Document:

Exclusive Distribution Agreement

 Exhibit 10.1 
 EXCLUSIVE DISTRIBUTION AGREEMENT 
 AGREEMENT (the “Agreement”) dated
                    , 2007 among R. T. VANDERBILT COMPANY, INC. and VANDERBILT INTERNATIONAL, Sarl, corporations having an office at 30
Winfield Street, Norwalk, Connecticut, U.S.A. (“Vanderbilt”); and Platinum Research Organization, Inc., a Delaware Corporation, having an office at 2828 Routh Street, Suite 500, Dallas, TX 75201 (“PRO” ). 
 W I T N E S S E T H: 
 WHEREAS, PRO produces and sells certain Products (as hereinafter defined), and wishes to sell such Products to Vanderbilt and to engage Vanderbilt as its exclusive distributor for the sale of Products in the Territory as hereinafter
defined; and 
 WHEREAS, Vanderbilt wishes to purchase the Products and to act as such exclusive distributor and/or reseller of such
Products under the terms and conditions herein. 
 NOW, THEREFORE, in consideration of the premises and of the mutual covenants and
obligations contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 As used herein, the terms set forth below shall have the meanings given to them there. 
 1.1 “Products” shall mean those products listed in Exhibit A which Exhibit may be modified from time to time by mutual written agreement
of the parties. 
 1.2 “Territory” shall have the meaning described in Exhibit B. 
 1.3 “Patents” shall mean patents, pending patents, claims of patent, design patents, pending design patents, or claims of design patent
owned by PRO relating to the Products and in effect in the Territory. 
 1.4 (a) “Know-How” shall mean all production
procedures, all design, engineering, production, manufacturing and other technical data, information, specifications, designs, methods, processes, systems, test reports, guidelines and trade secrets relating to the manufacture, use and sale of the
Products, which either PRO or Vanderbilt has separately acquired or may acquire from time to time and reasonably considers confidential, which are not generally known, and which are of material commercial value. 
 (b) “Shared Know-How” shall mean Know-How that is reasonably required to assist Vanderbilt in the marketing, sales and support of the
Product. 
  

 1.5 “Trademarks” and “Trade Names” shall mean the trade names and trademarks
associated with the Products as set forth in Exhibit A, attached hereto and made a part hereof which Exhibit may be modified from time to time by mutual written agreement of the parties. PRO agrees to follow reasonable Vanderbilt requirements
regarding Vanderbilt trademarks which are listed on Exhibit A or as may be added to Exhibit A from time to time by mutual agreement. 
 1.6 “Confidential Information” shall mean Know-How and other confidential or proprietary information regarding PRO’s or Vanderbilt’s business or any aspect of this Agreement, including, without limitation,
customer lists and financial, marketing and other information which either party has acquired or may acquire from time to time from the other party with the understanding that such information and/or data are confidential. Notwithstanding the above,
“Confidential Information” shall not include information: i) which the receiving party can demonstrate was in its possession at the time of disclosure and was not acquired by the receiving party directly or indirectly from disclosing party
on a confidential basis, ii) which becomes available to receiving party on a non-confidential basis from a source other than disclosing party (whether directly or indirectly) and which source to the best of receiving party’s knowledge did not
acquire the information on a confidential basis, or iii) which is approved for release or use without restriction by written authorization of an officer of the Party owning the Confidential Information. If Confidential Information is required to be
disclosed by any federal or state law, rule or regulation or by any applicable judgment, order or decree of any court or governmental body or agency having jurisdiction the Party required to disclose the Confidential Information will give the Party
owning the Confidential Information notice, to the extent reasonably practicable, of the proposed disclosure so as to afford the Party owning the Confidential Information an opportunity to seek to prevent its disclosure. The parties hereto agree to
keep Confidential Information confidential and to continue to be bound by the terms and conditions of their September 1, 2005 Confidentiality Agreement. 
 1.7 “Affiliate” shall mean any other entity (a) that directly or indirectly controls, or is under common control with, or is controlled by one of the Parties or (b) is at least 50%
beneficially owned by one of the Parties. As used in this definition, “control” (including with its correlative meanings, “controlled by” and “under common control with”) means the possession, directly or indirectly, of
the power to direct or cause the direction of the management or policies of an entity, (whether through ownership of securities or partnership or other ownership interests, by contract, or otherwise). 
 ARTICLE II 
 GENERAL APPOINTMENT

 2.1 Appointment. PRO hereby appoints Vanderbilt as its exclusive, worldwide distributor for the sale, purchase and resale of
the Products into the Lubricating Grease Market in the Territory subject to the terms and conditions of this Agreement. Vanderbilt accepts the appointment and agrees to purchase the Products from PRO under the terms and conditions of this Agreement.

 2.2 Relationship of the Parties. The relationship between PRO and Vanderbilt is that of independent contractors and not that of
employer-employee or principal- 

  

