Document:

exv10w1

Exhibit 10.1

AGREEMENT

     This Agreement is entered into this 9th day of July, 2010, between Peter S. Atkinson
(“Atkinson”) and Global Industries, Ltd., a Louisiana corporation (the “Company”). Atkinson and
the Company may be referred to herein collectively as the “parties” or singularly as a “party.”

     Whereas, Atkinson has been a key executive employee of the Company for a long period of time
and is currently employed pursuant to that certain employment agreement dated November 16, 2005
(the “2005 Agreement”);

     Whereas, the parties desire to provide certain terms and benefits for Atkinson’s employment
with the Company until March 31, 2011 (the “Retirement Date”); and

     Whereas, the parties desire to enter into this Agreement effective as of July 9, 2010 which
shall supercede the 2005 Agreement in its entirety pursuant to the terms set forth below (the
“Agreement”).

     Now, therefore, in consideration of the mutual promises herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

     1. Effective Date. This Agreement shall commence on the date hereof and shall
continue through the Date of Termination. This Agreement shall supersede the 2005 Agreement in its
entirety.

     2. Employment. Atkinson agrees to remain in the position of President of the Company
through July 31, 2010 pursuant to the terms of this Agreement and with such duties, authorities,
functions, powers and responsibilities as determined by the Chief Executive Officer. From August
1, 2010 through the Retirement Date, or such earlier date as set forth herein, Atkinson will hold
the position of Executive Vice President. In this position, Atkinson will continue to report to
the Chief Executive Officer, be a member of the executive team with all rights and privileges
granted generally to other members of the executive team and have such other duties, authorities,
powers, functions and responsibilities as determined by the Chief Executive Officer. Except as
otherwise provided in Section 4(e), Atkinson’s annual base salary as both President and Executive
Vice President will be the same as in effect for Atkinson on the date hereof which is a salary of
$410,000 and a bonus opportunity of 65% of his annual base salary. Atkinson will also be entitled
to the same benefits and perquisites as in effect for Atkinson on the date of this Agreement
subject to any modifications for executives of the Company generally through the Retirement Date or
such earlier date as provided herein, or as otherwise agreed by the parties.

     3. Definitions. For purposes of this Agreement, the following terms have the meaning
set forth below:

(a) “Cause” shall mean termination due to an act or acts of dishonesty by
Atkinson against the Company, willful misconduct or gross negligence in the
performance of Atkinson’s duties, Atkinson’s material breach of any corporate

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policy, a code of conduct or similar requirements adopted by the Board of Directors
of the Company and applicable to all of the Company’s executive officers, or
Atkinson’s conviction of a felony or any misdemeanor involving moral turpitude.

(b) “Date of Termination” shall mean the date on which Atkinson’s employment
service with the Company ends and shall be (a) if Atkinson’s employment is
terminated for Cause, the date on which a Notice of Termination is given; (b) if
Atkinson terminates his employment for Good Reason, the date specified in the Notice
of Termination but no later than thirty (30) calendar days after the event for Good
Reason has occurred; (c) the Retirement Date or (d) if Atkinson’s employment is
terminated for any other reason, fifteen (15) calendar days following the date on
which a Notice of Termination is given.

(c) “Good Reason” shall mean:

(i) except as provided in Section 2 hereof, the material diminution of the
nature or scope of Atkinson’s duties, authorities, powers, functions or
responsibilities with the Company from those applicable to Atkinson
immediately after the date of this Agreement, or a material adverse change
in Atkinson’s reporting responsibilities, titles or offices as set forth in
this Agreement, or any removal of Atkinson from or any failure to re-elect
Atkinson to such position, except as set forth herein;

(ii) a reduction by the Company in Atkinson’s annual base salary for any
calendar year below $410,000 except in connection with and in a percentage
not exceeding any salary reduction imposed on executive officers of the
Company generally;

(iii) except as provided herein in Section 2 and Section 4(e) of this
Agreement, a failure by the Company to continue Atkinson as a participant on
at least the same basis as Atkinson’s current participation in any benefit,
retirement plans, life insurance, health, accident or disability plans
substantially on the basis Atkinson is participating on the date of this
Agreement unless such action is taken with respect to executive officers of
the Company generally or is required by law;

(iv) if the Company requires Atkinson to change his principal place of
employment by more than 50 miles from its current location in Houston,
Texas; or

(v) the failure of the Company to obtain an assumption of this Agreement by
any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company. Failure of the Company to obtain
such agreement prior to the effectiveness of any such succession shall be a
breach of this Agreement and shall entitle Atkinson to compensation from

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the
Company in the same amount and on the same terms as Atkinson would be
entitled hereunder if Atkinson had terminated his employment after a change
in control of the Company for Good Reason, except that for purposes of
implementing the foregoing, the date on which any such succession becomes
effective shall be deemed the Date of Termination. As used in this
Agreement, “Company” shall mean the Company as hereinbefore defined and any
successor to its business and/or assets as aforesaid which executes and
delivers the agreement provided for in this paragraph 3(c)(v) or which
otherwise becomes bound by all the terms and provisions of this Agreement by
operation of law.

(d) “Notice of Termination” shall mean a written notice which shall indicate
the specific termination provision in this Agreement relied upon and shall set forth
in reasonable detail the facts and circumstances claimed to provide a basis for
termination of Atkinson’s employment under the provisions so indicated. With
respect to termination by Atkinson for Good Reason, the Notice of Termination shall
state in detail the basis for Atkinson’s determination that he has Good Reason.

     4. Compensation Upon Termination and During Disability. If Atkinson’s employment by
the Company or any subsidiary or successor thereto shall be terminated, then the Company will, as
additional compensation for services rendered to the Company (including its subsidiaries) and as
consideration for the non-competition agreement contained in Section 5, pay the following amounts
(subject to any applicable payroll or other taxes required to be withheld and employee benefit
premiums):

(a) During any period that Atkinson fails to perform his duties as a result of
incapacity due to physical or mental illness as determined by the Company in its
sole discretion (“Disability”), he shall continue to receive his full annual base
salary and incentive compensation at the rate then in effect until the Retirement
Date. In addition, on the Retirement Date Atkinson shall be entitled to the amounts
and benefits under Sections 4(c)(i)(C) and (D), (ii) and (iii) and 4(d). Any cash
amounts due under 4(c)(i) and 4(d) will be paid to Atkinson’s within thirty (30)
days and cash payments due under 4(c)(ii) and (iii) will be paid in a cash lump sum
amount one day (if such date does not fall on a business day of the Company, the
next following business day of the Company) after the earlier of (i) six months
after the Retirement Date or (ii) such earlier date upon which such amount can be
paid or provided under Section 409A.

