1. EX-10.1 2 f8ka080212_ex10z1.htm EXHIBIT 10.1 ENDORSEMENT AGREEMENT
Exhibit10.1
ENDORSEMENT AGREEMENT
THIS ENDORSEMENT AGREEMENT (the "Agreement") isdatedasof this____day of ____________,
2012, butmade effective asof February20, 2012 ("EffectiveDate") betweenHealthcare Distribution
SpecialistsLLC("HDS"),aDelaware corporation,andPaul Silas("Celebrity),anindividual.
AGREEMENT
1.
Engagement.HDSengagesCelebrityandCelebrityherebyacceptsthe engagementtoprovide forhis
endorsementof HDS' product,Clotamininthe UnitedStates(Territory") asfurtheroutlinedherein.In
addition,itisunderstoodandagreedthatwithrespecttothe Website,asdefinedbelow,the Territory
shall be worldwide.
2.
Term of Agreement. The termof thisAgreementshallbe forone (1) yearcommencingonthe Effective
Date andendingonFebruary19, 2013 ("Term").
3.
Grant. During the Termand subjectto the limitationssetforthinParagraphs9 and 10, HDS shall have
the right to use the name,image,likeness,characterization,visual andaudiorepresentationof Celebrity
("CelebrityAttributes") inconnectionwithHDS'product,Clotamin,inthe Territoryasfollows:
A.
In a televisioncommercial (specificspotlengthtobe mutuallyagreedupon) promotingClotamin
("Commercial")airedspecificallyinthe followingthree (3) televisionmarkets:(1) Washington,DCMetro
Area;(2) Florida;and(3) Texas(collectively"Markets");
B.
On HDS' website (www.clotamin.corn) ("Website");and
2. C.
In Clotamin-relatedpressreleases.
D.
In connectionwithanyHDS' usage of CelebrityAttributesasoutlinedaboveinParagraphs3(A)-(C),HDS
will feature the followingdisclaimerin close proximitytosaidusage:"PAULSILASIS NOT A MEDICAL
AUTHORITY. THESE STATEMENTS HAVENOT BEEN EVALUATED BY THE FOODAND DRUG
ADMINISTRATION.THISPRODUCTIS NOT INTENDEDTO DIAGNOSE,TREAT, CURE OR PREVENTANY
DISEASE."
4.
Dutiesof CelebrityandRightsof HDS.Duringthe Term and subjecttothe limitationssetforthin
Paragraphs9 and 10, Celebrityagreestoprovide HDSwiththe following:
A.
Upon requestbyHDS, one (1) productionsessiontobe usedforthe productionof the Commercial
("ProductionSession").The location,date andtime of the ProductionSessionshallbe mutuallyagreed
uponby CelebrityandHDS.Inthe eventthe ProductionSessionexceedseight(8) hoursindurationHDS
and Celebritywill negotiate ingoodfaithadditional compensationtoCelebrityfortime inexcessof eight
(8) hours.
B.
Celebritywill serveasa memberof the Clotamin/HDSBoardof Advisors,whosemembers'sole
responsibilityistobe listedasa Clotaminbrandambassadoronthe Website and/or Clotaminrelated
pressreleases.Withrespecttothe Board of Advisors,Celebritywill notbe responsible foranyadditional
servicessuchasattendingmeetings,corporate functions,etc.
C.
HDS may requestanadditional productionsession(s),oramediatouror personal appearance(s) foran
additional fee tobe mutuallyagreeduponbythe parties.
5.
3. Consideration.AsconsiderationforCelebrity'sservicesunderthisAgreement,HDSagreesasfollows:
A.
In-kindPayment:HDSwill provide Celebrity withaone (1) yearcomplimentarysupply(i.e.,atleast365
caplets) of Clotaminproductduringthe Term.
B.
Cash Payment:
(1)
HDS will provide paymentof FiftyThousandandNO/100Dollars($50,000) made payable toCelebrity's
agent.CSE, as follows
$10,000
Withinten(10) daysof the partiesexecutionof thisAgreement
$15,000
Within60 daysof the partiesexecutionof thisagreement
$25,000*
Ten(10) dayspriorto the ProductionSession
[*ShouldCompanydecide nottoconductthe Production Session,thenthe $25,000 allocatedforsaid
ProductionSession("ProductionFee") will notbe owedtoCelebrityandnotice shouldbe giventoCSEas
soonas reasonablyknownbyCompanyif Companydoesnotintendtoconductthe ProductionSession.
