Document:

Employment Agreement, dated March 7, 2003 - Stephen E. Webb

 EXHIBIT 10.54 
  
 HEALTHETECH, INC. 
  
 STEPHEN WEBB EMPLOYMENT AGREEMENT 
  
 This Agreement is entered into as of March 7, 2003 (the “Effective Date”) by and between HealtheTech, Inc. (the
“Company”), and Stephen Webb (“Executive”). 
  
 1. Duties and Scope of Employment. 
  
 (a) Positions and Duties. As of the Effective Date, Executive will continue to serve as Chief Financial Officer of the Company. Executive will render such business and professional services in the performance
of his duties, consistent with Executive’s position within the Company, as shall reasonably be assigned to him by the Company’s Board of Directors (the “Board”), Chief Executive Officer (“CEO”) or President
(“President”), as appropriate. The period of Executive’s at–will employment under this Agreement is referred to herein as the “Employment Term.” 
  
 (b) Obligations. During the Employment Term, Executive will perform
Executive’s duties faithfully and to the best of Executive’s ability and will devote his full business efforts and time to the Company. For the duration of the Employment Term, Executive agrees not to actively engage in any other
employment, occupation or consulting activity for any direct or indirect remuneration without the prior approval of the Board, or CEO, as appropriate; provided, however, that Executive shall be permitted to continue serving as a member of the board
of directors for those corporations in which he is serving in such capacity as of the Effective Date, provided such corporations do not, as of the Effective Date or following the Effective Date, compete with any business of the Company. 

 
 2. At-Will Employment. The parties agree that Executive’s
employment with the Company will be “at-will” employment and may be terminated at any time with or without cause or notice. Executive understands and agrees that neither his job performance nor promotions, commendations, bonuses or the
like from the Company give rise to or in any way serve as the basis for modification, amendment, or extension, by implication or otherwise, of his employment with the Company. 
  
 3. Compensation. 
  
 (a) Base Salary. During the Employment Term, the Company will pay Executive an annual salary of $225,000 as compensation for his services (the
“Base Salary”). The Base Salary will be paid periodically in accordance with the Company’s normal payroll practices. Executive’s salary will be subject to review and adjustments will be made based upon the Company’s
normal performance review practices. 

 (b) Bonus. Executive shall be eligible to receive an annual bonus pursuant to the Company’s
Performance Management & Annual Bonus Plan (the “Bonus Plan”), which provides that Executive’s target bonus equals 40% of the Base Salary (the “Target Bonus”) with the ultimate amount of such bonus based
upon the Company’s and/or Executive’s achievement of certain performance targets as provided in the Bonus Plan. 
  
 4. Employee Benefits. During the Employment Term, Executive (and, if applicable, his eligible dependents) will be entitled to participate in the
employee benefit plans currently and hereafter maintained by the Company of general applicability to other senior executives of the Company, including, without limitation, the Company’s group medical, dental, vision, disability, life insurance,
and flexible-spending account plans. The Company reserves the right to cancel or change the benefit plans and programs it offers to its employees at any time. 
  

5. Vacation. Executive will annually be entitled to 4 weeks paid vacation in accordance with the Company’s vacation policy, with the timing
and duration of specific vacations mutually and reasonably agreed to by the parties hereto. 
  
 6. Expenses. The Company will reimburse Executive for reasonable travel, entertainment or other expenses incurred by Executive in the furtherance of or in connection with the performance of Executive’s
duties hereunder, in accordance with the Company’s expense reimbursement policy as in effect from time to time. In addition, the Company will continue to pay Executive’s dues for professional, civic and business organizations related to
Executive’s duties hereunder. 
  
 7. Change of
Control. Effective upon the consummation of a “Change of Control” (as defined below) Executive shall be entitled to immediate vesting of any and all stock options and shares of restricted stock held by Executive, including those
granted or purchased after the date of this Agreement. 
  