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agent. Vanderbilt shall not be the agent or legal representative of PRO, nor shall PRO be the agent or legal representative of Vanderbilt. Neither PRO nor
Vanderbilt shall have the right, power or authority to assume or undertake any obligation whatsoever or make any representation on behalf of the other unless authorized to do so in writing. 
 ARTICLE III 
 GENERAL TERMS OF DISTRIBUTORSHIP 
 3.1 Best Efforts. Vanderbilt agrees to use its best efforts to promote the sale of, and to solicit and secure orders for the Products in the
Territory and, subject to the provisions of Section 4.4 below and to purchase the Products from PRO. PRO agrees to sell the Products to Vanderbilt as PRO’s exclusive distributor of Products in the Territory. 
 3.2 Promotion and Advertising. PRO shall, at its own expense, supply Vanderbilt with up-to-date samples, Shared Know-How and technical data,
promotional material and service information as is appropriate in order for Vanderbilt to conduct laboratory and market tests and to promote and develop sales of the Products. Vanderbilt agrees not to use any such provided material, including Share
Know-How for any purpose other than in furtherance of its obligations and undertakings as set forth in this Agreement. 
 3.3
Compliance. PRO shall, at its own expense, provide Vanderbilt with all relevant technical information known to PRO as a result of industry standard due diligence and necessary to comply with all statutes, rules and regulations relating to the
sale of the Products in the Territory. PRO also agrees, at its own expense, that it will promptly conduct all required testing of the Products and obtain all required registrations of the Products in all pertinent marketplaces for the Products,
including, but not limited to, in order of preference, the following: United States, Canada, European Union, Japan, Australia, China, Korea and the Philippines. Such testing and registration of the Products shall be completed no later than two
(2) years from the execution of this Agreement. 
 3.4 Promotion and Publicity. (a) All promotions and advertising of the
Products shall be formulated and implemented by Vanderbilt at its own cost. Vanderbilt agrees to consult with PRO before implementing any such promotion or advertising campaign and to make any reasonable changes suggested by PRO, provided that PRO
agrees to share the costs of any such revisions. All such promotional material shall be accurate and shall be consistent with promotional material used by PRO in its own advertising and promotional campaigns. PRO shall provide Vanderbilt with its
publicity and promotional material with respect to the Products, which Vanderbilt shall use its best efforts to include in its promotions and advertising; provided, however, that such material shall not be changed in any material respect without the
prior written consent of PRO. Vanderbilt will not materially alter the packaging of the Products without the prior consent of PRO, and each party will cause the labeling of Products sold hereunder to comply with all applicable regulations governing
such labeling from time to time; provided, however, Vanderbilt may add any labeling that it determines is required under applicable law, or otherwise necessary to meet legal or customer requirements. 
 (b) PRO shall use its best efforts to provide Vanderbilt and/or its customers with all such information, Shared Know-How, and technical assistance with
respect to the application of the Products as they reasonably request. 
  

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 3.5 Non-Infringement. Vanderbilt shall not advertise, promote or sell any Product which infringes
any Patent, Trademark or copyright, or which violates any trade secret of PRO. The provisions of clause 3.5 shall not apply until such time as Vanderbilt has knowledge, or reasonably should have knowledge, that a Patent, Trademark, copyright or
trade secret is being violated in the manufacture or use of a particular product. 
 ARTICLE IV 
 PRICE, PAYMENT AND DELIVERY TERMS 
 4.1 General Terms. PRO agrees to sell the Products to Vanderbilt, and Vanderbilt agrees to purchase the Products from PRO on the terms and conditions set forth in this Agreement. 
 4.2 Price. Vanderbilt shall purchase the Products for its own account from PRO at the prices in effect, as reflected in Exhibit A at the time PRO
accepts Vanderbilt’s order. Initial prices for the Products are listed in Exhibit A. Prices may be changed at any time by PRO on ninety (90) days’ prior written notice to Vanderbilt. Exhibit A may be revised as necessary to reflect
the implementation of mutually agreed upon price changes. 
 4.3 Payment. Invoices for sales of Products hereunder shall be prepared
by PRO and presented to Vanderbilt at the time of shipment, on the basis of PRO’s weighing of the Products covered thereby, subject, however, to Vanderbilt’s confirmation of such weights upon delivery of the Products; and in the event of
any material discrepancy between PRO’s weighing and Vanderbilt’s confirmation thereof, whether due to shrinkage or ordinary deterioration during shipment, or otherwise, the parties shall negotiate in good faith to resolve such discrepancy
and make any required adjustment to PRO’s invoice. In the event that the parties cannot, in good faith, agree to an adjustment, the parties agree to accept the average of the two conflicting weights. Subject to any such adjustment, Vanderbilt
shall pay each invoice in U.S. dollars within thirty (30) days after receipt of the Products by (i) Vanderbilt, or (ii) its warehouse, or (iii) its customer, whichever occurs first. 
 4.4 Placement of Orders and Shipping. PRO shall ship supplies of the Products within thirty (30) days of receipt of written orders therefore
from Vanderbilt. If PRO is unable to ship within such period, it will promptly notify Vanderbilt informing Vanderbilt of PRO’s anticipated shipping date. 
 4.5 Delivery. Delivery of the Products to Vanderbilt shall be FOB Vanderbilt’s warehouse, transportation prepaid by PRO. Title to and risk of loss of Products shall pass upon delivery to Vanderbilt, its
warehouse or its customer, whichever occurs first. 
 4.6 Product Modification. Any modification in chemical components, raw
materials, manufacturing sources, manufacturing locations, manufacturing facilities, and/or processes must be reported to and reasonably agreed to by Vanderbilt prior to implementation. Any changes to the limits given in the specification of
any Product must be notified to Vanderbilt and reasonably agreed to by Vanderbilt before any dispatch of any modified Product and a new specification and safety data sheet, must be drafted for any such modified Product. All raw 

  

