Document:

Exhibit

10.24

AGREEMENT TO PROVIDE SERVICES

AGREEMENT TO PROVIDE SERVICES, dated as of this 12th

day of July, 200l, between Hauser,

Inc., a Delaware corporation (the “Company”),

Thomas Hanlon Associates (the “Contractor”) and Thomas W. Hanlon

(“Hanlon”).

RECITALS:

WHEREAS, Contractor specializes in advising businesses

with respect to both financial and operational restructuring;

WHEREAS, the Company desires to engage the services of

the Contractor and the Contractor has indicated its willingness to provide services

to the Company, which services shall include Hanlon serving as Chief Financial

Officer of the Company, on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the foregoing

premises, and for other good and valuable consideration, the receipt and

adequacy of which is hereby acknowledged, it is hereby agreed as follows:

SECTION 1.           Appointment.  The Company hereby appoints (the

“Appointment”) the Contractor and the Contractor hereby agrees to provide

services to the Company which shall consist of Hanlon serving as Chief

Financial Officer of the Company.  The

term of the Contractor’s Appointment (the “Term”) shall commence on the date

hereof (the “Commencement Date”) and shall terminate on one year anniversary of

the Commencement Date.

SECTION 2.           Duties.  During the Term, the Contractor shall

cause Hanlon to serve as Chief Financial Officer of the Company, on the terms

and subject to the conditions hereinafter set forth.  Hanlon shall serve as a Chief Financial Officer of the Company

and, in such capacity, shall report

directly to the Chief Executive Officer and to the Board of Directors of the

Company (the “Board of Directors”) and shall have

such duties as are typically performed

by a chief financial officer of a corporation, together with such additional

duties, commensurate with Hanlon’s position as Chief Financial Officer of the

Company, as may be assigned to Hanlon from

time to time by the Chief Executive Officer or Board of Directors.

SECTION 3.           Fees

and Expenses.

(a)           In

consideration for the services provided by Contractor during the Term, the Company shall pay the Contractor a fee of $4,327 per

week.  The Compensation shall be payable

each week for the immediately preceding week. 

In addition, Contractor shall receive

Incentive Compensation as described in Exhibit A.

(b)           The

Company shall reimburse the Contractor for reasonable direct expenses incurred

by the Contractor in connection with travel or other activities required by the Company in accordance with the

expense reimbursement policy of the Company.

(c)           Except

as expressly set forth herein, the Contractor shall not be entitled to receive

any other compensation or benefits from the Company.  Hanlon shall not receive any 

 

1

 

compensation

from the Company for the services which the Contractor shall cause him to

perform for the Company.

SECTION 4.           Termination.  Prior to the end of the Term, the Company

and the Contractor shall have the right to terminate the Appointment of the

Contractor upon 30-days notice.  In the

event of a termination for any reason, all payments under Sections 3 hereof

shall terminate immediately.

SECTION 5.           Relationship

between the Parties.  Nothing

in this Agreement shall be taken to

imply any relationship of partnership, agency or employer and employee between

the Company and the Contractor or the Company and Hanlon.  The Contractor shall be an independent

contractor, and not an employee of the Company, within the meaning of all

Federal, state and local laws and regulations governing employment insurance,

workers’ compensation, industrial accidents, labor and taxes.  Neither the Contractor nor Hanlon shall, by

reason of this Agreement, acquire any benefits, privileges or rights under any

benefit plan operated by the Company or its subsidiaries or affiliates for the

benefit of their employees, including, without limitation, (i) any pension

or profit-sharing plans or (ii) any plans providing medical, dental,

disability or life insurance protection.

SECTION 6.           Miscellaneous.

(a)           Withholding.  Contractor shall be solely responsible, and

the Company shall not withhold from any amounts payable hereunder, for all

federal, state, county and/or local taxes payable with respect to any and all

payments hereunder.

(b)           Indemnification.  Contractor and Hanlon shall indemnify and

hold harmless the Company against all costs, charges, penalties and expenses

whatsoever incurred or sustained by the Company in connection with the

Appointment that arise out of any failure on the part of the Company or the

Contractor to pay withholding taxes on behalf of the Contractor or Hanlon for

services which the Contractor causes Hanlon to perform for the Company pursuant

to this Agreement, as may be required under any applicable federal, state,

county or other applicable tax laws.

(c)           Notices.