(b) If Atkinson’s employment is terminated by the Company for Cause or Atkinson
terminates his employment other than for Good Reason, the Company shall pay, to the
extent not previously paid, (i) Atkinson’s base salary and auto allowance at the
rate then in effect through the Date of Termination, plus (ii) a cash payment for
the cumulative number of paid time off (“PTO”) days earned since Atkinson’s
employment with the Company, but not previously taken or paid
for, at a rate per day equal to his then daily base salary and the Company shall
have no further obligations to him under this Agreement or otherwise. Such

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amounts
will be paid in a cash lump sum amount no later than the 30th business
day after his separation from service. In the event of any termination for Cause,
there shall be no acceleration under this Agreement of any outstanding stock
options, restricted stock awards, performance awards or any other awards or grants
held by him under any plan or arrangement.

(c) If Atkinson’s employment is terminated by the Company other than for Cause prior
to the Retirement Date or if Atkinson shall terminate his employment for Good Reason
prior to the Retirement Date or Atkinson’s employment is terminated on the
Retirement Date, then the Company shall pay to Atkinson the following amounts:

(i)(A) Atkinson’s base salary plus auto allowance, to the extent not
previously paid, through the Date of Termination at the rate then in effect,
plus (B) if the Date of Termination is in 2010, in lieu of any 2010 annual
bonus, a cash payment equal to $400,000 times a fraction, the numerator of
which is the number of days elapsed in the calendar year to and including
the Date of Termination and the denominator of which is 365, or (C) if the
Date of Termination is in 2011, any annual bonus earned for 2010 to the
extent such amount has been earned (by the plan year having ended) but has
not previously been paid and a pro-rata bonus for 2011 equal to $400,000
times a fraction, the numerator of which is the number of days elapsed in
the calendar year to and including the Date of Termination and the
denominator of which is 365, plus (D) a cash payment for the cumulative
number of PTO days earned since Atkinson’s employment by the Company, but
not previously taken or paid for, at a rate per day equal to his then daily
base salary;

(ii) in lieu of any further salary payments to Atkinson for periods
subsequent to the Date of Termination, a cash lump sum amount equal to (A)
1.00 times (B) Atkinson’s annual base salary plus annual auto allowance for
the calendar year in which the Date of Termination occurs plus an amount
equal to the greater of the incentive compensation received or earned if not
paid by Atkinson under the 2010 Annual Stock Incentive valued on the Date of
Termination or $400,000; and

(iii) the Board of Directors of the Company shall cause: (1) any stock
options held by Atkinson to be accelerated and be immediately exercisable;
and (2) any unvested restricted shares (excluding performance-based shares)
granted to Atkinson under a Company restricted stock, option or incentive
plan that have forfeiture restrictions based solely on the passage of time
to vest as of the Date of Termination. All other terms provided for in the
option agreements and restricted stock agreements shall remain in effect and
be unchanged except the options shall be exercisable for the full term of
the option. Atkinson will remain
eligible for performance shares as earned pursuant to the 2005 Stock
Incentive Plan and the 2008-2010, 2009-2010 and 2010-2011 performance

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share
cycles with shares earned for the 2010-2011 cycle earned pro-rata for the
months during which Atkinson was employed (15/24th assuming a
retirement effective March 31, 2011) and distributed at the same time as to
other participants.

(d) Unless Atkinson is terminated as a result of death, or by the Company for Cause
or Atkinson terminates his employment without Good Reason, Atkinson and his eligible
dependants will continue to participate in his current benefit plans, the CIGNA
medical plan and the executive-level Exec-U-Care plan, until the later of
(a) eighteen months from the Date of Termination or (b) October 31, 2012, at the
contribution rate applicable to employed executives of the Company. (This coverage
shall apply in lieu of COBRA coverage.) The terms and conditions of the medical
plans will also be the same as those for employed executives and any modification to
the plans will apply to Atkinson and his eligible dependents. To the extent that
the Company’s health plan is self-insured, the Company’s payment of such premiums
shall be paid on an after tax basis. All premium payments hereunder shall be paid
no less frequently than on a monthly basis by the Company on the date premiums are
due under the group health plan for employees generally.

(e) Upon Atkinson’s termination on the Date of Termination due to a termination
without Cause, for Good Reason or on the Retirement Date, the Company shall pay
Atkinson the pro-rata bonus amounts described in Section 4(c)(i)(B) or (C), as the
case may be, and 4(c)(i)(D) within thirty (30) days of the Date of Termination and
the amounts described in 4(c)(ii) and (iii) in cash on the date that is one day ( if
such date does not fall on a business day of the Company, the next following
business day of the Company) after the earlier of (i) the date of Atkinson’s death
or (ii) six months after the Date of Termination except that shares earned under the
2010-2011 cycle shall be distributed at the same time as to other participants in
the performance cycle.

(f) No additional stock grants will be made to Atkinson after the date of this
Agreement.

(g) All payments under this Agreement will be subject to Internal Revenue Service
regulations and the Company may withhold from amounts payable under this Agreement
such federal, state and local taxes as shall be required to be withheld pursuant to
any applicable laws or regulations and all other normal employee deductions made
with respect to Company employees generally.

(h) The Change of Control agreement between Atkinson and the Company dated January
1, 2010 (the “Change of Control Agreement”) shall continue in full force and effect
but shall apply only if there is a Change of Control (as defined therein) on or
prior to the Retirement Date, and to the extent any amounts payable thereunder are
deferred compensation, the terms and definitions of the Change of
Control Agreement shall be interpreted in accordance with Section 409A of the Code
(as defined in Section 10 below). In the event of a Change-In-Control prior

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to
Atkinson’s Date of Termination, this Agreement shall expire immediately unless prior
to the Change-In-Control date, Atkinson elects to accept benefits under this
Agreement in lieu of benefits provided under the Change-In-Control Agreement.

     5. Confidential Information and Non-Competition. Atkinson acknowledges that as the
President and Executive Vice President of the Company, he will obtain and utilize the Company’s
confidential and proprietary information to perform his job responsibilities for the Company.
Atkinson further acknowledges that the Company’s confidential information constitutes a valuable,
special, and unique asset of the Company and that protection of such information against
unauthorized disclosure and use is of critical importance to the Company. Atkinson agrees that
both during and after his employment with the Company, he will not use or disclose the Company’s
confidential information for his benefit or for the benefit of any other person or entity.
Atkinson further agrees that he will return to the Company all confidential information in his
possession when his employment with the Company ends.

In order to protect the Company’s confidential information, and in exchange for the Company’s
provision of confidential information and the additional consideration to Atkinson as described in
Section 4(c)(ii) and (iii) hereof, Atkinson agrees that for a period of one year after the Date of
Termination, with or without Cause, for Good Reason or Retirement, he will not engage in or become
associated with any Competitor with material operations in the geographic areas or markets in which
he worked with the Company within the six months prior to the termination of his employment.
“Competitor” means any individual or entity engaged in business similar to or competitive with the
business conducted by the Company during Atkinson’s employment with the Company, and includes, but
is not limited to, J. Ray McDermott, Cal Dive International, Helix, Acergy, and Willbros Group.
Atkinson will be considered to be “associated with” a Competitor if he is an officer, employee,
director, consultant, independent contractor, agent, partner, lender, principal, or stockholder of
the Competitor, except that Atkinson may make and retain investments in not more than 5% of the
equity of a Competitor if such equity is listed on a national securities exchange or regularly
traded in the over-the-counter market. Atkinson agrees that the restrictions contained in this
paragraph are fair and reasonable and are reasonably required for the protection of the legitimate
business interests of the Company. He acknowledges that if he breaches the provisions in this
paragraph, the Company will suffer material irreparable injury for which there is no adequate
remedy at law. Should a court determine that the restrictions contained herein are overly broad as
to time, geographic area or otherwise, the court should reform the restrictions and enforce them as
modified.

