Document:

suncoastnuts1a051908ex10-2.htm

    
      

      

    

    Exhibit
10.2

     

    PRODUCT DISTRIBUTION
AGREEMENT

    

    THIS
DISTRIBUTION AGREEMENT (“Agreement”) is made on the 1st day of
May, 2008 (hereafter, the “Effective Date”), by and between SUNCOAST
NUTRICEUTICALS, INC. (hereinafter, “Supplier”) whose address is 14404 North
Road, Loxahatchee, FL 33470; and

     BETWEEN
THE LINES, INC. (hereafter, “Distributor”) whose address is 237 Railroad Avenue,
Tannersville, NY 12485

    

    RECITALS

    

    
      	
              A.

            	
              Supplier
      has created and markets certain all-natural sun care and skin care
      Products with various brand names and trademarks (hereafter, “Products”)
      which are proprietary to Supplier, and which are set forth in Schedule “A”
      annexed hereto.

            

    

    

    
      	
              B.

            	
              Distributor
      desires that Supplier appoint Distributor as Supplier’s exclusive
      distributorin the following market:

            

    

    ALL
RETAIL AND WHOLESALE CRUISE SHIP SALES ORIGINATING IN THE UNITED STATES, AND ALL
NON-CRUISE SHIP SALES ORIGINATING OUTSIDE THE UNITED STATES, ITS TERRITORIES AND
POSSESSIONS, CANADA, AND MEXICO.

    

    
      	
              C.

            	
              Supplier
      and Distributor also desire that Distributor utilize specific agreed
      channels of distribution as more particularly set forth
      herein.

            

    

    

    NOW, THEREFORE, in
consideration of their mutual promises set forth below and other valuable
consideration, the parties agree as follows:

    

    
      	
              1.

            	
              SCOPE
      OF AGREEMENT

            

    

    

    1.1           Definitions. As used
in this Agreement, the following terms shall have the following
meanings:

    

    a.     “Contract
Year” means any given twelve-month period ending on an anniversary of the
Effective Date.

    

    b.     “Product(s)”
means Supplier’s product(s) set forth in Schedule “A” and any new or improved
versions of the product(s) introduced by Supplier from time to
time.

    

    1.2           Exclusivity. Supplier
hereby appoints Distributor as Supplier’s exclusive distributor in the defined
markets set forth in Recital “B” above, and as a non-exclusive distributor in
all other markets.

    

    

    
      
        
           

        

        
          Distribution
Agreement Page 1

          
            

          

        

        
           

        

      

    

    

    This
Agreement does not grant to Distributor any rights with respect to the
distribution and sale of the Products in any market other than that defined
above. The exclusive right granted Distributor to distribute and sell Products
to the markets set forth herein is expressly made subject to Section 2.1.a
below. Distributor acknowledges and agrees that Supplier has retained for itself
and/or granted to others the rights to distribute and sell the Products in
markets other than that granted Distributor herein.

    

    Accordingly,
Distributor agrees (i) not to distribute or sell Products except in the market
area defined in 1.2, above, through Distributor’s agreed distribution channels
and (ii) to require that each Distributor contractor, agent, representative,
and/or sub-distributor selling or handling Products (“Sub-distributors”) will
comply with the limitations and restrictions imposed by this Section 1.2; and
(iii) to take all reasonable steps to enforce such limitations and restrictions
on the Sub-distributors.

    

    Distributor’s
failure to comply with any of the provisions of this Section 1.2 shall be a
material breach of this Agreement.

    

    1.3           Independent
Contractors. Neither party shall, for any purpose, be deemed to be an
agent of the other party and the relationship between the parties shall only be
that of independent contractors.

    

    1.4           No Other Terms and
Conditions. The parties acknowledge and agree that any terms and
conditions of any purchase order, sales acknowledgement or other document
submitted to the other by either party which conflict with the terms and
conditions of this Agreement shall be of no force or effect, and the terms and
conditions hereof control and supersede such conflicting documents and any
course of conduct or usage of the trade inconsistent with any of the terms and
conditions hereof.

    

    
      	
              2.

            	
              PURCHASE
      AND SALE OF PRODUCT.