 8.
Severance. 
  
 (a) Termination of Executive by Company
for other than Death, Disability or Cause. If the Company terminates Executive’s employment with the Company for other than “Cause” (as defined herein), death or “Disability” (as defined herein), and Executive signs and
does not revoke a standard release of claims with the Company, then, subject to Section 11, Executive shall be entitled to (A) receive continuing payments of severance pay at a rate equal to Executive’s Base Salary rate, as then in effect, for
a period of eighteen months (18) months from the date of such termination, to be paid periodically in accordance with the Company’s normal payroll policies; and (B) continued payment by the Company of the group health continuation coverage
premiums for Executive and Executive’s eligible dependents under Title X of the Consolidated Budget Reconciliation Act of 1985, as amended (“COBRA”) as in effect through the lesser of (x) eighteen (18) months from the effective
date of such termination, (y) the date upon which Executive and Executive’s eligible dependents become covered under similar plans, or (z) the date Executive no longer constitutes a “Qualified Beneficiary” (as such term is defined in
Section 4980B(g) of the Internal Revenue Code of 1986, as amended); provided, however, that no premium payments shall be made unless Executive timely selects COBRA coverage. In addition, the Compensation Committee or the Board may, in its
discretion, determine that Executive should also receive (i) a 
  

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lump sum payment of all or a portion of his Target Bonus for the year of termination and (ii) immediate vesting and exercisability on some or all of the
unvested portion of Executive’s stock options. 
  
 (b)
Termination Due to Executive’s Death or Disability. If Executive’s employment with the Company terminates due to Executive’s death or Disability, and Executive (or Executive’s personal representative) signs and does not
revoke a standard release of claims with the Company, then, subject to Section 11, Executive shall be entitled to (i) receive continuing payments of severance pay at a rate equal to the Base Salary rate, as then in effect for a period of twelve (12)
months from the date of such termination, to be paid periodically in accordance with the Company’s normal payroll policies; (ii) a lump-sum payment equal to 100% of Executive’s Target Bonus for the year of termination, and (iii) immediate
vesting and exercisability as to the number of shares subject to Stock Options that would have otherwise vested during the twelve-month period following such termination (that is, in addition to the number of shares that have vested as of such
date), but in no event shall the number of shares which so vest exceed the number of shares subject to such Stock Options, and (iv) continued payment by the Company of the group health continuation coverage premiums for Executive’s eligible
dependents under COBRA as in effect through the lesser of (x) twelve (12) months from the effective date of such termination, (y) the date upon which Executive and Executive’s eligible dependents become covered under similar plans, or (z) the
date Executive no longer constitutes a “Qualified Beneficiary” (as such term is defined in Section 4980B(g) of the Internal Revenue Code of 1986, as amended); provided, however, that no premium payments shall be made unless Executive
timely elects COBRA coverage. 
  
 (c) Termination by Executive
for Good Reason following a Change of Control. If Executive voluntarily terminates his employment with the Company for Good Reason for a period of twelve (12) months following a “Change of Control” (as defined herein), then, subject to
Executive signing and not revoking a standard release of claims with the Company and Section 11, Executive shall be entitled to (i) receive continuing payments of severance pay at a rate equal to the Base Salary rate, as then in effect for a period
of eighteen (18) months from the date of such termination, to be paid periodically in accordance with the Company’s normal payroll policies; (ii) a lump-sum payment equal to 100% of Executive’s Target Bonus for the year of termination; and
(iii) continued payment by the Company of the group health continuation coverage premiums for Executive and Executive’s eligible dependents under COBRA as in effect through the lesser of (x) eighteen (18) months from the effective date of such
termination, (y) the date upon which Executive and Executive’s eligible dependents become covered under similar plans, or (z) the date Executive no longer constitutes a Qualified Beneficiary; provided, however, that Executive will be solely
responsible for electing such coverage within the required time periods. 
  
 (d) Voluntary Termination; Termination for Cause. If (i) Executive voluntarily terminates his employment with the Company or (ii) the Company terminates Executive’s employment with the Company for Cause,
then (A) all vesting of the Stock Options will terminate immediately, (B) all payments of compensation by the Company to Executive hereunder will terminate immediately (except as to amounts already earned), and (C) Executive will only be eligible
for severance benefits in accordance with the Company’s established policies as then in effect, if any. Nothing in this Section 8(d) shall relieve the Company from its obligations provided for in Section 4(b). 
  

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 9. Definitions. 
  