However,if Companyschedulesthe ProductionSession,thensaidProductionFeeisnon-refundable
regardlessif the ProductionSessionoccurs.]
(a)
CSE, shall invoice HDSforthese feesandHDSshall paysuch invoice withinten(10) businessdays
followingreceiptof the CSE invoice.
(b)
4. Paymentsshall be made toCSE and deliveredto600 GalleriaParkway,Suite 1900, Atlanta,Georgia
30339.
(2)
If HDS desirestoaddan additional marketorstate to the Markets forthe Commercial toairduringthe
Term, thenHOS will payCelebrityFive ThousandandNO/100Dollars($5,000) forsaid additional
state/market,andthe partieswill amendthe Agreementtoaddthe additional state/marketaccordingly.
6.
Expenses.If applicable,HDSagreestoprovide andpay forthe expensesrelatedtoCelebrity'sservices
providedinParagraph4, whichshall include butnotbe limitedtothe following:
A.
First-classairfare,first-classgroundtransportation,hotel accommodations,andmealsforCelebrity;and
B.
First-classairfare,groundtransportationandhotel accommodationsforone (1) representative.
7.
UnionDuesand Fees.Companyrepresentsthatthe serviceshereundershall notbe subjecttoSAG,
AFTRA or any otherentertainmentguildcontract.
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8.
Exclusivity.Celebrityrepresentsandwarrantsthatduringthe Termand in the Territory,Celebritywill
not endorse ormake any appearancesoradvertisementsonbehalfof anyothermultivitamin.
9.
5. Review,Approval,andOwnershipof Advertising.All HDS'usesof CelebrityAttributesinconnectionwith
the Commercial and/orpressreleasesshall be subjecttothe priorwrittenapproval of Celebrityviahis
agent,CSE. Saidwrittenapproval mustbe givenwithinfive(5) businessdaysof CSE'sreceiptor said
usage shall be deemedunapproved.Anysuchusage featuringCelebrityinthe Commercial and/orpress
releasesshall be andremainthe propertyof HDS;however,HDSshall have the righttouse said
Commercial and/orpressreleasessolelyasoutlinedinParagraph3 andonlyduringthe Term.Celebrity
may use saidmaterialsinwhole orinpart solelyforthe purpose of presentingCelebrity'sworkin
Celebrity'spersonal portfolio,websiteorotherwiseand/oronCelebrity'sagent'swebsite.Suchusage
may notbe soldor transferred.
10.
Termination
A.
HDS shall have the rightto terminate thisAgreementuponten(10) dayspriorwrittennotice toCelebrity
inthe eventCelebrityfailstoperformthe dutiessetforthinParagraph4 hereof orbreachesanyother
covenantor agreementsetforthhereinandfailstocure same (if curable) withinseven(7) daysof
receiptof writtennotice.Suchterminationshall relieveHDSof itsobligationtoprovide anyfurther
considerationpursuanttothisAgreement.
B.
Celebrityshallhave the righttoterminate thisAgreementuponten(10) dayspriorwrittennotice toHDS
inthe eventof the occurrence of any of the following:(1) HDSadjudicatesasinsolventordeclares
bankruptcy;or (2) HDS failstoprovide considerationdue pursuanttothisAgreement,withinten(10)
daysfollowingthe date suchconsiderationisdue hereunder,providedthatHDSis notifiedinwritingof
such non-paymentbyCelebrityandsuchpaymentbyHDS isnot made withinthree (3) daysfollowing
such notification;or(3) HDS failsbreachesanycovenantoragreementsetforthhereinandfailstocure
same (if curable) withinseven(7) daysof receiptof writtennotice.Furthermore,HDSagreesthatsuch
terminationshall notrelieve itof itsobligationtoprovide considerationascontemplatedhereunder.
Celebrityshallnothave waivedanyof itsrightsat law or in equitybyexercisinganyprovisionof this
paragraph.
C.
HDS' rights to the use of CelebrityandCelebrity'sAttributesassetforth inParagraphs 3 and 4 shall end
immediatelyshouldthisAgreementbe terminatedpursuanttoParagraph10(A) or Paragraph 10(B)
above.
10.
6. Notices.All noticesprovidedforhereinshallbe giveninwritingbyhanddelivery,courierservice,orby
certifiedmail returnreceiptrequestedtothe addressesof the partiessetforthasfollows(unlesschange
of addressbynotice tothe otherpartyis givenasprovidedinthisparagraph10):
If to Celebrity:
If to HDS
Paul Silas
Mackie A. Barch,
c/o Lonnie Cooper
Co-Founder
Chief ExecutiveOfficer
Healthcare DistributionSpecialistsLLC
CSE
9337 FraserAvenue
600 GalleriaParkway,Suite 1900
SilverSpring,MD20910
Atlanta,GA 30339
witha copy to: Sue Graddy
Fax No. (770) 226-5560
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11.