            

    

    

    2.1           Purchase and Sale.
Subject to the terms and conditions set forth herein, Supplier agrees to sell
and Distributor agrees to purchase Products in accordance with Distributor’s
purchase orders and this Agreement. In this regard:

    

    a.  Distributor
agrees to purchase and take delivery of not less than the following minimum
quantity of Products (at wholesale price) in each Contract Year:

    

    
      	
              Contract
      Year

            	 	
              Purchase
      Requirement

            	 
	 
      	 	 	 
	
              1st
      Contract Year

            	 	$	500,000	 
	
              2nd
      Contract Year

            	 	$	1,000,000	 
	
              3rd
      - 5th Contract Years

            	 	$	2,000,000	 
	
              Subsequent
      Periods

            	 	$	2,500,000	 

    

    

    

    
      
        
           

        

        
          Distribution
Agreement Page 2

          
            

          

        

        
           

        

      

    

    

    The
foregoing minimum purchase requirement will be satisfied for any given Contract
Year if Distributor’s aggregate purchases of Product  equals or
exceeds the minimum number for that Contract Year. If Distributor fails to meet
or exceed the foregoing minimum purchase requirement in any given Contract Year,
then, as Supplier’s sole remedy, Supplier may elect, by written notice to
Distributor (i) to terminate this Agreement or (ii) to make non-exclusive for
all purposes the sales and distribution rights granted Distributor by Section
1.2.

    

    b.  All
Products will be sold under Supplier’s trademarks and trade-names only, using
Supplier’s trade dress, and Supplier will retain all proprietary rights in and
to the same.

    

    2.2           Purchase Orders and
Forecasts. Within ten (10) days following the execution of this
Agreement, Distributor shall provide Supplier with an initial six (6) months
firm purchase order for the purchase of Products and a forecast of its Product
requirements for the seventh (7th) through twelfth (12th) months thereafter
divided on a monthly basis.   Commencing with the fourth (4th)
month of the first Contract Year and continuing thereafter, Distributor will
provide Supplier, on or before the last day of each calendar month during the
term of this Agreement, an additional firm purchase for Products for the third
full calendar month thereafter and a revised or supplemental forecast of Product
requirements for the fourth (4th) through ninth (9th) months thereafter (unless
the term hereof is shorter), it being the intent that (except for the initial
six months guaranteed purchase order) in general Distributor will provide three
(3) months purchase orders and six (6) months forecasts on a rolling monthly
basis during the term of this Agreement. Distributor’s purchase orders for a
given month, in order to be conforming, must specify only delivery dates during
that month. Distributor’s forecasts are non-binding, but shall be Distributor’s
reasonable best estimate of its future Product requirements.

    

    2.3           Acceptance of Purchase
Orders. Within ten (10) days of receipt of a purchase order from
Distributor, Supplier may request in writing a modification of the Product
designations, quantities, delivery dates, and special shipment instructions
specified thereon. Supplier’s failure to request a modification or to reject a
purchase order within the ten (10) day period shall be deemed an acceptance
thereof. Upon actual or deemed acceptance of a purchase order by Supplier, a
binding contract for the sale and purchase of Product shall exist between
Supplier and Distributor in accordance with this Agreement and Distributor’s
purchase order. If Supplier requests modification of any of the aforementioned
terms of Distributor’s purchase order, then Distributor shall have ten (10) days
following receipt of the request to accept or reject Supplier’s modifications.
If Distributor does not respond or object to Supplier’s request within ten (10)
days of receipt, the modifications specified thereon shall be deemed accepted by
Distributor. Upon Distributor’s actual or deemed acceptance of purchase order
modifications by Supplier, a binding contract for the sale and purchase of
Products shall exist between Supplier and Distributor in accordance with this
Agreement and Distributor’s purchase order as so modified. The foregoing
modification procedure shall apply only with the regard to Product designations,
quantities, delivery dates, and special shipment instructions. With respect to
all other terms, Supplier and Distributor agree that the terms and conditions of
this Agreement shall apply to the sale of Product hereunder and cannot be
modified or amended except as provided in Section 13.8.

    

    
      
        
        

      

      
        Distribution
Agreement Page 3

        
          

        

      

      
        
        

      

    

     

    2.4           Non-Conforming
Orders. Supplier will use reasonable commercial efforts to fill
non-conforming purchase orders for Products in accordance with Distributor’s
requests.

    

    2.5           Shipment. Supplier
will ship Product to Distributor to the delivery destination(s) specified in
Distributor’s purchase orders, but in no event may Supplier be required to ship
to more than TEN different locations within the United States. Supplier shall
arrange prepaid insured common carrier transportation of the Products in
accordance with Distributor’s instructions, at Distributor’s expense. Supplier
may not under-ship or over-ship by more than ten percent (10%) without
Distributor’s prior written consent.

    

    2.6           Delivery, Title and Risk of
Loss. For purposes of this Agreement, delivery to Distributor will occur
when the Products are placed in the possession of the common carrier by
Supplier. Title and risk of loss or damage with respect to the Products shall
pass to Distributor upon delivery by Supplier.

    

    2.7           Packaging for
Shipment. Unless otherwise agreed in advance, all Products shall be
packed by Supplier as Supplier reasonably deems appropriate to minimize risk of
loss or damage in transit.

    

    

    
      	
              3.