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materials and/or supplies shall in all material respects be chemically consistent, both in nature and concentration, with the original raw materials and/or
supplies used in the Products. All raw materials and/or supplies shall in all material respects meet the original specifications herein. 
 ARTICLE V 
 WARRANTIES, INDEMNIFICATION AND RETURNS 
 5.1 Warranty. PRO warrants to Vanderbilt that the Products sold to Vanderbilt under this Agreement (including all replacement Products) shall be
fit and sufficient for the purpose intended, merchantable, of good material and workmanship, free from defect, and in accordance with PRO’s specifications shown in Exhibit C. Vanderbilt shall notify PRO in writing of any claims of defect or
non-conformity noticeable upon ordinary inspection within two (2) years or the applicable statute of limitation, whichever is shorter, after a customer’s receipt of the Product. Vanderbilt shall notify PRO in writing of any hidden defect
or non-conformity with the specification shown on Exhibit C within a two (2) years or the applicable statute of limitation, whichever is shorter, after Vanderbilt or the customer becomes aware of the hidden defect or non-conformity, but in any
event within the statute of limitations for such claims. If PRO does receive timely notice, PRO shall arrange for and bear the cost of shipping the defective Product back to PRO and upon receipt of the Product and upon reasonable confirmation of the
existence of such defect or non-conformity, shall, at its election either deliver at its own expense a replacement product to Vanderbilt or return to Vanderbilt the purchase price thereof. All costs of disposal of non-conforming or defective
Products shall be borne by PRO provided PRO is notified of such defect or non-conformity within the time periods set forth in this paragraph 5.1. 
 THE FOREGOING WARRANTIES ARE THE ONLY WARRANTIES PROVIDED BY PRO WITH RESPECT TO THE PRODUCTS SOLD BY PRO TO VANDERBILT. THE PROVISIONS OF THE UCC DEALING WITH WARRANTIES ARE EXPRESSLY DISCLAIMED. 
 5.2 Indemnification. (a) PRO hereby agrees to indemnify Vanderbilt and hold it harmless from and against all claims, suits, damages,
judgments, losses, amounts paid in settlement thereof and all costs and expenses (including reasonable attorneys’ fees and expenses) based upon, relating to, or arising out of (i) non-compliance by PRO with its obligations hereunder or a
material breach of any provision herein; (ii) PRO’s negligence or willful misconduct; (iii) any personal injury, property damage or product liability claim or third-party claim; and/or (iv) a claim of any Intellectual Property
infringement, including, but not limited to Trademark, Patent or Copyright infringement brought against Vanderbilt based upon Vanderbilt’s promotion or sales of the Product or any other requirements of this Agreement. 
 (b) Notwithstanding the provisions of paragraph 5.2, PRO shall not be responsible for those damages, claims or losses which Vanderbilt or third parties
may suffer which are a direct result of modifications to the Product or Trademark without PRO’s written consent. 
 (c) Vanderbilt
hereby agrees to indemnify PRO and hold it harmless from and against all claims, suits, damages, judgments, losses, amounts paid in settlement thereof and all costs and expenses (including reasonable attorneys’ fees and expenses) based upon,
relating to, or arising out of (i) non-compliance by Vanderbilt with its obligations hereunder or breach of any provision herein; (ii) Vanderbilt’s negligence or willful misconduct; (iii) any personal injury, property damage or
product liability claim and/or (iv) any third-party claim caused directly as a result of modifications to the Products by Vanderbilt or its employees or agents. 
  

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 5.3 Customer Returns. It is the policy of Vanderbilt to accept the return of any product sold to
its customers. Vanderbilt therefore expects its suppliers to cooperate with Vanderbilt to effect customer returns quickly, efficiently and safely. Attached hereto as Exhibit D is Vanderbilt’s Customer Return Goods Policy (the “Return
Policy”). PRO agrees to cooperate with Vanderbilt on customer returns of the Product in accordance with the Return Policy. If a customer wishes to return a Product because the shelf life has expired or is about to expire, PRO further agrees
that it will test a sample of the Product sent by the customer and, if possible, recertify the Product with an extended shelf life. If the shelf life of the Product cannot be extended, PRO agrees to take back the Product in accordance with the
Return Policy. 
 ARTICLE VI 
 TRADEMARK, TRADE NAMES, PATENTS, KNOW-HOW 
 6.1 Ownership; No Infringement. Except as provided in the schedule
attached as Exhibit E, PRO represents and warrants to Vanderbilt that the Trademarks, Trade Names, and Patents are owned by PRO or an Affiliate free and clear of all liens, encumbrances or claims and that PRO is free to make use of the Trademarks,
Trade Names, and Patents and PRO knows of no (a) infringement thereof by others, or (b) infringement (or claims of infringement) by PRO of any of the trademarks, trade names, patents or of the intellectual property rights of others.

 6.2 Use of Trademarks and Trade Names. In connection with Vanderbilt’s appointment as PRO’s distributor, PRO and/or its
Affiliates grant to Vanderbilt a non-exclusive, non-transferable right, with out the right to sublicense, to use the Trademarks in the Territory for the limited purpose of marketing and selling the Products. Vanderbilt may place the Trademarks and
Trade Names on its stationery, catalogues, promotional literature, advertising material and signs, but only in connection with the promotion and sale of the Products in the Territory. Any other use of the Trademarks and Trade Names by Vanderbilt
shall be subject to prior written approval by PRO, except that Vanderbilt may be identified as the distributor of the Products on all labels and promotional materials without any such prior approval. Vanderbilt agrees to submit samples of proposed
marketing materials or trademark usage to PRO for its review and approval, such approval not to be unreasonably withheld. Any actual usage of such Trademarks in marking materials, labeling and otherwise will be consistent with the samples received
by PRO. Subject to the foregoing, Vanderbilt further agrees: 
 (a) Not to remove the Trademarks or Trade Names from the Products or packages
containing the Products; 
 (b) Not to alter the Trademarks or Trade Names in any way; 
 (c) Not to apply any Trademarks or Trade Names or any labels, signs or markings of any kind other than additional labeling required by customers or
governmental or regulatory authorities to the Products or use the same in connection with the Products, without prior written approval of PRO; 
 (d) To employ any symbol or notice with the Trademark which may be necessary to identify and protect the interests of PRO in the Trademark; 
  

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 (e) Not to register or record as a trademark or domain name, or cause to be registered or recorded as a
trademark or domain name, any PRO Trademark or Trade Name, in any country; 
 (f) That any and all goodwill created in any PRO Trademark or
Trade Name belongs to, and is the property of, PRO in every country; and 
 (g) Indicate that the Trademarks and Trade Names are owned by PRO
or its Affiliates as applicable. 
 6.3 Infringement. Should Vanderbilt discover any infringement of any of PRO’s Trademarks,
Trade Names, Patents, Copyrights or Trade Secrets, or should Vanderbilt become aware of any claims of infringement relating thereto, Vanderbilt shall promptly notify PRO, and PRO shall decide, in its sole discretion, whether to take any action.

 ARTICLE VII 
 TERM
AND TERMINATION 
 7.1 Term; Termination by Either Party. This Agreement shall commence on the date hereof and terminate six
(6) months after either party gives written notice of termination to the other at any time, with or without cause. This Agreement may also be terminated by an aggrieved party immediately upon written notice to the other (“Defaulting
Party”) in the event that the Defaulting Party: 
 (a) commits a breach or default under this Agreement, which breach or default is not
remedied within thirty (30) days after written notice of the facts surrounding such breach is delivered to the Defaulting Party; or 
 (b) is unable to meet its debts as they fall due or enters into liquidation or dissolution or becomes bankrupt or insolvent, or if a trustee or receiver is appointed for such party, whether by voluntary act or otherwise, or if any
proceeding is instituted by or against such party under the provisions of any bankruptcy act or amendment thereto which results in the entry of any order for relief against it which is not stayed or remains active for a period of sixty
(60) days, or if it enters into a voluntary arrangement with its creditors. 
 7.2 Cessation of Deliveries. Upon termination of
this Agreement, PRO may restrict or stop deliveries of the Products to Vanderbilt, other than deliveries on orders already received at the time of the notice of termination; provided, however, that in the event of termination without cause by PRO
pursuant to the first sentence of Section 7.1 above, PRO shall make the Products available to Vanderbilt in order to enable Vanderbilt to maintain its normal delivery commitments to third parties for up to six (6) months after termination
provided Vanderbilt so requests within forty-five (45) days of notice of termination and provided further that at all times during the post termination period Vanderbilt is current on its uncontested payment obligations to PRO. 
  

