Document:

Prepared by R.R. Donnelley Financial -- Amendment No. 2 dated May 7, 2002

 Exhibit 10.1 
  
 AMENDMENT NO. 2, dated as of May 7, 2002 (the “Amendment”) to the CREDIT AGREEMENT (the “Credit Agreement”), dated as of June 21, 1999, among BLOCKBUSTER INC., a Delaware corporation (the
“Borrower”), the Bank parties thereto from time to time, CITIBANK, N.A., as the Administrative Agent, THE BANK OF NEW YORK, as the Documentation Agent, THE BANK OF AMERICA NT&SA, as a Syndication Agent and CHASE SECURITIES INC., as a
Syndication Agent. 
  
 WITNESSETH: 
  
 WHEREAS, the parties who have heretofore entered into the Credit Agreement now desire to amend Section 10.8 of the Credit Agreement to permit the Borrower to purchase
shares of its common stock; 
  
 WHEREAS, the parties now desire to reduce the Tranche A Loan Commitments of the
Banks. 
  
 NOW THEREFORE, the parties hereto agree as follows: 
  

SECTION 1.    Amendment.    Section 10.8 of the Credit Agreement is hereby amended to read in its entirety as follows:

  
 10.8.  Dividends and Purchase of Stock.    The Borrower
shall not declare any dividends (other than dividends payable in common stock of the Borrower) on any shares of any class of its common stock, or apply any of its property or assets to the purchase, redemption or other retirement of, or set apart
any sum for the payment of any dividends on, or for the purchase, redemption or other retirement of, or make any other distribution by reduction of common stock or otherwise in respect of, any shares of any class of common stock of the Borrower, or
permit any Subsidiary so to do, or permit any Subsidiary to purchase or acquire any shares of any class of common stock of the Borrower, except for 
  
 (i)  amounts applied to the payment of quarterly ordinary common stock dividends that on an annualized basis do not exceed an aggregate of $90
million in the first four Fiscal Quarters following any initial public issuance of its common stock, $115 million for the next following four Fiscal Quarters, $130 million for the next following four Fiscal Quarters, $145 million for the next
following four Fiscal Quarters and $160 million for the next following four Fiscal Quarters; provided, however, that the Borrower shall not pay any such dividends if there then exists, or the payment thereof should cause, a breach in
the financial covenants set forth in Article VIII; and 

  
 (ii)  amounts applied to the purchase of its common
stock that do not exceed an aggregate of $100 million; provided that, any amounts so applied shall correspondingly reduce the remaining amounts permitted by this section to be applied to the payment of ordinary common stock dividends during the four
fiscal quarter period in which the purchase occurs or, if such remaining amount is less than the purchase amount, to further reduce the amount available for the payment of ordinary common stock dividends in the next immediately succeeding four
fiscal quarter period by the amount of any excess. 
  
 SECTION 2.    Reduction of Tranche A
Loan Commitments.    Pursuant to Section 2.3 of the Credit Agreement, the Borrower hereby requests and the Banks hereby agree that upon effectiveness of the Amendment, the Tranche A Loan Commitments of the Banks shall be
permanently reduced ratably in the amount of $100,000,000. 
  
 SECTION
3.    Effectiveness.    Following the execution of counterparts hereof by the Borrower and the Majority Banks, this Amendment will be effective as of May 7, 2002. 
  
 SECTION 4.    Representations and Warranties.    The Borrower hereby represents and
warrants that as of the date hereof (i) the representations and warranties contained in Article VII of the Credit Agreement (other than those stated to be made as of a particular date) are true and correct in all material respects on and as of the
date hereof as though made on the date hereof, and (ii) no Default or Event of Default shall exist or be continuing under the Credit Agreement. 
  
 SECTION 5.    Miscellaneous.    (a)  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in
the Credit Agreement. 
  
 (b)  Except as amended hereby, all of the terms of the Credit
Agreement shall remain and continue in full force and effect and are hereby confirmed in all respects. 
  
 (c)  This Amendment shall be a Loan Document for the purposes of the Credit Agreement. 
  
 (d)  This Amendment may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto were upon the same instrument. Delivery of an executed counterpart of a
signature page of this Amendment by telecopier shall be effective as delivery of a manually executed counterpart of this Amendment. 
  
 (e)  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 

 2 

  
 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed as of the date first above written. 
  
