Document:

thst-ex101_302.htm

 

Exhibit 10.1

 

SEPARATION AND GENERAL RELEASE AGREEMENT

 

THIS SEPARATION AND GENERAL RELEASE AGREEMENT (this “Agreement”) is made by and between Evan B. Meyer (“Meyer”) and Truett-Hurst, Inc., including its predecessors, successors, affiliates, parents, subsidiaries, and related entities (the “Company”) (collectively, with Meyer, the “Parties”).

WHEREAS, the Company has decided to terminate Meyer from his employment with the Company and his position as Chief Financial Officer; and

WHEREAS, the Company and Meyer wish to set out the terms by which Meyer will separate from his employment with the Company; 

NOW THEREFORE, in consideration of the mutual promises contained herein, and other good and valuable consideration as hereinafter recited, the adequacy of which is hereby acknowledged, the Company and Meyer, intending to be legally bound, agree as follows.  

1.EFFECTIVE DATE.  This Agreement shall become effective on the eighth day after Meyer delivers to the Company this Agreement signed by Employee (the “Effective Date”), provided that Employee signs and returns this Agreement to the Company (to the attention of Phil Hurst, the Company’s President and Chief Executive Officer) by no later than 5:00 pm on April 18, 2018.  

2.SEPARATION OF EMPLOYMENT.  The Parties agree that Meyer’s employment with the Company will terminate, effective as of March 30, 2018 (the “Separation Date”).  Meyer hereby acknowledges and agrees that he will take all actions that are reasonably necessary to confirm his termination of employment and that he is no longer an officer, director, employee or authorized signatory of the Company or any of its parent, subsidiary or affiliated entities.

3.SEVERANCE BENEFITS.  On or before the Separation Date, the Company shall cause to be paid to Meyer a lump sum amount that will include all earned but unpaid base salary, as well as all accrued but unused paid time off ("PTO") earned through the Separation Date (which Meyer acknowledges is 25.91 hours of PTO), less applicable withholdings and authorized deductions.  In addition, provided that Meyer timely signs and returns this Agreement, does not revoke it pursuant to Section 7(d) below, and complies with its terms, the Company will provide Meyer the following severance benefits (collectively, the “Severance Benefits”):

(a)The Company will cause to be paid to Meyer an amount equal to $144,500.00 (the “Severance Payment”) (which represents six months of Meyer’s base salary), less standard withholdings and authorized deductions, in two equal installments with the first installment paid on or before April 16, 2018 and the second installment paid on or before May 31, 2018.   

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(b)The unvested portion of all awards of the Company’s restricted stock units (“RSUs”) previously granted to Meyer by the Company that are outstanding on the Separation Date shall become immediately vested as of the Separation Date, with the number of shares payable with respect to such vested units to be reduced by the appropriate number of shares to satisfy the Company’s tax withholding obligations in accordance with the agreements governing such units.  The Company and Meyer acknowledge and agree that the RSU grants previously awarded to Meyer by the Company are as follows:  (i) an award of 10,000 RSUs awarded to Meyer on or about October 30, 2017 that was issued in accordance with the terms and conditions of a Restricted Stock Unit Agreement entered into by the Company and Meyer (the “First RSU Agreement”) and the Company’s 2012 Stock Incentive Plan (the “Plan”); and (ii) an award of 50,000 RSUs awarded to Meyer on or about October 30, 2017 that was issued in accordance with the terms and conditions of a Restricted Stock Unit Agreement entered into by the Company and Meyer (the “Second RSU Agreement” and, collectively with the First RSU Agreement, the “RSU Agreements”) and the Plan.   The vesting conditions of the RSU Agreements are hereby amended by this Section 3(b).  

(c)The unvested portion of all stock option grants with respect to the Company’s common stock previously granted to Meyer by the Company that are outstanding and unvested on the Separation Date shall become immediately vested as of the Separation Date.  The Company and Meyer acknowledge and agree that the stock options previously awarded to Meyer by the Company are as follows: (i) an option to purchase 70,000 shares of the Company’s common stock at a price of $1.64 per share in accordance with the terms and conditions of a Stock Option Agreement, dated October 26, 2016, between the Company and Meyer (the “First Stock Option Agreement”) and the Plan; and (ii) an option to purchase 50,000 shares of the Company’s common stock at a price of $2.08 per share in accordance with the terms and conditions of a Stock Option Agreement, dated July 1, 2017, between the Company and Meyer (the “Second Stock Option Agreement” and, collectively with the First Stock Option Agreement, the “Option Agreements”) and the Plan.  The vesting conditions of the Option Agreements are hereby amended by this Section 3(c).  The vested options shall remain exercisable following the Separation Date for the post-termination exercise period provided in the applicable Option Agreement.

(d)The Company will pay for the premiums necessary for Meyer to continue coverage for himself and his eligible dependents under the Company’s group medical, dental and vision insurance plans for a period commencing on April 1, 2018 and ending on the earlier to occur of (i) September 30, 2018 and (ii) the date Meyer becomes eligible for healthcare coverage from a subsequent employer.  Meyer acknowledges and agrees that he will promptly notify the Company (to the attention of Phil Hurst) in writing when Meyer becomes eligible for healthcare coverage from a subsequent employer.

Meyer acknowledges and agrees that the Severance Benefits constitute payments and benefits that Meyer would not otherwise be entitled to receive without entering into this Agreement and constitute adequate consideration for the releases, covenants, terms and conditions contained in this Agreement.  Meyer further acknowledges and agrees that the Severance Payment is due solely from the Company and that Insperity (as defined below) 

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has no obligation to Meyer to pay the Severance Payment even though such payment may be processed through Insperity.