Licensing. Nothingcontainedhereinshallbe construedtoconveytoHDS any rightto use the names,
trademarks,service marks,symbols,logos,emblemscolors,etc.(“Marks”),of the Charlotte Bobcats,
NBA,or any otherorganizationwithwhichthe Celebrityisorhas beenassociated. All rightstothe use
of suchMarks mustbe acquiredfromthe appropriate rightsholder,andif suchMarks are usedby HDS
then,insuch eventHDS(a) shall provide Celebrityinadvance withsatisfactoryevidence of HDS’right to
7. use such Marks and (b) agree to indemnify,protectandholdCelebrityharmlessfromandagainstany
and all claims,damagesand/orlosseswhichmayarise fromHDS’use of such Marks.
12.
RepresentationsandWarrantiesof HDS. Celebrityreliesupon HDS’skill andjudgmentandalsoupon
the followingrepresentationsof HDSwhichshall be ineffectthroughoutthe termof thisAgreement:
A.
HDS’ productswill be merchantable andfitforthe purpose forwhichtheyare intended,and
B.
HDS’ products will conformatall timesto all applicable federal,state andlocal laws,rules,regulations,
ordinances,andotherenactmentsandindustrystandards,including,butnotlimitedto,those relatingto
productsafety.
13.
Indemnity. HDSshall be solely responsible forall liabilityarisingoutof production,distributionandsale
of itsproduct. HDS herebyagreestoindemnify,defendandholdharmlessCelebrity,hisagents,
representativesandemployees(referredtocollectivelyas“CelebrityIndemnities”) fromandagainstany
and all claims,actions,causesoraction,damages,injuries,expenses,liabilities(jointandseveral),
penaltiesfines,attorneysfees,courtcosts,andanyotherexpensesincurredbyCelebrityIndemnities
arisingoutof (1) breach byHDS of any of the terms,representationsorwarrantiesmade byHDS inthis
Agreement;or(2) HDS productliabilityortrademarkpatentorotherproprietaryrightinfringement;or
(3) errors,omissions,fraudulentornegligentactsbyHDS, itsemployees,agentsorsubcontractorsin
connectionwith(i) anyadvertisingfeaturingCelebrity;(ii) withthe performanceof HDS’dutiesand
obligationsunderthisAgreement;(iii) withthe production,distribution,promotion,marketingandsales
of productsincludingrelatedproductpackaging;and/or(iv) withthe operationandmanagementof its
productionanddistributionfacilities,howevercaused,HDSshall notbe obligatedtoindemnifyCelebrity
withrespecttodamageswhichare the resultof the active negligenceorwillful misconductof Celebrity.
14.
Insurance. HDS agreestoprovide andmaintainat itsownexpense,the followinginsurancecoverages:
A.
Commercial General Liabilitycoverage of productliabilitywithlimitsnolessthan$1,000,000 per
occurrence and $2,000,000 aggregate.
8. B.
Umbrella/ExcessLiabilitycoverage inclusive of productliabilitywithlimitsnotlessthan$5,000,000 per
occurrence and aggregate.
C.
MediaLiabilityinsurance withlimitsnotlessthan$2,000,000 per occurrence andaggregate.
The Celebrityshall be namedasanadditional insuredoncoveragesA,Band C. Celebrityisafforded
waiverof subrogationoncoveragesA,B andC. All policieslistedunderA,Band C shouldhave a thirty
(30) day notice of cancellationprovisionorendorsement.HDSwill provide Celebrity’sagent,CSE,witha
certificate of insurance withinfive(5) daysof itsrequestforsame.
15.
Relationshipof Parties. NothingcontainedinthisAgreementshallbe deemedorconstruedtoplace the
partiesinthe relationshipof partners,jointventurers,principal-agents,oremployer-employee,itbeing
understoodthatthe partiesheretoare andwill remainindependentcontractorsinall respectsand
neitherpartyshall have anyrightto obligate orbindthe otherinany mannerwhatsoever.
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16.
Assignment. NeitherthisAgreementnoranyof the rightsor obligationscontainedhereinmaybe
assignedortransferredbyeitherpartywithoutthe priorwrittenconsentof the otherparty.
17.