 (a) Cause. For purposes of this Agreement, “Cause” is defined as (i) any act of personal dishonesty
taken by Executive in connection with his responsibilities as an employee and intended to result in substantial personal enrichment of Executive, (ii) the conviction of, or plea of nolo contendere to, a felony which the Board reasonably
believes had or will have a material detrimental effect on the Company’s reputation or business, (iii) a willful act by Executive which constitutes gross misconduct and which is injurious to the Company, (iv) continued violations by Executive
of Executive’s obligations which are demonstrably willful and deliberate on Executive’s part after there has been delivered to Executive a written demand for performance from the Company which describes the basis for the Company’s
belief that Executive has not substantially performed his duties or that Executive has performed his duties in a manner that the Board reasonably believes has or will have a material detrimental effect on the Company’s reputation or business,
and (v) a material breach by Executive of Executive’s obligations hereunder or the “Confidential Information Agreement” (as defined herein). Any purported termination of Executive for Cause will not be effective until the Company has
delivered to Executive a written notice of termination. 
  
 (b)
Change of Control. For purposes of this Agreement, “Change of Control” of the Company is defined as: 
  
 (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) is or becomes the
“beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the Company’s then outstanding voting securities; or

  
 (ii) a change in the composition of the Board occurring
within a two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” will mean directors who either (A) are directors of the Company as of the date hereof, or (B) are
elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but will not include an individual whose election or nomination is in
connection with an actual or threatened proxy contest relating to the election of directors to the Company); or 
  
 (iii) the date of the close of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the
total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the stockholders of the Company approve a plan of complete liquidation of the Company; or

  
 (iv) the date of the consummation of the sale or disposition
by the Company of all or substantially all the Company’s assets. 
  
 (c) Disability. For purposes of this Agreement, “Disability” is defined as Executive’s inability to substantially perform his essential job functions as the result of a physical or mental disability or
incapacity for a period of 180 days, consecutive or otherwise, in any 360-day period, as determined solely by the Board. 
  

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 (d) Good Reason. For purposes of this Agreement, “Good Reason” shall mean without
the Executive’s express written consent (i) a material diminution of the Executive’s duties, position or responsibilities; (ii) a greater than five percent (5%) reduction by the Company in the Base Salary and Target Bonus opportunity of
the Executive as in effect immediately prior to such reduction, except for a reduction applied to all of the executive officers of the Company on a uniform basis; (iii) a material reduction by the Company in the kind or level of employee benefits to
which the Executive is entitled immediately prior to such reduction with the result that the Executive’s overall benefits package is materially reduced, except for a reduction applied to all of the executive officers of the Company on a uniform
basis; or (iv) the relocation of the Executive to a facility or a location more than fifty (50) miles from the Executive’s then present location. Any purported termination by Executive for Good Reason will not be effective until Executive has
delivered to the Company a written explanation which describes the basis for Executive’s belief that Executive should be permitted to terminate his employment with the Company for Good Reason and the Company has been given thirty (30) days to
cure any curable violation. 
  
 10. Confidential Information
and Invention Assignment. Executive agrees, if he has not already done so, to enter into the Company’s standard Confidential Information and Invention Assignment Agreement (the “Confidential Information Agreement”) on or
before the Effective Date.  
  
 11. Conditional Nature
of Severance Payments. Executive acknowledges that Executive’s right to receive the severance payments set forth in Section 8 (to the extent Executive is otherwise entitled to such payments) are contingent upon Executive complying with the
terms and conditions of the Company’s Confidential Information Agreement and upon any breach of such agreement all severance payments pursuant to this Agreement shall immediately cease and any severance payments or benefits provided to
Executive following any non-compliance with the Confidential Information Agreement shall be immediately reimbursed to the Company. 
  
 12. Assignment. This Agreement will be binding upon and inure to the benefit of (a) the heirs, executors and legal representatives of Executive
upon Executive’s death and (b) any successor of the Company. Any such successor of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes. For this purpose, “successor” means
any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company. None of the rights of Executive to
receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution. Any other attempted assignment, transfer, conveyance or other disposition of Executive’s
right to compensation or other benefits will be null and void. 
  
 13. Notices. All notices, requests, demands and other communications called for hereunder shall be in writing and shall be deemed given (i) on the date of delivery if delivered personally, (ii) one (1) day after being sent by a well
established commercial overnight service, or (iii) four (4) days after being mailed by registered or certified mail, return receipt requested, prepaid 

  

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and addressed to the parties or their successors at the following addresses, or at such other addresses as the parties may later designate in writing:

  
 If to the Company: 
  
 HealtheTech, Inc. 
 523 Park Point Drive, 3rd Floor 
 Golden, CO 80401 
 Attn: Vice President, Human Resources; VP & General Counsel 
  
 If to Executive: 
  

at the last residential address known by the Company. 
  
 14. Severability. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction
to be illegal, unenforceable or void, this Agreement will continue in full force and effect without said provision. 
  