4.NO REMUNERATION DUE.  Except for the payments provided for in Paragraph 3, Meyer acknowledges and agrees that he is entitled to no other compensation, payments, or benefits from the Company of any kind or nature whatsoever, including, without limitation, salary, severance pay, fringe benefits, vacation pay, bonuses, incentive compensation, sick pay, insurance, disability insurance, expense reimbursement, medical benefits, or any other allowance for services rendered prior to the Separation Date.  In addition, Meyer acknowledges and agrees that each of his stock options granted by the Company, to the extent outstanding and vested on the Separation Date, will remain exercisable for the period specified in the applicable stock option agreements (and will terminate at the end of such period to the extent not exercised).  

5.HEALTH INSURANCE.  As of April 1, 2018, Meyer shall have the option to convert and continue coverage for Meyer and his eligible dependents under the Company’s group health and dental insurance plans, as may be required or authorized by law under COBRA or Cal-COBRA.  Meyer further acknowledges that he must make a timely election to continue such coverage for COBRA or Cal-COBRA benefits and shall be exclusively responsible to pay the full costs of the premiums and administrative charges required by COBRA or Cal-COBRA, as applicable, except as provided for above in Section 3(d).

6.RELEASE OF CLAIMS.  Except for those obligations created by or arising out of this Agreement, in consideration of the covenants undertaken herein by the Company, including, without limitation, the Company’s undertakings in Paragraphs 3(a), 3(b), 3(c) and 3(d) of this Agreement, and for other valuable consideration, receipt of which is hereby acknowledged, Meyer hereby releases, discharges, and covenants not to sue the Company or Insperity, Inc. (including , including the Company’s predecessors, parent, subsidiaries, affiliates, and related entities (collectively, “Insperity”), and each of its and their respective past and present employees, directors, officers, attorneys, representatives, insurers, shareholders, agents, successors, and assigns, (individually and collectively the “Releasees”) from and with respect to any and all actions, causes of action, suits, liabilities, claims, and demands whatsoever, and each of them, whether known or unknown, suspected or unsuspected, from the beginning of time through the date of this Agreement (collectively, "Claims").  The parties intend Meyer’s release to be general and comprehensive in nature and to release all Claims and potential Claims against the Releasees to the maximum extent permitted at law.  Claims being released include specifically, by way of description, but not by way of limitation, (a) any and all Claims arising out of or in any way related to  any interactions between Meyer and the Releasees; (b) any and all Claims relating to or arising out of Meyer’s employment with the Company and/or his separation of employment from the Company and/or any of its parent, subsidiary or affiliated entities; (c) any and all Claims for any wages, benefits, severance, vacation, bonuses, commissions, equity, expense reimbursements, or other compensation or benefits arising out of Meyer’s employment with the Company; (d) any and all Claims for any wrongful discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied (including but not limited to claims arising of the Company’s offer letter to Meyer that he signed on or about September 26, 2016 (the “Offer Letter”); breach of covenant of good faith and fair dealing, both express and implied; promissory 

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estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; personal injury; invasion of privacy; false imprisonment; and conversion; (e) any violation of any federal, state or municipal law, constitution, regulation, ordinance or common law, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Americans with Disabilities Act of 1990; the Fair Labor Standards Act; the Employee Retirement Income Security Act of 1974; the federal Family Medical Leave Act; the California Business and Professions Code; the California Family Rights Act; the California Fair Employment and Housing Act; and the California Labor Code; and all amendments to each such law; (f) any right to recover attorneys' fees, costs and/or penalties; and (g) any transactions, occurrences, acts, statements, disclosures, or omissions occurring prior to the time and date that Meyer signs this Agreement; provided, however, that this Agreement is not intended to nor does it release or waive (i) claims relating to the validity of this Agreement; (ii) claims by either Party to enforce this Agreement; (iii) any rights to payment of benefits that Meyer may have under a retirement plan sponsored or maintained by the Company that is intended to qualify under Section 401(a) of the Internal Revenue Code of 1986, as amended; (iv) claims that Meyer is entitled to pursue as a shareholder of the Company; (v) claims to enforce the obligation of the Company or its insurers to advance costs and expenses and indemnify Meyer to the fullest extent permitted by law with respect to Meyer’s actions and omissions as an employee, officer and director of the Company; and (vi) any claim which cannot be waived or released as a matter of applicable law.  Meyer acknowledges that he may hereafter discover claims or facts in addition to or different from those which he now knows or believes to exist with respect to the subject matter of this Agreement and which, if known or suspected at the time of executing this Agreement, may have materially affected this release.  Nevertheless, Meyer hereby waives any right, claim, or cause of action that might arise as a result of such different or additional claims or facts.  

7.ADEA WAIVER.  Meyer expressly acknowledges and agrees that, by entering into this Agreement, he is waiving any and all rights or claims that he may have arising under the Age Discrimination in Employment Act of 1967, as amended by the Older Workers Benefit Protection Act of 1990 (the "ADEA"), which have arisen on or before the date of execution of this Agreement.  Meyer also expressly acknowledges and agrees that: (a) in return for this Agreement, Meyer will receive consideration, i.e., something of value, beyond that to which he was already entitled before entering into this Agreement; (b) he is hereby advised in writing by this Agreement to consult with an attorney before signing this Agreement and has in fact so consulted; (c) when given a copy of this Agreement, Meyer was informed that he had twenty-one (21) days within which to consider it and that any changes to the Agreement, whether material or immaterial, will not renew, extend or modify the 21-day period to consider this Agreement; (d) Meyer was informed that he has seven (7) days following the date he executes the Agreement in which to revoke it and that any such revocation must be delivered to the Company to the attention of the Company's Chief Executive Officer, Phil Hurst; and (e) nothing in this Agreement prevents or precludes Meyer from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs from doing so, unless specifically authorized by federal law.  Meyer further understands, agrees, and represents that if he elects to execute this Agreement before the twenty-one (21) day reflection period expires, he does so voluntarily after consultation with counsel, and that this Agreement shall not become effective until the seven day revocation period has expired.  

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In the event that Meyer exercises his right to revoke this Agreement, it will be null and void and neither the Company nor Meyer will have any rights or obligations under this Agreement.  

