Document:

Exhibit 10.3

 

WARRANT AGREEMENT

 

THESE SECURITIES AND THE SECURITIES ISSUABLE
UPON THEIR EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE TRANSFERRED UNLESS COVERED BY AN EFFECTIVE
REGISTRATION STATEMENT UNDER SAID ACT, A "NO ACTION" LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION WITH RESPECT
TO SUCH TRANSFER, A TRANSFER MEETING THE REQUIREMENTS OF RULE 144 OF THE SECURITIES AND EXCHANGE COMMISSION, OR AN OPINION OF COUNSEL
SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY SUCH TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

 

NATUREWELL, INCORPORATED

 

WARRANT NO.

 

Dated:

 

NatureWell, Incorporated, a corporation
organized under the laws of the State of Delaware (the "Company"), hereby certifies that, for value received from ________________
(the "Holder"), is entitled, subject to the terms set forth below, to purchase from the Company up to a total of _______________
(________) shares of the Common Stock, $0.0001 par value per share (the "Common Stock"), of the Company (each such share,
a "Warrant Share" and all such shares, the "Warrant Shares") at an exercise price equal to $0.60 per share.
The Warrant may be exercised any time after issuance through and including the fifth (5th) anniversary of its original issuance
(the "Expiration Date"), subject to the terms and conditions set out below. The Holder acknowledges that on March 13,
2013, the Company entered into an Agreement and Plan of Merger (the “Merger”) with Brazil Interactive Media, Inc. (“BIMI”)
whereby the Company acquired all of the issued and outstanding shares of Common Stock of BIMI, pursuant to the terms and conditions
of that agreement. As a result of the Merger, the Company is, as of the date of this Agreement, taking steps to change its name
to “Brazil Interactive Media, Inc.”.

 

1.Registration of
Warrant. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the "Warrant
Register"), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder
of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for
all other purposes, and the Company shall not be affected by notice to the contrary.

 

2.Registration of
Transfers and Exchanges.

 

    	 

    	 

    

(a)The Company or the transfer agent
shall enter or record the transfer of any portion of this Warrant in the Warrant Register, upon surrender of this Warrant to
the Company at the office specified herein or pursuant to Section 11. Upon any such registration or transfer, a new warrant
to purchase Common Stock, in substantially the form of this Warrant (any such new warrant, a "New Warrant"),
evidencing the portion of this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the
remaining portion of this Warrant not so transferred, if any, shall be issued to the Holder. The acceptance of the New
Warrant by the transferee thereof shall be deemed the acceptance of such transferee of all of the rights and obligations of a
holder of a Warrant.

 

(b)This Warrant is
exchangeable, upon the surrender hereof by the Holder to the office of the Company specified herein or pursuant to Section 3(b)
for one or more New Warrants, evidencing in the aggregate the right to purchase the number of Warrant Shares which may then be
purchased hereunder. Any such New Warrant will be dated the date of such exchange.

 

3.Duration and Exercise
of Warrants.

 

(a)This Warrant shall
be exercisable by the registered Holder on any business day before 5:00 P.M., Boston time, at any time and from time to time on
or after the date hereof to and including the Expiration Date. At 5:00 P.M., Boston time on the Expiration Date, the portion of
this Warrant not exercised prior thereto shall be and become void and of no value. Prior to the Expiration Date, the Company may
not call or otherwise redeem this Warrant without the prior written consent of the Holder.

 

(b)Subject to Sections
2(b), 6 and 10, upon surrender of this Warrant, with the Form of Election to Purchase attached hereto duly completed and signed,
to the Company at its address for notice set forth in Section 11 and upon payment of the Exercise Price multiplied by the number
of Warrant Shares that the Holder intends to purchase hereunder, in the manner provided hereunder, all as specified by the Holder
in the Form of Election to Purchase, the Company shall promptly (but in no event later than 5 business days after the Date of Exercise
(as defined herein)) issue or cause to be issued and cause to be delivered to or upon the written order of the Holder and in such
name or names as the Holder may designate, a certificate for the Warrant Shares issuable upon such exercise, free of restrictive
legends except either (i) in the event that a registration statement covering the resale of the Warrant Shares and naming the Holder
as a selling stockholder thereunder is not then effective or the Warrant Shares are not freely transferable without volume restrictions
pursuant to Rule 144(k) promulgated under the Securities Act of 1933, as amended (the "Securities Act"), or (ii) if this
Warrant shall have been issued pursuant to a written agreement between the original Holder and the Company, as required by such
agreement. In the case of (i) above, the Warrant Shares will bear a Securities Act restrictive legend. Any person so designated
by the Holder to receive Warrant Shares shall be deemed to have become holder of record of such Warrant Shares as of the Date of
Exercise (as defined in this subsection) of this Warrant. A "Date 

    	 

    	 

    

of Exercise" means the date on which
the Company shall have received (i) this Warrant (or any New Warrant, as applicable), with the Form of Election to Purchase
attached hereto (or attached to such New Warrant) appropriately completed and duly signed, and (ii) payment of the Exercise
Price for the number of Warrant Shares so indicated by the holder hereof to be purchased.