 15. Arbitration. 
  
 (a) General. In consideration of Executive’s service to the Company, its promise to arbitrate all employment related disputes and
Executive’s receipt of the compensation, pay raises and other benefits paid to Executive by the Company, at present and in the future, Executive agrees that any and all controversies, claims, or disputes with anyone (including the Company and
any employee, officer, director, shareholder or benefit plan of the Company in their capacity as such or otherwise) arising out of, relating to, or resulting from Executive’s service to the Company under this Agreement or otherwise or the
termination of Executive’s service with the Company, including any breach of this Agreement, shall be subject to binding arbitration. Disputes which Executive agrees to arbitrate, and thereby agrees to waive any right to a trial by jury,
include any statutory claims under state or federal law, including, but not limited to, claims under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Age Discrimination in Employment Act of 1967, the Older
Workers Benefit Protection Act, claims of harassment, discrimination or wrongful termination and any statutory claims. Executive further understands that this Agreement to arbitrate also applies to any disputes that the Company may have with
Executive. 
  
 (b) Procedure. Executive agrees that any
arbitration will be administered by the American Arbitration Association (“AAA”) and that a neutral arbitrator will be selected in a manner consistent with its National Rules for the Resolution of Employment Disputes. The
arbitration proceedings will allow for discovery according to the rules set forth in the National Rules for the Resolution of Employment Disputes. Executive agrees that the arbitrator shall have the power to decide any motions brought by any
party to the arbitration, including motions for summary judgment and/or adjudication and motions to dismiss and demurrers, prior to any arbitration hearing. Executive agrees that the arbitrator shall issue a written decision on the merits. Executive
also agrees that the arbitrator shall have the power to award any remedies, including attorneys’ fees and costs, available under applicable law. Executive understands the Company will pay for any administrative or hearing fees charged by the
arbitrator or AAA except that Executive shall pay the first $200.00 of any filing fees associated with any arbitration Executive initiates. 
  

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 (c) Remedy. Except as provided by the Rules, arbitration shall be the sole, exclusive and final
remedy for any dispute between Executive and the Company. Accordingly, neither Executive nor the Company will be permitted to pursue court action regarding claims that are subject to arbitration. Notwithstanding, the arbitrator will not have the
authority to disregard or refuse to enforce any lawful Company policy, and the arbitrator shall not order or require the Company to adopt a policy not otherwise required by law, which the Company has not adopted. 
  
 (d) Availability of Injunctive Relief. Executive agrees that either
party may also petition the court for injunctive relief where either party alleges or claims a violation of this Agreement or the Confidential Information Agreement or any other agreement regarding trade secrets, confidential information, and
nonsolicitation. In the event either party seeks injunctive relief, the prevailing party shall be entitled to recover reasonable costs and attorneys’ fees. 
  
 (e) Administrative Relief. Executive understands that this Agreement does not prohibit Executive from pursuing an
administrative claim with a local, state or federal administrative body. This Agreement does, however, preclude Executive from pursuing court action regarding any such claim. 
  
 15. Voluntary Nature of Agreement. Executive acknowledges and agrees that Executive is executing this Agreement
voluntarily and without any duress or undue influence by the Company or anyone else. Executive further acknowledges and agrees that Executive has carefully read this Agreement and that Executive has asked any questions needed for Executive to
understand the terms, consequences and binding effect of this Agreement and fully understand it, including that Executive is waiving Executive’s right to a jury trial. Finally, Executive agrees that Executive has been provided an opportunity to
seek the advice of an attorney of Executive’s choice before signing this Agreement. 
  
 16. Integration. This Agreement, together with the Bonus Plan, any plans or agreements relating to the Stock Options and the Confidential Information Agreement, represents the entire agreement and understanding
between the parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether written or oral entered into between the Company and Executive (including, without limitation, the Change of Control Agreement dated
as of March 12, 2002). No waiver, alteration, or modification of any of the provisions of this Agreement will be binding unless it is in writing and specifically mentions this Section 17 and it is signed by duly authorized representatives of the
parties hereto. 
  
 17. Legal Fees. The Company and
Executive both agree that each is responsible for its or his own attorneys’ fees incurred in connection with the negotiation, preparation, implementation and execution of this Agreement. 
  
 18. Waiver of Breach. The waiver of a breach of any term or provision
of this Agreement, which must be in writing, shall not operate as or be construed to be a waiver of any other previous or subsequent breach of this Agreement. 
  