8.SECTION 1542 WAIVER.  Meyer acknowledges and agrees that, by signing this Agreement, he intends for the general release of claims in Section 6 above to extend to each and every claim, demand and cause of action hereinabove specified, including but not limited to claims that are unknown or unsuspected by Meyer.  In so doing, Meyer expressly acknowledges and agrees that he is knowingly waiving rights he may have under any applicable state, federal or local law that restricts the right of a person to waive unknown or unsuspected claims, including but not to California Civil Code Section 1542, which provides as follows: 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”  

9.NO CLAIMS FILED OR ASSIGNED.  Meyer represents and warrants that he has not filed any complaints, charges, lawsuits, or other legal actions with any court or government agency against the Company or otherwise relating to any claims being released by him in Paragraphs 6, 7, and/or 8 of this Agreement.  Meyer further represents and warrants that he has not heretofore assigned or transferred to any person not a party to this Agreement any released matter.  Notwithstanding anything to the contrary herein, nothing in this Agreement is intended to and shall not prevent, limit or discourage Meyer from filing a claim or charge with, or initiating or participating in an investigation by or a proceeding before, any federal, state or local governmental agency, including any federal, state or local fair employment practices agency, criminal law enforcement authorities, the U.S. Securities and Exchange Commission or any other federal, state or local agency charged with the enforcement of any laws or regulations, or any self-regulatory organization, including by providing documents or any other information.

10.CONFIDENTIALITY OF AGREEMENT.  The Parties understand and agree that this Agreement will need to be filed with the Securities and Exchange Commission and that its confidentiality cannot be protected. 

11.TRANSITION SERVICES.  During the two month period following the Effective Date, Meyer acknowledges and agrees that he will assist in the transition of his duties in an amount not to exceed eight (8) hours in any week as may be requested by the Company’s Chief Executive Officer.  Unless specifically requested by the Company’s Chief Executive Officer, Meyer shall not perform any such services from the Company’s offices and may perform such services remotely by email and/or telephone.  The exclusive consideration for the foregoing transition services shall be the compensation set forth above in Section 3.

12.LITIGATION/AUDIT COOPERATION.  Following the Separation Date, Meyer shall reasonably cooperate with the Company or any of its parent, subsidiaries or affiliates (“Company Group”) in connection with: (a) any actual or threatened internal or governmental investigation or administrative, regulatory, arbitral or judicial proceeding involving the Company or any member of the Company Group with respect to matters relating to Meyer’s employment 

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with the Company or any member of the Company Group (collectively, “Litigation”); or (b) any audit of the financial statements of the Company or any member of the Company Group with respect to the period of time when Meyer was employed by any member of the Company Group (“Audit”).  Meyer acknowledges that such cooperation may include, but shall not be limited to, Meyer making himself available to the Company or any other member of the Company Group (or their respective attorneys or auditors) upon reasonable notice for: (i) interviews, factual investigations, and providing declarations or affidavits that provide truthful information in connection with any Litigation or Audit; (ii) appearing at the request of the Company or any member of the Company Group to give testimony without requiring service of a subpoena or other legal process; (iii) volunteering to the Company or any member of the Company Group pertinent information related to any Litigation or Audit; and (iv) providing information to the auditors of the Company or any member of the Company Group, in a form and within a time frame requested by the Board, with respect to the Company or any member of the Company Group’s opening balance sheet valuation of intangibles and financial statements for the period in which Meyer was employed by the Company or any member of the Company Group.  In addition, if Employee receives notice from a third party (excluding government entities) that Meyer is required to provide testimony or documents, Meyer will provide the Company with written notice of the request as promptly as practicable, unless prohibited by applicable law, and thereafter Meyer shall cooperate with the Company in responding (if necessary) to such request.

13.RETURN OF PROPERTY.  Upon the Separation Date, (a) Meyer shall promptly return all Company property, including but not limited to any keys, card keys, computers, phones, tablets, electronic storage devices, computer and/or phone equipment, and any other property issued to Meyer by the Company or obtained by Meyer from the Company and (b) Meyer shall return -- and not retained copies of—any and all documents that contain Company Confidential Information (as defined below in Section 14), including but not limited to any documents stored electronically on any computer, email account, mobile phone, tablet, electronic storage device, or cloud computing software (such as Dropbox or Google Drive), as well any emails, instant messages, Excel spreadsheets, PowerPoint presentations, or other documents or correspondence that contain Company Confidential Information.

14.CONFIDENTIAL INFORMATION.  Following the Separation Date, Meyer shall not use or disclose any Company Confidential Information without the advance written consent of an authorized officer of the Company.  For purposes of this Agreement, "Company Confidential Information" means any confidential, proprietary or trade secret information of the Company, as well as any confidential, proprietary or trade secret information of any of the Company's actual or prospective customers, vendors, partners or shareholders that Meyer received in connection with Meyer's employment with the Company and to which the Company owes an obligation to keep such information confidential.  Without limiting the foregoing, "Company Confidential Information" includes but is not limited to information that is not generally known to the public and that is or was used, developed or obtained by the Company in connection with its business, including, but not limited to, information, observations and data obtained by Meyer or to which Meyer gained access while employed by the Company concerning (i) the business or affairs of the Company, (ii) products or services, (iii) revenues, costs and pricing structures, (iv) designs, (v) analyses, (vi) drawings, photographs and reports, (vii) computer software, including operating systems, applications and program listings, (viii) flow charts, manuals and documentation, (ix) data bases, (x) accounting and business methods, 

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(xi) inventions, devices, new developments, methods and processes, whether patentable or unpatentable and whether or not reduced to practice, (xii) customers and clients (and customer or client lists), (xiii) customer preferences and contact information, (xiv) the personnel information of other employees (including, but not limited to, skills, performance, discipline, and compensation), (xv) copyrightable works, (xvi) all production methods, processes, technology and trade secrets, and (xvii) all similar and related information in whatever form.    Meyer understands that, consistent with the Defend Trade Secrets Act of 2016, nothing in this Agreement is intended to limit Meyer's right (i) to disclose the Company’s trade secrets in a confidential manner either to a federal, state or local government official or to an attorney where such disclosure is solely for the purpose of reporting or investigating a suspected violation of law, or (ii) to disclose the Company’s trade secrets in an anti-retaliation lawsuit or other legal proceeding, so long as that disclosure or filing is made under seal and Meyer does not otherwise disclose such trade secrets, except pursuant to court order..