            	
              CHANNELS
      OF DISTRIBUTION

            

    

    

    3.1           Agreed channels of
distribution.  For the term of this Agreement, to include all
extensions thereof, the parties specifically agree that Supplier shall have the
unqualified right to approve or disapprove the channels of product distribution
as proposed by the Distributor.

    

    Within
thirty days of the execution of this Agreement and prior to the delivery of any
product to Distributor, Distributor shall submit to Supplier a “Proposed Plan of
Distribution” of the Product.  Within seven days of receipt, Supplier
shall approve or disapprove the “Proposed Plan of
Distribution”.  Although it is agreed that Supplier’s approval shall
not be unreasonably withheld, if the Supplier disapproves a “Proposed Plan of
Distribution”, the Supplier shall specify the basis of it’s disapproval and
shall cooperate in reaching agreement as to a “Plan of
Distribution”.

    

    

    
      	
              4.

            	
              PRICES
      AND PAYMENT.

            

    

    

    4.1           Price. The prices for
the Products (including volume discounts) for the first twelve (12) months of
this Agreement (the first “contract year”) are as set forth on Schedule “C”.
Prices do not include applicable sales or use taxes and shipping costs (freight
and insurance), which shall be separately stated on Supplier’s invoices and born
by Distributor.

    

    
      
        
        

      

      
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Agreement Page 4

        
          

        

      

      
        
        

      

    

     

    4.2           Price Changes. The
prices set forth on Exhibit “C” shall be revised annually, on or before the
start of each Contract Year, to reflect any increase or decrease in
manufacturing costs for the Products reasonably projected by Supplier for the
next Contract Year (in each case, determined in accordance with generally
accepted accounting principles, consistently applied), with the first pricing
review occurring TWELVE months after the Effective Date of this Agreement. Price
changes are not effective unless mutually agreed to in writing (agreement not to
be unreasonably withheld if consistent with this Section 4.2), with the change
being effective with respect to invoices for shipment during the next ensuing
Contract Year.

    

    4.3           Taxes. Distributor
shall be responsible for all VAT, sales, use and other similar taxes applicable
to Product supplied under this Agreement, unless Distributor provides written
proof of exemption.

    

    4.4           Payment. Supplier
shall issue invoices for Product on or after the date of shipment. Payment shall
be due within thirty (30) days from the date of invoice. A late charge at the
rate of one and one-half percent (11⁄2%) per month or the highest rate allowed by
law, whichever is lower, shall be applied to the total invoice price for
payments not received within sixty (60) days

    after the
date of invoice.

    

    

    
      	
              5.

            	
              SPECIFICATIONS,
      QUALITY CONTROL AND ACCEPTANCE.

            

    

    

    5.1           Specification
Changes. Supplier reserves the right to change the Specifications by
written notice to Distributor.

    

    5.2           Quality Assurance.
Supplier shall be responsible for ensuring that the Products meet Supplier’s
internal quality assurance tests and procedures prior to shipment
hereunder.

    

    5.3           Acceptance. Products
shipped hereunder shall be subject to acceptance by Distributor within fifteen
(15) days of receipt. Distributor shall promptly inform Supplier of any Product
rejected as non-conforming and at Supplier’s request shall return non-conforming
Products to Supplier, at Supplier’s risk of loss and expense. Products as to
which no rejection has occurred

    within
fifteen (15) days shall be deemed accepted.

    

    

    
      	
              6.

            	
              PRODUCT
      WARRANTY, DISCLAIMER OF WARRANTIES AND LIMITATION OF
      LIABILITY.

            

    

    

    6.1           Product Warranty.
Supplier warrants to Distributor that the Products purchased hereunder shall be
free from defects in materials and workmanship and shall conform in all material
respect to the Specifications for a period of ninety (90) days from the date of
delivery thereof, provided the Product in question has been stored and used in
accordance with ordinary industry practices and conditions. SUPPLIER DOES NOT
WARRANT THAT THE OPERATION OF THE PRODUCTS WILL BE UNINTERRUPTED OR ERROR
FREE.

    

    
      
        
        

      

      
        Distribution
Agreement Page 5

        
          

        

      

      
        
        

      

    

     

    6.2           Remedies. In the
event that a Product does not comply with the product warranty set out in
Section 7.1 and such non-conforming Product is returned to Supplier within the
warranty period by Distributor freight prepaid, Supplier will replace such
non-conforming Product at no additional charge to Distributor; the replaced
Product will be returned to Distributor, freight

    prepaid.

    

    6.3           Disclaimer of
Warranties. The foregoing express warranties are limited to Supplier and
are not transferable and are in lieu of any other warranty by Supplier with
respect to Products furnished hereunder.

    

    SUPPLIER
GRANTS NO OTHER WARRANTY, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT
LIMITATION, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE.