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 7.3 Disposition of Inventory Upon Termination. Upon termination of this Agreement, except to the
extent otherwise required for continued deliveries pursuant to Section 7.2 above, (a) all of Vanderbilt’s rights with respect to the Trademarks, Trade Names, Shared Know-How, Confidential Information and Patents shall immediately
cease, (b) provided the termination is not based on Vanderbilt’s default, PRO shall i) purchase from Vanderbilt all advertising and printed matter relating to the Products, and ii) shall repurchase all of Vanderbilt’s inventory of
Products. The cost for said advertising, printed matter and inventory shall be the price originally paid by Vanderbilt including any freight, insurance during shipping, sales tax and import duties. 
 7.4 Limitation of Damages. If either party hereto shall terminate this Agreement in accordance with its terms, the non-terminating party shall
have no claim or cause of action by reason of such termination, whether for loss of anticipated profits, loss of good will or otherwise. 
 ARTICLE VIII 
 MISCELLANEOUS PROVISIONS 
 8.1 Entire Agreement. This Agreement (including Exhibits A through E attached hereto and incorporated herein) constitutes the entire agreement between the parties relating to the distribution of Products in the
Territory; it supersedes all prior agreements and understandings between the parties relating to that subject, either oral or written, all of which are hereby expressly terminated; and this Agreement cannot be modified, except in a writing signed by
both parties hereto. 
 ALL PURCHASE ORDERS AND ACKNOWLEDGMENTS THAT MAY BE USED BY THE PARTIES HERETO TO ORDER OR ACKNOWLEDGE ORDERS FOR PRODUCTS HEREUNDER
SHALL BE FOR RECORD PURPOSES ONLY. IN THE EVENT OF ANY DISCREPANCY OR CONFLICT BETWEEN THE TERMS THEREOF AND OF THIS AGREEMENT, THE TERMS OF THIS AGREEMENT SHALL PREVAIL. 
 8.2 Assignment. This Agreement may not be assigned by either party without the prior written consent of the other party hereto, except that either party may assign this Agreement to a wholly-owned subsidiary or
Affiliate without first obtaining the written consent of the other party. 
 8.3 No Waiver of Terms. Neither the failure of either
party hereto to require the performance of any term of this Agreement, nor the waiver by either party of any breach under this Agreement, shall prevent a subsequent enforcement of any such term or be deemed a waiver of any subsequent breach.

 8.4 Headings. The headings set forth herein are for convenience of reference only and shall not be considered to limit or amplify
the terms and provisions hereof, nor shall they be examined or referred to in construing or interpreting this Agreement. 
 8.5
Severability. In the event any one or more of the agreements, provisions or terms contained herein shall be declared invalid, illegal or unenforceable in any respect, such agreement, provision or term shall be enforced to the extent permitted by
law and the validity of the remaining agreements, provisions or terms contained herein shall be in no way affected, prejudiced or disturbed thereby. 
  

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 8.6 Force Majeure. Neither of the parties hereto shall be responsible for or liable to the other
party for any damage or loss of any kind, directly or indirectly, resulting from fire, flood, explosion, riot, rebellion, revolution, war, labor trouble (whether or not the fault of either party hereto), requirements or acts of any government or
subdivision thereof, or any other similar cause beyond the reasonable control of the party. The occurrence and the termination of any such event shall be promptly communicated to the other party. . If after sixty (60) days, Force Majeure events
cause default of obligations hereunder by a party, the non-defaulting party may immediately terminate after providing the defaulting party with notice. 
 8.7 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to conflict of law principles of such State. 
 8.8 Arbitration. Any and all claims, disputes, controversies or differences arising out of, or in connection with, this Agreement, which cannot be
settled satisfactorily by means of negotiation between the parties, shall be submitted to arbitration in accordance with the Commercial Arbitration Rules (the “Rules”) of the American Arbitration Association; provided, however, that this
clause shall not be construed to preclude either party from bringing any action in any court of competent jurisdiction for injunctive or provisional relief, as necessary or appropriate. The arbitration proceeding shall take place in Delaware. The
parties shall, in accordance with the Rules, appoint a mutually-agreed-upon arbitrator. The decision of such arbitrator shall be final and binding upon the parties and judgment thereon may be entered in any court having jurisdiction or application
may be made to such court for judicial acceptance of the award or order of enforcement, as the case may be. 
 8.9 Notices. All
notices, requests, demands and other communications made hereunder shall be in writing and shall be deemed duly given on the date of receipt if personally delivered or five days after mailing if sent by mail, postage prepaid, to the addresses set
forth below or to such other address or person as either party may designate by notice to the other party hereunder: 
  

					
	 If to Vanderbilt, to:
	  	R. T. Vanderbilt Company, Inc.	  	
		  	30 Winfield Street	  	
		  	Norwalk, Connecticut 06855	  	
		  	Attention: Corporate Counsel	  	
			
	 If to PRO, to:
	  	Fulbright & Jaworski L.L.P.	  	
		  	2200 Ross Avenue	  	
		  	Suite 2800	  	
		  	Dallas, Texas 75201	  	
		  	Attention: David H. Tannenbaum	  	

  

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 8.10 Counterparts. This Agreement may be executed in separate counterparts with the same effect as
if both parties had executed the same document. All such counterparts shall be construed together and shall constitute one agreement. 
 IN WITNESS WHEREOF, the parties have caused the due execution of this Agreement on the day first above written. 
  

