Document:

cote_ex101.htm

Exhibit 10.1

 

INVESTOR RELATIONS CONSULTING AGREEMENT

This Investor Relations Consulting Agreement for Investor Relations Services (this “Agreement”) is entered into as of February 2, 2012, by and between Coates International Ltd. (the “Company”), and ATG Inc (“IR Consultant”).

 

Conditions.  This Agreement will not take effect, and IR Consultant will have no obligation to provide any service whatsoever, unless and until Company returns a signed copy of this Agreement to IR Consultant (either by email or facsimile copy).  Company shall be truthful with IR Consultant in regard to any relevant material regarding Company, verbally or otherwise, or this entire Agreement will terminate and all monies paid shall be forfeited without further notice.

 

Company Initials: /s/ G.J.C.

 

Upon execution of this Agreement, Company agrees to cooperate with IR Consultant in carrying out the purposes of this Agreement, keep IR Consultant informed of any developments of importance pertaining to Company’s business and abide by this Agreement in its entirety.

 

Retention.  The Company hereby retains the IR Consultant during the Consulting Period (as defined in Section 2 below), and IR Consultant hereby agrees to be so retained by the Company and to provide the Services to the Company, all upon to the terms,  provisions and conditions set forth in  this Agreement.

 

Consulting Period.  The period of the engagement of the IR Consultant hereunder shall commence on February 6, 2012 and terminate on August 5, 2012.

 

Duties of IR Consultant.  During the Consulting Period, the IR Consultant shall be retained by Company as its Investors Relations Consulting firm to perform the following services for Company:

 

	
3.1  

	
General Optional Financial Media Relations Menu Services. Strategic Planning and Partnering Licensing Agreements and Marketing Promotions of the featured company. (ii) Review and rewrite [if necessary] of Company issued press releases, provided, however, that Company must agree with and approve all changes prior to release. (iii) Assistance in distribution of company news as appropriate and in concert with milestones and newsworthy events [DOW, BLOOMBERG, REUTERS, ET. AL]. (iv) Distribute Company news and relevant information to market makers, financial media, selected Internet stock pages/threads and OTC analyst community (with Radio Show).

	
3.2  

	
News Print Dissemination. All newsworthy items and press releases shall be delivered to fifty-five individuals associated with newspapers, magazines and other printed material. (ii) IR Consultant possesses valued relationships with major newspapers, magazines and other forms of printed advantages. (iii) Your newsworthy events or products and services, depending on uniqueness, are provided to these groups. (iv) Provide general financial public relations support to Company

	
3.3  

	
Retail Support. Facilitate introductions to criteria-specific Broker-Dealers. (ii) Facilitate introductions to criteria-specific Market Makers. (iii) Participate in Company due diligence presentation(s) to Broker-Dealers and Market Makers

 

  

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3.4  

	
Audio Webcast Services (Internet Only) Feature Company in monthly Internet Chat Webcasts. (ii) Pre-announce all Webcasts and Video Feature on company to Broker-Dealer, Market-Maker Database and Opt-In database. (iii) Archiving of Webcasts and interviews to Company Website. (iv) Announce interviews on all OTC and Small/Micro Cap News and Message servers [press releases NOT included]. (v) Conversion of all Webcasts and Video Features on company and interviews to .wav,.mpg or applicable format

 

	
3.5  

	
Shareholder Communique Production Write, edit and graphically produce, bind and in-house printing of 4-color ‘Shareholder Communiqué’. (ii) Conversion of ‘Shareholder Communiqué’ to .pdf format [Adobe Acrobat] (iii) Archive ‘Shareholder Communiqué’ on Company Website.

 

	
3.6  

	
Advice and Counsel.  IR Consultant shall provide advice and counsel regarding Company’s strategic business and financial plans, strategy and negotiations with potential lenders/investors, joint venture, corporate partners and others involving financial and financially-related transactions.

 

	
3.7  

	
Introductions to the Investment Community.  IR Consultant has a familiarity or association with numerous broker/dealers and investment professionals across the country and shall enable contact between Company and/or Company’s affiliate to facilitate business transactions among them. (ii) IR Consultant shall use its contacts in the brokerage community to assist Company in establishing relationships with private equity capital sources (venture capital, etc.) and securities dealers while providing the most recent information about Company to interested securities dealers on a regular and continuous basis.  (iii) IR Consultant understands that this is in keeping with Company's business objectives and plan to market Company's business or project to the investment community.