     6. Notice. Notices and all other communications provided for in this Agreement shall
be in writing and shall be deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed to the respective addresses
set forth on the first page of this Agreement, provided that all notices to the Company shall be
directed to the attention of the Secretary of the Company, or to such other address as either party
may have furnished to the other in writing in accordance herewith, except that notices of change of
address shall be effective only upon receipt.

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     7. Arbitration. Any dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration in Houston, Texas in accordance with the
rules of the American Arbitration Association then in effect; provided that all arbitration
expenses shall be borne by the non-prevailing party. Judgment may be entered on the arbitrators’
award in any court having jurisdiction; provided, however, that Atkinson shall be entitled to seek
specific performance of his right to be paid until the Date of Termination during the pendency of
any dispute or controversy arising under or in connection with this Agreement. Notwithstanding the
foregoing, the Company may seek to enforce the provisions of Section 5 in courts of the State of
Texas.

     8. Miscellaneous.

(a) This Agreement shall be governed by and construed in accordance with the laws of
the State of Texas. Except as otherwise provided in Section 7, each party
irrevocably submits to the non-exclusive jurisdiction of the courts of the State of
Texas for the purpose of any suit, action or other proceeding arising out of this
Agreement or the subject matter hereof.

(b) If any provision of this Agreement or part thereof is held to be invalid or
unenforceable by a court of competent jurisdiction such invalidity or
unenforceability shall not affect the validity and/or enforceability of the
remaining part of the provision or any other provisions, which shall remain in full
force and effect.

     9. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed to be an original but all of which together will constitute one and the same agreement.

     10. Code Section 409A. To the extent applicable and only to the extent that such
amounts payable under this Agreement are deferred compensation subject to Code Section 409A (and
are not otherwise exempt from Code Section 409A), this Agreement is intended to comply with Section
409A of the Internal Revenue Code of 1986, as amended (the “Code”), shall be interpreted in
accordance with Code Section 409A and the definitions thereunder, only to the extent required under
Code Section 409A, shall control, including without limitation, the Date of Termination, Atkinson’s
termination and a separation from service, shall mean a “separation from service” under Code
Section 409A, Disability shall have the meaning within Code Section 409A and any merger,
consolidation or other event respecting substantially all of the business or assets of the Company
must also constitute a “change in the ownership or effective control of” the Company, or a “change
in the ownership of a substantial portion of the assets” of the Company (in each case as determined
under Section 409(a)(2)(A)(v) of the Code and final Treasury Regulations or other IRS guidance
issued under Section 409A of the Code from time to time). Any ambiguous or undefined provision
will be construed in a manner that is compliant with the application of Section 409A.

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     11. Tax Consequences. Atkinson agrees and acknowledges that none of the Company, its
affiliates or any of their officers, directors, employees, representatives, or agents guarantees or
are in any manner liable or responsible for the tax consequences to Atkinson in connection with the
Agreement, including without limitation any tax consequences under Code Section 409A. Atkinson
acknowledges that he has been advised to consult his tax advisor respecting this Agreement.

[Signature page immediately follows.]

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     IN WITNESS OF WHEREOF the parties have signed this Agreement to be effective as of the date
and year first written above.

	 	 	 	 	 
	/s/ Peter S. Atkinson
 	 	 
	Peter S. Atkinson 	 	 
	 
	GLOBAL INDUSTRIES, LTD.

 	 	 
	By:  	/s/ John Reed
 	 	 
	 	Chief Executive Officer 	 	 

[Signature page to Separation Agreement between Peter S. Atkinson and Global Industries, Ltd.]

9Exhibit 10.1

Exhibit
10.1

WAYNE S. KREGER, State Bar No. 154759

wkreger@maklawyers.com

PETER J. FARNESE, State Bar No. 251204

pfarnese@maklawyers.com

MILSTEIN, ADELMAN & KREGER, LLP

2800 Donald Douglas Loop North

Santa Monica, California 90405

Telephone: (310) 396-9600

Facsimile: (310) 396-9635

Attorneys for Plaintiffs,

Denise Wally, Lauren Fleischer and the Class

DANIEL J. HERLING (State Bar No. 103711)

Herling@khlaw.com

KELLER AND HECKMAN LLP

3 Embarcadero Center

Suite 450

San Francisco, CA 94111

Telephone: (415) 948-2820

Facsimile: (415) 948-2808

Attorneys for Defendant

CCA INDUSTRIES, INC.

SUPERIOR COURT OF THE STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

	 	 	 
	DENISE WALLY, individually and on behalf of all
others similarly situated,

	 	CASE NO. BC422833
	 
	 
	Plaintiff,

	 	STIPULATION AND AGREEMENT OF SETTLEMENT
	 
	 	 
	vs.
	 	 
	 
	 	 
	CCA INDUSTRIES, INC., et al.
	 	 
	 
	 	 
	Defendants.
	 	 

STIPULATION AND AGREEMENT OF SETTLEMENT

 

 

 

It is hereby stipulated and agreed by and between the undersigned Parties, subject to the
approval of the Court pursuant to California Rule of Court Rule 3.769, that the settlement of this
Action shall be effectuated pursuant to the terms and conditions set forth in this Settlement
Agreement.

ARTICLE I — PREAMBLE

1. WHEREAS Denise Wally (“Wally”) is the named plaintiffs in the above-captioned action
entitled Denise Wally, on behalf of herself and all others similarly situated, Plaintiff, vs. CCA
Industries, Inc, Defendant, Los Angeles County Superior Court, No. BC422833 (“the Action”);

2. WHEREAS Lauren Fleischer (“Fleischer”) is the named claimant in a draft complaint that has
been shared with Defendant CCA Industries, Inc. (“CCA”), but has not yet been filed in state court
in New Jersey (the “New Jersey Dispute”);

3. WHEREAS CCA is the defendant in the Action and the putative defendant in the New Jersey
Dispute;

4. WHEREAS Wally alleges that she relied upon allegedly false and misleading statements
contained on the label and in advertisements for a certain CCA product called “Mega-T Ultra”
regarding ingredients contained in the product and the ability of the product to promote weight
loss, and that such statements violate California consumer protections laws;

5. WHEREAS Fleischer alleges that she relied upon allegedly false and misleading statements
contained on the labels and in advertisements and marketing materials for certain other “Mega-T”
brand products regarding ingredients contained in the products, and that such statements violate
New Jersey consumer protection laws;

6. WHEREAS Wally seeks to recover monetary and equitable remedies on behalf of herself and
classes of similarly situated persons

7. WHEREAS Fleischer seeks to recover equitable remedies on behalf of herself and classes of
similarly situated persons;

8. WHEREAS the Parties have engaged in discovery and have had a full and fair opportunity to
evaluate the strengths and weaknesses of their respective positions;