  
 
	 BLOCKBUSTER INC., as Borrower
 
	 
	 By:
 	 	 /s/    RICHARD
MCDOWELL        
 

	  	 	 Name:  Richard McDowell
 Title: Senior Vice President, Treasurer
 
	 
	 CITBANK, N.A., as Administrative Agent
 
	 
	 By:
 	 	 /s/    ELIZABETH H.
MINNELLA        
 

	  	 	 Name: Elizabeth H. Minnella
 Title: Director
 

 
 

 3Prepared by R.R. Donnelley Financial -- Non-Compete and Confidentiality Agreement

  
 EXHIBIT 10.1 
  
 CONFIDENTIALITY AND NON-COMPETE AGREEMENT 
  
 This Agreement, entered into this 22stday of June, 2002, is by and between Mannatech, Inc. (the “Company”), and H. Reg McDaniel (“McDaniel”), an individual resident of the state of Texas. 
  
 WHEREAS, McDaniel is a current employee of the Company; 
  
 WHEREAS, the Company and McDaniel desire to supercede McDaniel’s restrictive covenants (Articles I, II and III of the June 23, 1997 Agreement between the parties and
provide certain compensation to McDaniel for the covenants set forth herein; 
  
 NOW, THEREFORE, in consideration of
these recitals and the promises and agreements set forth in this Agreement, the parties hereby agree as follows: 
  
 1.    Nondisclosure:  For a period of five (5) years following the execution of this Agreement, McDaniel shall keep and retain in confidence and shall not disclose, except as required by the
Company or by law, to any person, firm or corporation, or use for McDaniel’s own purposes, any Confidential Information that McDaniel has learned or obtained from his past employment with the Company., or which is new Confidential Information
provided in conjunction with this Agreement. 
  

	 	a.
	 
	Confidential Information:  For the purposes of this section, such Confidential Information shall include, but is not limited to: 

  

	 	(1)
	 
	The Company’s operating procedures, processes, formulae, know-how, scientific, technical, or product information, whether patentable or not, which is of
value to the Company and not generally known by the Company’s competitors;   
 

  

	 	(2)
	 
	All confidential information obtained from third parties and customers concerning their products, business, or the direct sale and/or network/multi-level
marketing of dietary supplements; 
 

  

	 	(3)
	 
	Confidential business information of the Company, including, but not limited to, marketing and business plans, associates and down line information, strategies,
projections, business opportunities, client identities or lists, sales and cost information, internal financial statements or reports, profit, loss, or margin information, customer price information, compensation plans and strategies; and,

 

  

	 	(4)
	 
	Confidential Information shall not include information which: 
 

 

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 (a)  Was in the receiving party’s possession, free of any
obligation of confidence, prior to receipt from the disclosing party, as proven by the receiving party; 
  
 (b)  Is already in the public domain at the time the disclosing party communicated it to the receiving party, or becomes available to the public through no breach of this Agreement; 
  
 (c)  Is received independently from a third-party free to disclose such information to the receiving party; 

 
 (d)  Is developed by the receiving party independently of and without reference to any of the Confidential
Information, as proven by the receiving party; 
  
 (e)  Is disclosed by the receiving party to a
third-party, with the express prior written consent of the disclosing party; 
  
 (f)  Is disclosed by the
receiving party in order to satisfy any legal requirement of any competent government body; provided, however, that immediately upon the receiving party’s receipt of any such request, the receiving party shall first advise the disclosing party
of same before making any disclosure to such body, so that the disclosing party may either interpose an objection to such disclosure before such body, or take action to assure confidential handling of the Confidential Information by such body, or
take action to protect the Confidential Information which the disclosing party deems appropriate under the circumstances; or 
  
 (g)  Is disclosed in the course of a criminal or civil investigation of conduct which allegedly violates any code, statute, ordinance, rule and/or regulation of the United States or of any state or political subdivision
thereof. 
  

	 	b.
	 
	Any of the foregoing Confidential Information which is in McDaniel’s possession shall be returned upon request from the Company, and McDaniel shall have no
further rights to utilize it for any purposes. 
 