 

	
3.8  

	
Company and/or Company's Affiliate Transaction Due Diligence.  IR Consultant will participate and assist Company in the due diligence process on all proposed financial transactions affecting Company of which IR Consultant is notified in writing in advance, including conducting investigation of and providing advice on the financial, valuation and stock price implications of the proposed transaction(s).

 

	
3.9  

	
Additional Duties.  Company and IR Consultant shall mutually agree upon any additional duties that IR Consultant may provide for compensation paid or payable by Company under this Agreement.  Although there is no requirement to do so, such additional agreement(s) may be attached hereto and made a part hereof by written amendments to be listed as "Exhibits" beginning with "Exhibit A" and initialed by both parties.

	
3.10  

	
IR Consultant represents and warrants that it will, at all times, perform all of its duties and responsibilities hereunder in compliance with all applicable securities laws, rules and regulations of all foreign, federal, state and local governments and/or municipalities having jurisdiction, as well as those of the United State Securities and Exchange Commission and the U.S. Financial Industry Regulatory Authority (FINRA).

 

The Company may engage such other consultants, investment bankers or other advisers with respect to the activities set forth in the immediately preceding sentence as the Company shall deem appropriate in its sole and absolute discretion, and IR Consultant shall not be entitled to any fees or commissions arising out of the activities of such other consultants, investment bankers or other advisors, unless IR Consultant provides Services with respect to such activities. The IR Consultant shall not legally bind the Company in any manner or to any transaction and the IR Consultant shall not represent to any person or entity that the IR Consultant has the authority to do so.

 

  

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Compensation.  In consideration for IR Consultant entering into this Agreement and the Services provided hereunder, the Company shall compensate IR Consultant as follows:

 

Fees and Benefits:

 

Monthly Fee/Installment. Company agrees to pay a monthly fee of $50,000 USD for IR Consultant’s services under this Agreement. The monthly fee is due & payable upon the inception of this Agreement & every consecutive 30th day for the following 5 consecutive months within the Consulting Period of this Agreement. The 6 monthly installments, including the non-refundable retainer discussed hereinafter, total in amount to $300,000 USD. The IR Consultant shall have no obligation to provide services to the Company until the monthly fee is paid in full each month. Aside from the first month of services, the monthly fee is earned as services are provided.  IR Consultant will be responsible for all of its own costs and expenses incurred in connection with providing services under this Agreement and agrees not to seek any reimbursement therefor from the Company.

 

Non-Refundable Retainer.  The Company agrees to pay IR Consultant a non-refundable retainer in the amount of $50,000 US Dollars and applicable to IR Consultant’s services described in this Agreement. This shall constitute the first payment towards the total compensation under this Agreement of $300,000. This non-refundable retainer agreement is effective until the completion of those services. The non-refundable retainer is due and payable upon inception of this Agreement. IR Consultant shall have no obligation to provide services to company until the non-refundable retainer is paid in full. The non-refundable retainer is earned in full by IR Consultant upon payment.

 

 Cancellation: This Agreement may be cancelled or terminated by either party without penalty, upon thirty (30) days prior written notice. In the event the Agreement is cancelled or terminated by either party, the IR Consultant is required to continue providing the services identified in this agreement for the remaining thirty (30) days until the cancellation or termination is effective and the Company is required to pay the monthly fee due for the remaining thirty (30) days until the  cancellation or termination is effective.

 

Interest Charges and Penalties for Late Payment. If any payment on monthly fees or kill fee is not paid when due, interest will be charged on the principle balance. Interest will be calculated by multiplying the unpaid balance by the periodic rate of 1% per month (ONE PERCENT [1%] ANNUAL PERCENTAGE RATE). The unpaid balance will bear interest until paid.

 

Upon the completion of the Consulting Period, IR Consultant hereby agrees to grant the Company priority extensions of retained services for renegotiated terms. The Company will have priority for services over any company the IR Consultant is not already in agreement for services with.

 

Notice.  Any notice or other communication required, permitted or desired to be given pursuant to any of the provisions of this Agreement shall be deemed to have been sufficiently given or served for all purposes if delivered in person or sent by certified mail, return receipt requested, postage and fees prepaid, or by national overnight delivery prepaid service to the parties at their addresses set forth below.  If sent by certified mail the notice or communication shall be effective ten (10) business days after mailing and if sent by overnight delivery it shall be effective on the business day following the day sent. Any party hereto may at any time and from time to time hereafter change the address to which notice shall be sent hereunder by notice to the other party given under this paragraph.  The addresses of the parties are as follows:

 

  

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TO CONSULTANT:

 

ATG Inc

2220 Otay Lakes Road

Suite 302 #75

Chula Vista, California 91915

Attn: Amanda Flores

Telephone: 253.254.5524

Facsimile: 949.861.9755

	 
	
TO THE COMPANY:

 

Coates Internatiol, Ltd.