STIPULATION AND AGREEMENT OF SETTLEMENT

 

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9. WHEREAS CCA denies the allegations of the Action and the New Jersey Dispute, denies all
allegations of wrongdoing and of liability, and denies any causation of harm or damage to the
Settlement Classes;

10. WHEREAS CCA nevertheless has concluded that, in light of the costs, risks and disruption
of litigation, this Settlement is appropriate on the terms and conditions set forth herein;

11. WHEREAS Wally and Fleischer believe that the claims asserted in their actions are
meritorious;

12. WHEREAS Wally and Fleischer nevertheless have concluded that, in light of the costs, delay
and risks of litigation of the matters in dispute, the risk that the Court will not certify their
claims as a class action, particularly in complex class action proceedings, the risk of losing on
the merits, and in the desire to provide relief to the class sooner rather than later, this
Settlement is fair, reasonable, adequate, and in the best interests of the Settlement Classes;

13. WHEREAS the performance of any act referenced in this Settlement Agreement, or any other
circumstance regarding the Parties’ agreement to settle, shall not be considered an admission of
liability or as an admission of any allegations made in any claim or litigation, including this
Action and the New Jersey Dispute; and

14. WHEREAS the Parties hereto agree that this Settlement Agreement shall not be deemed or
construed to be an admission or evidence of any violation of any federal or state statute, rule or
regulation, principle of common law or equity, or of any liability or wrongdoing whatsoever by CCA,
or of the truth of any of the Claims asserted in the Second Amended Complaint, any prior complaints
in this Action, or elsewhere;

STIPULATION AND AGREEMENT OF SETTLEMENT

 

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NOW THEREFORE, it is hereby stipulated and agreed that, in consideration of the agreements,
promises, and covenants set forth in this Settlement Agreement, and subject to approval of the
Court, the Action and the New Jersey Dispute shall be fully and finally settled and dismissed with
prejudice under the following terms and conditions:

ARTICLE II — DEFINITIONS

As used in this Settlement Agreement and the related documents attached hereto as exhibits,
the terms set forth below shall have the meanings set forth below. The singular includes the
plural and vice versa.

1. “Aggregate Fees, Costs, and Expenses” means the aggregate attorneys’ fees and costs, the
costs of notice, the administrative expenses, and the incentive awards.

2. “Action” means the civil action entitled Denise Wally, on behalf of herself and all others
similarly situated, Plaintiffs, vs. CCA Industries, Inc., et al., Defendants, Los Angeles County
Superior Court Case No. BC422833.

3. “Class Counsel” means Wayne S. Kreger and Donald A. Beshada, and the law firm of Milstein,
Adelman & Kreger, LLP.

4. “Class-Related Releasing Parties” means all Settlement Class Members.

5. “Class Released Claims” means any and all actions, causes of action, claims, demands,
liabilities, obligations, fees, costs, sanctions, proceedings, and/or rights of any nature and
description whatsoever, including, without limitation, violations of any state or federal statutes,
rules or regulations, or principles of common law, whether liquidated or unliquidated, known or
unknown, in law or in equity, whether or not concealed or hidden, that have been asserted in the
Action and the New Jersey Dispute through the date the Final Approval Order and Judgment is
entered. “Class Released Claims” also means any and all actions, causes of action, claims,
demands, liabilities, obligations, fees, costs, sanctions, proceedings, and/or rights of any nature
and description whatsoever, including, without limitation, violations of any state or federal
statutes, rules or regulations, or principles of common law, whether liquidated or unliquidated,
known or unknown, in law or in equity, whether or not concealed or hidden, that could have been
asserted in the Action or the New Jersey Dispute alleging that the marketing, labeling and/or
advertising of its Mega-T Ultra, Mega-T Plus, Mega-T Green Tea Dietary Supplement, Mega-T Dietary
Supplement, and/or Mega-T Effervescent products is or was false or misleading to consumers through
the date the Final Approval Order and Judgment is entered.

6. “Class Representatives” means Wally and Fleischer.

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7. “Common Fund” means a fund in the amount of two million five hundred thousand dollars
($2,500,000.00), to be funded by CCA as set forth herein. The Aggregate Fees, Costs, and Expenses
shall also be paid from the Common Fund. The Common Fund represents the absolute, capped amount of
CCA’s financial liability for the entire settlement.

8. “Court” means the Superior Court of the State of California for the County of Los Angeles.

9. “Effective Date” means the first date by which all of the following events shall have
occurred: (a) the Court has entered the Preliminary Approval Order and (b) the Court has entered
the Final Approval Order and Judgment.

10. “Escrow Account” means the Milstein, Adelman & Kreger Client Trust Account in which the
funds to be used to fully fund the Common Fund will be held by Milstein, Adelman & Kreger, LLP,
until after the Effective Date of this Settlement Agreement, at which point the Common Fund will be
funded in full from the funds held in the Escrow Account.

11. “Fee and Cost Application” means that written motion or application by which Wally,
Fleischer and/or Class Counsel requests that the Court award attorneys’ fees, costs, expenses and
incentive awards.

12. “Final” means that the Final Approved Order and Judgment has been entered on the docket
in the Action. Neither the pendency of the Fee and Cost Application, nor any appeal pertaining
solely to a decision on the Fee and Cost Application, shall in any way delay or preclude the Final
Approval Order and Judgment from becoming Final.

13. “Final Approval Hearing” means the hearing scheduled to take place at least sixty days
after the date of entry of the Preliminary Approval Order at which the Court shall: (a) determine
whether to grant final approval to this Settlement Agreement and to certify the Settlement Classes;
(b) consider any timely objections to this Settlement and all responses thereto; and (c) rule on
the Fee and Cost Application.

14. “Final Approval Order and Judgment” means the order, substantially in the form of Exhibit
B attached hereto, in which the Court grants final approval of this Settlement Agreement,
certifies the Settlement Classes, and authorizes the entry of a final judgment and dismissal
of the Action with prejudice.

STIPULATION AND AGREEMENT OF SETTLEMENT

 

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15. “CCA” means CCA Industries, Inc.

16. “CCA-Related Released Parties” means (a) CCA; (b) CCA’s counsel; (c) CCA’s past, present,
and future direct and indirect owners, parents, subsidiaries, and other corporate affiliates; (d)
CCA’s successors and predecessors and their past, present, and future direct and indirect owners,
parents, subsidiaries, and other corporate affiliates; (e) CCA’s retailers of the Mega-T Products
and (f) for each of the foregoing Persons, each of their past, present, or future officers,
directors, shareholders, owners, employees, representatives, agents, principals, partners, members,
administrators, legatees, executors, heirs, estates, predecessors, successors, or assigns.

17. “CCA’s Counsel” means Keller and Heckman LLP.

18. “Mega T Ultra” means the CCA product that contains the brand name “Mega-T Ultra” on the
label, including all sizes, whether sold individually or in multiple-unit packages.