(i)            All communications under this

Agreement shall be in writing and shall be delivered by hand or mailed by

overnight courier or by registered or certified mail, postage prepaid:

(1)           if

to the Contractor, at                                            ,

                    (facsimile:  (                 ),

or at such other address or facsimile number as the Contractor may have

furnished the Company in writing, or

(2)           if

to the Company, Kenneth C.  Cleveland,

2550 El Presidio Street, Long Beach, CA 90810-1193 (facsimile:  (310) 637-9807), marked for the attention of

the Chief Executive Officer, or at such other address or facsimile number as it

may have furnished in writing to the Contractor,

 

2

 

(ii)           Any notice so addressed shall be

deemed to be given:  if delivered by

hand, on the date of such delivery; if mailed by courier, on the first business

day following the date of such mailing; and if mailed by registered or

certified mail, on the third business day after the date of such mailing.

(d)           Entire

Agreement Amendment and Waiver. 

This Agreement constitutes the entire understanding of the parties

hereto relating to the subject matter hereof and supersedes all prior

agreements or understandings with respect to the subject matter hereof among

such parties.  This Agreement may be

amended, and the observance of any term of this Agreement may be waived, with

(and only with) the written consent of each of the parties hereto.

(e)           Governing

Law.  This Agreement shall be

governed by and construed in accordance with the laws of the State of

California without reference to principals of conflicts of law.

(f)            Section

Headings.  The headings of the

sections and subsections of this Agreement are inserted for convenience only

and shall not be deemed to constitute a part thereof.

(g)           Counterparts.  This Agreement may be executed in one or

more counterparts, each of which shall be deemed an original and all of which

together shall be considered one and the same agreement.

IN WITNESS WHEREOF, the undersigned have executed this

Agreement on the day and year first above written.

	

  HAUSER, INC.

  
	

   

  	

   

  
	

  By:

  	

  /s/ Kenneth C.

  Cleveland

  
	

   

  	

  Name:  Kenneth C. Cleveland

  
	

   

  	

  Title:    President and Chief Executive Officer 

  
	

   

  	

   

  
	

   

  
	

  THOMAS HANLON

  ASSOCIATES

  
	

   

  	

   

  
	

  By:

  	

  /s/ Thomas W. Hanlon

  
	

   

  	

  Name:  Thomas W. 

  Hanlon

  

 

3

EXHIBIT

A

AGREEMENT TO PROVIDE

SERVICES

 

Contractor shall receive incentive compensation of up to 50% of fees

subject to the following.

 

25% of Fees if Company exceeds its annual budget pretax income

 

25% of Fees based on Contractors performance

 

4EXHIBIT

10.25

 

HAUSER, INC.

 

1987 NON-STATUTORY STOCK OPTION

PLAN AS AMENDED (8/27/97)

 

Article 1 - Purpose

The purpose of this 1987 Non-Statutory Stock

Option Plan (the “Plan”) is to promote the growth and general prosperity of

Hauser, Inc. (Hauser) by permitting Hauser to attract and retain the services

of its Directors, key employees and independent contractors through the grant

of options to purchase Hauser’s Common Stock.

 

Article 2 - Administration of the Plan

The Plan shall be administered by the Board

of Directors (the “Board”) of Hauser. 

At any time, the Board may delegate any, or all, of its responsibilities

for administration of the Plan to a committee of its members.  Subject to the terms of the Plan, the Board

shall have the authority to determine when and upon what terms options may be

granted under the Plan, the persons to whom options shall be granted, the

number of option shares to be granted to each person, and the provisions of the

option agreements and other instruments relating to the option granted.  All those agreements and instruments shall

be consistent with the Plan.  The

reasonable interpretation by the Board of any provision of the Plan, or of any

instruments relating to the options granted, shall be final.  From time to time, the Board may adopt any

rules and regulations for carrying out the Plan that it deems appropriate.  No member of the Board shall be liable with

respect to any action taken, or determination made, in good faith regarding the

Plan or any options granted pursuant to it.

 

Article 3 - Eligible Persons

Options may be granted to officers,

directors, and key employees of Hauser or its subsidiaries, or to independent

contractors or consultants providing services to Hauser as may be determined by

the Board.  The granting of any option

to a person shall neither entitle that person to, nor disqualify him from,

participation in any other grant of options pursuant to this Plan or any other

plan.