Highway 34 & Ridgewood Road

Wall Township, NJ 07719

Attn: George Coates

Telephone: 732.449.7717

Facsimile:

 

 

Waiver.  No course of dealing nor any delay on the part of either party in exercising any rights hereunder will operate as a waiver of any rights of such party.  No waiver of any default or breach of this Agreement or application of any term, covenant or provision hereof shall be deemed a continuing waiver or a waiver of any other breach or default or the waiver of any other application of any term, covenant or provision.

 

Definition of  “Reasonable and Best Efforts.”  Reasonable and best efforts shall not include the payment of any non-reimbursable out-of-pocket costs or other payments by IR Consultant.  IR Consultant shall not guarantee, make any representation concerning (which representation would survive the closing of any escrow or other transaction) or warrant (i) the validity or authorization of any capital stock purchased, sold by, or otherwise considered for purchase or sale by the Company; (ii) the market value of any capital stock, business or assets purchased or sold by, or otherwise considered for purchase or sale by the Company; (iii) the covenants, representations or warranties of any party to any stock purchase, asset purchase, merger or other agreement entered into by the Company with any third party. The IR Consultant acknowledges and agrees that the Company makes no representation that the Company will engage in any transaction for which the IR Consultant has provided Services and the decision to enter into any transaction shall be made by the Company in its sole and absolute discretion.

 

Non-Guarantee.  IR Consultant promises to exercise best efforts in its duties and responsibilities in its entirety and makes no guarantee it will be successful in any claims made to the Company either verbally and pursuant to any results and claims stipulated in this Agreement. Any comments made regarding potential time frames and anything that pertains to the outcome of Company’s requests is expressions of opinion only. Company acknowledges and agrees it is not required to make exclusive use of IR Consultant for any services IR Consultant holds no exclusive rights to the Company’s project. Notwithstanding the foregoing, IR Consultant shall not unduly cause a delay in the performance of its services under this Agreement.

 

  

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Survival of Terms.  Notwithstanding the termination of this Agreement for whatever reason, the provisions hereof shall survive such termination, unless the context requires otherwise.

 

Confidentiality.  The IR Consultant acknowledges that  in the course of performing the Services the IR Consultant may obtain knowledge of confidential and proprietary information of the Company and other non-public information and trade secrets of the Company (collectively, the “Confidential Information”).  The IR Consultant shall not disclose any such Confidential Information to any third party without the prior written consent of the Company and shall only use the Confidential Information in the performance of the Services hereunder to the extent, and only to the extent, required. The IR Consultant acknowledges that the unauthorized disclosure of any Confidential Information will cause the Company irreparable harm from which the monetary damages would not be an adequate remedy.  The IR Consultant agrees that the Company shall be entitled to obtain injunctive relief, specific performance and other equitable relief with respect to any breach or threatened breach of the confidentiality obligations of the IR Consultant, without being required to post a bond or other security or to establish irreparable harm. The remedies specified in this Section 11, shall be in addition to all other remedies that may be available to the Company at law or otherwise. Notwithstanding the foregoing, subject to providing the Company with prior written notice of any intended disclosure of Confidential Information, the IR Consultant my disclose Confidential Information pursuant to applicable law or subpoena. IR Consultant hereby acknowledges that it is familiar with and understands the provisions of Regulation FD promulgated by the United States Securities and Exchange Commission and agrees to comply with this Regulation at all times when disseminating any information about the Company.

 

Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.  Any signature by facsimile shall be valid and binding as if an original signature was delivered.

 

Captions.  The caption headings in this Agreement are for convenience of reference only and are not intended and shall not be construed as having any substantive effect.

 

Governing Law.  This Agreement shall be governed, interpreted and construed in accordance with the laws of the state of California applicable to agreements entered into and to be performed entirely therein.

 

Arbitration.  Any controversy, claim, or counterclaim arising from this Agreement shall be submitted to and decided by final and binding arbitration by a single arbitrator administered in San Diego, California by the American Arbitration Association under its commercial rules.

 

The prevailing party in such dispute shall be entitled to recover from the other party all reasonable costs and fees of enforcing any right of the prevailing party including, without limitation, any American Arbitration Association administration fee, the arbitrator’s fee, costs for the use of facilities during the hearings, expert fees, accountant’s fees and expenses, and attorneys’ fees and expenses. The arbitrator shall decide if such costs and fees are awarded to the prevailing party.

