Document:

apyp_ex102.htm

EXHIBIT 10.2
 
SEPARATION AND RELEASE AGREEMENT
 
THIS SEPARATION AND RELEASE AGREEMENT (the “Agreement”) is entered into as of the 5th day of February 2020, by and between Douglas McKinnon (the “Employee”) and Appyea Inc., a South Dakota corporation and any parents, subsidiaries, or affiliates of the Company (collectively referred to herein as the “Company”) and shall be effective upon the Board of Directors’ approval of the terms and conditions of his replacement (the “Effective Date”).
 
WHEREAS, Employee is currently the Chief Employee Officer of the Company; and
 
WHEREAS, the Company currently owes the Employees unpaid wages, allowances and out of pocket expenses, and
 
WHEREAS, this Agreement governs the terms of Employee’s separation from the Company and the settlement of any payments that may be due under the Employment Agreement.
 
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereby agree as follows:
 
1. Termination Date. The Employee’s Termination Date is the date when the Employee is in full receipt of the consideration defined in this Section (i) and the Companies continued compliance with this Section (ii);
 
(i) Consideration is as follows: payment of One Thousand Dollars ($1,000.00) and the retention of all securities (Debt and Equity) currently held by the Employee without any challenge to the validity of the ownership.
 
(ii) Indemnification. The Company shall indemnify the Employee, to the maximum extent permitted by applicable law and by its certificate of incorporation, against all costs, charges and expenses incurred or sustained by the Employee in connection with any action, suit or proceeding to which he may be made a party by reason of being an officer, director or employee of the Company or of any subsidiary or affiliate of the Company or any other corporation for which the Employee serves [in good faith] as an officer, director, or employee at the Company's request.
 
2. Holdings of the Company’s Securities and Debt. The Employee currently owns 6,416,667 shares of preferred stock of the Company and has $26,750 in accrued salary owed to the Employee by the Company. Employee shall be entitled to retain ownership of all preferred stock of the Company and debt currently held by the Employee.
 
3. Employee Release. Ninety One (91) Days after the Employee is in receipt of the full consideration defined in Section (i) and for seven (7) years the Company has maintained its contractual committed defined in Section 1.(ii) of this Agreement, except for items included in Section 2. above, Employee irrevocably and unconditionally releases the Company, its predecessors, parents, subsidiaries, affiliates, and past and present officers, directors, agents, consultants, employees, representatives, legal advisors and insurers, as applicable, together with all successors and assigns of any of the foregoing (collectively, the “Releasees”), of and from all claims, demands, actions, causes of action, rights of action, contracts, controversies, covenants, obligations, agreements, damages, penalties, interest, fees, expenses, costs, remedies, reckonings, extents, responsibilities, liabilities, suits, and proceedings of whatsoever kind, nature, or description, direct or indirect, vested or contingent, known or unknown, suspected or unsuspected, in contract, tort, law, equity, or otherwise, under the laws of any jurisdiction, that the Employee or his predecessors, legal representatives, successors or assigns, may have, against the Releasees, as set forth above, jointly or severally, for, upon, or by reason of any matter, cause, or thing whatsoever from the beginning of the world through, and including, the date of this Agreement (“Claims”).
  
	 
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4. Company Release. In exchange for the consideration provided for in this Agreement, the Company irrevocably and unconditionally release the Employee of and from all claims, demands, causes of actions, fees and liabilities of any kind whatsoever, which it had, now has or may have against the Employee, as of the date of this Agreement, by reason of any actual or alleged act, omission, transaction, practice, conduct, statement, occurrence, or any other matter, within the reasonable scope of the Employee’s employment that is known to the Company. The Company represents that, as of the date of this Agreement, there are no known claims relating to the Employee. Notwithstanding the foregoing, this release does not include Company’s right to enforce the terms of this Agreement.
 