 

(c)This Warrant shall
be exercisable, either in its entirety or, from time to time, for a portion of the number of Warrant Shares. If less than all of
the Warrant Shares which may be purchased under this Warrant are exercised at any time, the Company shall issue or cause to be
issued, at its expense, a New Warrant evidencing the right to purchase the remaining number of Warrant Shares for which no exercise
has been evidenced by this Warrant. In the event the Common Stock representing the Warrant Shares is not delivered per the written
instructions of the Holder, within five (5) business days after the Notice of Election and Warrant is received by the Company (the
“Delivery Date”), then in such event the Company shall pay to Holder two percent (2.0%) in cash, of the dollar value
of the Warrant Shares to be issued per each day after the Delivery Date that the Warrant Shares are not delivered. The Company
acknowledges that its failure to deliver the Warrant Shares by the Delivery Date will cause the Holder to suffer damages in an
amount that will be difficult to ascertain. Accordingly, the parties agree that it is appropriate to include in this Warrant a
provision for liquidated damages. The parties acknowledge and agree that the liquidated damages provision set forth in this section
represents the parties’ good faith effort to quantify such damages and, as such, agree that the form and amount of such liquidated
damages are reasonable and will not constitute a penalty. The payment of liquidated damages shall not relieve the Company from
its obligations to deliver the Common Stock pursuant to the terms of this Warrant. The Company shall make any payments incurred
under this Section 3 in immediately available funds within five (5) business days from the date of issuance of the applicable Warrant
Shares. Nothing herein shall limit Holder’s right to pursue actual damages or cancel the Notice of Election for the Company’s
failure to issue and deliver Common Stock to the Holder within seven (7) business days following the Delivery Date.

 

4.Registration Rights.
As more fully described in that Preferred Stock Registration Rights Agreement between the Company and the Investors, the Company
shall file a registration statement with the Commission within forty-five (45) days following Closing Date (the “Filing
Date”) covering the shares of Common Stock underlying the Series H Stock. The Company agrees not to include any other
shares for registration in said registration statement without the Investors’ written consent. Subject to the terms of this
Agreement, the Company shall use its best efforts to cause the Registration Statement to be declared effective under the Securities
Act as promptly as possible after the filing thereof, but in any event prior to the applicable Effectiveness Date, and shall use
its best efforts to keep such Registration Statement continuously effective under the Securities Act until all Registrable Securities
covered by such Registration Statement have been sold or may be sold without volume restrictions pursuant to Rule 144(k) as determined
by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company’s
transfer agent and the affected Holders (the “Effectiveness
Period”). The Company shall notify

    	 

    	 

    

the Investors via facsimile of the effectiveness
of the Registration Statement within one (1) Trading Day of the day that the Company receives notification of the effectiveness
from the Commission.

 

5.Payment of Taxes.
The Company will pay all documentary stamp taxes attributable to the issuance of Warrant Shares upon the exercise of this Warrant;
provided, however, that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved
in the registration of any certificates for Warrant Shares or Warrants in a name other than that of the Holder. The Holder shall
be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant
Shares upon exercise hereof.

 

6.Replacement of Warrant.
If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution
for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence
reasonably satisfactory to the Company of such loss, theft or destruction and indemnity, if requested, satisfactory to it. Applicants
for a New Warrant under such circumstances shall also comply with such other reasonable regulations and procedures and pay such
other reasonable charges as the Company may prescribe.

 

7.Reservation of Warrant
Shares. The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized but
unissued Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this Warrant as herein provided,
the number of Warrant Shares which are then issuable and deliverable upon the exercise of this entire Warrant, free from preemptive
rights or any other actual contingent purchase rights of persons other than the Holder (taking into account the adjustments and
restrictions of Section 8. The Company covenants that all Warrant Shares that shall be so issuable and deliverable shall, upon
issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly authorized,
issued and fully paid and nonassessable. If the Company does not have a sufficient amount of Common Stock authorized to reserve
for the Warrant Shares, it shall use its best efforts to place before shareholder vote a proposal to increase the number of its
authorized shares as soon as reasonably practicable.