 

Within 15 days after the commencement of any arbitration, the parties to the dispute shall each select names from a list of retired judges of the California Superior Court, or any higher California court, provided by the American Arbitration Association, and list such proposed arbitrators in order of preference, and submit such list to the American Arbitration Association, which shall then appoint one arbitrator based on such submissions. The arbitrator shall have the discretion to order a prehearing exchange of information by the parties, including without limitation, production of requested documents, exchange of summaries of testimony of proposed witnesses, and examination by deposition of the parties.

 

  

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The arbitration shall generally be administered in accordance with the American Arbitration Association’s Commercial Arbitration Rules. The provisions of Sections 1282.6, 1283, and 1283.05 of the California Code of Civil Procedure apply to the arbitration.  The arbitrator shall have the authority to award any remedy or relief that a court of the State of California could order or grant, including, without limitation, specific performance of any obligation created under this Agreement, the issuance of an injunction, or the imposition of sanctions for abuse or frustration of the arbitration process. The arbitrator, however, will have no authority to award punitive damages, and each party hereby irrevocably waives any right to recover such damages with respect to any issue resolved by arbitration, and the arbitrator may not, in any event, either make any ruling, finding or award that does not conform to the terms and conditions of this Agreement, or alter, amend, modify or change any of the terms of this Agreement. The arbitrator’s decision shall be rendered within 30 days after the conclusion of the arbitration hearing, and the arbitrator shall make findings of fact and shall set forth the reasons and legal bases for the decision.  Such arbitrator’s decision shall be final and binding on the parties and shall not be subject to judicial review, and a judgment upon the decision rendered may be entered in any court having jurisdiction thereof.

 

THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE TRIAL BY JURY AND THAT ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS SHALL INSTEAD BE RESOLVED BY BINDING ARBITRATION AS PROVIDED HEREIN.

 

Attorneys’ Fees, Costs and Expenses.  In any action, litigation or proceeding (including mediation and/or arbitration or to enforce an arbitration award hereunder ) between the parties arising out of  the  in relation to this Agreement ( subject to the mandatory arbitration provisions of Section 15 hereof), the prevailing party in such action shall be awarded, in addition to any damages, injunctions or other relief, and without regard to whether or not such matter be prosecuted to final judgment, such party’s costs and expenses, including, but not limited to, all related costs and actual attorneys’, accountants’ and experts’ fees incurred in bringing such action, litigation or proceeding and/or enforcing any judgment or order granted therein, all of which shall be deemed to have accrued upon the commencement of such action, litigation or proceeding. To the extent permitted by applicable law, any judgment or order entered in such action, litigation or proceeding shall contain a specific provision providing for the recovery of actual attorneys’ fees and costs incurred in enforcing such judgment. If the judgment or order should fail to contain such a provision, the prevailing party shall have the right to initiate further action to recover its actual attorneys’ fees incurred in enforcing such judgment or order, which right shall survive the entry of judgment or order in the initial action, litigation or proceeding. For the purpose of this Section 16, actual attorneys’ fees shall also include, without limitation, fees incurred in the following:  (i) post-judgment motions; (ii) contempt proceedings; (iii) discovery, and (iv) any post-judgment proceedings, including appeals, and collection and enforcement actions.  Wherever in this Agreement the phrase “Attorneys’ Fees” or “Actual Attorneys’ Fees” is used, each of such phrases shall mean the full and actual cost of any legal services actually performed in connection with the matter for which such fees are sought, calculated on the basis of the usual fees charged by the attorneys performing such services, and such fees shall not be limited to “reasonable attorneys’ fees” as that term may be defined by statutory or decisional cause authority.

 

Limitation of Liability; Indemnification. IR Consultant shall not be liable to Company for any loss incurred in the performance of his/her Services hereunder unless caused by IR Consultant’s intentional misconduct or gross negligence. Company agrees, at its sole defense, to indemnify and defend IR Consultant from and against any damages, claims or suits by third parties against IR Consultant arising from the performance of IR Consultant’s Services hereunder unless caused by IR Consultant’s intentional misconduct or gross negligence. Company shall have no liability hereunder for false or verbal or written misleading statements or information disseminated by IR Consultant, its employees, representatives, agents, affiliates or other business partners or related parties that was not directly obtained from information provided by the Company.

 

  

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Entire Agreement/Modifications.  This Agreement constitutes the entire agreement between the parties and supersedes all prior understandings and agreements, whether oral or written, regarding IR Consultant’s retention by the Company; provided, however, that all fees previously earned and/or paid to IR Consultant under prior agreements shall be deemed earned, and shall be in addition to any fees payable hereunder.  This Agreement shall not be altered, amended, waived or modified except in writing, duly executed by each of the parties hereto.