					
		  	R. T. VANDERBILT COMPANY, INC.
			
		  	 By:
	  	
		  	 Title:
	  	
		
		  	VANDERBILT INTERNATIONAL, Sarl
			
		  	 By:
	  	
		  	 Title:
	  	
			
		  	Platinum Research Organization, Inc.	  	
			
		  	 By:
	  	
		  	 Title:
	  	

  

 10Senior Management Agreement, by and between the Company and David I. Bruce

 EXHIBIT 10.34 
 SENIOR MANAGEMENT INCENTIVE AGREEMENT 
 SENIOR MANAGEMENT INCENTIVE AGREEMENT, dated as
of the 26 day of February, 2008, between EP MEDSYSTEMS, INC., a New Jersey corporation (the “Company”), and James Caruso (“Executive”). 
 RECITALS 
  

	A.	Executive is currently employed by the Company. 

  

	B.	The Board of Directors of the Company (the “Board”) has determined that it is appropriate to incentivize, and reinforce the continued attention and dedication of,
certain members of the Company’s management, including Executive, to their assigned duties without distraction in potentially disrupting circumstances arising from the possibility of a Change in Control of the Company, as defined on Schedule A
attached hereto. 

 AGREEMENTS 
 NOW, THEREFORE, in consideration of the covenants and agreements hereinafter set forth, the Company and Executive agree as follows: 
 1. DEFINITIONS. 
 Terms capitalized in this Agreement which are not otherwise defined shall have the meanings assigned to such terms
on Schedule A attached hereto. 
 2. TERM. 
 Unless earlier
terminated as provided herein, the initial term of this Agreement shall be from the date hereof until the second anniversary date of this Agreement; provided, however, that, unless terminated as provided herein or there shall have occurred a Change
in Control, on each annual anniversary date of this Agreement commencing on the second anniversary date of this Agreement, this Agreement shall automatically be renewed for a successive one-year term. 
 3. PAYMENTS AND BENEFITS UPON CHANGE IN CONTROL. 
 Subject to
Section 4 hereof, Executive shall be entitled to the following payments and benefits (the “Incentive Benefits and Payments”), which Incentive Benefits and Payments shall vest immediately prior to a Change in Control:

 (a) CHANGE IN CONTROL PAYMENT. Subject to the Sections 4 and 8 herein, in recognition of continued services to the Company by Executive,
the Company shall make a lump sum payment in cash to Executive as incentive compensation within ten (10) business days following the date of consummation and closing of a Change in Control (the “Change in Control Closing Date”)
equal to two (2) times Executive’s annual Base Salary in effect immediately prior 

 
to the date that a Change in Control shall occur. Such payment shall be paid within ten (10) business days following the Change in Control Closing Date.

 (b) OPTIONS. Pursuant to existing Company policy, which policy has been unanimously approved by the Company’s Board of Directors and
the Compensation Committee of the Company’s Board of Directors, options to acquire common stock of the Company granted to Executive prior to the Change in Control Closing Date (“Executive’s Options”), which have not vested
as of the Change in Control Closing Date, shall vest immediately prior to the effective time of a Change in Control on the Change in Control Closing Date. All other terms, conditions, and limitations applicable to Executive’s Options will
remain in full force and effect pursuant to the applicable stock options agreements between Executive and the Company, the applicable stock option plan documents, and any other documents applicable to Executive’s Options. Executive is advised
by the Company to seek independent advice with respect to any financial, tax and/or securities law issues regarding Executive’s Options and any sale by Executive of Company stock. 
 (c) PARACHUTE EXCISE TAX. In the event that the payments or benefits provided to Executive by this Agreement (the “Payment”), when
combined with any and all other payment(s) to which Executive is entitled, constitute “parachute payments” within the meaning of Section 280G(b)(1) of the Internal Revenue Code of 1986, as amended (the “Code”), or any
comparable successor provisions and are subject to the excise tax imposed by Section 4999 of the Code, or any comparable successor provisions (such excise tax, together with any interest and penalties payable with respect to such excise tax,
the “Excise Tax”), then Executive shall be entitled to receive from the Company an additional payment (the “Gross-Up Payment,” and any iterative payments pursuant to this paragraph also shall be “Gross-Up
Payments”) in an amount that shall fund the payment by Executive of any Excise Tax on the Payment, as well as all income and employment taxes on the Gross-Up Payment, any Excise Tax imposed on the Gross-Up Payment and any interest or
penalties imposed with respect to income and employment taxes imposed on the Gross-Up Payment. For this purpose, all income taxes will be assumed to apply to Executive at the highest marginal rate. Notwithstanding the foregoing, the total amount
paid as Gross-Up Payments will not exceed 20% of aggregate value of the payments or benefits provided to Executive pursuant to Sections 3(a) and (b) hereof determined in accordance with the applicable tax regulations issued under
Section 280G. All determinations made under this subsection 3(c) shall be made by an independent public accounting firm chosen by the Company (the “Accounting Firm”). Any Gross-Up Payment shall be paid to Executive, or for his
benefit, within fifteen (15) days following receipt by the Company of the report of the Accounting Firm. Notwithstanding any provision of this subsection 3(c) to the contrary, in accordance with the requirements of section 409A of the Code, any
Gross-Up Payment payable hereunder shall be not later than the end of the calendar year next following the calendar year in which the Executive or Company, as applicable, remits the taxes for which the Gross-Up Payment is being paid. 
 (d) DEATH OF EXECUTIVE FOLLOWING A CHANGE IN CONTROL. In the event of Executive’s death subsequent to a Change in Control, but prior to receiving
all Incentive Benefits and Payments to which Executive is entitled hereunder, such Incentive Benefits and Payments shall be paid to the personal representative of his or her estate at the same time they would otherwise be paid hereunder, unless
Executive has otherwise directed the Company in writing prior to his or her death. 
  