 

8.Certain Adjustments
After January 1, 2014. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to
adjustment from time to time as set forth in this Section 8; provided,
however, that notwithstanding this Section 8, there shall
be no adjustment to the Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant prior to January 1,
2014. Upon each such adjustment of the Exercise Price pursuant to this Section 8, the Holder shall thereafter prior to the Expiration
Date be entitled to purchase, at the Exercise Price resulting from such adjustment, the number of Warrant Shares obtained by multiplying
the Exercise Price in effect immediately prior to such adjustment by the number of Warrant Shares issuable upon exercise of this
Warrant immediately prior to

    	 

    	 

    

such adjustment and dividing the product thereof
by the Exercise Price resulting from such adjustment.

 

(a)An adjustment shall
be made, if the Company, at any time while this Warrant is outstanding (i) pays a stock dividend (except scheduled dividends paid
on outstanding preferred stock as of the date hereof which contain a stated dividend rate) or otherwise make a distribution or
distributions on shares of its Common Stock or on any other class of capital stock and not the Common Stock payable in shares of
Common Stock, (ii) subdivides outstanding shares of Common Stock into a larger number of shares, or (iii) combines outstanding
shares of Common Stock into a smaller number of shares. If either (i), (ii) or (iii), above occurs, the Exercise Price shall be
multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any)
outstanding before such event and of which the denominator shall be the number of shares of Common Stock (excluding treasury shares,
if any) outstanding after such event. Any adjustment made pursuant to this Section shall become effective immediately after the
record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective
immediately after the effective date in the case of a subdivision or combination, and shall apply to successive subdivisions and
combinations.

 

(b)In case of any reclassification
of the Common Stock, any consolidation or merger of the Company with or into another person, the sale or transfer of all or substantially
all of the assets of the Company or any compulsory share exchange pursuant to which the Common Stock is converted into other securities,
cash or property, then the Holder shall have the right thereafter to exercise this Warrant only into the shares of stock and other
securities and property receivable upon or deemed to be held by holders of Common Stock following such reclassification, consolidation,
merger, sale, transfer or share exchange, and the Holder shall be entitled upon such event to receive such amount of securities
or property equal to the amount of Warrant Shares such Holder would have been entitled to had such Holder exercised this Warrant
immediately prior to such reclassification, consolidation, merger, sale, transfer or share exchange. The terms of any such consolidation,
merger, sale, transfer or share exchange shall include such terms so as to continue to give to the Holder the right to receive
the securities or property set forth in this Section 8(b) upon any exercise following any such reclassification, consolidation,
merger, sale, transfer or share exchange.

 

(c) If the Company,
at any time while this Warrant is outstanding, shall distribute to all holders of Common Stock (and not to holders of this Warrant)
evidence of its indebtedness or assets or rights or warrants to subscribe for or purchase any security (excluding those referred
to in Sections 8(a), (b) and (d)), then in each such case the Exercise Price shall be determined by multiplying the Exercise Price
in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution by
a fraction of which the denominator shall be the Exercise Price determined as of the record date mentioned above, and of which
the numerator shall be such Exercise Price on such record date less the then fair market value at such record date of the portion
of such assets or evidence of indebtedness so

    	 

    	 

    

distributed applicable to one outstanding share
of Common Stock as determined by the Company's independent certified public accountants that regularly examines the financial statements
of the Company (the "Appraiser").

 

(d)If, at any time
while this Warrant is outstanding, the Company shall issue or cause to be issued rights or warrants to acquire or otherwise sell
or distribute shares of Common Stock for a consideration per share less than the lower of the Exercise Price then in effect and
the then fair market value of the Common Stock, then, forthwith upon such issue or sale, the Exercise Price shall be reduced to
the price (calculated to the nearest one hundredth of a cent) determined by multiplying the Exercise Price in effect immediately
prior thereto by a fraction, the numerator of which shall be the sum of (i) the number of shares of Common Stock outstanding immediately
prior to such issuance, and (ii) the number of shares of Common Stock which the aggregate consideration received (or to be received,
assuming exercise or conversion in full of such rights, warrants and convertible securities) for the issuance of such additional
shares of Common Stock would purchase at the Exercise Price, and the denominator of which shall be the sum of the number of shares
of Common Stock outstanding immediately after the issuance of such additional shares. Such adjustment shall be made successively
whenever such an issuance is made.

 

(e)For the purposes
of this Section 8, the following clauses shall also be applicable:

 

(i) Record Date. In
case the Company shall take a record of the holders of its Common Stock for the purpose of entitling them (A) to receive a dividend
or other distribution payable in Common Stock or in securities convertible or exchangeable into shares of Common Stock, or (B)
to subscribe for or purchase Common Stock or securities convertible or exchangeable into shares of Common Stock, then such record
date shall be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon
the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription
or purchase, as the case may be.

 

(ii) Treasury Shares.
The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account
of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

(f)All calculations
under this Section 8 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.