 

Warranty.  The Company and IR Consultant each hereby represent and warrant to the other that it is free to enter into this Agreement, that the parties signing below are duly authorized and directed to execute this Agreement, and that this Agreement is its legal, valid, binding obligation, enforceable against such party in accordance with its terms.

 

Severability.  If any term, covenant or provision, or any part thereof, is found by any court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, the same shall not affect the remainder of such term, covenant or provision, any other terms, covenants or provisions or any subsequent application of such term, covenant or provision which shall be given the maximum effect possible without regard to the invalid, illegal or unenforceable term, covenant or provision, or portion thereof.  In lieu of any such invalid, illegal or unenforceable provision, the parties hereto intend that there shall be added as part of this Agreement a term, covenant or provision as similar in terms to such invalid, illegal or unenforceable term, covenant of provision, or part thereof, as may be possible and be valid, legal and enforceable.

 

IN WITNESS HEREOF, the parties hereto have duly executed and delivered this Agreement as of the day and year first above written.

 

	Coates International, Ltd.	 	 	ATG Inc	 
	 	 	 	 	 
	
By: /s/ George J. Coates

	 	 	
By: /s/Amanda Flores

	 
	
George J. Coates

	 	 	
Name: Amanda Flores

	 
	
President and Chief Executive Officer

	 	 	
Title: President

	 

 

 

7ex10-1.htm

Exhibit 10.1

 

SEPARATION AND RELEASE AGREEMENT

THIS SEPARATION AND RELEASE AGREEMENT (the “Agreement”) is entered into as of the 13th day of February, 2012, by and between William Spengler (the “Employee”) and Chromadex, Inc. and any parents, subsidiaries, or affiliates of the Company, including, without limitation, Chromadex, Corp. and ChromaDex Analytics, Inc. (collectively referred to herein as the “Company”).

WHEREAS, Employee and the Company are parties to an Employment Agreement, dated as of October 27, 2010 (the “Employment Agreement”);

WHEREAS, Employee is currently employed as the President of the Company is a member of the Company’s Board of Directors;

WHEREAS, this Agreement governs the terms of Employee’s separation from the Company.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereby agree as follows:

1. Effective Date of Cessation of Employment.     Employee acknowledges that, as of the date of this Agreement, his employment as the President of the Company is hereby terminated and that he hereby resigns from his position as a member of the Company’s Board of Directors.  Employee agrees to execute any and all documents as may be reasonably necessary to confirm his termination as an employee and resignation as a director.  The Employee understands and agrees that, as of the date hereof, he is no longer authorized to conduct any business on behalf of the Company or to hold himself out as an officer, employee, agent or representative of the Company or to incur any expenses, obligations, or liabilities on behalf of the Company.

2. Severance.     As severance, the Company shall pay to Employee $310,000 (the “Severance Payment”), which amount shall be paid within ten (10) business days of the Employee’s execution of this Agreement.  The Severance Payment shall be made provided that Employee does not revoke his acceptance of the Agreement pursuant to Section 16 below.  The Severance Payment will be subject to any and all applicable taxes and withholdings.

 

Employee acknowledges and agrees that the Severance Payment provided to him, as set forth within the above paragraph, exceed any and all payments and/or benefits that would otherwise be due to the Employee as severance and unpaid salary and benefits, and that Employee is not entitled to any other payments, salary, commissions, compensation or benefits from the Company aside from what is set forth within this paragraph.

3. Medical Expenses. Commencing on the date hereof and continuing through and until the one year anniversary hereof, the Company shall reimburse the Employee for the cost of the same medical, dental, long-term disability and life insurance plans to which he was entitled on the date hereof.

 

4. Treatment of Options.     Employee is entitled to options to purchase 291,667 shares of common stock of ChromaDex Corp., exercisable at $1.65 per share, which have vested as of the date of this Agreement pursuant to the terms and conditions of the grants authorized by the Board of Directors on the 15th of October, 2010.  Employee shall not be entitled to any additional options.  For purposes of the Amended and Restated 2007 Equity Incentive Plan of Chromadex Corp., Employee shall be deemed to have voluntarily resigned his employment with the Company.  Notwithstanding any provision of the Plan or any other agreement between Employee and the Company or any other party to the contrary, the Company agrees that Employee shall have the unqualified right to exercise any of the vested options for a period of thirty (30) days from the date of this Agreement.