19. “Mega T Plus” means the CCA product that contains the brand name “Mega-T Plus” on the
label, including all sizes, whether sold individually or in multiple-unit packages.

20. “Mega-T Effervescent” means the CCA product that contains the brand name “Mega-T
Effervesent” on the label, including all sizes, whether sold individually or in multiple-unit
packages.

21. “Mega-T Green Tea Dietary Supplement” means the CCA product that contains the brand name
“Mega-T Green Tea Dietary Supplement” on the label, including “with Hoodia”, “with Acai Berry”,
“Caffeine Free”, “Packettes”, including all sizes, whether sold individually or in multiple-unit
packages.

22. “Mega-T Dietary Supplement” means the CCA product that contains the brand name “Mega-T
Dietary Supplement” on the label, including, “Green Tea”, “Green Tea Water Weight Loss Pill”,
“with Acai Berry”, including all sizes, whether sold individually or in multiple-unit packages.

23. “Mega-T Products” means, collectively, Mega-T Ultra, Mega-T Plus, Mega-T Effervescent,
Mega-T Green Tea Dietary Supplement and Mega-T Dietary Supplement.

STIPULATION AND AGREEMENT OF SETTLEMENT

 

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24. “New Jersey Dispute” means the action threatened by Fleischer against CCA in New Jersey.

25. “Notice” shall mean Publication Notice.

26. “Parties” means Wally, Fleischer and CCA.

27. “Person” means any natural person, firm, corporation, unincorporated association,
partnership, or other form of legal entity or government body, including its agents and
representatives.

28. “Preliminary Approval Order” means the order, substantially in the form of Exhibit A
attached hereto, in which the Court grants its preliminary approval to this Settlement Agreement
and preliminarily certifies the Settlement Classes, authorizes dissemination of Notice to the
Settlement Classes, and appoints the Settlement Administrator.

29. “Publication Notice” means the long-form and short-form notices, substantially in the
form of Exhibits D and E attached hereto. The long-form Publication Notice will be published on
the Internet at the settlement website, envisioned to be www.megatsettlement.com, and the
short-form Publication Notice will be published in national print media and on the internet as set
forth in the Preliminary Approval Order, pursuant to California Rule of Court 3.771(b).

30. “Request for Exclusion” means a valid request for exclusion from a member of the Class.
To be valid, a request for exclusion must (a) be submitted by the member of the Class; (b) be
submitted to the Settlement Administrator and postmarked by a date not later than 21 days before
the Final Approval Hearing; (c) contain the submitter’s name, address and telephone number; and (d)
otherwise comply with the instructions set forth in the Notice.

31. “Second Amended Complaint” means the Second Amended Complaint, a copy of which is
attached to this Settlement Agreement as Exhibit C, and which shall be filed by Plaintiffs within
seven (7) days of the Court’s entry of the Preliminary Approval Order.

32. “Settlement Administrator” means Epiq Systems, Inc.

33. “Settlement Agreement,” “Settlement,” or “Agreement” means this Stipulation and Agreement
of Settlement, including the attached exhibits.

STIPULATION AND AGREEMENT OF SETTLEMENT

 

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34. “Settlement Class” means all persons (1) who purchased for person consumption, and not
for re-sale, the Mega-T Ultra, Mega-T Plus, Mega-T Effervescent, Mega-T Green Tea Dietary
Supplement and/or Mega-T Dietary Supplement in the United States from September 29, 2005, until
[DATE OF PRELIMINARY APPROVAL ORDER], except for the judge presiding over this matter.

35. “Settlement Class Member” means any Person within the Settlement Class who does not
submit a timely and valid Request for Exclusion.

36. “Valid Claim” means a claim for reimbursement submitted by a Settlement Class Member that
satisfies all the criteria to qualify for reimbursement established by the Parties’ Counsel and the
Claims Administrator.

ARTICLE III — SETTLEMENT CLASS RELIEF

In consideration of a full, complete, and final settlement of the Action, dismissal of the
Action with prejudice, and the Releases in Article VII below, and subject to the Court’s approval,
the Parties agree to the following relief:

1. Common Fund

Within ten (10) days of the date of entry of the Preliminary Approval Order, CCA shall deposit
two million five hundred thousand dollars ($2,500,000.00) into the Milstein, Adelman & Kreger LLP
Client Trust Account for the purpose of being paid into the Common Fund on the Effective Date. In
no event shall CCA’s monetary liability under this Settlement Agreement exceed the amount of the
Common Fund.

2. Distribution of the Common Fund

The Aggregate Fees, Costs, and Expenses shall be paid from the Common Fund consistent with the
provisions of Article VI of this Settlement Agreement. Distribution of funds from the Common Fund
to the Settlement Class shall commence within fourteen (14) days after the Effective Date.

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3. Settlement Class Member Claims

a. The Common Fund, net of all Aggregate Fees, Costs and Expenses, shall be available to pay
Valid Claims submitted by Settlement Class Members. Settlement Class
Members who make a Valid Claim will be entitled to reimbursement of $10.00 for each of the Mega-T
Products purchased for personal consumption during the Class Period, upon submission of proof of
purchase (i.e. a copy of the original sales receipt that identifies the product and shows the
amount paid and date of purchase). If no proof of purchase is available, Settlement Class Members
may submit a Claim for a maximum of 6 bottles of Mega-T Products (in the aggregate) if accompanied
by an affirmation that such products were purchased, along with other requested information
relating to the purchase of the product that are sufficient to satisfy the reasonable requests of
the Claims Administrator for the purpose of determining whether the Class member has made a Valid
Claim, such as where the purchases took place and the approximate dates of purchase.

b. If the aggregate value of Valid Claims submitted by Settlement Class Members exceeds the
amount remaining in the Common Fund after payment of all Aggregate Fees, Costs, and expenses, then
the amount of reimbursement per bottle will be adjusted downward on a per bottle basis. If the
aggregate value of Valid Claims submitted by Settlement Class Members is less than the amount
remaining in the Common Fund after payment of all Aggregate Fees, Costs, and expenses, then, at the
Parties’ option, Settlement Class Members may receive up to $20.00 per bottle of the Mega-T
Products (representing the full purchase price) purchased during the Class Period, subject to the
provisions of paragraph 3a, above (i.e., full reimbursement with proof of purchase, and up
to a maximum of 6 without upon presentation of the referenced Declaration). Whether or not the
Parties agree to increase the amount to class members, any remaining funds in the Common Fund,
after payment of all Aggregate Fees, Costs, and expenses, and payments to Settlement Class Members,
shall be distributed cy pres as follows to the American Diabetes Association and the Lymphoma
Research Foundation.

c. Settlement Class Members will be able to obtain Claim Forms by calling the toll-free number
established for purposes of administering this Agreement, by requesting one by mail at the address
established by the Claims Administrator, or by downloading the form from the Internet website
established by the Claims Administrator. The Claim Form shall include instructions for the
submission process. Claims Forms will be deemed valid only if they meet the
criteria established by counsel for the Parties. Settlement Class Members may submit Claim Forms
online or by mail to the Claims Administrator at the address provided.