    

    6.4           Limitation of
Liability. SUPPLIER SHALL IN NO EVENT BE LIABLE FOR ANY INDIRECT,
INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR RELATING TO THE
SALE OR USE OF ITS PRODUCTS, WHETHER OR NOT SUPPLIER HAS ADVANCE NOTICE OF THE
POSSIBILITY OF SUCH DAMAGES. IF SUPPLIER BREACHES ANY PROVISION OF THIS
AGREEMENT, DISTRIBUTOR’S SOLE AND EXCLUSIVE MAXIMUM LIABILITY, WHETHER BASED IN
CONTRACT, TORT, OR OTHERWISE, SHALL NOT IN ANY EVENT EXCEED THE CONTRACT PRICE
FOR THE PARTICULAR PRODUCTS. The foregoing limitation of liability will not
apply to the payment of costs and damage awards referred to in Section 7,
Indemnification.

    

    
      	
              6.5

            	
              Distributor
      assumes full responsibility for its selection of the Products specified
      herein

            

    

    and any
other equipment, programs or services used with the Products, their use, and
results obtained therefrom.

    

    6.6           Within
SEVEN days of the execution of this Agreement and prior to the delivery of any
product to Distributor, Distributor shall submit to Supplier a policy of
liability insurance for general and Products liability in full force and effect
for a period of one year with the Supplier named as a co-insured and providing
for notice to Supplier in the event the policy is canceled for any
reason.

    

    

    
      	
              7.

            	
              INDEMNIFICATION.

            

    

    

    Supplier
shall indemnify, hold harmless and defend Distributor against any action brought
against Distributor to the extent that such action is based on a claim that any
unmodified Product, when used in accordance with this Agreement, infringes a
United States copyright and Supplier shall pay all costs, settlements and
damages finally awarded; provided, that Distributor promptly

    notifies
Supplier in writing of any claim, gives Supplier sole control of the defense
and  settlement thereof and provides all reasonable assistance in
connection therewith. If any Product is finally adjudged to so infringe, or in
Supplier’s opinion is likely to become the subject of such a claim, Supplier
shall, at its option, either: (i) procure for Distributor the right to continue
using

    and
distributing the Product (ii) modify or replace the Product to make it
non-infringing, or (iii) refund the price paid upon return of the Product.
Supplier shall have no liability regarding any claim arising out of: (w) use of
other than a current, unaltered release of the Product unless the infringing
portion is also in the then current, unaltered release, (x) use of the Product
in combination with non-Supplier Products, data or equipment if the infringement
was caused by such use or combination, (y) any modification or derivation of the
Products not specifically authorized in writing by Supplier or (z) use of third
party Products.

    

    THE
FOREGOING STATES THE ENTIRE LIABILITY OF SUPPLIER AND THE EXCLUSIVE REMEDY FOR
DISTRIBUTOR RELATING TO INFRINGEMENT OR CLAIMS OF INFRINGEMENT OF ANY COPYRIGHT
OR OTHER PROPRIETARY RIGHT BY THE PRODUCTS.

    

    
      
        
        

      

      
        Distribution
Agreement Page 6

        
          

        

      

      
        
        

      

    

    

    
      	
              8.

            	
              PROPRIETARY
      INFORMATION.

            

    

    

    8.1           Protection of Proprietary
Information. Supplier and Distributor agree to keep in confidence and not
disclose to others all knowledge, information and data furnished to either by
the other party and claimed by the other party to be proprietary, provided such
information is given in writing or, if oral, is reduced to writing within thirty
(30) days and such writing is marked to indicate the claims of ownership and/or
secrecy. Supplier and Distributor agree that neither shall use, nor reproduce
for use in any way, any proprietary information of the other except in
furtherance of the relationship set forth herein. Supplier and Distributor agree
to protect the proprietary information of the other with the same standard of
care and procedures used by

    each to
protect its own proprietary information of similar importance but at all times
using at least a reasonable degree of care.

    

    8.2           Limitations. Section
8.1 shall not be applicable and shall impose no obligation on a party with
respect to any portion of proprietary information which:

    

    a.     Was
at the time received or which thereafter becomes, through no act or failure on
the part of such party, generally known or available to the public;

    

    b.     Is
known to such party at the time of receiving such information as evidenced by
documentation then rightfully in the possession of either party;

    

    c.    
Is furnished to others by the other party without restriction of
disclosure;

    

    
              
d.     Is
thereafter rightfully furnished to such party by a third party without
restriction by that third party on disclosure; or

    

    

    e.     Has
been disclosed pursuant to the requirements of law or court order without
restrictions or other protection against public disclosure; provided, however,
that the other party shall have been given a reasonable opportunity to resist
disclosure and/or to obtain a suitable protective order.