 

(g)Whenever the Exercise
Price is adjusted pursuant to Section 8(c) above, the Holder, after receipt of the determination by the Appraiser, shall have the
right to select an additional appraiser (which shall be a nationally recognized accounting firm), in which case the adjustment
shall be equal to the average of the adjustments recommended by each of the Appraiser and such additional appraiser

    	 

    	 

    

appointed under this subsection (g). The Holder
shall promptly mail or cause to be mailed to the Company, a notice setting forth the Exercise Price after such adjustment and setting
forth a brief statement of the facts requiring such adjustment. Such adjustment shall become effective immediately after the record
date mentioned above, if:

 

		(i)	the Company shall declare a dividend (or any other distribution) on its Common Stock; or

 

		(ii)	the Company shall declare a special nonrecurring cash dividend on or a redemption of its Common
Stock; or

 

		(iii)	the Company shall authorize the granting to all holders of the Common Stock rights or warrants
to subscribe for or purchase any shares of capital stock of any class or of any rights; or

 

		(iv)	the approval of any stockholders of the Company shall be required in connection with any reclassification
of the Common Stock of the Company, any consolidation or merger to which the Company is a party, any sale or transfer of all or
substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property; or

 

		(v)	the Company shall authorize the voluntary dissolution, liquidation or winding up of the affairs
of the Company, then the Company shall cause to be mailed to the Holder at their last addresses as they shall appear upon the Warrant
Register, at least 30 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x)
the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if
a record is not to be taken, the date as of which the holders of Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale,
transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of Common
Stock of record shall be entitled to exchange their shares of Common Stock for securities, cash or other property deliverable upon
such reclassification, consolidation, merger, sale, transfer, share exchange, dissolution, liquidation or winding up; provided,
however, that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity
of the corporate action required to be specified in such notice.

 

9.Payment of Shares.
The Holder shall deliver cash funds to the Company within five days of exercising any amount of this Warrant. The Holder is limited
in the amount of this Warrant it may exercise. In no event shall the Holder be entitled to exercise any amount of this Warrant
in excess of that amount upon exercise of

    	 

    	 

    

which the sum of (1) the number of shares of
Common Stock beneficially owned (as such term is defined under Section 13(d) and Rule 13d-3 of the Securities Exchange Act of 1934
(the 1934 Act”)) by the Holder, and (2) the number of Warrant Shares issuable upon the exercise of any Warrants then owned
by Holder, would result in beneficial ownership by the Holder of more than 9.9% of the outstanding shares of Common Stock of the
Company, as determined in accordance with Rule13d-1(j). Furthermore, the Company shall not process any exercise that would result
in beneficial ownership by the Holder of more than 9.9% of the outstanding shares of Common Stock of the Company.

 

10.Fractional Shares.
The Company shall not be required to issue or cause to be issued fractional Warrant Shares on the exercise of this Warrant. The
number of full Warrant Shares which shall be issuable upon the exercise of this Warrant shall be computed on the basis of the aggregate
number of Warrant Shares purchasable on exercise of this Warrant so presented. If any fraction of a Warrant Share would, except
for the provisions of this Section 10, be issuable on the exercise of this Warrant, the Company shall pay an amount in cash equal
to the Exercise Price multiplied by such fraction.

 

11.Notices. Any
and all notices or other communications or deliveries hereunder shall be in writing and shall be deemed given and effective on
the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone
number specified in this Section prior to 5:00 p.m. (Boston time) on a business day, (ii) the business day after the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile telephone number specified in this Section later than
5:00 p.m. (Boston time) on any date and earlier than 11:59 p.m. (Boston time) on such date, (iii) the business day following the
date of mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such
notice is required to be given. The addresses for such communications shall be: (i) if to the Company, to:

 

 

NatureWell, Incorporated

Attention: T. Psomiadis

151 W. Passaic Street

Rochelle Park, NJ 07662

 

 

or (ii) if to the Holder,
to the Holder at the address or facsimile number appearing on the Warrant Register or such other address or facsimile number as
the Holder may provide to the Company in accordance with this Section 11.

 

12.Warrant Agent.
The Company shall serve as warrant agent under this Warrant Agreement. Upon thirty (30) days notice to the Holder, the Company
may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation
resulting from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the
Company or any new warrant agent transfers substantially all of its corporate

    	 

    	 

    

trust or shareholders services business shall
be a successor warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause
notice of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder's last
address as shown on the Warrant Register.

 

13.Miscellaneous.

 

(a)This Warrant Agreement
shall be binding on and inure to the benefit of the parties hereto. This Warrant may be amended only in writing signed by the Company
and the Holder.

 

(b)Nothing in this
Warrant shall be construed to give to any person or corporation other than the Company and the Holder any legal or equitable right,
remedy or cause under this Warrant. This Warrant shall inure to the sole and exclusive benefit of the Company and the Holder.