15.NON-SOLICITATION.  For a period of twelve (12) months following the Separation Date, Employee will not, directly or indirectly, (a) solicit, encourage, or induce any employee or independent contractor of the Company (or any of its parent, subsidiaries or affiliates) to terminate his or her employment or independent contractor relationship with the Company (or any of its parent, subsidiaries or affiliates) or (ii) solicit, encourage or induce any employee or independent contractor of the Company (or any of its parent, subsidiaries or affiliates) (including any such individual’s employment or consulting relationship ended within the six (6) months preceding such solicitation) to become employed or engaged by any other person or entity.  Employee acknowledges and agrees that the covenants in this Section 15 are reasonable and necessary to protect the Company’s confidential information and trade secrets, goodwill, and stable workforce.

16.NON-DISPARAGEMENT.  Following the Separation Date, Employee shall not make any oral or written statement that disparages or criticizes the Company or its parent, subsidiary or affiliated entities (“Affiliates”), or any of their respective officers, directors, employees, products or services.   Notwithstanding anything to the contrary herein, nothing in this Agreement shall prohibit Employee from providing truthful testimony in response to any court or arbitral order, subpoena, or government investigation or from providing truthful information to any governmental, regulatory or administrative agency.

17.INJUNCTIVE RELIEF.  Employee agrees that it would be difficult or impossible to measure the damage to the Company from any breach by Employee of the covenants set forth in Sections 13, 14, 15 or 16 of this Agreement; that damages to the Company for any such injury would therefore be an inadequate remedy for any such breach, and that such breach would cause irreparable harm to the Company.  Employee agrees that in the event of a breach of the terms of any such Section, the Company will be entitled to injunctive relief (including a temporary restraining order, preliminary injunction or permanent injunction) or other appropriate equitable relief to restrain any such breach, in addition to and without limitation upon all other remedies available to the Company for such breach.

18.INTEGRATED AGREEMENT.  Except for the RSU Agreements and the Option Agreements (as amended herein in Section 3), this Agreement constitutes and contains the entire agreement and understanding between Meyer and the Company concerning the subject 

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matter herein, and supersedes and replaces all prior negotiations and all agreements proposed or otherwise, whether written or oral, concerning the same.  This is an integrated document.

19.NO ADMISSIONS.  The parties understand and agree that while this Agreement resolves all issues between Meyer and the Company, it does not constitute an admission by the Company of any  violation of federal, state or local law, ordinance, or regulation, or of any violation of the Company’s policies or procedures, or of any liability or wrongdoing whatsoever.  Neither this Agreement nor anything in this Agreement shall be construed to be or shall be admissible in any proceeding as evidence of liability or wrongdoing by the Company.

20.COUNTERPARTS.  This Agreement may be executed in counterparts, and each counterpart shall have the same force and effect as an original and shall constitute an effective, binding Agreement on the part of each of the undersigned.  Either party may execute this Agreement by signing on the designated signature block below, and by transmitting such signature page via facsimile or e-mail (via PDF format) to the other party.  Any signature made and transmitted by facsimile or e-mail (via PDF format) for the purpose of executing this Agreement shall be deemed an original signature for purposes of this Agreement, and shall be binding upon the party transmitting its or his signature by facsimile or e-mail (via PDF format).

21.SEVERABILITY.  If any provision of this Agreement or the application thereof is held invalid, such invalidation shall not affect other provisions or applications of this Agreement and to this end, the provisions of this Agreement are declared to be severable.

22.DRAFTING.  Each party has cooperated in the drafting and preparation of this Agreement.  Hence, in any construction or interpretation of this Agreement, the same shall not be construed against any party on the basis that the party was the drafter.

23.GOVERNING LAW.  The rights and obligations of the parties hereunder shall be construed and enforced in accordance with, and shall be governed by, the laws of the State of California, without regard to principles of conflict of laws, and the parties hereby consent to personal jurisdiction and proper venue in the Superior Court of the State of California, County of San Francisco, for purposes of enforcing or interpreting this Agreement.  In a suit brought by either party to enforce this Agreement, the prevailing party will be entitled to the award of  reasonable attorneys’ fees expended to enforce this Agreement.

24.MODIFICATION.  This Agreement cannot be modified except in writing signed by Meyer and an authorized officer of the Company.

25.SECTION 409A.  It is intended that any amounts payable under this Agreement shall either be exempt from or comply with Section 409A of the U.S. Internal Revenue Code (including the Treasury regulations and other published guidance relating thereto) (“Section 409A”) so as not to subject Meyer to payment of any additional tax, penalty or interest imposed under Section 409A.  The provisions of this Agreement shall be construed and interpreted consistent with that intent.  Without limiting the generality of the foregoing, to the extent necessary to comply with Internal Revenue Code Section 409A, any payment to which Meyer becomes entitled under this Agreement, or any arrangement or plan referenced in this Agreement, that constitutes “deferred compensation” under 409A and is (i) payable upon 

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Meyer’s termination; (ii) at a time when Meyer is a “specified employee” as defined by 409A shall not be made until the earlier of (a) the expiration of the six month period (the “Deferral Period”) measured from the date of Meyer’s “separation from service”; or (b) the date of Meyer’s death. Upon the expiration of the Deferral Period, all payments that would have been made during the Deferral Period (whether in a single lump sum or in installments) shall be paid as a single lump sum to Meyer or, if applicable, his beneficiary.  For purposes of this Section, amounts that constitute “separation pay” in accordance with Internal Revenue Code Regulations Section 1.409A-1(b)(9)(iii) shall not be subject to the Deferral Period.  Each payment under this Agreement or otherwise shall be treated as a separate payment for purposes of Code Section 409A.  Meyer represents and warrants that he has consulted with his own tax advisors and counsel in connection with this Agreement and is not relying on the Company, the Company’s counsel, or any Releasee for tax advice as to the matters covered by this Agreement, including by way of example but not of limitation the payments set out in Paragraph 3.