  

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5. Employee Release.     In exchange for the consideration provided for in this Agreement, Employee irrevocably and unconditionally releases the Company, its predecessors, parents, subsidiaries, affiliates, and past, present and future officers, directors, agents, consultants, employees, representatives, and insurers, as applicable, together with all successors and assigns of any of the foregoing (collectively, the “Releasees”), of and from all claims, demands, actions, causes of action, rights of action, contracts, controversies, covenants, obligations, agreements, damages, penalties, interest, fees, expenses, costs, remedies, reckonings, extents, responsibilities, liabilities, suits, and proceedings of whatsoever kind, nature, or description, direct or indirect, vested or contingent, known or unknown, suspected or unsuspected, in contract, tort, law, equity, or otherwise, under the laws of any jurisdiction, that the Employee or his predecessors, legal representatives, successors or assigns, ever had, now has, or hereafter can, shall, or may have, against the Releasees, as set forth above, jointly or severally, for, upon, or by reason of any matter, cause, or thing whatsoever from the beginning of the world through, and including, the date of this Agreement (“Claims”).

Such release includes, but is not limited to, the violation of any express or implied contract; any federal, state or local laws, restricting an employer’s right to terminate employees, or otherwise regulating employment; workers compensation, wage and hour, or other employee relations statutes, executive orders, ordinance, or regulations, including any rights or claims under Title VII of the Civil Rights Act of 1964, as amended the Civil Rights Act of 1991, the Americans with Disabilities Act of 1990, the Rehabilitation Act of 1973, the Family and Medical Leave Act of 1993, the Civil Rights Act of 1866, the Employee Retirement Income Security Act of 1974, the Age Discrimination in Employment Act of 1967, the Fair Labor Standards Act, the WARN Act, the California Wage Orders, the California Labor Code Sections 207, 1183, and 6404.5, the California Occupational Safety and Health Act; AB 1825; the California Family Rights Act and/or any other state or local laws covering the same subject matter; tort (including, without limitation, negligent conduct, invasion of privacy and defamation); any federal, state, or local laws providing recourse for retaliation, wrongful discharge, dismissal or other obligations arising out of public policy, physical or personal injury, fraud, negligent misrepresentations, and similar or related claims. The laws referred to in this section include statutes, regulations, other administrative guidance, and common law doctrines. Any and all claims and/or disputes arising out of or relating to any of the foregoing shall be, and are, finally compromised, released and settled.

Notwithstanding the foregoing, this release does not include Employee’s right to enforce the terms of this Agreement.  Employee understands that this Agreement releases claims that he may not know about. This is Employee’s knowing and voluntary intent, even though Employee recognizes that someday he might learn that some or all of the facts that he currently believes to be true are untrue and even though he might then regret having signed this Agreement.

Except to enforce this Agreement, Employee agrees that he will not pursue, file or assert or permit to be pursued, filed or asserted any civil action, suit or legal proceeding seeking equitable or monetary relief (nor will he seek or in any way obtain or accept any such relief in any civil action, suit or legal proceeding) in connection with any matter concerning his employment relationship with the Company and/or the termination thereof with respect to all of the claims released herein arising from the beginning of the world up to and including the date of execution of this Agreement (whether known or unknown to him and including any continuing effects of any acts or practices prior to the date of execution of this Agreement). Except for the payments and benefits set forth herein, Employee acknowledges that he has been paid all wages and other amounts due to him and that he is not entitled to any other payments or benefits of any kind.

If Employee should bring any action arising out of the subject matter covered by this Agreement, except to enforce this Agreement, he understands and recognizes that he will, at the option of the Company, be considered in breach of this Agreement and shall be required to immediately return any and all funds received pursuant to this Agreement.  Furthermore, if the Company should prevail concerning any or all of the issues so presented, Employee shall pay to the Company all of the costs and expenses of defense, including attorney’s fees.

 

  

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The Employee agrees that this Agreement does not constitute any admission by the Company that any personnel action it took with respect to the Employee was wrongful, unlawful, tortious, in contravention to the laws or public policies of the State of California, in breach of any written or oral contract, or in violation of any federal statute, regulation, and/or constitutional provision.

Nothing contained in this Agreement is intended to nor shall be construed to waive or release Employee's right (a) to indemnification under California Labor Code Section 2802or Corporations Code Section 317, or (b) to receive any and all pension, profit-sharing or other vested benefits which Employee possesses as of the date of his separation.