19. Headings. All captions and section headings used in this Agreement are for convenient reference only and do not form a part of this
Agreement. 
  

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 20. Tax Withholding. All payments made pursuant to this Agreement will be subject to withholding
of applicable taxes. 
  
 21. Governing Law. This Agreement
will be governed by the laws of the State of Colorado (with the exception of its conflict of laws provisions). 
  
 22. Acknowledgment. Executive acknowledges that Executive has had the opportunity to discuss this matter with and obtain advice from his private
attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement. 
  
 23. Counterparts. This Agreement may be executed in counterparts, and each counterpart shall have the
same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned. 
  
 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by their duly authorized officers, as of the day and year
first above written. 
  

	 COMPANY:
	 	 	 	 
	 	 	 	 	 
	 HEALTHETECH, INC.
	 	 	 	 
					
	By:	 	/s/    James R.Mault        	 	 	 	Date:	 	March 7, 2003
	 	
	 	 	 	 	

					
	Title:	 	 Chief Executive Officer
	 	 	 	 	 	 
					
	 	 	 	 	 	 	 	 	 
	 EXECUTIVE:
	 	 	 	 
	 	 	 	 	 
				
	/s/    Stephen Webb        	 	 	 	Date:	 	March 7, 2003
	
	 	 	 	 	

	Stephen Webb	 	 	 	 	 	 

  
 [SIGNATURE PAGE TO
STEPHEN WEBB EMPLOYMENT AGREEMENT] 
  

 -8-Termination Agreement and Mutual General Release, dated October 28, 2003

 EXHIBIT 10.55 
  
 TERMINATION AGREEMENT AND MUTUAL GENERAL
RELEASE 
  
 THIS
TERMINATION AGREEMENT AND MUTUAL GENERAL RELEASE (“Agreement”) is made and entered into this 31st day of August 2003, between Sensors for Medicine and Science, Inc. (“SMSI”) and HealtheTech, Inc. (“HETC”). SMSI and HETC may be
referred to herein as “Party” or “Parties”. 
  
 RECITALS 
  
 WHEREAS, SMSI and HETC entered into a License Agreement dated August 17, 1999 (as amended, the “License Agreement”) and a Letter Agreement dated November 7, 2001 (the “Letter Agreement”);

  
 WHEREAS, subsequent to
entering into the License Agreement, the Parties exchanged correspondence and engaged in a series of formal and informal conversations concerning the matters addressed therein; 
  
 WHEREAS, multiple disputes arose between SMSI and HETC concerning the duties and
obligations of the parties under the License Agreement and the Letter Agreement; 
  
 WHEREAS, SMSI initiated arbitration proceedings before JAMS concerning disputes arising out of the License Agreement (the “JAMS Arbitration”) and filed a lawsuit in the Montgomery
County Circuit Court, Maryland, entitled Sensors for Medicine and Science, Inc. v. HealtheTech, Inc., civil action number 244417V (the “Complaint”) alleging claims against HETC arising out of the Letter Agreement. 

 
 WHEREAS, SMSI and HETC desire to
terminate the License Agreement and the Letter Agreement and settle their respective rights and obligations arising out of or related thereto, including the rights and obligations that are the subject of the JAMS Arbitration and the Complaint;

  
 NOW,
THEREFORE, in consideration of the mutual covenants and promises contained herein, the Parties agree as follows: 
  
 AGREEMENT 
  
 1. Termination of Agreements. SMSI and HETC agree that each of the License Agreement and the Letter Agreement are terminated and of no further force and
effect whatsoever as of the date on which both (i) HETC has performed its obligations under both of Sections 2 and 3 of this Agreement and (ii) SMSI has performed its obligations under Section 4 of this Agreement (the “Effective Date”).
Except as set forth in this Agreement, and notwithstanding anything to the contrary in the License Agreement or the Letter Agreement, from and after the Effective Date neither Party shall have any further rights, duties, obligations or liabilities
to the other Party with respect to the License Agreement or the Letter Agreement. Notwithstanding the foregoing, the provisions of Sections 8.3 and 12.1-12.4 of the License Agreement shall survive the termination of the License Agreement, and shall
remain in full force and effect. 
  