5. Company Information and Property. Employee agrees to immediately return to the Company all Company property and information in his possession including, but not limited to, Company reports, customer lists, supplier lists, consultant lists, formulas, files, manuals, memoranda, computer equipment, access codes, discs, software, and any other Company business information or records, in any form in which they are maintained, including records or information regarding Company customers, suppliers and vendors, and Company products and product development, and agrees that he will not retain any copies, duplicates, reproductions, or excerpts thereof in any form. Employee further agrees that he will not, in any manner, make use of any Company property and information in any future dealings, business or otherwise, and acknowledges that any use of Company property and information in any future dealings, business or otherwise, would constitute a breach of this Agreement. Employee acknowledges that any breach of this section would cause irreparable injury to the Company for which there is no adequate remedy at law and in addition to any remedies that may be available to the Company in the event of a breach or threatened breach of this section by Employee, including monetary damages, the Company shall be entitled to obtain a temporary restraining order and/or a preliminary or permanent injunction which would prevent Employee from violating or attempting to violate the provisions of this section of the Agreement. In seeking such an order, any requirement to post a bond or other undertaking shall be waived. In any such action, the Company shall be entitled to an award of all reasonable costs and fees incurred in bringing such an action, including reasonable attorney’s fees.
 
6. Confidentiality. Employee agrees that he will not disclose, directly or indirectly, the underlying facts that led up to this Agreement or the terms or existence of this Agreement. Employee represents that he has not and will not, in any way, publicize the terms of this Agreement and agrees that its terms are confidential and will not be disclosed by him except that he may discuss the terms of this Agreement with his attorneys, financial advisors, accountants, and members of his immediate family, or as required by law. Employee understands and agrees that should he violate this provision of the Agreement, he will be responsible to the Company for liquidated damages in the amount of any and all funds or securities payable or issuable pursuant to this Agreement and understands that such relief shall not be a bar to the Company’s pursuit of injunctive relief.
 
7. Future Cooperation. Employee agrees to reasonably cooperate with the Company, its financial and legal advisors, in connection with any business matters for which the Employee’s assistance may be required and in any claims, investigations, administrative proceedings or lawsuits which relate to the Company and for which Employee may possess relevant knowledge or information. Any travel and accommodation expenses incurred by the Employee as a result of such cooperation will be reimbursed in accordance with the Company’s standard policies. Employee further agrees to reasonably cooperate with the Company, its financial and legal advisors, in connection with disseminating a press release or filing disclosures statements related to the Employee’s separation from the Company. Employee agrees to assist in preparation of any future reporting or SEC/OTC filings as a consultant under separate agreement.
 
8. Applicable Law and Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas, without regard to its conflicts of law principles. Any dispute regarding this Agreement or related to the Employee’s employment with the Company shall be resolved in the Courts located in the Ft. Worth, Texas, without a jury (which is hereby expressly waived).
 
9. Entire Agreement. This Agreement may not be changed or altered, except by a writing signed by both parties. Until such time as this Agreement has been executed and subscribed by both parties hereto: (i) its terms and conditions and any discussions relating thereto, without any exception whatsoever, shall not be binding nor enforceable for any purpose upon any party; and (ii) no provision contained herein shall be construed as an inducement to act or to withhold an action, or be relied upon as such. This Agreement constitutes an integrated, written contract, expressing the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes any and all prior agreements and understandings, oral or written, between the parties, except as otherwise provided herein.
  
	 
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10. Acknowledgement. Employee acknowledges that he: (a) has carefully read this Agreement in its entirety; (b) has been presented with the opportunity to consider it for at least twenty-one (21) days; (c) has been advised to consult and has been provided with an opportunity to consult with legal counsel of his choosing in connection with this Agreement; (d) fully understands the significance of all of the terms and conditions of this Agreement and has discussed them with his independent legal counsel or has been provided with a reasonable opportunity to do so; (e) has had answered to his satisfaction any questions asked with regard to the meaning and significance of any of the provisions of this Agreement; and (f) is signing this Agreement voluntarily and of his own free will and agrees to abide by all the terms and conditions contained herein.
 
11. Notices. For the purposes of this Agreement, notices, demands and all other communications provided for in this Agreement shall be in writing and shall be delivered (i) personally, (ii) by first class mail, certified, return receipt requested, postage prepaid, (iii) by overnight courier, with acknowledged receipt, or (iv) by facsimile transmission followed by delivery by first class mail or by overnight courier, in the manner provided for in this Section, and properly addressed as follows:
   
	If to the Company, to:
	 
	Appyea Inc.
777 Main Street, Suite 600
Fort Worth, TX 76102

	 
	 
	 

	With a copy to:
	 
	 

	 
	 
	 

	If to Employee to:
	 
	Douglas McKinnon
2104 Ridge Plaza, Castle Rock, CO 80108
doug@douglasmckinnon.com

	 
	 
	 

	With a copy to:
	 
	 

     
12.   Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.
 