26.VOLUNTARY AND KNOWING AGREEMENT.  By their authorized signatures below, Meyer and the Company certify that they have carefully read and fully considered the terms of this Agreement, that they have had an opportunity to discuss these terms with attorneys or advisors of their own choosing, that they agree to all of the terms of this Agreement, that they intend to be bound by them and to fulfill the promises set forth herein, and that they voluntarily and knowingly enter into this Agreement with full understanding of its binding legal consequences.

27.NOTICES.  Any written notice to the Parties required under this Agreement should be mailed to the following:

 

	
To Meyer:
	
Evan B. Meyer

	
 
	
 

	
To the Company:
	
Truett-Hurst, Inc.

	
 
	
5610 Dry Creek Road

	
 
	
Healdsburg, California 95448

	
 
	
Attention: President, Chief Executive Officer

 

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have caused this Agreement to be executed as of the dates set forth below.

 

			
	
/s/ Evan B. Meyer
	
 
	
3/29/2018

	
By:    Evan B. Meyer
	
 
	
Date

	
 
	
 
	
 

	
/s/ Phil Hurst
	
 
	
3/29/2018

	
By:   Phil Hurst
	
 
	
Date

	
         Chief Executive Officer
	
 
	
 

	
         Truett-Hurst, Inc.
	
 
	
 

 

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AGREEMENT

 

This
LOAN AGREEMENT (this “Agreement”), dated January 9, 2018 (the “Effective Date”), is entered into by and
between Immune Therapeutics, Inc., a Florida corporation (“Borrower”), and Joel Yanowitz (‘‘Lender”).

 

RECITALS

 

WHEREAS,
Borrower has requested that Lender provide Borrower with a term loan bearing interest at a fixed rate as more particularly described
in this Agreement; and

 

WHEREAS,
Lender has agreed to make such a loan, subject to the terms and conditions set forth herein and in the other Loan Documents (as
defined below).

 

NOW,
THEREFORE, in consideration of the foregoing, the mutual covenants and agreements herein contained and other good and valuable
consideration the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

 

1.
AMOUNT AND TERMS OF THE LOAN

 

1.
The Loan. The “Loan” hereunder shall mean the loan by Lender to Borrower in the total principal amount of fifty
thousand dollars ($50,000).

 

1.2
The Note. The Loan shall be evidenced by a Promissory Note in substantially the form attached hereto as Exhibit A (the “Note”),
which Note shall be executed by Borrower as of the Effective Date.

 

1.3
Payment of Principal and Interest.

 

(a)
The outstanding principal balance of the Loan shall bear interest at the rate of twelve percent (12%) per annum. Interest on the
Loan shall be calculated based on a 360-day year and the actual number of days elapsed.

 

(b)
The principal balance of the Loan and all accrued interest shall become due and payable ninety (90) from the Effective Date (the
“Term”); provided however, that the principal balance of the Loan and all accrued interest shall be paid earlier
as follows:

 

(i)
If Borrower receives investment capital in an amount equal to or greater than one million five hundred thousand dollars ($1,500,000)
during the Term, principal and accrued interest under the Loan shall become immediately due and payable;

 

(ii)
Upon the receipt of gross revenues by borrower equaling or greater than one million five hundred thousand dollars ($1,500,000)
during the Term, Borrower shall pay Lender in monthly installments five percent (5%) of gross revenues received on the outstanding
principal and accrued interest on the last day of each month beginning the first month after the Borrower has received total gross
revenues of $1,500,000 or more.

 

(c)
Nothing contained herein shall be deemed to require the payment of interest at a rate in excess of the maximum rate permitted
by applicable law. In the event that the amount required to be paid hereunder for any calendar month exceeds the maximum rate
permitted by law, such amounts shall be automatically reduced for such month to the maximum rate permitted by applicable law.

 

    	 Page 1 of 6	 	_________ / ________

    	 

    

 

1.5
Prepayment. Upon three (3) business days’ prior written notice to Lender, Borrower may prepay all or any part of
the Loan, including interest, without penalty or premium at any time and from time to time.

 

1.6
Acceleration. Immediately upon the occurrence of any Event of Default (as defined in Section 6.1) and during any continuance
thereof, Lender may declare the Loan, all interest thereon and all other amounts and obligations payable to be forthwith due and
payable to Lender or may take any other action as provided in Section 6.2 herein.

 

1.7
Payment Procedures. All payments made by Borrower under this Agreement shall be made to Lender by wire transfer in U.S.
dollars in immediately available funds to such bank account as shall be designated by Lender in writing from time to time.

 

2.
EFFECTIVENESS

 

2.1
Effectiveness. This Agreement and the Note and (collectively: the “Loan Documents”) shall not become effective
until (a) all parties hereto have executed and delivered a counterpart hereof (including by way of facsimile transmission or by
electronic transmission in PDF format), and (b) the conditions precedent set forth in Section 4 hereof shall have been satisfied.