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4. Equitable Relief and Future Conduct by CCA

CCA agrees not to make any of the statements set forth in Exhibit F in product labeling,
advertising or promotional materials, unless it has competent and reliable scientific evidence
substantiating such statement or statements. In addition, CCA agrees to utilize the packaging
attached as Exhibit F for future sales of the Mega-T Products.

It is specifically understood and agreed that that CCA shall be permitted without liability to
manufacture and sell to wholesalers, distributors and retailers (for resale to consumers) through
October 31, 2010, Mega-T Products using labels or finished goods that it possessed as of the date
of the Final Approval Order, even if statements contained on Exhibit F and those referenced above
appear on such labels. Nothing in this Settlement Agreement shall require CCA to recall any Mega-T
Products that it sold to any wholesaler, distributor, retailer, or other Person for resale to
consumers.

ARTICLE IV — NOTICE AND REQUESTS FOR EXCLUSION

1. Publication Notice

Publication Notice to the Settlement Classes shall be provided in the forms approved by the
Court in the Preliminary Approval Order, in those newspapers and/or other related print and/or
internet media as set forth in the Preliminary Approval Order. The Publication Notice shall be
substantially in the same forms as the exemplars submitted as Exhibits D and E. The Publication
Notice shall be published promptly after entry of the Preliminary Approval Order on dates to be
agreed upon by the Parties so as to provide the best practical notice to the Settlement Class. The
Parties and the Settlement Administrator shall use best efforts to cause the Publication Notice to
commence within 15 days, and to conclude within 45 days, after the date of entry of the Preliminary
Approval Order. The publication of the Publication Notice shall be administered by the Settlement
Administrator. The cost of publishing the Publication Notice shall be paid for from the Common
Fund.

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2. Notice by Internet Posting

The long-form of the Publication Notice shall be posted on the Internet at a website
established by the Settlement Administrator commencing on the first date on which Notice is
published under this Settlement Agreement. CCA also shall post a link on its website, located at
www.mega-diet.com, notifying the public of the Settlement Agreement. The link shall state “click
here for class action settlement information,” or substantially similar directions. The link shall
provide access to the website established by the Settlement Administrator, and shall remain posted
on the www.mega-diet.com website through the final date Class Members may submit claims to the
Settlement Administrator under this Settlement Agreement.

3. Declarations Of Compliance

The Settlement Administrator shall prepare a declaration attesting to compliance with the
publication requirements set forth above. Such declaration shall be provided to Class Counsel and
CCA’s Counsel and filed with the Court no later than 10 days prior to the Final Approval Hearing.

4. Best Notice Practicable

The Parties agree, and the Preliminary Approval Order shall state, that compliance with the
procedures described in this Article is the best notice practicable under the circumstances and
shall constitute due and sufficient notice to the Settlement Class of the pendency of the Action,
certification of the Settlement Class, the terms of the Settlement Agreement, and the Final
Approval Hearing, and shall satisfy the requirements of the California Rules of Court, the
California Code of Civil Procedure, the Constitution of the State of California, the United States
Constitution, and any other applicable law.

5. Report On Requests For Exclusion

Not later than ten days before the Final Approval Hearing, the Settlement Administrator shall
prepare and deliver to Class Counsel, who shall file it with the Court, and CCA’s Counsel, a report
stating the total number of Persons that have submitted timely and valid Requests for Exclusion
from the Settlement Class, and the names of such Persons. Such Persons will not be entitled to
receive any relief under this Settlement Agreement.

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6. Inquiries From Settlement Class Members

It shall be the responsibility of Class Counsel to establish procedures for receiving and
responding to all inquiries from Settlement Class Members with respect to this Settlement. CCA and
CCA’s counsel may respond, but are not required to respond, to such inquiries.

ARTICLE V — COURT APPROVAL OF SETTLEMENT

1. Preliminary Approval

As soon as practicable after the execution of this Settlement Agreement, Class Counsel and
CCA’s Counsel shall jointly apply for entry of the Preliminary Approval Order in the form of
Exhibit A hereto. The Preliminary Approval Order shall include provisions: (a) preliminarily
certifying the Settlement Classes for settlement purposes only; (b) preliminarily approving this
Settlement and finding this Settlement sufficiently fair, reasonable and adequate to allow Notice
to be disseminated to the Settlement Class; (c) approving the form, content, and manner of the
Notice; (d) setting a schedule for proceedings with respect to final approval of this Settlement;
(e) providing that, pending entry of a Final Approval Order and Judgment, no Settlement Class
Member (either directly, in a representative capacity, or in any other capacity) shall commence or
continue any action against CCA or other CCA-Related Released Parties asserting any of the Class
Released Claims; and (f) staying the Action, other than such proceedings as are related to this
Settlement.

2. Objections To Settlement 

Any Settlement Class Member wishing to object to or to oppose the approval of this Settlement
and/or the Fee and Cost Application shall file a written objection (with a statement of reasons)
with the Court and serve it on the Parties at least twenty-one days before the date of the Final
Approval Hearing. Any Settlement Class Member that fails to do so shall be foreclosed from making
such objection or opposition. Wally and Fleischer will file with the Court their brief in support
of final settlement approval, in support of final certification of the Settlement Class, and in
response to any objections at least seven days before the date of the Final Approval Hearing. Any
Settlement Class Member that fails to file a timely written objection and to appear
and speak at the final approval hearing shall have no right to file an appeal relating to the
approval of this Settlement.

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3. Final Approval Hearing 

The Parties shall request that the Court, on the date set forth in the Preliminary Approval
Order, or on such other date that the Court may set, conduct a Final Approval Hearing to:
(a) determine whether to grant final approval to this Settlement Agreement and to certify the
Settlement Class; (b) consider any timely objections to this Settlement and the Parties’ responses
to such objections; (c) rule on the Fee and Cost Application, and (d) rule on any applications for
incentive awards. At the Final Approval Hearing, the Parties shall ask the Court to give final
approval to this Settlement Agreement. If the Court grants final approval to this Settlement
Agreement, then the Parties shall ask the Court to enter a Final Approval Order and Judgment,
substantially in the form of Exhibit B attached hereto, which approves this Settlement, certifies
the Settlement Class, authorizes entry of a final judgment, and dismisses the Action with
prejudice.

4. Disapproval, Cancellation, Termination, Or Nullification Of Settlement

a. Each Party shall have the right to terminate this Settlement Agreement if either (i) the
Court denies preliminary approval or final approval to this Settlement Agreement, or (ii) the Final
Approval Order and Judgment does not become Final by reason of a higher court reversing final
approval by the Court, and the Court thereafter declining to enter a further order or orders
approving settlement on the terms set forth herein. If a Party elects to terminate this Settlement
Agreement under this paragraph, that Party must provide written notice to the other Parties’
counsel within 21 days of the occurrence of the condition permitting termination. Such written
notice shall be provided by hand delivery or mail to the Parties’ counsel.

b. CCA shall have the right to terminate this Settlement Agreement if, prior to the date of
the Final Approval Order and Judgment, the total number of Persons that have submitted timely and
valid Requests for Exclusion from the Settlement Class constitutes greater than 20% of the
estimated size of the Settlement Class. If CCA elects to terminate this Settlement Agreement under
this paragraph, CCA must provide written notice to the other Parties’ counsel
on or before the date of the Final Approval Order and Judgment. Such written notice shall be
provided by hand delivery or mail to the Parties’ counsel.