6. Company Release.     The Company, on behalf of its successors and assigns, hereby forever  relieves, releases, and discharges Employee from any and all claims, debts, liabilities, demands,  obligations, liens, promises, acts, agreements, costs and expenses  (including but not limited to  attorneys’ fees), damages, actions, and causes of action, of whatever kind or nature, including  but not limited to any statutory, civil, administrative, or common law claims, whether known or  unknown, arising out of  Employee’s acts in the course and scope of his employment with the Company occurring before  Employee’s execution of this Agreement.  Improper or illegal acts performed by Employee that occurred outside the course and scope of his employment (like, for example, fraud) are not intended to be waived by this release.

 

7. Restrictions on Competition and Solicitation.  Employee agrees and acknowledges that the Restrictive Covenants section of the Employment Agreement (Section 7) remains in full force and effect and that he is obligated to comply with any and all restrictions as may be contained therein.  Nothing contained herein shall be construed to impair or impede Employee's rights to continue to engage in his same occupation and/or to receive business from persons that were previously clients or customers of the Company."

8. Company Information and Property.     Employee agrees to immediately return to the Company all Company property and information in his possession including, but not limited to, Company reports, customer lists, supplier lists, consultant lists, formulas, files, manuals, memoranda, computer equipment, access codes, discs, software, and any other Company business information or records, in any form in which they are maintained, including records or information regarding Company customers, suppliers and vendors, and Company products and product development, and agrees that he will not retain any copies, duplicates, reproductions, or excerpts thereof in any form. Employee further agrees that he will not, in any manner, make use of any Company property and information in any future dealings, business or otherwise, and acknowledges that any use of Company property and information in any future dealings, business or otherwise, would constitute a breach of this Agreement. Employee acknowledges that any breach of this section would cause irreparable injury to the Company for which there is no adequate remedy at law and in addition to any remedies that may be available to the Company in the event of a breach or threatened breach of this section by Employee, including monetary damages, the Company shall be entitled to obtain a temporary restraining order and/or a preliminary or permanent injunction which would prevent Employee from violating or attempting to violate the provisions of this section of the Agreement.  In seeking such an order, any requirement to post a bond or other undertaking shall be waived.  In any such action, the Company shall be entitled to an award of all reasonable costs and fees incurred in bringing such an action, including reasonable attorney’s fees.

9. Confidentiality.     Employee agrees that he will not disclose, directly or indirectly, the underlying facts that led up to this Agreement or the terms or existence of this Agreement. Employee represents that he has not and will not, in any way, publicize the terms of this Agreement and agrees that its terms are confidential and will not be disclosed by him except that he may discuss the terms of this Agreement with his attorneys, financial advisors, accountants, and members of his immediate family, or as required by law.  Employee understands and agrees that should he violate this provision of the Agreement, he will be responsible to the Company for liquidated damages in the amount of any and all funds payable pursuant to this Agreement and understands that such monetary relief shall not be a bar to the Company’s pursuit of injunctive relief.

  

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10. Non-disparagement.     Employee represents and agrees that he shall refrain from making any written or oral statements to any person or entity with whom the Company (to the Employee’s reasonable knowledge) or Employee has had or may have a business or social relationship which may reasonably be expected to impugn or degrade the character, integrity, ethics or business practices of the Company, its affiliates, employees, directors, officers, agents, representatives or clients, or which may reasonably be expected to damage the business, image or reputation of the Company, its affiliates, employees, directors, officers, agents, representatives, or clients.

The Company represents and agrees that it shall refrain from making any written or oral statements to any person or entity with whom the Company or the Employee (to the Company’s reasonable knowledge) has had or may have a business or social relationship which may reasonably be expected to impugn or degrade the character, integrity, or ethics of the Employee.  Should there be any inquiry as to the Employee’s employment with the Company, the Company agrees to provide the following information: dates of Employee’s employment with the Company, position held by Employee, indicate that the Employee appropriately performed the duties assigned to him as President of the Company, and the reason for Employee’s departure (i.e., voluntary resignation), and will not otherwise comment about the Employee or about the Employee’s performance of his duties and responsibilities while employed by the Company.

11. Indemnity.  The Company shall indemnify and hold harmless Employee from any and all losses, costs, damages, expenses, claims, or charges (including reasonable attorneys’ fees and costs) arising out of or in any way connected with Employee’s employment with the Company and Employee having served as an officer and director of the Company for any actions taken by Employee within the reasonable scope of his employment in such capacities during the time period Employee was employed by the Company.

12. Future Cooperation.  Employee agrees to reasonably cooperate with the Company, its financial and legal advisors, in connection with any business matters for which the Employee’s assistance may be required and in any claims, investigations, administrative proceedings or lawsuits which relate to the Company and for which Employee may possess relevant knowledge or information.  Any travel and accommodation expenses incurred by the Employee as a result of such cooperation will be reimbursed in accordance with the Company’s standard policies.