  
 Inevitable Use or Disclosure: McDaniel
and the Company stipulate and agree that, for a period of twelve (12) calendar months after the execution of this Agreement, if McDaniel becomes a spokesman for, employee, consultant, owner, partner, shareholder, officer, or director,
of or shareholder of more than 5% of the outstanding stock of a publicly traded company for any business operation that is involved in the direct selling business generally and/or direct sales and/or network/multi-level marketing of dietary
supplements and other similar products sold or distributed by the Company or any of its subsidiaries or in any manufacturing or formulation of such products, (collectively the “Business”) such conduct would result in the inevitable use
and/or disclosure of Confidential Information acquired by or imparted to him in the course of his employment with the Company. Based on this stipulation and agreement, and regardless of the existence, enforceability or validity of any other
restrictive covenant contained in this Agreement or the General
 
 

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Release Agreement between the parties of even date herewith, McDaniel is prohibited from becoming employed by a consultant for, an officer, director or shareholder of more than 5% of the
outstanding stock of, any business operation which competes in the Business currently engaged in by Company or any of its subsidiaries or affiliates for a period of twelve (12) months after termination of employment from the Company. The Company
will have the right to seek any injunctive relief necessary to prevent such disclosure. 
  
 2.    Non-Competition:  In exchange for the mutual promises and obligations contained in this Agreement, and contemporaneous with its execution, the Company promises to deliver to McDaniel or
permit McDaniel to acquire, be exposed to, and/or have access to new material, data, or information of the Company and/or its customers or clients that is confidential, proprietary and/or a trade secret. This includes, but is not necessarily limited
to, the Confidential Information described, delivered or provided contemporaneously with the execution of this Agreement. By signing this Agreement, McDaniel acknowledges receipt of the Confidential Information. 
  

	 	a.
	 
	In consideration of the mutual promises contained in this Agreement, the sufficiency of which is acknowledged by the parties, McDaniel agrees that for a period
of twelve (12) calendar months after the execution of this Agreement, McDaniel will not, either as a spokesman for, employee, consultant, owner, partner, shareholder, officer, or director, of or shareholder of more than 5% of the outstanding stock
of a publicly traded company, for any business operation which competes in the Business currently engaged in by Company or any of its subsidiaries or affiliates, directly or indirectly: 
 

  

	 	(1)
	 
	become a spokesman for, employee, consultant, owner, partner, shareholder, officer, or director, of or shareholder of more than 5% of the outstanding stock of a
publicly traded company for any business operation that is in the direct selling business generally, or in any business which competes in the Business currently engaged in by Company or any of its subsidiaries or affiliates. 

  

	 	(2)
	 
	Solicit or attempt to solicit any employees, or Mannatech Associates with whom the Company has had any contract during the term of this Agreement or for a
period of 12 calendar months preceding the date of this Agreement or otherwise induce such Customers to reduce, terminate, restrict or otherwise alter business relationships with the Company in any fashion; 
 

 
 Notwithstanding any provision of this Agreement or of the General Release Agreement of even date herewith to the contrary,
McDaniel may speak at any trade, professional or industry association or scientific or educational meeting (other than on behalf of a competitor), and may conduct scientific research or evaluations of drugs, dietary supplements or similar products
without disclosing any Confidential Information, and may research and/or develop prescription and/or over the counter drugs. 
  

	 	b.
	 
	In recognition of the broad geographic scope of the Company’s business
 
 

 

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operations throughout the entire United States, and the ease of competing with the Company, the restrictions on competition set forth herein are intended to cover those cities and states in the
United States of America and foreign countries in which the Company does business on the date of the execution of this Agreement.  
 

  
 3.    Payment for Restrictive Covenants:  In consideration for McDaniel’s compliance with his obligations under this Agreement, McDaniel shall receive a fee in
the amount of Twenty Five Thousand and no/100 Dollars ($25,000.00) once per month, during the first twelve months following the termination of his employment for any reason. Payments shall be on the last day of every month. The Company will not
withhold or pay any amounts to any federal, state, or local authority with respect to or on behalf of McDaniel. McDaniel thereafter shall be solely responsible for all of his federal, state, and local taxes and reports. McDaniel will not be entitled
to any benefits provided by the Company to its employees. 
  
 4.    Employment
Status:  McDaniel agrees that following his termination, he shall not represent himself to any person or entity as an employee, officer, agent, representative, official or owner (except as a Shareholder or Associate) of Mannatech. This
Agreement shall not result in any employment, joint venture or other business relationship between McDaniel and the Company, other than the rights, duties and obligations specifically set forth herein. Neither of the parties hereto shall make any
representation to the contrary. 
  
