto.

    

    11.           FURTHER
ASSURANCES

    

    The
Parties hereto hereby agree to execute such other documents and to take such
other action as may be reasonably necessary to further the purposes of the
Agreement.

    

    12.           NO
WAIVER

    

    No breach
of any provision hereof can be waived unless in writing.  Waiver of
any one breach of any provision hereof shall not be deemed to be a waiver of any
other breach of the same or any other provision hereof.

    

    13.           AUTHORITY
TO EXECUTE

    

    The
Parties represent and warrant that each of them is fully competent and
authorized to execute this Agreement by their signatures
hereto.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    14.           CAPTIONS
AND INTERPRETATIONS

    

    Paragraph
titles or captions contained herein are inserted as a matter of convenience and
for reference only, and in no way define, limit, extend or describe the scope of
this Agreement or any provision hereof.  This Agreement is to be
interpreted without regard to the draftsman.  The terms and intent of
this Agreement, with respect to the rights and obligations of the Parties, shall
be interpreted and construed on the express assumption that each Party
participated equally in its drafting.

    

    15.           COUNTERPARTS

    

    This
agreement may be executed in counterparts by facsimile, with original signatures
to follow, each of which shall constitute an original, but all of which shall
constitute one and the same agreement.

    

    

    IN WITNESS WHEREOF, the
Parties hereto have placed their signatures hereon on the day and year first
above written.

    

    
      	
              COMPANY:

            	
              CLAIMANT:

            
	 
      	 
      
	
              WHO’S
      YOUR DADDY, INC.

            	
              JOSEPH
      CONTE

            
	
              a
      Nevada corporation

            	
              an
      Individual

            
	
               
      

              

            	 
      
	
              By:
      Michael R. Dunn

            	 
      
	
              Its:
      Chief Executive Officer

            	
              By:
      Joseph Conte

            

    

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    EXHIBIT
A

    

    DESCRIPTION OF SETTLEMENT
PAYMENT

    

    In full
settlement of their differences and in accordance with the provisions of this
Agreement, the Company shall pay Claimant the following amounts:

    

    
      	
              Cash

            	
              NONE

            
	 
      	 
      
	
              Shares
      of the Company’s common stock

            	
              75,000

            

    

    

     

     

     

    
      6

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