 

(c)This Warrant shall
be governed by and construed and enforced in accordance with the laws of the State of Delaware without regard to the principles
of conflicts of law thereof.

 

(d)The headings herein
are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any of the provisions
hereof.

 

(e)In case any one
or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability of
the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will attempt
in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and
upon so agreeing, shall incorporate such substitute provision in this Warrant.

 

14. Disputes Under This Agreement.

 

All disputes arising under
this agreement shall be governed by and interpreted in accordance with the laws of the State of Delaware, without regard to principles
of conflict of laws. The parties to this agreement will submit all disputes arising under this agreement to arbitration in Boston,
Commonwealth of Massachusetts before a single arbitrator of the American Arbitration Association (“AAA”). The arbitrator
shall be selected by application of the rules of the AAA, or by mutual agreement of the parties, except that such arbitrator shall
be an attorney admitted to practice law in the Commonwealth of Massachusetts. No party to this agreement will challenge the jurisdiction
or venue provisions as provided in this section.

 

Nothing in this section
shall limit the Holder's right to obtain an injunction for a breach of this Agreement from a court of law.

    	 

    	 

    

 

IN WITNESS WHEREOF, the Company
has caused this Warrant to be duly executed by its authorized officer as of the date first indicated above.

 

 

 

Naturewell,
incorporated

			

 

By: ____________________

Name:Themistocles
Psomiadis

Title: Chief
Executive Officer

 

 

 

 

 

 

 

 

 

EXHIBIT A FORM OF ELECTION TO PURCHASE

 

(To be executed by the Holder to exercise
the right to purchase shares of Common Stock under the foregoing Warrant)

 

To: Brazil Interactive Media, Inc. (f/k/a
NatureWell, Incorporated)

 

In accordance with
the Warrant enclosed with this Form of Election to Purchase, the undersigned hereby irrevocably elects to purchase _____________
shares of Common Stock ("Common Stock"), $0.0001 par value per share, of Brazil Interactive Media, Inc.(f/k/a NatureWell,
Incorporated) encloses herewith $________ in cash, certified or official bank check or checks, which sum represents the aggregate
Exercise Price (as defined in the Warrant) for the number of shares of Common Stock to which this Form of Election to Purchase
relates, together with any applicable taxes payable by the undersigned pursuant to the Warrant.

 

The undersigned requests
that certificates for the shares of Common Stock issuable upon this exercise be issued in the name of

 

 

PLEASE INSERT SOCIAL
SECURITY OR

TAX IDENTIFICATION
NUMBER

 

_________________________________________

 

(Please print name
and address)

 

If the number of shares
of Common Stock issuable upon this exercise shall not be all of the shares of Common Stock which the undersigned is entitled to
purchase in accordance with the enclosed Warrant, the undersigned requests that a New Warrant (as

 

    	 

    	 

    

defined in the Warrant) evidencing the
right to purchase the shares of Common Stock not issuable pursuant to the exercise evidenced hereby be issued in the name of and
delivered to:

 

 

(Please print name and address)

 

 

 

 

	Dated:	 	 	Name of Holder:

(Print)____________________________________

 

(By:)_____________________________________

(Name:)

(Title:)

 

(Signature must conform in all respects to name of holder as specified
on the face of the Warrant)ex10-1.htm

Exhibit 10.1

 

	
SEPARATION AGREEMENT AND GENERAL RELEASE

 

This Separation Agreement and General Release (the "Agreement") is made as of March 22, 2013 (the “Termination Date”) by and between Glowpoint, Inc. (the "Company") and Alp Tolga Sakman ("Employee").

 

WHEREAS, Employee and the Company are parties to that Employment Agreement dated as of August 22, 2012 (the “Employment Agreement”); and

 

WHEREAS, the Company and Employee have reached certain agreements regarding the rights and obligations of the Company and Employee after the Effective Date.

 

NOW, THEREFORE, in consideration of the promises and of the mutual covenants contained herein, and for other good and valuable consideration as described herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1. Termination of Employment.

 

Employee has been employed by the Company since July 11, 2011, most recently as Chief Financial Officer and Senior Vice President, Corporate Development.  By mutual agreement, March 22, 2013 will be Employee’s last day of employment.