    

    8.3           Survival. The
covenants of confidentiality set forth herein shall survive and continue and be
maintained from the Effective Date hereof until FIVE years after termination of
this Agreement.

     

     

    
      
        
        

      

      
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Agreement Page 7

        
          

        

      

      
        
        

      

    

     

    
      	
              9.

            	
              TERM
      AND TERMINATION.

            

    

    

    9.1           Term. The initial
term of this Agreement shall commence upon the Effective Date and shall continue
for a period of FIVE Contract Years (the “Initial Term”). Thereafter, this
Agreement shall be renewed for successive one (1) year terms unless terminated
by either party by ninety (90) days written notice given on or before the
commencement of any renewal term.

    

    9.2           Termination. This
Agreement may be terminated as follows:

    

    
      	
               
      

            	
              a.

            	
              At
      any time upon mutual written agreement of the
  parties;

            

    

    

    
      	
               
      

            	
              b.

            	
              By
      Supplier upon fifteen (15) days written notice to Distributor for failure
      by Distributor to make payment for Products when due, unless such failure
      is cured within the fifteen (15) day period;
or

            

    

    

    
      	
               
      

            	
              c.

            	
              By
      either party if (i) the other party is in material breach of its
      obligations hereunder and such breach continues uncured for a period of
      thirty (30) days after written notice to the defaulting party, or (ii) the
      other party makes a general assignment for the benefit of its creditors,
      appoints or has appointed a receiver, trustee in bankruptcy or similar
      officer to take charge of all or part of its property, files or has a
      petition filed against it in any bankruptcy (unless such petition is
      dismissed within sixty (60) days of its filing), and/or is adjudged
      insolvent or bankrupt.

            

    

    

    

    
      	
              10.

            	
              EXPORT
      REQUIREMENTS.

            

    

    

    In the
event that any of the  Products and any documentation and all related
technical information or materials become subject to export controls which are
licensable under the U.S. Government export regulations, Distributor will comply
strictly with all legal requirements established under such controls and will
not export, re-export, divert, transfer or disclose, directly or indirectly, the
Products, documentation and any related technical information or materials
without the prior approval of the U.S. Department of Commerce.

    

     

    
      
        
        

      

      
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Agreement Page 8

        
          

        

      

      
        
        

      

    

     

    
      	
              11.

            	
              MISCELLANEOUS.

            

    

    

    11.1           Successors and
Assigns. The rights and obligations of either party shall not be
transferable without the prior written consent of the other party, which consent
shall not be unreasonably withheld or delayed. All obligations of the parties
herein shall be binding upon their respective successors or
assigns.

    

    11.2           Choice of Laws. This
Agreement shall be governed by, and its terms shall be construed in accordance
with, the laws of the State of  Florida.

    

    11.3           Waiver. No waiver or
breach of any term or condition of this Agreement shall operate as a waiver of
any other breach of such term or condition, or of any other term or condition,
nor shall any failure to enforce any provisions hereunder operate as a waiver of
such provision or any other provision hereunder.

    

    11.4           Severability. In case
any one or more of the provisions contained in this Agreement shall for any
reason be held to be invalid, illegal or unenforceable in any respect, except in
those instances where removal or elimination of such invalid, illegal, or
unenforceable provision or provisions would result in a failure of consideration
under this Agreement, such invalidity, illegality or unenforceability shall not
effect any other provision hereof, and this Agreement shall be construed as if
such invalid, illegal or unenforceable provisions had never been contained
herein.

    

    11.5           Notices. All notices
hereunder shall be in writing and shall be deemed to have been duly given if
delivered personally, one day after delivery to a nationally recognized
overnight delivery service, charges prepaid, three days after being sent by
registered or certified mail, postage prepaid, to the parties at their
respective addresses set forth above and:

    

    If to
Distributor, with a copy as follows:

    Attn:                      Nat
Manzella

    

    If to
Supplier, with a copy to:

    Attn:  Kevin
McDonnell

    

    or to
such other address as any party shall have specified by notice to the other in
accordance with this Section. Purchase orders, forecasts and other routine
business forms (and any notices not sent in accordance with the foregoing) shall
be effective only upon receipt.

    

    11.6           Headings. Headings
used in this Agreement are for the purpose of reference only and are not to be
considered in construction or interpretation of this Agreement.

    

    11.7           Counterparts. This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which together shall be deemed one and the same
instrument.

    

    11.8           Entire Agreement;
Amendment. This Agreement, including the Exhibits, contains the entire
Agreement between the parties relating to the subject matter hereof. All prior
agreements and all prior negotiations, representations and communications
relating to the same subject are superseded by this Agreement. This Agreement
may not be modified other than by a written document signed by an authorized
representative of each party.

    

    

    
      
        
        

      

      
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    SIGNATURES

    

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by
their respective duly authorized representatives the day and year first set
forth above:

    

    

    Signature
of Supplier:

    

    SUNCOAST
NUTRICEUTICALS,  INC.