 

3.
REPRESENTATIONS AND WARRANTIES OF BORROWER

 

Borrower
represents and warrants to Lender the following:

 

3.1
Authority. Borrower has the requisite legal capacity to borrow money, to execute, deliver and perform each of the Loan
Documents to which it is a party and all other documents, certificates and instruments delivered in connection therewith, and
to effect and carry out the transactions contemplated herein and therein. Each Loan Document has been duly authorized and, when
executed and delivered, will be a valid and legally binding instrument enforceable against Borrower in accordance with its terms.
The execution and delivery of the Loan Documents and the consummation of the transactions contemplated thereby will not (immediately
or with the passage of time, or the giving of notice) violate (a) any law, order, rule or regulation or deten11ination of an arbitrator,
a court, or other governmental agency, applicable or binding upon Borrower or any of Borrower’s property or as to which
Borrower or any of Borrower s property is subject (collectively, “Requirement of Law”), or (b) any provision of any
agreement, instrument, or undertaking to which Borrower is a party. No consents, approvals or other authorizations or notices,
other than those which have been obtained and are in full force and effect, are required by any state or federal regulatory authority
or other person or entity (“Person”) in connection with the execution and delivery of the Loan Documents and the performance
of any obligations contemplated thereby.

 

3.2
Litigation. There are no actions, suits, proceedings or governmental investigations or inquiries pending, or to the best
knowledge of Borrower threatened, against Borrower or Lender, that could, if adversely determined, have a material adverse effect
on the performance of any obligation contemplated in or arising under the Loan Documents (“Material Adverse Effect”).

 

3.3
Full Disclosure. No written statement prepared or furnished to Lender in connection with the transactions contemplated
hereby (including, without limitation, financial statements) by or on behalf of Borrower: when all such statements are taken as
a whole, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained
therein not misleading. All facts known to Borrower which are material to an understanding of the financial condition, business,
properties or prospects of Borrower have been disclosed to Lender.

 

    	 Page 2 of 6	 	_________ / ________

    	 

    

 

4.
CONDITIONS PRECEDENT

 

The
effectiveness of this Agreement is subject to the satisfaction of the following conditions precedent:

 

4.1
Documents. Lender shall have received the following, validly executed to the satisfaction of the Lender: (a) this Agreement;
and (b) the Note.

 

4.2
Compliance with Covenants. Borrower shall have complied with and performed all of Borrower’s covenants and obligations
under the Loan Documents.

 

4.3
Related Information. Borrower shall have provided to Lender in form satisfactory to Lender such other financial information
relating to Borrower as requested by Lender.

 

5.
COVENANTS OF BORROWER

 

5.1
Certain Affirmative Covenants. Borrower covenants and agrees that until full and complete performance by Borrower of all
obligations arising under the Loan and the Loan Documents, Borrower shall:

 

(a)
Cooperate with Lender and execute such further instruments and documents as Lender shall reasonably request to can-y out to its
satisfaction of the transactions contemplated by the Loan Documents;

 

(b)
As soon as possible and in any event within two (2) business days after acquiring knowledge thereof notify Lender in writing of
the occurrence of any Event of Default; and

 

(c)
Promptly provide Lender with such other information respecting condition or operations, financial or othe1wise, of Borrower as
Lender may from time to time reasonably request.

 

5.2
Compliance with Laws. Borrower shall comply in all material respects with all Requirements of Law, contractual obligations,
commitments, instruments, licenses, and permits.

 

5.3
Reporting Requirements. Borrower shall furnish to Lender, promptly after the commencement thereof notice of all actions,
suits and proceedings before any domestic or foreign governmental authority or arbitrator, affecting Borrower, except those which
in the aggregate, if adversely determined, would have no Material Adverse Effect;

 

6.
EVENTS OF DEFAULT; ACCELERATION

 

6.1
Events of Default. Each of the following shall constitute an “Event of Default”

 

(a)
Borrower shall fail to make any payment of principal or interest on the Loan or other amounts due under the Loan Documents within
fifteen (15) days of the date, which such payment is due;

 

(b)
Borrower shall fail to perform any terms, covenant or agreement contained herein or in any Loan Document and such failure shall
continue for thirty (30) days after the earlier of the date on which (x) Borrower becomes aware of such failure, or (y) written
notice of such failure has been given to Borrower by Lender;

 

(c)
Any representation or warranty of Borrower in any Loan Document shall prove to have been false in any material respect upon the
date when made;

 

    	 Page 3 of 6	 	_________ / ________

    	 

    

 

(d)
Borrower shall (i) apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee
or liquidator, (ii) make a general assignment for the benefit of Borrower creditors, (iii) commence a voluntary case under the
United States Bankruptcy Code (as now or hereafter in effect), (iv) file a petition seeking to take advantage of any other law
of any jurisdiction relating to bankruptcy, insolvency, or composition or readjustment of debts, (v) fail to controvert in a timely
and appropriate manner, or acquiesce in writing to, any petition filed against Borrower in an involuntary case under the United
States Bankruptcy Code, or (vi) take any action for the purpose of effecting any of the foregoing; or

 

(e)
A proceeding or case shall be commenced, without the application or consent of Borrower, in any court of competent jurisdiction,
seeking (i) the liquidation of Borrower’s assets, or the composition or readjustment of Borrower’s debts, (ii) the
appointment of a trustee, receiver, custodian, liquidator or the like of any substantial part of Borrower’s assets, or (iii)
similar relief in respect of Borrower under any law of any jurisdiction relating to bankruptcy, insolvency, or the composition
or readjustment of debts, and such proceedings or case shall continue undismissed, or an order, judgment or decree approving or
ordering any of the foregoing shall be entered and continue unstayed and in effect for a period of sixty (60) days; or an order
for relief against the Borrower shall be entered in an involuntary case under any bankruptcy, insolvency, composition, readjustment
of debt, liquidation of assets or similar law of any jurisdiction.

 

6.2
Remedies Upon Default. Immediately upon the occurrence of any Event of Default and during the continuance thereof, Lender
may declare the Loan, all interest thereon and all other amounts and obligations payable under any Loan Document to be due and
payable, without presentment, demand, protest or further notice of any kind, all of which are expressly waived by Borrower.

 

6.3
Default Penalty. Not-with-standing any other remedy, if Borrower shall fail to make to make any payment of principal or
interest on the Loan or other amounts due under the Loan Documents within fifteen (15) days of the date, which such payment is
due, then there shall be an additional penalty of 5% per month of the outstanding balance then due.