 

2. Separation Benefits and Accrued Wages.

 

(a) Provided Employee (i) has not revoked his acceptance of this Agreement, (ii) has returned all Company Property (as defined below) on or before the Termination Date, (iii) is in full compliance with the terms of this Agreement and the Employment Agreement, then the Company shall provide Employee with the following benefits (collectively, the “Separation Benefits”):

 

(i) Cash severance payments equal to six (6) months of his current base salary (the “Severance”), which severance shall be paid as salary continuation for a period of six months in accordance with the Company’s regular payroll practices.  For purposes of administrative convenience the first such payment will be made on April 15, 2013,(for the payroll period commencing April 1, 2013), all such payments (the “Severance Payments”) shall be less applicable taxes;

 

(b) Notwithstanding the foregoing and even if Employee revokes this Agreement, the Company shall pay Employee all due and accrued wages and eight (8) days of unused paid-time-off, as a lump sum on March 31, 2013.

 

(c) Employee has previously been granted certain stock awards and options, all of which have been forfeited as a result of Employee’s termination of Employment.

 

(d) Employee acknowledges and agrees that the Company does not make any representation or warranty as to whether the Separation Benefits satisfy the provisions of Section 409A of the Internal Revenue Code of 1986, as amended.

 

(e) For purposes of this Section 2, the term “Company Property” shall mean all Company property and all material or documents containing confidential information (as defined in Section 5 of the Employment Agreement), including, without limitation, keys, credit cards, video conferencing equipment, card access to any Company building, customer lists, computers, reports, files, memoranda, records and software, computer access codes or disks and instructional manuals, internal policies, and other similar materials or documents which Employee  received or prepared or helped prepare in connection with his employment with the Company, but specifically excluding the Apple laptop computer currently in Employee’s possession, ownership of which Company shall transfer and convey to Employee as of the Termination Date, provided all Company specific information has been removed from its memory and access to non-public company information has been removed.

  

-1-

  

 

3. Release of the Company.

 

(a) Release.  Employee, his heirs, legal representatives and assigns (collectively, "Releasor") hereby waives, releases and forever discharges, and will not file or permit to be filed against the Company and its stockholders, directors, officers, agents, representatives, investors, employees and affiliates (separately and collectively, the "Company") any and all claims, counterclaims, demands, actions, causes of action, suits or liabilities of any nature whatsoever, whether known or unknown, which Releasor ever had, now has or hereafter can, shall or may have against the Company, for, upon, or by reason of any matter, cause or thing whatsoever, including, without limitation, the Employment Agreement, (collectively, the “Claims”) arising from the beginning of the world to the Effective Date (the “Release”).

 

(b) Claims Included in this Release.  Releasor acknowledges that by executing this Release, Releasor is releasing any and all claims, whether or not related to Releasor's employment, including, without limitation, any form of legal claim, charge, complaint or any other form of action against the Company seeking any form of relief, including, without limitation, equitable relief (whether declaratory, injunctive or otherwise), the recovery of any damages or any other form of monetary recovery whatsoever (including, without limitation, back pay, front pay, compensatory damages, emotional distress damages, punitive damages, attorneys' fees and any other costs) (collectively, "Claims") against the Company, for any alleged action, inaction or circumstance existing or arising through the date Releasor signs this Release.  Without limiting the foregoing general waiver and release, Releasor specifically releases the Company from (and the Release is expressly deemed to include) any Claim arising from or related to Releasor's employment relationship with the Company or the termination thereof, including, without limitation:

 

(i) Claims under any state or federal discrimination, fair employment practices or other employment related statute, regulation or executive order prohibiting discrimination or harassment based upon any protected status, including, without limitation, race, national origin, age, gender, marital status, disability, veteran status or sexual orientation.  Without limitation, specifically included in this paragraph are any Claims arising under:  the Age Discrimination in Employment Act, as amended; the Older Worker Benefits Protection Act; Title VII of the Civil Rights of 1964, as amended; Sections 1981 through 1988 of Title 42 of the United States Code; the Civil Rights Act of 1991; the Americans with Disabilities Act; the Rehabilitation Act; the Family and Medical Leave Act; the Fair Labor Standards Act; the Worker Adjustment and Retraining Notification Act; the National Labor Relations Act; the Fair Credit Reporting Act; the Uniformed Services Employment and Reemployment Act; the Employee Polygraph Protection Act; the Immigration Reform Control Act; the retaliation provisions of the Sarbanes-Oxley Act of 2002; the New Jersey Law Against Discrimination; the New Jersey Conscientious Employee Protection Act; the New Jersey Family Leave Act; the New Jersey Genetic Privacy Act; the New Jersey Fair Credit Reporting Act; and any similar or other federal or state statute;

 

(ii) Claims under any other state or federal employment related statute, regulation or executive order relating to wages, hours or any other terms and conditions of employment.  Without limitation, specifically included in this paragraph are any Claims arising under:  the Fair Labor Standards Act; the Equal Pay Act; the Occupational Safety and Health Act; the Employee Retirement Income Security Act of 1974, as amended (excluding claims for accrued, vested benefits under any employee benefit plan of Glowpoint in accordance with the terms of such plan and applicable law); the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA); the New Jersey Wage and Hour Law; the New Jersey Equal Pay Law; the New Jersey Occupational Safety and Health Law; the New Jersey Smokers’ Rights Law; ; the retaliation provisions of the New Jersey Workers’ Compensation Law; and any similar or other federal or state statute; and