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c. If this Settlement Agreement is terminated pursuant to its terms, then: (i) this
Settlement Agreement shall be rendered null and void; (ii) this Settlement Agreement and all
negotiations and proceedings relating hereto shall be of no force or effect, and without prejudice
to the rights of the Parties; and (iii) all Parties shall be deemed to have reverted to their
respective status in the Action or New Jersey Dispute as of the date and time immediately preceding
the execution of this Settlement Agreement and, except as otherwise expressly provided, the Parties
shall stand in the same position and shall proceed in all respects as if this Settlement Agreement
and any related orders had never been executed, entered into, or filed, except that the Parties
shall not seek to recover from one another any costs incurred in connection with this Settlement.

ARTICLE VI — ADMINISTRATIVE EXPENSES, ATTORNEYS’ FEES, COSTS

1. Costs Of Notice

All costs of providing the Notice as provided herein, including the costs of publishing the
Notice, shall be paid for out of the Common Fund, subject to the terms hereof.

2. Costs Of Administering Settlement

All costs of administering this Settlement, including all fees of the Settlement Administrator
and the costs of generating and mailing any checks to be issued as part of this Settlement, shall
be paid for out of the Common Fund. In the event that this Settlement Agreement is terminated
pursuant to its terms, CCA shall bear any costs of administering this Settlement already incurred.

3. Attorneys’ Fees And Costs 

Wally and Fleischer and/or Class Counsel may make a Fee and Cost Application to be heard at
the Final Approval Hearing seeking an award of attorneys’ fees in an amount not to exceed $750,000
and reimbursement of expenses in an amount not to exceed $25,000. CCA will not oppose or undermine
the application or solicit others to do so. Attorneys’ fees and costs consistent with this
paragraph that are approved by the Court shall be paid out of the Common Fund within three days
after the Effective Date of the Settlement Agreement. Payments under
this provision shall be made to the law firm of Milstein, Adelman & Kreger, LLP. Class
Counsel shall be solely responsible for further distributing any payments made under this
provision.

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4. Incentive Award

Wally and Fleischer, or Class Counsel on their behalf, may make an application to be heard at
the Final Approval Hearing for incentive awards to be paid out of the Common Fund in an amount not
to exceed $5,000 per individual. CCA will not oppose or undermine the application or solicit
others to do so. Not later than fifteen days after the Effective Date, and only in the event that
the Effective Date occurs, Class Counsel shall pay out of the Common Fund incentive awards as
approved by the Court. These payments shall be compensation and consideration for the efforts of
Wally and Fleischer as the class representatives in the Action and the New Jersey Dispute.

5. Effect On Settlement

The Parties agree that the rulings of the Court regarding the amount of attorneys’ fees or
costs and any incentive award, and any claim or dispute relating thereto, will be considered by the
Court separately from the remaining matters to be considered at the Final Approval Hearing as
provided for in this Settlement Agreement and any determinations in that regard will be embodied in
a separate order. Any order or proceedings relating to the amount of attorneys’ fees or incentive
award, including any appeals from or modifications or reversals of any order related thereto, shall
not operate to modify, reverse, terminate, or cancel the Settlement Agreement, affect the releases
provided for in the Settlement Agreement, or affect whether the Final Approval Order and Judgment
becomes Final as defined herein.

ARTICLE VII — RELEASES UPON EFFECTIVE DATE

1. Binding and Exclusive Nature of Settlement Agreement

On the Effective Date, the Parties and each and every Settlement Class Member shall be bound
by this Settlement Agreement and shall have recourse exclusively to the benefits, rights, and
remedies provided hereunder. No other action, demand, suit or other claim may be pursued against
the CCA-Related Released Parties with respect to the Class Released Claims.

STIPULATION AND AGREEMENT OF SETTLEMENT

 

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2. Releases

On the Effective Date, the Class-Related Releasing Parties shall be deemed to have, and by
operation of this Settlement Agreement shall have, fully, finally and forever released,
relinquished and discharged the CCA-Related Released Parties from any and all of the Class Released
Claims.

3. Stay And Dismissal Of The Action

The Parties agree to request that the Court, in connection with Preliminary Approval, issue an
immediate stay of the Action.

4. Waiver of Unknown Claims

On the Effective Date, the Class-Related Releasing Parties shall be deemed to have, and by
operation of this Settlement Agreement shall have, with respect to the subject matter of the Class
Released Claims, expressly waived the benefits of any statutory provisions or common law rule that
provides, in sum or substance, that a general release does not extend to claims which the party
does not know or suspect to exist in its favor at the time of executing the release, which if known
by it, would have materially affected its settlement with any other party. In particular, but
without limitation, the Class-Related Releasing Parties waive the provisions of California Civil
Code § 1542 (or any like or similar statute or common law doctrine), and do so understanding the
significance of that waiver. Section 1542 provides:

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.

Neither this paragraph nor any other provision of this Settlement Agreement shall be construed to
effectuate a general release of claims. The releases provided for in this Settlement Agreement are
limited to the Class Released Claims as defined in Article II(5) above.

STIPULATION AND AGREEMENT OF SETTLEMENT

 

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5. Assumption of Risk

In entering into this Settlement Agreement, each of the Parties assumes the risk of any
mistake of fact or law. If either Party should later discover that any fact which the Party relied
upon in entering this Settlement Agreement is not true, or that the Party’s understanding of the
facts or law was incorrect, the Party shall not be entitled to modify, reform, or set aside this
Settlement Agreement, in whole or in part, by reason thereof. The Parties agree that at the time
this Settlement Agreement was executed, there were unsettled issues of law, and the Parties agree
to honor this Agreement regardless of developments in the law after execution; specifically, the
Class Representatives and Class Counsel recognize and agree that, given these uncertainties in the
law, the Class Representatives and Class Counsel are receiving valuable consideration for the
settlement of the Action at this time and per the terms of this Agreement. The Parties will
advocate for Court approval of this Settlement Agreement.

ARTICLE VIII — LIMITATIONS ON USE OF SETTLEMENT AGREEMENT

1. No Admission

Neither the acceptance by CCA of the terms of this Settlement Agreement nor any of the related
negotiations or proceedings constitutes an admission with respect to the merits of the claims
alleged in the Complaint, the validity of any claims that could have been asserted by any of the
Settlement Class Members in the Complaint, or the liability of CCA in the Action or the New Jersey
Dispute. CCA specifically denies any liability or wrongdoing of any kind associated with the
claims alleged in the Action and the New Jersey Dispute. Neither the acceptance by Wally and
Fleischer of the terms of this Settlement Agreement, nor any of the related negotiations or
proceedings constitutes an admission with respect to the merits of the claims alleged in the Action
or the New Jersey Dispute.