 

7.
ARBITRATION

 

7.1
AGREEMENT TO BINDING ARBITRATION. THE PARTIES AGREE THAT ANY

 

CONTROVERSY
OR CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE BREACH THEREOF SHALL AT EITHER PARTIES
ELECTION, BE SUBMITTED TO ARBITRATION BEFORE THE AMERICAN ARBITRATION ASSOCIATION IN ACCORDANCE WITH THE COMMERCIAL ARBITRATION
RULES OF THE AMERICAN ARBITRATION ASSOCIATION, AND JUDGMENT ON THE AWARD RENDERED BY THE ARBITRATOR MAY BE ENTERED IN ANY COURT
HAVING JURISDICTION THEREOF. EITHER PARTY MAY OBTAIN PROVISIONAL OR ANCILLARY REMEDIES SUCH AS INJUNCTIVE RELIEF OR THE APPOINTMENT
OF A RECEIVER, OR EXERCISE SELF-HELP, AT ANY TIME WITHOUT WAIVING ITS RIGHT TO ARBITRATION.

 

8.
MISCELLANEOUS

 

8.1
Governing Law; Submission to Jurisdiction. This Agreement and the Note are contracts under the laws of the State of Florida
and shall for all purposes be governed by and construed in accordance with the laws of the State of Florida, without regard to
its principals of conflicts of laws. Borrower and Lender hereby submit to the nonexclusive jurisdiction of any Florida state or
federal court sitting in Orlando for the purposes of all legal proceedings arising out of or relating to this Agreement or the
transactions contemplated hereby. Borrower and Lender irrevocably waive, to the fullest extent pern1itted by applicable law, any
objection that Borrower or Lender may now or hereafter have to laying of the venue of any such proceedings brought in such a court
and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum.

 

    	 Page 4 of 6	 	_________ / ________

    	 

    

 

8.2
Waiver of Jury Trial. BORROWER AND LENDER HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY
AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

 

8.3
Further Assurances. Borrower shall, at any time, and from time to time, upon the written request of Lender, execute and
deliver such further documents and do such further acts and things as Lender may reasonably request to effect the purposes of
this Agreement.

 

8.4
Waivers. No course of dealing between Borrower and Lender, nor any failure to exercise, nor any delay in exercising, any
right, power or privilege of Lender hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any
right, power, or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power
or privilege.

 

8.5
Rights Cumulative. The rights and remedies provided herein, and under the Note, and in all other agreements, instruments,
and documents delivered pursuant to or in connection with this Agreement, and by applicable law are cumulative and are in addition
to and not exclusive of any other rights or remedies provided by law.

 

8.6
Severability. The provisions of this Agreement are severable. If any clause or provision hereof shall be held invalid or
unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only such clause
or provision or pa1t thereof in such jurisdiction and shall not in any manner affect such clause or provision in any other jurisdiction
or any other clause or provision in this Agreement in any jurisdiction.

 

8.7
Notices. All notices and other communications made or required to be given pursuant to the Loan Documents shall be in writing
and shall be deemed given if delivered personally, by facsimile transmission or by electronic transmission in PDF format, or delivered
by overnight courier service, or mailed by registered or ce11ified mail {return receipt requested), postage prepaid, to the parties
at the following addresses (or at such other address for a party as shall be specified by like notice; provided that notices of
a change of address shall be effective only upon receipt thereat):

 

If
to Borrower:

 

Immune
Therapeutics, Inc.

37 North Orange Ave., Suite 607

Orlando, Florida 32801

Fax
number: (866) 514-4807

Phone:
(888) 613-8802

 

If
to Lender:

 ____________________________

 ____________________________

 ____________________________

 

    	 Page 5 of 6	 	_________ / ________

    	 

    

 

8.8
Successors and Assign. This Agreement shall inure to the benefit of and shall be binding upon the successors and assigns
of the parties hereto; provided, however, that Borrower may not assign any rights or obligations hereunder without the written
consent of Lender.

 

8.9
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of
which shall constitute one document.

 

8.10
Termination. This Agreement shall terminate upon iI1·evocable payment in cash in full of all obligations hereby.

 

8.11
Entire Agreement. This Agreement and the other Loan Documents executed and delivered contemporaneously herewith, together
with the exhibits and schedules attached hereto and thereto, constitute the entire understanding of the parties with respect to
the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, with respect thereto are
expressly superseded hereby. In the event that the provisions of this Agreement shall conflict with provisions of any of the other
Loan Documents, the provisions of this Agreement shall control.

 

IN
WITNESS WHEREOF, the parties hereby have caused this Agreement to be duly executed and delivered as of the day and year first
above written.

 

	Borrower:
    Immune Therapeutics, Inc. 	 	Lender:
    Joel Yanowitz
	 	 	 	 
	By:
    	 	 	 
	 	Noreen
    Griffin, Chief Executive Officer	 	 

 

    	 Page 6 of 6	 	_________ / ________

    	 

    

 

Exhibit
A

 

PROMISSORY
NOTE

 

	$50,000	January 9, 2018

 

FOR
VALUE RECEIVED, the undersigned, Immune Therapeutics, Inc., a Florida corporation (“Borrower”), promises to pay to
the order of Joel Yanowitz (“Lender”), the principal sum of fifty thousand dollars ($50,000), together with interest
upon the unpaid principal balance (the “Loan”), at the rate hereinafter specified, said principal and interest being
payable as follows:

 

The
outstanding principal balance of the Loan shall bear interest at the rate of twelve percent (12%) per annum. Interest on the Loan
shall be calculated on the basis of a 360-day year and the actual number of days elapsed.