 

(iii) Claims under any state or federal common law theory, including, without limitation, wrongful discharge, breach of express or implied contract, including, without limitation, any written offers of employment or employment agreements between Releasor and the Company, and all stock option or other equity compensation agreements or plans, promissory estoppel, unjust enrichment, breach of a covenant of good faith and fair dealing, violation of public policy, defamation, interference with contractual relations, intentional or negligent infliction of emotional distress, invasion of privacy, misrepresentation, deceit, fraud or negligence including, without limitation, any claims asserted or purported to be asserted on behalf of the Company as a shareholder arising through the Effective Date.

  

-2-

  

 

(c) Claims Not Included in this Release. This Release shall not be construed to release any Claims accruing after the Effective Date.  Furthermore, nothing in this Release shall be construed to prevent Releasor from filing a claim with an administrative agency charged with the investigation of or enforcement of discrimination laws, nor shall Releasor be prevented from participating or assisting in the investigation of such claims.  However, in such event, the Company shall be permitted to rely upon this Release in all respects.

 

(d) Acknowledgment and Delivery of Consideration.  Employee acknowledges and agrees that, but for providing this Release, Employee would not be receiving the consideration in the form of the Separation Benefits.

 

(e) Advice to Seek Counsel/Understanding the Terms of this Release.  It is the Company's desire and intent to make certain that Employee fully understands the provisions and effects of this Release.  To that end, Employee expressly acknowledges and agrees that he has had ample opportunity to consult with an advisor for the purpose of reviewing the terms of this Release and his execution of this Agreement was completely voluntary.  Employee acknowledges that he understands the meaning and effect of this Release; he has had reasonable and sufficient time to review this Release, discuss it with a legal advisor, and is voluntarily signing it without duress or coercion on the date set forth above.

 

4. No Payments Due/Consideration.

 

(a) Employee acknowledges that, except as specifically provided in this Agreement, no wages or any other reimbursements, buyouts or other payments of any kind or nature whatsoever are due to him from the Company.

 

(b) Employee acknowledges that the Severance Payments are mutually agreed payment to which Employee might not otherwise be entitled and which is not normally provided by the Company, but is being given as special consideration for this Agreement.

 

(c) Employee represents and warrants that he is not aware of any material non-public information concerning the Company, its business or its affiliates that he has not disclosed to the Company prior to the date of this Agreement or that is required to be disclosed by the Company in its filings under the Securities Exchange Act of 1934 with the Securities and Exchange Commission and that has not been so disclosed.

 

(d) Employee has contemporaneously executed a certification confirming the provisions of Section 4 (c) of this Agreement.

 

	
5.  

	
Noncompetition, Non-Solicitation and Non-Disparagement

 

5.1           Noncompetition.  Employee acknowledges that in the course of his employment with the Company he served as a member of the Company’s senior management and became familiar with the Company’s trade secrets and with other Confidential Information and that his services had a special, unique and extraordinary value to the Company.  Therefore, Employee agrees that, during the Service Term and for a period ending on September 22, 2013 (the “Non-compete Period”), Employee shall not (except on behalf of the Company or with the prior written consent of the Company), within the Restricted Territory (as defined below), (a) directly or indirectly own (except ownership of less than 5% of any class of securities which are listed for trading on any securities which are listed for trading on any securities exchange or which are traded in the over-the-counter market), manage, control, participate in, consult with, render services for, or in any manner engage in the operation of a video network, video in the Cloud, managed service, video conference suites or audio or video bridging services company or any competition of any material business conducted by the Company during the Service Term or (b) own, manage, control, participate in, consult with, render services for or in any manner engage in or represent any business that is competitive with the business of the Company or any product of the Company, as such business is conducted as of the date of the Agreement or is conducted during the Non-Compete Period.  As used in this Agreement, the term “Restricted Territory” means the continental United States.

  

-3-

  

 

5.2 Nonsolicitation.  During the Non-compete Period, Employee shall not directly or indirectly through another person or entity (i) induce or attempt to induce any employee of the Company to leave the employ of the Company, or in any way interfere with the relationship between the Company and any employee thereof, or (ii) induce or attempt to induce any customer, supplier, licensee or other business relation of the Company to cease doing business with, or modify its business relationship with, the Company, or in any way interfere with or hinder the relationship between any such customer, supplier, licensee or business relation and the Company.