 

Article 4 - Stock

The stock subject to the options granted

under this Plan shall be either shares of Hauser’s authorized but unissued

shares of Common Stock, .001 par value, or shares of Common Stock reacquired by

Hauser (“Common Stock”).  The maximum

number of shares that are hereby reserved for issuance, and may be issued

pursuant to this Plan, is 1,218,720, subject to adjustment as provided in

Article 14.  In the event that any

option granted under the Plan shall expire, terminate or be canceled for any

reason without having been exercised in full, or shall cease for any reason to

be exercisable in whole or in part, the unpurchased shares shall be available

again under the Plan.

 

Article 5 - Grant of Options

Options may be granted to eligible persons

for any number of shares and at any time during the term of the Plan, as the

Board shall determine.

 

 

Article 6 - Option

The price-per-share specified in each option

granted under the Plan shall be no less than 100% of the fair market value of

the Common Stock on the date the option is granted.

 

Article 7 - Duration of Options

Subject to termination earlier as provided in

Articles 9 and 10, each option shall expire on the date specified by the Board,

but not more than ten (10) years from its date of grant.  The Board may extend the term of any previously

granted option if that option, as extended, expires less than ten (10) years

from its original date of grant as provided above.

 

Article 8 - Exercise of Options

Subject to the provisions of Articles 9

through 12, each option granted under the Plan shall be exercisable as follows:

 

(a)                                  The

option either shall be exercisable fully at the time of grant or shall become

exercisable in installments, as the Board determines.  Installments may be cumulative or noncumulative, as the Board

determines.

 

(b)                                 Once

an installment becomes exercisable, it shall remain exercisable until

expiration or termination of the option, unless specified otherwise by the

Board.

 

(c)                                  Each

option may be exercised from time to time, in whole or in part, for no more

than the total number of shares available for exercise.

 

(d)                                 The

Board may accelerate the date of exercise of any installment for any reason.

 

Article 9 - Termination of Option for

Employees

Whenever an optionee ceases to be an employee

of Hauser or ceases to be employed by Hauser or any subsidiary, for any reason

other than death or disability (within the meaning of Section 22(e)(3) of the

Internal Revenue Code), his options shall terminate on the date he ceased to be

so employed, and no further installments of those options will become

exercisable.  The Board may, in its sole

discretion, allow the exercise of options, but only to the extent they were

exercisable at the time of termination of employment, for a period of up to

three (3) months after the termination of employment (but conclusively whether

authorized leaves of absence or absence on military or governmental service)

may constitute employment for the purposes of the Plan.  Nothing in the Plan, or in any option

granted under the Plan, shall be deemed to give any optionee the right to

continue in the employ of Hauser or any of its subsidiaries or shall be deemed

to interfere in any way with the right of Hauser to terminate any optionee’s

employment at any time and for any reason. 

Options granted under the Plan shall not be affected by any change of

employment among Hauser and its subsidiaries so long as the optionee continues

to be an employee of Hauser or one of its subsidiaries.

 

Article 10 - Termination of Options for

Non-Employees

Options granted to directors, independent

contractors, or other non-employees, will remain in effect until the expiration

of the option.

 

2

 

Article 11 - Disability; Death

 

(a)                                  If

an optionee who is an employee of Hauser becomes disabled (within the meaning

of Section 22(e)(3) of the Internal Revenue Code), his options may be exercised

to the extent that they were exercisable on the date he ceased to be employed

by Hauser or any subsidiary for a period of one (1) year from the date of

termination of employment (but not later than its specified expiration date).

 

(b)                                 If

an optionee who is an employee of Hauser dies while employed by Hauser or

during the three-month period referred to in Article 11, his options may be

exercised to the extent that they were exercisable on the date of his death or

cessation of his employment, whichever occurred first, by his estate, or duly

appointed representative, or beneficiary who acquires the options by will or by

the laws of descent and distribution, but no further installments of his options

will become exercisable and each of his options shall terminate on the first

anniversary of the date of his death (but not later than the specified

expiration dates).

 

Article 12 - Assignability

No option shall be assignable or transferable

by the optionee except by will or by the laws of descent and distribution and,

during the lifetime of the optionee, each option shall be exercisable only by

him.

 

Article 13 - Terms and Conditions of Options

Options shall be evidenced by instruments,

which need not be identical, in such form as the Board approves.  Those instruments shall conform to the terms

and conditions set forth in Articles 6 through 11 and may contain any other

provisions not inconsistent with the Plan, including restrictions applicable to

shares of Common Stock issuable upon exercise of options granted under the

Plan, as the Board deems advisable. 

Hauser shall not be obligated to deliver any shares unless and until, in

the opinion of Hauser’s counsel, all applicable federal, state, and other laws

and regulations have been complied with. 