13. Applicable Law and Jurisdiction.     This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflicts of law principles.Any dispute regarding this Agreement or related to the Employee’s employment with the Company shall be resolved in the Courts located in the City of Irvine, Orange County, California, without ajury (which is hereby expressly waived).

 

14. Entire Agreement.     This Agreement may not be changed or altered, except by a writing signed by both parties. Until such time as this Agreement has been executed and subscribed by both parties hereto: (i) its terms and conditions and any discussions relating thereto, without any exception whatsoever, shall not be binding nor enforceable for any purpose upon any party; and (ii) no provision contained herein shall be construed as an inducement to act or to withhold an action, or be relied upon as such.  This Agreement constitutes an integrated, written contract, expressing the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes any and all prior agreements and understandings, oral or written, between the parties, including the Employment Agreement, except as otherwise provided herein.

15. Assignment.     Employee has not assigned or transferred any claim he is releasing, nor has he purported to do so.  If any provision in this Agreement is found to be unenforceable, all other provisions will remain fully enforceable. This Agreement binds Employee’s heirs, administrators, representatives, executors, successors, and assigns, and will insure to the benefit of all Released Parties and their respective heirs, administrators, representatives, executors, successors, and assigns.

  

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16. Binding Effect.     This Agreement will be deemed binding and effective immediately upon its execution by the Employee; provided, however, that in accordance with the Age Discrimination in Employment Act of 1967 (“ADEA”) (29 U.S.C. § 626, as amended), Employee’s waiver of ADEA claims under this Agreement is subject to the following: Employee may consider the terms of his waiver of claims under the ADEA for twenty-one (21) days before signing it and may consult legal counsel if Employee so desires. Employee may revoke his waiver of claims under the ADEA within seven (7) days of the day he executes this Agreement. Employee’s waiver of claims under the ADEA will not become effective until the eighth (8th) day following Employee’s signing of this Agreement. Employee may revoke his waiver of ADEA claims under this Agreement by delivering written notice of his revocation, via facsimile and overnight mail, before the end of the seventh (7th) day following Employee’s signing of this Agreement to: Mr. Jeffrey Himmel, Chief Executive Officer, 4400 Biscayne Blvd., Miami, FL  33137 (fax: 305-847-5829 ).  In the event that Employee revokes his waiver of ADEA claims under this Agreement prior to the eighth (8th) day after signing it, the remaining portions of this Agreement shall remain in full force in effect, except that the obligation of the Company to provide the payments and benefits set forth in Section 2 of this Agreement shall be null and void. Employee further understands that if Employee does not revoke the ADEA waiver in this Agreement within seven (7) days after signing this Agreement, his waiver of ADEA claims will be final, binding, enforceable, and irrevocable.

 

EMPLOYEE UNDERSTANDS THAT FOR ALL PURPOSES OTHER THAN HIS WAIVER OF CLAIMS UNDER THE ADEA, THIS AGREEMENT WILL BE FINAL, EFFECTIVE, BINDING, AND IRREVOCABLE IMMEDIATELY UPON ITS EXECUTION.

17. Rights Under the Consolidated Omnibus Budget Reconciliation Budget Reconciliation Act.  The Employee’s rights under the Consolidated Omnibus Benefit Reconciliation Act (hereinafter “COBRA”) shall commence upon the signing of this Agreement.  The Employee will be eligible for COBRA continuation of the Company’s group medical insurance plan for the period of eighteen (18) months following the execution date of this Agreement.  At the conclusion of the eighteen (18) months period, it is understood and agreed that Employee shall have no additional rights to continued health insurance coverage.

 

18. Acknowledgement.     Employee acknowledges that he: (a) has carefully read this Agreement in its entirety; (b) has been presented with the opportunity to consider it for at least twenty-one (21) days; (c) has been advised to consult and has been provided with an opportunity to consult with legal counsel of his choosing in connection with this Agreement; (d) fully understands the significance of all of the terms and conditions of this Agreement and has discussed them with his independent legal counsel or has been provided with a reasonable opportunity to do so; (e) has had answered to his satisfaction any questions asked with regard to the meaning and significance of any of the provisions of this Agreement; and (f) is signing this Agreement voluntarily and of his own free will and agrees to abide by all the terms and conditions contained herein.

[signatures on next following page]

 

  

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IN WITNESS WHEREOF, the Parties hereto have entered into this Agreement as of the 17th day of February, 2012.

CHROMADEX, INC.

By:    ______________________

Jeffrey Himmel

Chief Executive Officer

By: ______________________________ 

      William Spengler

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