    

    _____________________________

    

    By: Kevin
McDonnell

    

    Title:  President

    

    

    Signature
of Distributor:

    

    BETWEEN
THE LINES, INC.

    

    _____________________________

    

    By:   Natale
Manzella

    

    Title:  Secretary

    

    
      
        
           

        

        
          Distribution
Agreement Page 10

          
            

          

        

        
           

        

      

    

    

    SCHEDULE
“A”

    LIST
OF SUPPLIER’S PRODUCTS

     

     

    

    [Information
Deleted]

     

    
 

    

    
      
        
           

        

        
          Distribution
Agreement Page 11

          
            

          

        

        
           

        

      

    

    

    SCHEDULE
“B”

    CURRENT
PRODUCT WHOLESALE PRICE LIST

    

    

    

    [Information
Deleted]

     

     

     

     

     

     

    Distribution Agreement Page
12suncoastnuts1a051908employ.htm

    
      

      

    

    Exhibit
10.3

    EMPLOYMENT
AGREEMENT

    This sets
forth the Employment Agreement ("Agreement") made effective as of January 1,
2007 between SUNCOAST NUTRICEUTICALS, INC., a Delaware corporation with an
address for purposes hereof at 14404 North Road, Loxahatchee, FL 33470 (the
"Employer" or “Company”) and KEVIN McDONNELL ("Employee”).

    

    IN CONSIDERATION of the mutual
agreements and covenants contained herein, and other good and valuable
consideration, the parties agree as follows:

    

    1.           Employment.  Employer
hereby employs Employee, and Employee hereby agrees to serve, as an Executive of
the Employer, for an "Initial Term" of five years, commencing effective January
1, 2007 and ending on December 31, 2012.  Unless sooner terminated,
this Agreement shall then automatically renew for successive terms of one year
(each one year term being a "Renewal Term") until either party notifies the
other of its intention not to renew this Agreement by giving the other party
notice in writing at least ninety (90) days prior to the end of the applicable
term.  The Initial Term and any Renewal Terms, collectively are the
“Employment Period.”

    

    2.           Duties.  Employee
shall have primary responsibility, subject to the control of Employer's Board of
Directors, for the business operations of the Company and shall have the title
of President and Chief Executive Officer.    The Employee
shall be authorized to do all such acts and things as may be necessary or
desirable, for or in connection with the performance of his duties, and shall
perform such other mutually agreeable duties consistent with those for an
executive as are delegated to him by the  Board of Directors and shall
provide such time and effort as shall required for the performance of such
duties.   The Executive acknowledges that his services and
responsibilities are of particular significance to the Company and that his
position with the Company does and will continue to give him an intimate
knowledge of the current and future business plans, confidential corporate
strategies, and access to the customer base of the
Company.  Accordingly, Executive agrees that he will not, at any time
during the term of this Agreement or any extension thereof, or within three
years of the expiration or termination thereof, directly or indirectly engage
in, be associated with or be employed by any business operation in competition,
direct or indirect, with the business operations of the Company unless
authorized in writing by the Company.

    

    3.           Base
Salary.  During the Employment Period of this Agreement,
Employer shall pay the Employee a base salary at an annual rate of $24,000
("Base Salary"), payable bi-weekly and in accordance with Employer's regular
payroll practices for its executive employees.

    

    Bonuses.   During
the Employment Period, Employer shall pay an annual bonus to Employee as shall
be fixed by the Board of Directors.

    

    4.           Fringe
Benefits.

    

    (a)         Benefit
Plans.  The Employee shall be eligible to participate in any
employee pension benefit plans, group life insurance plans, medical plans,
dental plans, long-term disability plans, stock option plans, incentive
compensation plans, insurance programs and other fringe benefit programs as may
be maintained by Employer for the benefit of its executive
employees.  Participation in any of Employer's benefit plans and
programs shall be subject to satisfaction of the eligibility requirements and
other conditions of such plans and programs.  If employee does not
enroll in an Employer paid medical plan, Employee shall receive a stipend equal
to the average cost of a family medical plan.

     

    
      
        
        

      

      
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    (b)         Other
Benefits.  The Employee shall be entitled to six weeks paid
vacation during each calendar year, and shall receive paid time off for all
State and all Federal holidays, as well as sick leave and bereavement time off
consistent with the paid leave as provided to its executive employees of
Employer in accordance with Employer’s policies applicable to its executive
employees.  Employee’s unused vacation time in any calendar year shall
be carried over to the following calendar year.