 1 

 2. Termination Payments. In exchange for the covenants and consideration provided herein, HETC shall pay to
SMSI the sum of no less than three hundred twenty nine thousand one hundred eighty eight dollars and seventy five cents ($329,188.75) (the “Termination Payment”). The Termination Payment shall consist of the following elements: i) $112,500
for the minimum royalty payment covering the quarter ending May 15, 2003 pursuant to Section 3.2 of the License Agreement; ii) $206,973 as full payment under the Letter Agreement; and iii) at least $9,715.75, which corresponds to 2.5% of Net Sales
of HETC Disposable Products for use with Licensed Products (as provided in Section 3.1(i) of the License Agreement) for the period of May 16, 2003 to the date of this Agreement. Within five days after the date of this Agreement, HETC shall provide
to SMSI a statement certifying on a monthly basis the amount of such Net Sales. The Termination Payment shall be made by wire transfer according to the instructions provided in Exhibit A hereto within ten (10) business days of the date of this
Agreement. 
  
 3. Withdrawal of Patent Applications. Within
ten business days after the date of this Agreement, HETC will file a notice of abandonment with the United States Patent and Trademark Office with respect to patent application numbers 10/162,371 (filed 6/4/02) and 10/202,745 (filed 7/25/02)
corresponding, respectively, to Publication Nos. US 2003/0023180 and US 2003/0023181 (collectively the “Withdrawn Applications”), as well as any divisionals, continuations, continuations-in-part or reissue applications based on either or
both of the Withdrawn Applications. HETC agrees that such abandonment shall be final and irrevocable, and that it shall neither file nor maintain any application that claims the benefit of the filing date of any Withdrawn Application, or that
substantially incorporates the disclosure of any Withdrawn Application. Within ten business days after the date of this Agreement, HETC will also file a notice of abandonment with all applicable foreign patent offices with respect to any foreign
application or patent (including inventor certificates, supplemental protection certificates, and the like) which claims priority, in whole or in part, of either or both Withdrawn Applications. 
  
 4. Withdraw and Dismissal. Within two business days after receipt of the
Termination Payment and a copy of the notice of abandonment of all applications referred to in Section 3 hereof (with a file stamp indicating receipt by the applicable patent office), SMSI shall withdraw its JAMS Arbitration petition and, with
respect to the Complaint, file a Notice of Dismissal, both such withdraw and dismissal to be with prejudice. 
  
 5. Supplier Relationship. After the Effective Date, the Parties may continue to maintain a customer-supplier relationship with respect to oxygen sensor
components, provided that they agree on mutually acceptable terms and conditions with respect to any such purchases. 
  
 6. Release. Each Party hereby forever generally and completely releases and discharges the other Party and its servants, agents, directors, officers,
employees, predecessors, successors in interest, and assigns, of and from any and all claims and demands of every kind and nature, in law, equity or otherwise, known and unknown, suspected and unsuspected, disclosed and 

  

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undisclosed, and in particular of and from all claims and demands of every kind and nature, known and unknown, suspected and unsuspected, disclosed and
undisclosed, for damages actual and consequential, past, present and future, arising out of or in any way related to their respective obligations, activities and/or dealings with one another at any time prior to the date hereof, including, without
limitation, all such claims and demands arising out or in any way related to the License Agreement, the Letter Agreement the JAMS Arbitration or the Complaint. It is understood and agreed that this is a full, complete and final general release of
any and all claims described as aforesaid, and each Party agrees that it shall apply to all unknown, unanticipated, unsuspected and undisclosed claims, demands, liabilities, actions or causes of action, in law, equity or otherwise, as well as those
which are now known, anticipated, suspected or disclosed. This release is not intended to affect either Party’s rights or obligations under the provisions in this Agreement. 
  
 7. Compromise Settlement. The Parties understand and agree that this Agreement is a compromise settlement of disputed claims,
and that the promises and payments in consideration of this Agreement shall not be construed as an admission of any liability or obligation whatsoever by any Party. 
  
 8. Representations, Warranties, and Covenants. Each Party represents and warrants that it is fully entitled and duly
authorized to enter into and perform this Agreement without the consent of any third party. HETC represents and warrants that it is unaware of any actual or potential Liabilities (as defined in Section 10.1 of the License Agreement) for which,
absent the present Agreement, it would be under an obligation to defend, indemnify and hold harmless SMSI and its directors, employees agents and affiliates under Section 10.1 of the License Agreement. SMSI represents and warrants that it is unaware
of any actual or potential Liabilities (as defined in Section 10.2 of the License Agreement) for which, absent the present Agreement, it would be under an obligation to defend, indemnify and hold harmless HETC and its directors, employees agents and
affiliates under Section 10.2 of the License Agreement. 
  