 

The
principal balance of the Loan and all accrued interest shall become due and payable ninety (90) days from the Effective Date,
without extension; provided, however, that the principal balance of the Loan and all accrued interest shall be paid earlier as
follows:

 

(i)
If Borrower receives investment capital in an amount equal to or greater than one million five hundred thousand dollars ($1,500,000)
during the Term, principal and accrued interest under the Loan shall become immediately due and payable;

 

(ii)
If Borrower uplists its common stock to a global or national exchange for buying and selling its common stock during the Term,
principal and accrued interest under the Loan shall become immediately due and payable; or

 

(iii)
Upon the receipt of gross revenues by Borrower equaling or greater than one million five hundred thousand dollars ($ 1,500,000)
during the Term, Borrower shall pay Lender in monthly installments five percent (5%) of gross revenues received on the outstanding
principal and accrued interest on the last day of each month beginning the first month after the Borrower has received total gross
revenues of $1,500,000 or more.

 

This
Promissory Note (the “Note’’) is being issued pursuant to that certain Loan Agreement, dated of even date herewith,
between Borrower and Lender (the “Loan Agreement”). Capitalized terms not otherwise defined herein shall have the
meaning ascribed to such terms in the Loan Agreement.

 

All
interest and the principal hereof shall be paid to Lender by wire transfer in U.S. dollars in immediately available funds to such
bank account as shall be designated by Lender in writing from time to time.

 

If
Borrower shall fail to make payment of any installment of principal and interest, within fifteen (15) days of its due date, or
upon the occurrence of any other Event of Default under the Loan Agreement or this Note, then and in any such event, the entire
unpaid principal balance of the indebtedness evidenced hereby, together with all interest then accrued, shall, at the absolute
option of Lender, at once become due and payable, without demand or notice, the same being expressly waived and Lender may exercise
any right, power or remedy permitted by law or equity, or as set forth herein or in the Loan Agreement or any other Loan Document.
Further, if Borrower shall fail to make to make any payment of principal or interest on the Loan or other amounts due under the
Loan Documents within fifteen (15) days of the date, which such payment is due, then there shall be an additional penalty of 5%
per month of the outstanding balance then due.

 

Lender
and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower
against the other. Borrower waives protest, demand, presentment, and notice of dishonor, and agrees that this Note may be extended,
in whole or in part, without limit as to the number of such extensions or the period or periods thereof, without notice to it
and without affecting its liability thereon. The liability of Borrower shall be absolute and unconditional and without regard
to the liability of any other party hereto.

 

    	 Promissory Note Page 1 of 2	 	_________ / ________

    	 

    

 

It
is the intention of Lender and Borrower to comply strictly with applicable usury laws; and, accordingly, in no event and upon
no contingency shall Lender ever be entitled to receive, collect, or apply as interest any interest, fees, charges or other payments
equivalent to interest, in excess of the maximum effective contract rate which Lender may lawfully charge under applicable statutes
and laws from time to time in effect; and in the event that Lender ever receives, collects, or applies as interest any such excess,
such amount which, but for this provision, would be excessive interest, shall be applied to the reduction of the principal amount
of the indebtedness hereby evidenced; and if the principal amount of the indebtedness evidenced hereby, all lawful interest thereon
and all lawful fees and charges in connection therewith, are paid in full, any remaining excess shall forthwith be paid to Borrower,
or other party lawfully entitled thereto. All interest paid or agreed to be paid by Borrower shall, to the maximum extent permitted
under applicable law, be amortized, prorated, allocated and spread throughout the full period until payment in full of the principal
so that the interest hereon for such full period shall not exceed the maximum amount permitted by applicable law. The provisions
of this paragraph shall be given precedence over any other provision contained herein or in any other agreement between Lender
and Borrower that is in conflict with the provisions of this paragraph.

 

This
Note shall be governed and construed according to the statutes and laws of the State of Florida from time to time in effect.

 

Upon
three (3) business days’ prior written notice to Lender, Borrower shall have the right to prepay the indebtedness evidenced
hereby in whole or in part by paying the principal amount being prepaid plus accrued interest.

 

The
invalidity or unenforceability of any one or more provisions of this Note shall not render any other provision invalid or unenforceable.
The parties hereto shall negotiate in good faith to replace such invalid or unenforceable provision with a valid and enforceable
provision to effect the original intent of the parties in a mutually acceptable manner; provided, however, that if the parties
cannot agree on such provision after negotiating in good faith within a reasonable period of time under the circumstances, in
lieu of any invalid or unenforceable provision, there shall be added automatically a valid and enforceable provision as similar
in terms to such invalid or unenforceable provision as may be possible.

 

The
covenants, conditions, waivers, releases and agreements contained in this Note shall bind, and the benefits thereof shall inure
to, the parties hereto and their respective heirs, executors, administrators, successors and assigns; provided, however, that
this Note cannot be assigned by Borrower without the prior written consent of Lender, and any such assignment or attempted assignment
by Borrower without consent shall be void and of no effect with respect to Lender.

 

Subject
to the Loan Agreement, Lender may from time to time assign, in whole or in part, this Note and/or the obligations evidenced hereby.
The holder of any such assignment, if the applicable agreement between Lender and such holder so provides, shall be entitled to
all of the rights, obligations and benefits of Lender as fully as though Borrower were directly indebted to such holder.

 

Borrower
irrevocably appoints each and every officer of Borrower as its attorneys upon whom may be served, by certified mail at the address
set forth in the Loan Agreement, or such other address as may be directed by Borrower, in writing, any notice, process or pleading
in any action or proceeding against it arising out of or in connection with this Note or any other Loan Document; and Borrower
hereby consents that any action or proceeding against it be commenced and maintained in any state or federal court sitting in
Orlando, Orange County, Florida, by service of process on any such officer; and Borrower agrees that such courts of the State
shall have jurisdiction with respect to the subject matter hereof and the person of Borrower. Borrower agrees not to assert any
defense to any action or proceeding initiated by Lender in any such court based upon improper venue or inconvenient forum.

 

Borrower:

 

	Immune
    Therapeutics, Inc.	 
	 	 	 
	By:	 	 
	 	Noreen
    Griffin, Chief Executive	 

 

    	 Promissory Note Page 2 of 2	 	_________ / ________

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