    

    (c)         Expenses.  Upon
submission to Employer of vouchers, expense reports, receipts and any other
required documentation for authorized travel, Employee shall be reimbursed his
actual out-of-pocket travel and other expenses reasonably incurred and paid by
the Employee in connection with Employee’s performance of duties hereunder and
in accordance with Employer policies applicable to its executive
employees

    

    Stock
Compensation.  As additional consideration, the Employer will
issue the Employee 100,000 shares of Common Stock of the
Company.   If the Employer terminates this Agreement for cause,
or the Employee terminates it without cause or voluntarily resigns, the Employee
shall not be entitled to any Shares or Warrants which would have been issuable
on the anniversary dates after the termination or
resignation.  Employee shall be entitled to sell any Shares after
issuance in accordance with the provisions of Rule 144 promulgated under the
Securities Act of 1933 as amended.  If the Employer terminates this
Agreement without cause or if the Employee terminates this Agreement with cause,
the Employee shall immediately receive all shares and warrants as set forth in
this Section 5.

    

    5.           Withholding.  Employer
shall deduct and withhold from compensation and benefits provided under this
Agreement, all necessary income and employment taxes and any other similar sums
required by law to be withheld.

    

    6.           Termination.  This
Agreement, the Employment Period, and the Employee’s employment by Employer,
shall be subject to termination as follows:

    

    (a)         Expiration of
Term.  This Agreement shall terminate automatically at the end
of the Initial Term or any Renewal Term if written notice of an election not to
renew is given in accordance with Section 1 of this Agreement.  The
Employee’s Base Salary and any applicable bonuses shall continue to be paid
until the expiration of the then current term.

    

    (b)         Termination Upon
Death.  This Agreement shall terminate automatically upon the
Employee’s death.  Base Salary and any bonuses that are accrued but
unpaid as of the date of death shall be paid to the Employee’s
estate.

    

    (c)         Termination Upon
Disability.  Employer may terminate this Agreement upon the
Employee’s permanent disability which causes the Employee’s inability to perform
his duties hereunder by reason of physical or mental illness or
injury.     The determination of permanent disability
shall be made by a physician selected by Employee which must be mutually agreed
upon by Employer.

     

    
      
        
        

      

      
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    (d)         Early Termination By
Employer.  Employer may terminate this Agreement and the
Employee’s employment hereunder for "cause" by written notice to the Employee in
the manner provided in Section 12(e).  For purposes of this Agreement,
"cause" shall mean either: (1) Employees willful failure to perform duties
required hereunder after written notice in a manner provided under Section 12(e)
specifying the particulars of the alleged willful failure has been provided to
the Employee and the Employee has been given a 30 day period to cure any such
willful failure to perform his duties or (2) Employee’s conviction of a felony
involving theft, dishonesty or fraud detrimental to Employer; or if the Employer
terminates this Agreement without cause, Employer  shall pay Employee
a severance payment equal to the total of his then current Base Salary for the
remainder of the Employment Period, plus any bonuses that would have been
payable during the remainder of the Employment Period, and any non-compete
and/or non-solicitation clauses shall no longer apply to
Employee.  This severance payment shall be paid within thirty (30)
days from the date of Employer's notice of termination with any future bonus
payments payable to Employee within thirty (30) days after being identified.
Further, Employee shall immediately receive all shares and warrants as specified
in Section 6 if Employer terminates this Agreement without cause.

    

    (e)         Early Termination By
Employee.  Employee may terminate this Agreement and his
employment hereunder by written notice to Employer in the manner provided in
Section 12(e) if: Employer substantially changes the nature of the Employee’s
duties, work location or other material terms and conditions of the Employee’s
performance of services, Employer files Bankruptcy, or Employer fails to pay any
amounts due or provide any benefits required under this Agreement or otherwise
breaches this Agreement and fails to cure such default or violation within
fifteen (15) days following written notice to Employer.  If the
Employee terminates this Agreement for any of the above reasons, then the
Employer shall, within thirty (30) days of termination, pay Employee a payment
equal to a total of his then current Base Salary for the remainder of the
Employment Period, plus any bonuses that would have been payable during the
remainder of the Employment Period, and any non-compete and/or non-solicitation
clauses shall no longer apply to Employee.  Further, Employee shall
immediately receive all shares and warrants as specified in Section
6.   If the Employee resigns or terminates this Agreement without
cause, the Employee will forfeit any outstanding options that were not vested at
the time, as well as the right to any salary, severance and/or bonuses and shall
only receive his Base Salary and any bonuses due prior to the date of such
resignation or termination.

    

    7.           No Prior
Restrictions.  The Employee affirms and represents that he is
under no obligations to any present or former employer or other third party,
including but not limited to TB&A, which is in any way inconsistent with, or
which imposes any restriction upon the employment of the Employee by
Employer.