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 (e) NON-EXCLUSIVE PAYMENTS. Benefits provided hereunder are in addition to any amount of severance pay to
which Executive may be entitled under any agreement, severance plan or policy between the Company and Executive or generally available to employees of the Company. 
 (f) NON-SEGREGATION. No assets of the Company need to be segregated or earmarked to represent the liability for benefits payable hereunder. The rights of any person to receive benefits hereunder shall be only those of
a general unsecured creditor. 
 (g) WITHHOLDING. Except as described above, all payments under this Section 3 are subject to applicable
federal and state payroll withholding or other applicable taxes, and Executive shall be responsible for the payment of such taxes. 
 4. CONDITION. Executive
will not be eligible to receive any Incentive Benefits and Payments if Executive is not employed by the Company immediately prior to closing of the Change in Control transaction on the Change in Control Closing Date. 
 5. AT-WILL EMPLOYMENT. This Agreement shall not alter the status of Executive’s at-will employment relationship with the Company and shall not in any way interfere
with Executive’s right or the Company’s right to terminate Executive’s employment at any time, with or without cause or advance notice, except as may be provided in an employment agreement between the Company and the Executive, if
any. 
 6. PROPRIETARY INFORMATION OBLIGATIONS. Executive acknowledges his or her continuing obligations during Executive’s employment with the Company
and thereafter, under his or her Proprietary Information and Inventions Agreement, not to use or disclose any confidential or proprietary information of the Company without prior written authorization from the Company. If Executive has not
previously executed the Company’s Proprietary Information and Inventions Agreement, he or she must do so in order to be eligible for any of the benefits described in this Agreement. 
 7. INITIAL RELEASE. As consideration for continued employment, and as a condition of Executive’s eligibility for the Incentive Benefits and Payments, Executive agrees to sign a general waiver and release and
non-competition/non-solicitation agreement in favor of the Company, a form of which is attached hereto as ATTACHMENT 1, no later than                  ,
200    . 
 8. CHANGE IN CONTROL DATE RELEASE. If applicable, as a condition of receiving the Incentive Benefits and Payments,
Executive must sign and return to the Company a general release, a form of which is attached hereto as ATTACHMENT 2, immediately prior to a Change in Control. Executive will not be eligible for the Incentive Benefits and Payments if Executive does
not sign this release and return it to the Company within the time stated. 
 9. MISCELLANEOUS. 
 (a) ARBITRATION. Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in New York,
New York, in accordance 

  

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with the Rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any jurisdiction.

 (b) CONFLICT IN BENEFITS. This Agreement is not intended to and shall not adversely affect, limit or terminate any other agreement or
arrangement between Executive and the Company presently in effect, or hereafter entered into, including any employee benefit plan under which Executive is entitled to benefits. 
 (c) AMENDMENT. This Agreement may not be amended, except by written agreement between Executive and the Company. 
 (d) NO MITIGATION. All payments and benefits to which Executive is entitled under this Agreement shall be made and provided without offset, deduction or
mitigation on account of income Executive could or may receive from other employment or otherwise. 
 (e) NOTICES. Any notices required under
the terms of this Agreement shall be effective when mailed, postage prepaid, by certified mail and addressed to, in the case of the Company: 
  

							
		 	EP MedSystems, Inc.	 		 	
		 	Cooper Run Executive Park	 		 	
		 	575 Route 73 North - Bldg. D	 		 	
		 	West Berlin, NJ 08091-9293	 		 	
		 	Attention: Chief Executive Officer	 	

 and to, in the case of Executive: 
  

							
		 	[    James Carsuo	 	 ]
	 	
		 	[	 	 ]
	 	
		 	[	 	 ]
	 	

 Either party may designate a different address by giving written notice of change of address in the manner
provided above. 
 (f) WAIVER; CURE. No waiver or modification in whole or in part of this Agreement, or any term or condition hereof, shall
be effective against any party unless in writing and duly signed by the party sought to be bound. Any waiver of any breach of any provision hereof or any right or power by any party on one occasion shall not be construed as a waiver of, or a bar to,
the exercise of such right or power on any other occasion or as a waiver of any subsequent breach. Any breach of this Agreement may be cured by the breaching party within ten (10) days of the date that such breaching party shall have received
written notice of such breach from the party asserting such breach. 
 (g) BINDING EFFECT; SUCCESSORS. Subject to the provisions hereof,
nothing in this Agreement shall prevent the consolidation of the Company with, or its merger into, any other corporation, or the sale by the Company of all or substantially all of its properties and assets, or the assignment of this Agreement by the
Company in connection with any of the foregoing actions. This Agreement shall be binding upon, inure to the benefit of, and be 

  

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enforceable by the Company and Executive and their respective heirs, legal representatives, successors, and assigns. If the Company shall be merged into or
consolidated with another entity, the provisions of this Agreement shall be binding upon and inure to the benefit of the entity surviving such merger or resulting from such consolidation. The Company shall require any successor (whether direct or
indirect, by purchase, merger, consolidation, or otherwise) to all, or substantially all, of the business or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company
would be required to perform it if no such succession had taken place. The provisions of this Section 9(g) shall continue to apply to each subsequent employer of Executive hereunder in the event of any subsequent merger, consolidation, or
transfer of assets of such subsequent employer. 
 (h) SEPARABILITY. Any provision of this Agreement which is held to be unenforceable or
invalid in any respect in any jurisdiction shall be ineffective in such jurisdiction to the extent that it is unenforceable or invalid without affecting the remaining provisions hereof, which shall continue in full force and effect. The
enforceability or invalidity of a provision of this Agreement in one jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 (i) CONTROLLING LAW. This Agreement shall be governed by and construed in accordance with the laws of the state of New Jersey applicable to contracts made and to be performed therein. 
 (j) ENTIRE AGREEMENT. This Agreement, including Attachments 1 and 2, constitutes the complete, final and exclusive embodiment of the entire agreement
between Executive and the Company with regard to this subject matter. It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises,
warranties or, representations. 
 (k) 409A PROVISION. This Agreement shall be interpreted to avoid any penalty sanctions under section 409A
of the Code. The benefits provided under this Agreement are intended to be subject to a “substantial risk of forfeiture” (within the meaning of such term under section 409A of the Code), and paid within the short term deferral exception
under section 409A of the Code, following the lapse of the applicable forfeiture conditions. Executive shall be solely responsible for any tax imposed under section 409A of the Code and in no event shall the Company have any liability with respect
to any tax, interest or other penalty imposed under section 409A of the Code. For purposes of section 409A of the Code, each payment made under this Agreement shall be treated as a separate payment and the right to a series of installment payments
under this Agreement shall be treated as a right to a series of separate payments. In no event shall Executive, directly or indirectly, designate the calendar year of payment. 
 [SIGNATURE PAGE FOLLOWS] 
  

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 IN WITNESS WHEREOF, the Company and Executive have executed this Agreement as of the day and year first
above written. 
  