2. Limitations on Use

This Settlement Agreement shall not be used, offered, or received into evidence in the Action
for any purpose other than to enforce, to construe, or to finalize the terms of the Settlement
Agreement and/or to obtain the preliminary and final approval by the Court of the
terms of the Settlement Agreement. Neither this Settlement Agreement nor any of its terms shall be
offered or received into evidence in any other action or proceeding.

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ARTICLE IX — MISCELLANEOUS PROVISIONS

1. Amendment Of Second Amended Complaint; Class Certification 

Within seven (7) days of the Court’s entry of the Preliminary Approval Order, the named
plaintiff in this Action shall file a Second Amended Complaint in exact same form as the draft
Second Amended Complaint in the form attached hereto as Exhibit C. CCA shall stipulate to the
filing of the Second Amended Complaint, solely for purpose of this Settlement and without prejudice
to its rights absent this Settlement. Should this Settlement not be finalized for any reason, the
Parties shall stipulate to an order striking the Second Amended Complaint, and the First Amended
Complaint shall be the operative pleading in this Action.

2. No Assignment

Each Party represents, covenants, and warrants that he or it has not directly or indirectly
assigned, transferred, encumbered, or purported to assign, transfer, or encumber any portion of any
liability, claim, demand, cause of action, or rights that he or it herein releases.

3. Binding On Assigns 

This Settlement Agreement shall be binding upon and inure to the benefit of the Parties and
their respective heirs, trustees, executors, successors, and assigns.

4. Captions 

Titles or captions contained herein are inserted as a matter of convenience and for reference,
and in no way define, limit, extend, or describe the scope of this Settlement Agreement or any
provision hereof. Each term of this Settlement Agreement is contractual and not merely a recital.

5. Class Member Signatures 

It is agreed that, because the Settlement Class Members are so numerous, it is impractical to
have each Settlement Class Member execute this Settlement Agreement. The Notice will advise all
Settlement Class Members of the binding nature of the Releases and of the remainder of this
Settlement Agreement, and in the absence of a valid and timely Request for Exclusion,
such Notice shall have the same force and effect as if each Settlement Class Member executed
this Settlement Agreement.

STIPULATION AND AGREEMENT OF SETTLEMENT

 

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6. Construction 

The Parties agree that the terms and conditions of this Settlement Agreement are the result of
lengthy, intensive arms-length negotiations between the Parties and that this Settlement Agreement
shall not be construed in favor of or against any Party by reason of the extent to which any Party,
or his or its counsel, participated in the drafting of this Settlement Agreement.

7. Counterparts

This Settlement Agreement and any amendments hereto may be executed in one or more
counterparts, and either Party may execute any such counterpart, each of which when executed and
delivered shall be deemed to be an original and both of which counterparts taken together shall
constitute but one and the same instrument. A facsimile or pdf signature shall be deemed an
original for all purposes.

8. Governing Law 

Construction and interpretation of the Settlement Agreement shall be determined in accordance
with the laws of the State of California, without regard to the choice-of-law principles thereof.

9. Integration Clause 

This Settlement Agreement, including the Exhibits referred to herein, which form an integral
part hereof, contains the entire understanding of the Parties with respect to the subject matter
contained herein. There are no promises, representations, warranties, covenants, or undertakings
governing the subject matter of this Settlement Agreement other than those expressly set forth in
this Settlement Agreement. This Settlement Agreement supersedes all prior agreements and
understandings among the Parties with respect to the settlement of the Action. This Settlement
Agreement may not be changed, altered or modified, except in a writing signed by the Parties and
approved by the Court. This Settlement Agreement may not be discharged except by performance in
accordance with its terms or by a writing signed by the Parties.

STIPULATION AND AGREEMENT OF SETTLEMENT

 

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10. Jurisdiction 

The Court shall retain jurisdiction, after entry of the Final Approval Order and Judgment,
with respect to enforcement of the terms of this Settlement, and all Parties and Settlement Class
Members submit to the exclusive jurisdiction of the Court with respect to the enforcement of this
Settlement and any dispute with respect thereto.

11. Presiding Judicial Officer

The Parties agree that The Honorable Anthony Mohr shall preside over the settlement approval
process, including without limitation any application for an award of attorneys’ fees, costs,
expenses and incentive awards. In the event that Judge Mohr is unable to preside, the Parties
agree to jointly request that the settlement approval process be presided over by a different judge
from the Superior Court of California, County of Los Angeles.

12. No Collateral Attack 

This Settlement Agreement shall not be subject to collateral attack by any Settlement Class
Member at any time on or after the Effective Date. Such prohibited collateral attacks shall
include, but shall not be limited to, claims that a Settlement Class Member’s claim was improperly
denied, that the payment to a Settlement Class Member was improperly calculated, and/or that a
Settlement Class Member failed to receive timely notice of the Settlement Agreement.

13. Parties’ Authority

The signatories hereto represent that they are fully authorized to enter into this Settlement
Agreement and bind the Parties to the terms and conditions hereof.

14. Receipt Of Advice Of Counsel 

The Parties acknowledge, agree, and specifically warrant to each other that they have read
this Settlement Agreement, have received legal advice with respect to the advisability of entering
into this Settlement, and fully understand its legal effect.

STIPULATION AND AGREEMENT OF SETTLEMENT

 

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15. Waiver Of Compliance

Any failure of any Party to comply with any obligation, covenant, agreement, or condition
herein may be expressly waived in writing, to the extent permitted under applicable law, by the
Party or Parties entitled to the benefit of such obligation, covenant, agreement, or
condition. A waiver or failure to insist upon compliance with any representation, warranty,
covenant, agreement, or condition shall not operate as a waiver of, or estoppel with respect to,
any subsequent or other failure.

16. Settlement Conditioned on Certain Matters

This entire Settlement Agreement is contingent upon the Parties reaching agreement on the
contents of the exhibits and ancillary agreements hereto.

	 	 	 	 	 	 	 
	DATED: May __, 2010	 	KELLER AND HECKMAN LLP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

DANIEL J. HERLING
	 	 
	 
	 	 	 	 	 	 
	 	 	Attorneys for Defendant

CCA INDUSTRIES, INC.	 	 
	 
	 	 	 	 	 	 
	DATED: May __, 2010	 	MILSTEIN, ADELMAN & KREGER, LLP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

WAYNE S. KREGER
	 	 
	 
	 	 	 	 	 	 
	 	 	Attorneys for Plaintiffs

WALLY, FLEISCHER, and the Proposed Class	 	 

STIPULATION AND AGREEMENT OF SETTLEMENT

 

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	DATED: May
 __, 2010
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	 	 	on behalf of CCA INDUSTRIES, INC.	 	 
	 
	 	 	 	 	 	 
	DATED: May
 __, 2010
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	 	 	DENISE WALLY, on behalf of herself and the Proposed
Class	 	 
	 
	 	 	 	 	 	 
	DATED: May
 __, 2010
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	 	 	LAURA FLEISCHER, on behalf of herself and the Proposed
Class	 	 

STIPULATION AND AGREEMENT OF SETTLEMENT

 

- 21 -

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