    

    8.           Confidentiality.                                During
the Employment Period, and for a period of three (3) years thereafter, the
Employee shall not, without the prior written consent of Employer, disclose to
third parties any confidential financial, business or technical information or
trade secret acquired in the course of the Employee’s employment by Employer
except to the extent such disclosure is necessary or appropriate for the
Employee to perform his duties hereunder. This restriction shall cease to apply
to any such confidential information that: (1) is now or subsequently becomes
generally known or available by publication, commercial use, in the public
domain, or required by law to be disclosed, or (2) is known by a third party at
the time of receipt of such information from the Employee or, (3) was rightfully
furnished to the third party by the Employee or otherwise during the term of
this Agreement.  The Employee acknowledges and agrees that it would be
difficult to compensate Employer fully for damages resulting from the breach or
threatened breach of the confidentiality provisions set forth in this Section
11, and, agrees that Employer shall be entitled to enforce the provisions set
forth in Section 11 through preliminary and permanent injunctions in addition to
any other remedies available to Employer at law or equity.  Further,
the parties agree to keep the contents of this Agreement
confidential.

    

    9.           Miscellaneous.

    

    (a)         Governing
Laws.  The laws of the State of Florida, without regard to its
choice of law principles to the extent they would result in the application of
the laws of any other state, shall govern the validity of this Agreement, the
construction of its terms, and the interpretation and enforcement of the rights
and duties of the parties hereto.

     

    
      
        
        

      

      
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    (b)         Severability.  If
any one or more provisions of this Agreement, or the application thereof, shall
for any reason and to any extent by invalid or unenforceable, the remainder of
this Agreement shall be interpreted so as best to reasonably effect the intent
of the parties.  The parties further agree to replace any such void or
unenforceable provisions of this Agreement with valid and enforceable provisions
that will achieve, to the extent possible, the economic, business and other
purposes of the void or unenforceable provisions.

    

    (c)         Entire Agreement;
Amendment.  This Agreement constitutes the entire agreement
between the parties with respect to its subject matter and it supersedes all
prior negotiations and agreements relating to the matters addressed
herein.  This Agreement may be amended only by a writing signed by
both Employer and the Employee.

    

    (d)         No
Waiver.  The failure of any party to enforce any of the
provisions of this Agreement shall not be construed to be a waiver of the right
of the party thereafter to enforce such provisions.

    

    (e)         Notices.  Whenever
a party desires or is required to give any notice, demand, or request with
respect to this Agreement, each such communication shall be in writing and shall
be delivered in person or delivered by certified mail, return receipt requested,
postage prepaid, addressed as follows:

    

    If to
Employer:

    

    

    If to the
Employee:

    

    

    

    or in any
such case, at such other address or addresses as shall have been furnished in
writing by such party to the other.  All communications shall be
deemed effective upon receipt.

    

    (f)         Assignment.  Neither this Agreement nor
any rights hereunder are assignable or otherwise transferable by the Employee,
in whole or in part.  Employer may assign or transfer this Agreement
and rights hereunder to any affiliate or successor of substantially all of its
assets whether by merger, consolidation or otherwise provided the Employer shall
notify the Employee within ten (10) days after any such assignment or transfer
and the assignee or successor shall agree in writing to the terms and conditions
of this Agreement.  Any such permitted assignee or successor shall be
deemed the “Employer” herein.

    

    (g)       
Arbitration.  Any action, dispute,
controversy or claim between or among the Parties, whether sounding in contract,
tort, or otherwise ("Dispute") shall, at the request of any Party, be finally
resolved by arbitration before a single arbitrator in accordance with the
commercial rules and procedures as established by the American Arbitration
Association, with venue in Palm Beach County, Florida.

     

    
      
        
        

      

      
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    (h)       
Attorney Fees
Provision.  In any litigation, arbitration, or other proceeding
by which one party either seeks to enforce its rights under this Agreement
(whether in contract, tort, or both) or  seeks a declaration of any
rights or obligations under this Agreement, the prevailing party shall be
awarded its reasonable attorney fees, and costs and expenses
incurred.

    

    (i)        
Execution.  The
foregoing Employment Agreement is established by the following signatures of the
parties and upon execution by both parties is effective as of the date first set
forth above provided the closing on the Agreement For Purchase And Sale Of Stock
has occurred or occurs simultaneous with this Agreement.  This
Agreement may be executed in separate counterparts, each of which, when taken
together shall constitute one original. This Agreement is effective upon
transmission by facsimile or other electronic copies of signed documents by each
party to the other party along with signed copies of the Agreement For Purchase
And Sale Of Stock.

    

    

    

    SUNCOAST
NUTRICEUTICALS, INC.

    

    

    

    By:___________________________

        Shannon
P. Reilly, Sec.

     

    
 

    

    EMPLOYEE:

     

    

    _____________________________

         KEVIN
McDONNELL

    

     

     

    5

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