 

5.3 Non-Disparagement.  Employee on the one hand, and the Company on behalf of its senior executives and directors on the other, each represent that they will not disparage the other, nor will the parties make or solicit any comments, statements, or the like to the media or others that may be considered derogatory or detrimental to the good name or reputation of the other.  For purposes of this Agreement, the term “disparage” shall mean any statement or representation that, directly or by implication, tends, in the minds of a reasonable audience, to create a negative impression about the subject of the statement or representation.

 

5.4 Confidentiality.

 

Employee agrees not to disclose, either directly or indirectly, any information whatsoever regarding the existence or substance of this Agreement including specifically any of the terms of any monies paid hereunder.  This nondisclosure includes, but is not limited to, members of the media, present and former employees of the Company and other members of the public, but does not include an attorney or accountant or tax preparation service or financial advisor with whom Employee chooses to consult or seek advice regarding any aspect of this Agreement.  The making of this Agreement is not intended, and shall not be construed, as an admission that the Company has violated any federal, state or local law, ordinance or regulation, breached any contract, or committed any wrong whatsoever against Employee.  Further, this Agreement shall not be admissible in any proceeding, except to enforce the terms set forth herein.

 

6. Survival of Certain Employment Obligations.

 

Notwithstanding the covenants set forth in this Agreement, Employee shall observe Employee's post-employment covenants set forth in Sections 4, 5, 6 and 7 of the August 22, 2012 Employment Agreement and in the Non-Disclosure Agreement executed by Employee on July 13, 2011.

 

7. Governing Law.

 

This Agreement shall be governed by the laws of the State of New Jersey and the parties in any action arising from this Agreement, including any claim of statutory discrimination, shall be submitted to arbitration that will be held in Newark, New Jersey, before a mutually agreed upon single arbitrator licensed to practice law and on the employment-arbitration panel of the American Arbitration Association (“AAA”).  The arbitrator shall follow the rules and procedures then in effect for the AAA from which he/she has been selected; and he/she shall have authority to award or grant legal, equitable, and declaratory relief.  For injunctive relief, it is agreed that a court of competent jurisdiction in the State of New Jersey, County of Essex may also entertain an application by either party.  Any award of the arbitrator shall be final and binding, subject only to any right of appeal or vacatur that is available under applicable law.  Employee hereby agrees that the existence of any such arbitration, as well as any decision, award or settlement and the terms thereof shall be confidential and shall not be disclosed to any third party except as required by law and except to Employee’s immediate family, attorney, financial advisor and tax advisor, and only then after securing their consent to keep such information confidential.

  

-4-

  

 

8. Miscellaneous.

 

(a) Employee acknowledges that all of the agreements and warranties set forth above are material terms of this Agreement without which the Company would not provide the payments and other benefits discussed in this Agreement.  In addition to any other remedy available to the Company, in the event that Employee files a lawsuit or administrative charge relating to any claim released in this Agreement or materially violate one or more of these agreements and warranties, Employee agrees that any remaining payment obligations from the Company to Employee are null and void and, to the maximum extent permitted by law, that Employee must return to the Company all sums paid and other consideration granted to Employee pursuant to this Agreement.  Employee further agrees that, if it is determined by a court or arbitrator that Employee has materially breached any of the agreements and warranties above, the Company shall also be entitled to recover from Employee all costs and reasonable attorneys’ fees incurred as a result of its attempts to redress such breach or to enforce its rights and protect its legitimate interests.

 

(b) The parties agree that no changes to this Agreement will be effective unless made in writing and signed by all parties wherein specific reference is made to this Agreement.  This Agreement sets forth the entire agreement between the parties regarding the matters addressed hereto and fully supersedes any prior agreements or understandings between the parties specifically including but not limited to the August 22, 2012 Employment Agreement and the July 13, 2011 non-Disclosure Agreement (except as specifically set forth in this Agreement); provided that in the event of a conflict between the terms of this Agreement and that of the Employment Agreement, this Agreement shall govern.  Employee also acknowledges that in deciding to enter into this Agreement, he has not received and is not relying on any representations, promises, or assurances of any kind other than those expressly set forth in writing in this Agreement.  In the event that any provision of this Agreement is held to be void or unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement will nevertheless be binding upon the parties as though the void or unenforceable part had been deleted.  This Agreement is binding upon, and shall inure to the benefit of, the parties and their respective heirs, executors, administrators, successors, and assigns, including the Company’s successor entity in the event of a sale or other change in control of the Company.

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

	
Glowpoint, Inc.

By:  /s/ Steven B. Peri

Name:  Steven B. Peri

Title:  EVP & General Counsel

	
Alp Tolga Sakman

By:  /s/ Alp Toga Sakman 

Name:  Alp Tolga Sakman

Date:  3/22/13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00215-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00215-of-00352.parquet"}]]