			
	EP MEDSYSTEMS, INC.
		
	By:	 	 /s/ David I. Bruce

	Name:	 	David I. Bruce
	Title:	 	Chief Executive Officer
	
	EXECUTIVE
	
	/s/ James J. Caruso
	(Printed or Typed) Name:

  

 Page 6 

 Schedule A 
 CERTAIN DEFINITIONS 
 As used in this Agreement, and unless the context requires a different meaning, the
following terms have the meanings indicated: 
 “Base Salary” shall mean Executive’s base pay (excluding incentive pay,
premium pay, commissions, overtime, bonuses and other forms of variable compensation), at the rate in effect during the last regularly scheduled payroll period immediately preceding the Change in Control Closing Date. 
 “Beneficial Owner” and “Beneficial Ownership” have the meanings set forth in Rules 13d-3 and 13d-5 of the General Rules
and Regulations promulgated under the Exchange Act. 
 “Business Combination” means a reorganization, merger or
consolidation, or sale of substantially all of the assets of the Company. 
 “Change in Control” means, and shall be deemed
to occur, upon the happening of any one of the following: 
 1. The acquisition, directly or indirectly, in one or more transactions during any 12-month
period by any Person of Beneficial Ownership of 50% or more of the combined voting power of the then outstanding Voting Securities; 
 2. The consummation
and closing of a Business Combination unless, following such Business Combination, all or substantially all of the individuals and entitles who were the Beneficial Owners of the outstanding Voting Securities immediately prior to such Business
Combination continue to be Beneficial Owners, directly or indirectly, of more than 50% of the then outstanding voting securities entitled to vote generally in the election of directors of the corporation or other entity resulting from such Business
Combination (including, without limitation, a corporation or other entity which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in
substantially the same proportions as their ownership, immediately prior to such Business Combination of the outstanding Voting Securities. 
 “Disability” means that (a) a person has been incapacitated by bodily injury or physical or mental disease so as to be prevented thereby from performance of his or her duties with the Company for one hundred and twenty
(120) days in any 12-month period; and (b) such person is disabled for purposes of any and all of the plans or programs of the Company or any Subsidiary that employs Executive under which benefits, compensation, or awards are contingent
upon a finding of disability. The determination with respect to whether Executive is suffering from such a Disability will be determined by a mutually acceptable physician. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Person” means any individual, entity, or group (as such term is used in Section 13(d)(3) or 14(d)(2) of the Exchange Act).

  

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 “Subsidiary” with respect to the Company, has the meaning set forth in Rule 12b-2 of the
General Rules and Regulations promulgated under the Exchange Act. 
 “Voting Securities” means the voting securities of the
Company entitled to vote generally in the election of directors. 
  

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 ATTACHMENT 1 
 FORM OF INITIAL GENERAL WAIVER AND RELEASE AND 
 NON-COMPETITION/NON SOLICITATION AGREEMENT 
 In consideration of my continued employment with EP MedSystems, Inc., and to be eligible for the possible receipt by me of the Incentive Benefits and
Payments (the “Incentive Benefits”) under the Senior Management Incentive Agreement, dated as of                  ,
200    , between me and the Company (the “Agreement”), I hereby fully and forever release and discharge EP MedSystems, Inc. and its current and former officers, directors, agents, employees, attorneys,
assigns, successors, predecessors, and subsidiaries (hereinafter, collectively called the “Company”), from all claims and causes of action, whether presently known or unknown, arising out of or relating in any way to my employment
the Company, including the termination of my employment, based on any acts or events occurring up until the date I sign below. Capitalized terms used herein without definition shall have meanings given to those terms in the Agreement. 
 1. I understand and agree that this Release and Agreement is a full and complete waiver of all claims, including, but not limited to, any claims with
respect to my entitlement to any wages, bonuses, or other forms of compensation; any claims with respect to my purchase of, or right to purchase, capital stock of the Company (except stock options granted to me prior to the date hereof); any claims
of wrongful discharge, breach of contract, breach of the covenant of good faith and fair dealing, violation of public policy, defamation, personal injury, emotional distress; any claims under Title VII of the Civil Rights Act of 1964, as amended,
the Fair Labor Standards Act, the Equal Pay Act of 1963, the Americans With Disabilities Act, the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) as related to severance benefits, the Civil Rights Act of 1991,
the Age Discrimination in Employment Act of 1967 as amended (“ADEA”), the Workers Adjustment and Retraining Notification Act, the New Jersey Law Against Discrimination, the New Jersey Equal Pay Act, the New Jersey Conscientious
Employee Protection Act, the New Jersey Wage Law, and any claims pursuant to any other federal, state and local laws and regulations relating to employment or employment discrimination. I agree that the benefits provided to me pursuant to the
Agreement are in full satisfaction and settlement of any such claims, liabilities, demands or causes of action, except as may be provided in my employment agreement with the Company, if any, and I represent and warrant that I will not file any
lawsuit or institute any proceeding asserting any such claim, provided that nothing in this Release and Agreement prohibits me from bringing an action to determine the validity of the Release with respect to claims under ADEA. I also hereby agree
that nothing contained in this Release and Agreement shall constitute or be treated as an admission of liability or wrongdoing by the Company. 
 2. In addition, and in further consideration of the foregoing, I hereby expressly waive, to the extent permissible, any and all rights and benefits conferred upon me by any statute, common law principle, or other provision negating the
validity or enforceability of waivers of claims that exist but are unknown to me at the time of my waiver. 
 3. I expressly acknowledge that
I am waiving and releasing any rights I may have under the ADEA. I understand that I have the right to consult with an attorney before signing this Release and Agreement. I also understand that, as provided under the Older Workers Benefit 

  