Without limiting the generality of the foregoing, Hauser may require

from the optionee any investment representation, restrictive legend on any

stock certificate or other agreement that counsel for Hauser considers

necessary in order to comply with the Securities Act of 1933.

 

Article 14 - Adjustments

 

(a)                                  Upon

the happening of any of the following described events (the “Events of

Adjustment”), an optionee’s rights under options granted under this Plan shall

be adjusted as provided below.

 

(1)                                  If

Hauser shall, at any time prior to the termination date of the Plan, change its

Common Stock into a greater number of shares of stock through a stock dividend

or split-up of shares, the number of shares of Common Stock deliverable with

respect to each payment of the specified option price per share in connection

with each exercise of an option after the record or effective date of such

stock dividend or split-up of shares shall be proportionately increased.  Conversely, if the Common Stock

 

3

 

shall, at any

time within such period, be combined into a smaller number of shares of stock

through a reverse stock split, the number of shares of Common Stock deliverable

with respect to each payment of the specified option price per share in

connection with the exercise of an option after the record or effective date of

such combination of shares shall be proportionately reduced.

 

(2)                                  If

within the duration of an option there shall be a corporate merger,

consolidation, acquisition of assets, or other reorganization and if such

transaction shall affect the optioned stock, the employee shall thereafter be

entitled to receive upon exercise of his option those shares or securities that

he would have received had the option been exercised prior to such transaction

and the employee had been a stockholder of Hauser with respect to such shares.

 

(b)                                 Upon

the happening of any of the Events of Adjustment, the class and aggregate

number of shares set forth in Article 4 of this Plan that are reserved for

issuance pursuant to the Plan, or are subject to options that previously have

been or hereafter may be granted under the Plan, also shall be adjusted

appropriately to reflect the Events of Adjustment.

 

(c)                                  The

Board shall determine the adjustments to be made under this Article 14, and its

determination shall be conclusive and binding on all interested parties.

 

(d)                                 Notwithstanding

anything in this Plan to the contrary, in connection with any corporate

transaction to which Section 425(a) of the Code is applicable, there may be a

substitution of a new option for an old option granted under this Plan or any

assumption of an old option granted under this Plan.  Any optionee who has a new option substituted for an old option

granted under this Plan shall, in connection with the corporate transaction,

lose his rights under the old option. 

Nothing in the terms of the assumed or substituted option shall confer

on the optionee more or less favorable benefits than he had under the old

option.

 

Article 15 - Exercise of Option

An option (or any part or installment of an

option) shall be exercised by giving written notice to Hauser at its principal

office address, identifying the option being exercised, specifying the number

of shares of which it is being exercised, and accompanied by full payment of

the purchase price, at the option of the Board of Directors or their delegate,

payment will be made (1) in United States Dollars (in cash or by certified or

bank check); or (2) in shares of Common Stock of Hauser owned by the optionee

having a fair market value (as determined by the Board as of the business day

immediately preceding the day on which the option is exercised) equal to, or a

fraction of a share less than, the purchase price; or (3) in a combination of

Common Stock and Dollars.  Unless the

Board determines otherwise, the holder of an option shall not have any rights

of a shareholder with respect to the shares covered by his option until the

issuance of a stock certificate to him for his shares.  Unless the Board determines otherwise, no

adjustment will be made for dividends or similar rights when the record date

occurs after the exercise of the option but prior to the date the stock

certificate is issued.  In no case may a

fraction of a share be purchased, or issued under the Plan.

 

Article 16 - Termination and Amendments to

Plan

The Plan as amended was adopted by the Board

on August 27, 1997 and by the shareholders on October 30, 1997, and will expire

August 27, 2007, ten (10) years after Board adoption (except as to options

outstanding on that date).  The Board

may terminate, or amend, the Plan in any respect at any time, except that,

without the approval of the shareholders, no amendment shall be approved if

such amendment would (a) materially increase the benefits accruing to

participants under the Plan; (b) materially increase the number of securities

which may be issued under the Plan; or (c) materially modify the requirements

as to eligibility for participation in the Plan.  However, no action of the Board or shareholders may, without the

consent of an optionee, impair substantially his rights under any option

previously granted to him.

 

Article 17 - Governmental Regulation

The Plan and the grant and exercise of

options under it, and Hauser’s obligation to sell and deliver shares of

Hauser’s Common Stock under those options, shall be subject to all applicable

laws (including tax laws), rules and regulations.

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00040-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00040-of-00352.parquet"}]]