 5.    Authority:  Each party hereto
represents and warrants to the other that he or it has the authority to execute and deliver this Agreement and to perform hereunder. 
  
 6.    Entire Agreement:  This Agreement represents the entire understanding of the parties with regard to the matters addressed herein. Each of Employee and the Company acknowledges that
they have executed a General Release Agreement of even date herewith, but that there are no other written or oral agreements between the parties, except the Associates Agreement between the parties 
  
 7.    Applicable Law:  This Agreement shall be construed in accordance with the laws of the State of
Texas, without regard to the conflicts of laws or principles of such state. 
  
 8.    Severability:  If any provision or term of this Agreement is held to be illegal, invalid, or unenforceable, such provision or term shall be fully severable; this Agreement shall be construed
and enforced as if such illegal, invalid, or unenforceable provision had never comprised part of this Agreement; and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid,
or unenforceable provision or by its severance from this Agreement. Furthermore, in lieu of each such illegal, invalid, or unenforceable provision or term, there shall be added automatically as a part of this Agreement another provision or term as
similar to the illegal, invalid, or unenforceable provision as may be possible and that is legal, valid, and enforceable. 
  
 9.    Termination:  Notwithstanding anything to the contrary in this Agreement, the Company may terminate this Agreement and all obligations of all parties hereto, including, upon termination of
this Agreement, the Company’s obligations to make any further monthly payments contemplated by this Agreement in the event of McDaniel’s breach of this Agreement, 
 

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 and his failure to cure such breach within 30 days following notice of such breach by the Company.
McDaniel may explain in writing his response to a written notice from the Company describing a claimed breach within ten (10) business days after receipt of such notice from the Company. The decision to terminate this Agreement will be made by
Mannatech’s Board of Directors in its sole and exclusive discretion. 
  
 10.    The Employee
agrees to promptly disclose to the Company and Employee hereby assigns to the Company or its designee, its assigns, successors or legal representatives, all, right, title and interest in and to any and all patents, formulae, inventions, processes,
designs, software, firmware, circuitry, diagrams, copyrights, trade secrets, and any other proprietary information (collectively, the “Proprietary Information”) whatsoever, conceived, developed, or completed by the employee during the
course of the Employee’s employment with the Employer, or using the Employer’s time, data, facilities and/or materials, provided the subject matter of the Proprietary information is within the scope of the duties and responsibilities of
one in the Employees position with the Employer or occurs as a result of the Employee’s knowledge of a particular interest of the Employer during Employees employment with the Employer. The Employee agrees to assist the Company (with
reimbursement by the Company for all expenses incurred) in the preparation, execution, and delivery of any assignments, disclosures, patent applications, or papers within the scope and intent of this Agreement required to obtain patents or
copyrights in the Proprietary Information in this or a foreign country and in connection with such other proceedings as may be necessary to vest title to the Proprietary Information in the Company, its assigns, successors, or legal representatives.

  
 11.    In the event of a dispute between the parties and before any legal action is
commenced, the parties agree that the complaining party shall give specific and detailed notice to the other party of the complaint, including the factual basis therefore. The parties shall use their best efforts to resolve the complaint by face to
face meeting conducted within 5 days of such notice of complaint. If the parties cannot arrive at a mutually satisfactory solution to the complaint within 5 business days from the date of such notice of the complaint, the parties shall attempt to
resolve the complaint by non-binding mediation before a neutral mediator agreeable to the parties. The parties shall use best efforts to schedule and conduct such mediation within 10 days after the date of the face to face meeting. The mediation
shall take place at a neutral location in Dallas County, Texas. 
  
 12.    In any suit to enforce
any provisions of this Agreement, The prevailing party in such proceeding shall be entitled to record and have awarded its reasonable attorney’s fees, costs and expenses of litigation in addition to any other relief to which it may be entitled.

 

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 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the 21st
day of June, 2002. 
  
  
 
	 
	 /s/    H. REG. MCDANIEL
 

	 H. REG MCDANIEL
 

 
  
 
	 MANNATECH, INC.:
 
	 
	 By:
 	 	 /s/    SAM CASTER        

	  	 	 Sam Caster
 Chairman of the
Board
 

 
 

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