IN WITNESS WHEREOF, the Parties hereto have entered into this Agreement as of the 5th day of February 2020 and is effective on the Effective Date.
 
	APPYEA INC.	
	 	 	 
	By:	/s/ Todd Violette 
	
	 
	Name: Todd Violette	 
	 	Title: CEO	 
	 		 
	Employee:
	 

	 
	 
	 

	By:
	/s/ Douglas McKinnon
	 

	 
	Douglas McKinnon
	 

 
	 
	3EXHIBIT 4.2

      

      

      DESCRIPTION OF THE REGISTRANT’S SECURITIES

      REGISTERED UNDER SECTION 12 OF THE

      SECURITIES EXCHANGE ACT OF 1934

       

      

      As of December 31, 2019, Nu Skin Enterprises, Inc. (the “Company”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange
        Act”): Class A Common Stock. This class of securities has a par value of $0.001 per share. The Company’s certificate of incorporation authorizes 500 million shares of this class, and as of January 31, 2020, 55,547,214 shares were outstanding, held
        by a total of approximately 251 holders of record.

       

      

      The Company’s certificate of incorporation also authorizes 25 million shares of preferred stock and 100 million shares of Class B common stock, both with a par value of $0.001 per share, but
        these classes of securities are not registered under Section 12 of the Exchange Act, nor were any shares of these classes outstanding as of January 31, 2020. As used in this Exhibit 4.2, the term “common stock” refers, collectively, to our Class A
        Common Stock and our Class B Common Stock.

       

      

      The description below does not purport to be complete and is qualified in its entirety by reference to the terms of our certificate of incorporation and our bylaws, each of
        which is incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.2 is a part. We encourage you to read our certificate of incorporation, our bylaws and the applicable provisions of the Delaware General
        Corporation Law for additional information.

       

      

      Common Stock

       

      

      Voting Rights

       

      

      Each share of our Class A Common Stock entitles the holder to one vote on each matter submitted to a vote of our stockholders, including the election of directors. Each
        share of our Class B Common Stock entitles the holder to ten votes on each matter submitted to a vote of our stockholders, including the election of directors. There is no cumulative voting. With respect to corporate changes, including
        liquidations, reorganizations, recapitalizations, mergers, consolidations and sales of substantially all of our assets, the approval of 66 2/3% of the outstanding voting power is required to authorize or approve the transactions.

       

      

      Dividends

       

      

      The holders of our common stock are entitled to receive dividends if, as and when the dividends are declared by our board of directors out of assets legally available for
        the dividends after payment of dividends required to be paid on shares of preferred stock, if any.

       

      

      Liquidation Preference

       

      

      In the event of liquidation, after payment of the debts and other liabilities of our Company and after making provision for the holders of our preferred stock, if any, our
        remaining assets will be distributable ratably among holders of our common stock.

      

      

      
        
          

      

      
      Mergers and Other Business Combinations

       

      

      Upon the merger or consolidation of our Company, holders of our common stock are entitled to receive equal per-share payments or distributions. We may not dispose of all
        or any substantial part of our assets to, or merge or consolidate with, any person, entity or group (as the term “group” is defined in Rule 13d-5 of the Exchange Act) that beneficially owns, in the aggregate, 10% or more of our outstanding common
        stock without the affirmative vote of the holders, other than a related person, of not less than 66 2/3% of the voting power. For the sole purpose of determining the 66 2/3% vote, a related person will also include the seller or sellers from whom
        the related person acquired, during the preceding six months, at least 5% of the outstanding shares of common stock pursuant to one or more agreements or other arrangements and not through a brokers’ transaction, but only if the seller or sellers
        have beneficial ownership of shares of common stock having a fair market value in excess of $10 million in the aggregate at the time of the proposed disposition, merger, or consolidation. Notwithstanding the foregoing, neither our Company nor any
        of our subsidiaries shall be a related person. This 66 2/3% voting requirement is not applicable, however, if:

       

      

      
        
          	