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Protection Act of 1990, I have until
                     (which date is at least forty-five (45) days after my receipt of this Release and Agreement) to review and consider
it, discuss it with an attorney of my own choosing, and decide to execute or not execute this Release and Agreement. I also understand that for a period of seven (7) days after I sign this Release, I may revoke this Release and Agreement and
that the Release and Agreement will not become effective until seven (7) days after I sign it, and only then if I do not revoke it. In order to revoke this Release and Agreement, I must deliver to the Chief Financial Officer or Chief Executive
Officer of the Company of the Company, by no later than seven (7) days after I execute this Release and Agreement, a letter stating that I am revoking it. If I do not deliver such a letter, then this Release and Agreement shall become effective
upon the expiration of the seventh day after I executed this Release and Agreement (the “Effective Date”). I understand that if I choose to revoke this Release and Agreement within seven (7) days after I sign it, I will not
receive any Incentive Benefits, and the Release and Agreement will have no effect. 
 4. I further acknowledge that I was given an
opportunity to consider and review this Release and Agreement and to consult with an attorney of my own choosing concerning the waivers contained in this Release and Agreement, that I have done so or knowingly declined to do so and that the waivers
made herein are knowing, conscious and with full appreciation that I am forever foreclosed from pursing any of the rights so waived. 
 5. I
understand that this Release and Agreement and the Agreement set forth the entire agreement between the Company and me concerning the subject matter thereof and supercede any other written or oral promises or agreements concerning the items
described herein, except as may be provided in my employment agreement with the Company, if any. I understand and agree that this Release and Agreement shall be governed by the laws of the State of New Jersey, without regard to its conflicts of law
provisions. 
 6. I hereby acknowledge that I have read and understand this Release and Agreement and that I sign it voluntarily and without
coercion. 
 7. As a condition to receiving the Incentive Benefits, during my employment with the Company and for a period of twelve
(12) months following termination or cessation of during my employment with the Company (“Non-Compete Period”), I agree not to undertake any planning for any outside business activity that is engaged in the Business (as defined
below) and further agree not to own, either directly or indirectly, any interest in, manage, control, participate in (whether as an officer, director, employee, partner, agent, consultant, independent contractor, representative or otherwise),
consult with or render services for, or in any manner engage in the Business anywhere within any state, possession, territory or jurisdiction of the United States of America, provided that nothing in this paragraph 7 shall prohibit me from acquiring
up to 5% of any class of outstanding equity securities of any corporation whose equity securities are publicly traded. For purposes of this Paragraph 7, the “Business” shall mean any business engaged in the development, manufacture,
marketing and/or sale of products of any kind in cardiac rhythm management or electrophysiology (EP) market relating to products which are used to diagnose, monitor, visualize and/or treat irregular heartbeats known as arrhythmias. 
  

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 8. As a condition to receiving the Incentive Benefits, during and continuing until the end of the
Non-Compete Period, I will not directly or indirectly, personally or through others, solicit or attempt to solicit (on your own behalf or on behalf of any other person or entity) the employment of any employee of the Company, any successor company
to all or any material part of the Company’s business (a “Successor”) or any of their respective affiliates. In addition, during the Non-Compete Period, I will not directly or indirectly, personally or through others, solicit
or attempt to solicit (on my own behalf or on behalf of any other person or entity) the business of any customer or supplier of the Company, any Successor or any their respective affiliates. 
 9. As a condition of receiving the Incentive Benefits, I agree not to disparage the Company, any of its products or practices, or any of its directors,
officers, agents, representatives, stockholders or affiliates, either orally or in writing, at any time. 
 10. If the duration or
geographical extent of, or business activities covered by, this Release and Agreement are in excess of what is valid and enforceable under applicable law, then its provisions shall be construed to cover only that duration, geographical extent or
activities that are valid and enforceable. I acknowledge the uncertainty of the law in this respect and expressly stipulate that this Release and Agreement be given the construction that renders its provisions valid and enforceable to the maximum
extent (not exceeding its express terms) possible under applicable law. 
 11. I understand and agree that in order to be eligible to receive
Incentive Benefits, I will return all of the Company’s property in my possession including, but not limited to, all copies of any confidential or proprietary information, personal computer(s), keys, pager, cellular phone, phone card, credit
card, electronic organizer, fax modem, printer, etc. I represent, warrant and agree that at all times during my employment with the Company, I have been in compliance with, and at all times in the future I will continue to be bound by, the terms and
conditions set forth in the Company’s form of Proprietary Information and Inventions Agreement as executed between the Company and me. 
 Executed this 28 day of February, 2008 
  

			
	By:	 	 /s/James J. Caruso

		 	Executive Signature
	
	James J. Caruso
		 	Print Full Name

  

 Page 11 

 ATTACHMENT 2 
 FINAL GENERAL RELEASE AND AGREEMENT 
 I understand and agree completely to the terms in the Senior Management Incentive
Agreement between me and EP MedSystems, Inc. (together with its subsidiaries, the “Company”, dated                  ,
200     (as amended in accordance with its terms, the “Agreement”). Capitalized terms used herein without definition shall have the meanings give to such terms in the Agreement. 
 Except as provided in the Agreement, I hereby release, acquit and forever the Company, their subsidiaries, and their respective officers, directors, agents, attorneys,
servants, employees, stockholders, successors, predecessors, assigns and affiliates, of and from any and all claims, liabilities, demands, causes of action, costs, expenses, attorneys’ fees, damages, indemnities and obligations of every kind
and nature, in law, equity, or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed, arising at any time prior to and including the date I sign this release, including but not limited to: any and all such claims and
demands directly or indirectly arising out of or in any way related to my employment and the termination of my employment; claims of demands related to salary, bonuses, commissions, stock, stock options (except stock options granted to me before the
date hereof), or any other equity interests in the Company, vacation pay, fringe benefits, expense reimbursements, sabbatical benefits, relocation benefits, severance benefits, or any other form of compensation; claims pursuant to any federal, state
or local law, statute or cause of action including, but not limited to, the federal Civil Rights Act of 1964, as amended; the federal Americans with Disabilities Act of 1990; wrongful discharge; harassment; breach of the covenant of good faith and
fair dealing; contract law; tort law; discrimination; fraud; defamation; and emotional distress. 
  

							
	Date:                     	 		 	By:	 	  

		 		 		 	EXECUTIVE
	 	 		 	PRINTED NAME:

  

 Page 12

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