 9.
Confidentiality. The terms and conditions of this Agreement and all preceding communications regarding compromise and settlement shall be held in strictest confidence by the Parties and their attorneys, and shall not be publicized or
disclosed in any manner whatsoever, other than as necessary to carry out its provisions. Notwithstanding the foregoing restrictions, the Parties may confidentially disclose this Agreement to their accountants, auditors, attorneys, and as otherwise
necessary to fulfill standard or legally required corporate reporting or disclosure requirements. The Parties may also disclose this Agreement insofar as such disclosure may be necessary to enforce its terms or as otherwise required by law. If,
pursuant to subpoena or otherwise, disclosure of this Agreement or the terms and conditions hereof is sought by compulsion of law from any Party, the party from whom disclosure is sought shall promptly provide the other Party and its counsel with
sufficient notice in advance of such proposed disclosure to enable the other Party to be heard by the compelling legal authority with respect to any such disclosure or to otherwise respond to any such compulsion. 
  

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 10. General Provisions. 
  

a. Entire Agreement. This Agreement (together with the signature page, and Exhibits attached hereto), constitutes the entire agreement between
the Parties with respect to the subject matter hereof, and supersedes all prior agreements, express or implied, made between the Parties, relating to the subject matter hereof. All amendments to this Agreement shall be in writing and signed by
authorized representatives of the Parties. This Agreement is executed without reliance upon any promise, warranty, representation or statements by any Party or any representative of any Party other than those expressly contained herein, and each
Party has carefully read this Agreement. This Agreement may be executed 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. The Parties agree that facsimile
signatures shall be binding. 
  
 b. Legal Advice. Each of
the Parties has received independent legal advice from attorneys of its choice. Each Party to this Agreement, by and through their respective attorneys, has participated in the preparation and drafting of this Agreement. As such, the Parties
acknowledge that any doctrine of law which might operate to imply that any ambiguity in this Agreement shall be construed against any Party as the profferer of the Agreement is not applicable to this Agreement. Accordingly, this Agreement shall be
interpreted as if the Parties jointly and equally prepared and drafted each word, sentence and paragraph hereof. 
  
 c. Waiver; Severability. Any waiver or failure to enforce any provision of this Agreement will not be deemed a waiver of any other provision or of
such provision on any other occasion. If any provision of this Agreement is unenforceable, such provision will be changed and interpreted to accomplish the objectives of such provision to the greatest extent possible under applicable law and the
remaining provisions will continue in full force and effect. 
  
 d. Governing Law. This Agreement shall be governed by and construed according to the laws of the State of Delaware without reference to conflicts of law principles that would require the application of the laws of any other state.
The United Nations Convention on Contracts for the International Sale of Goods does not apply to this Agreement. 
  
 e. Attorneys’ Fees. Each Party shall bear its own costs, expenses and attorneys’ fees incurred in or arising out of or in any way related
to the matters released herein. However, in the event it becomes necessary to enforce this Agreement, the prevailing Party in such enforcement proceedings shall be entitled to recover its reasonable attorneys’ fees and costs. 
  
 [Signature Page Follows] 
  

 4 

 IN WITNESS WHEREOF, the Parties hereto have executed
this Agreement as of the Effective Date. 
  
 SENSORS
FOR MEDICINE AND SCIENCE, INC. 
  

	 By:
	 	 /s/ Marc Schneebaum

	 	 	 NAME:
	 	 Marc Schneebaum

	 	 	 TITLE:
	 	 President & CEO

		
	 Date:
	 	  

  
 HEALTHETECH,
INC. 
  

	 By:
	 	 /s/ JAMES W. DENNIS

	 	 	 NAME:
	 	 JAMES W. DENNIS

	 	 	 TITLE:
	 	 PRESIDENT & CEO

		
	 Date:
	 	 August 31, 2003

  

 5 

 EXHIBIT A – WIRE TRANSFER INSTRUCTIONS

  
 MERCANTILE BALT. 
 ROUTING #052000618 
 FOR
FURTHER CREDIT TO POTOMAC VALLEY BANK (ABS #055001384) 
 PVB
CUSTOMER NAME: SENSORS FOR MEDICINE AND SCIENCE, INC. 
 PVB CUSTOMER ACCOUNT NO. :0006108024

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