                	•	
                  the proposed transaction is approved by a vote of not less than a majority of our directors who are neither affiliated nor associated with the related person or the seller of
                    shares to the related person as described above; or

                

           

          

        

      

      
        
          	

                	•	
                  in the case of a transaction pursuant to which the holders of common stock are entitled to receive cash, property, securities or other consideration, the cash or fair market value
                    of the property, securities or other consideration to be received per share in the transaction is not less than the higher of:

                

           

          

        

      

      
        
          	

                	•	
                  the highest price per share paid by the related person for any of its holdings of common stock within the two-year period immediately prior to the announcement of the proposed
                    transaction; or

                

           

          

        

      

      
        
          	

                	•	
                  the highest closing sale price during the 30-day period immediately preceding that date or during the 30-day period immediately preceding the date on which the related person
                    became a related person, whichever is higher.

                

           

          

        

      

      Transfer Agent and Registrar

       

      

      The transfer agent and registrar for our Class A Common Stock is American Stock Transfer & Trust Co. LLC.

       

      

      Listing

       

      

      Our Class A Common Stock is traded on the New York Stock Exchange under the trading symbol “NUS.”

       

      

      Preferred Stock

       

      

      Our board of directors is authorized, subject to the limitations prescribed by the Delaware General Corporation Law or the rules of the New York Stock Exchange or other
        organizations on whose systems our stock may be quoted or listed, to:

       

      

      
        
          	

                	•	
                  provide for the issuance of shares of preferred stock in one or more series;

                

           

          

        

      

      
        
          	

                	•	
                  establish from time to time the number of shares to be included in each series;

                

           

          

        

      

      
        
          	

                	•	
                  fix the rights, powers, preferences and privileges of the shares of each wholly unissued series and any qualifications, limitations or restrictions on such shares; and

                

           

          

        

      

      
        
          	

                	•	
                  increase or decrease the number of shares of each series, without any further vote or action by the stockholders.

                

        

      

      

      

      
        2

        
          

      

      The approval of the holders of at least 66 2/3% of the combined voting power of the outstanding shares of common stock, however, is required for the issuance of shares of
        preferred stock that have the right to vote for the election of directors under ordinary circumstances or to elect 50% or more of the directors under any circumstances.

       

      

      Depending upon the terms of the preferred stock established by our board of directors, any or all series of preferred stock could have preference over the common stock
        with respect to dividends and other distributions and upon liquidation of our Company or could have voting or conversion rights that could adversely affect the holders of the outstanding common stock. In addition, the preferred stock could delay,
        defer or prevent a change of control of our Company. We have no present plans to issue any shares of preferred stock.

       

      

      Anti-Takeover Provisions

       

      

      Special Stockholder Meetings

       

      

      Special meetings of stockholders may be called only by the board of directors pursuant to a resolution adopted by the affirmative vote of a majority of the board, the
        chairman of the board of directors, the president, or at least a majority of the stockholders of our Company. Except as otherwise required by law, stockholders are not entitled to request or call a special meeting of the stockholders.

       

      

      Director Nominations and Business Proposals

       

      

      Our stockholders are required to provide advance notice of nominations of directors to be made at, and of business proposed to be brought before, a meeting of the
        stockholders. The failure to deliver proper notice within the periods specified in our bylaws will result in the denial of the stockholder of the right to make any nominations or propose any action at the meeting.

       

      

      Section 203 of the Delaware General Corporation Law

       

      

      We are a Delaware corporation and are subject to the provisions of Section 203 of the Delaware General Corporation Law. This law prevents many Delaware corporations,
        including those whose securities are listed on the New York Stock Exchange, from engaging, under specific circumstances, in a business combination with an interested stockholder for three years following the date that the stockholder became an
        interested stockholder, unless the business combination or interested stockholder is approved in a prescribed manner. An interested stockholder is a stockholder who, together with affiliates and associates, within the prior three years did own 15%
        or more of the corporation’s outstanding voting stock.

       

      

      A Delaware corporation may opt out of the provisions of Section 203 of the Delaware General Corporation Law with an express provision in its original certificate of
        incorporation or an express provision in its certificate of incorporation or bylaws resulting from a stockholders’ amendment approved by at least a majority of the outstanding voting shares. We have not opted out of the provisions of Section 203.

    

    

    

    

    

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