AuthoritytoContract.Each of the partiesheretorepresentsandwarrantsthatithas full rightand power
to enterintothisAgreement,toperformall obligationstobe performedbyithereunder,andtogrant all
rightshereundergrantedwithoutviolatingthe legalorequitablerightsof anyotherpersonor entity,
and that the executionandperformance of thisAgreementwill notconflictwithorresultina breachof
or defaultunderanyof the termsor conditionsof anyagreementtowhicheither partyhasagreed,or is
a party, or may be bound.
9. 18.
Constructionof Agreement.Eachpartyacknowledgesthatithasparticipatedinthe negotiationof this
Agreementandthatnoprovisionof thisAgreementshall be construedagainstorhe interpretedtothe
disadvantage of anypartyheretobyany court or othergovernmental orjudicial authoritybyreasonof
such partyhavingor deemedtohave structured,dictatedordraftedsuchprovision.
19.
Merger; Modification.ThisAgreementconstitutesthe entire agreementwithrespecttothe subject
mattercontainedhereinandsupersedesall previouscommunicationsandagreementsbetweenthe
partiespertainingtothe subjectmatterhereof,whetherwrittenororal.The terms of thisAgreement
may notbe modified,waived,amended,discharged,terminated,orsupplemented,orotherwise
changed,exceptbya writtendocumentexecutedbyanauthorizedrepresentativeof eachparty.
20.
No Waiver.A waiverbyeitherpartyof any of the termsor conditionsof this Agreementinanyinstance
shall notbe deemedorconstruedtobe a waiverof such termor conditionforthe future,orof any
subsequentbreachthereof,oranyothertermor conditionof thisAgreement.All remedies,rights,
undertakings,obligations,and agreementscontainedinthisAgreementshall be cumulativeandnone of
themshall be inlimitationof anyotherremedy,right,undertaking,obligationoragreementof either
party.
21.
Severability.If anyprovisionof thisAgreement,asappliedtoeitherpartyorto any circumstance,shall
be adjudgedbya court of competentjurisdictiontobe voidor unenforceable,whetheratlaw or in
equity,thensuchdeterminationshall innowayaffectanyotherprovisionof thisAgreement,orthe
validityorenforceabilityof thisAgreement.
22.
Forum.The partiesagree thatthe U.S. DistrictCourt forthe NorthernDistrictof Georgia,the Superior
Court of CobbCounty,the State Court of CobbCounty,or anyotherforumin CobbCountyshall have
personal jurisdictionoverthe partiesandthatsuch courts shall be the exclusive venue withrespectto
any claimsor disputesrelatedtothe Agreement.
23.
Choice of Law. Regardlessof the place of executionhereof,thisAgreement,all amendmentshereto,and
any andall issuesorcontroversiesarisinghere fromorrelatedhereto,shall be governedbyand
construedexclusivelyinaccordance withthe lawsanddecisionsof the State of Georgia.
10. 5
24.
Attorneys'Fees.If anyactionisnecessarytoenforce the provisionsof thisAgreement,includingany
claimsor demands,orto interpretthisAgreement,the prevailingpartyshall be entitledtoreasonable
attorneys'fees,costsandnecessarydisbursementsinadditiontoanyotherrelief towhichitmay
otherwise he entitled.
25.
Captions:Structure.SectionheadingsusedinthisAgreementare forconvenience of reference onlyand
shall notin anyway affectthe interpretationof anysectionof thisAgreementorof the Agreement
itself.
26.
Time isof the Essence.Time isof the essence withrespecttothe performance of the dutiesand
obligationshereunder.
27.
Counterparts.ThisAgreementmaybe executedinone ormore counterparts,eachof
whichshall be deemedanoriginal andall of whichwhentakentogethershall he construedasa single
instrument.ThisAgreementmaybe executedbyfacsimileorotherelectronictransmissions,and
signaturesonanyfacsimile orelectronictransmissioncopyhereof shallbe deemedauthorizedoriginal
signatures.
28.
No ThirdPartyBeneficiaries.ThisAgreementisnotforthe benefitof anythirdpartyand shall be
deemednottogive anyright or remedytosuchthird party,whetherreferredtohereinornot.
29.
Recitals.The recitalscontainedinthisAgreementare true andcorrect and are incorporatedhereinby
reference.
11. [SIGNATUREPAGE TO FOLLOW]
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IN WITNESS WHEREOF, the partiesheretohave executedthisAgreementonthe dayand date firstabove
written.
WITNESS:
Healthcare DistributionSpecialists LLC("HDS")
By: /s/Linda Lee
By: /s/Mackie A.Barch
Date: February17, 2012
Title:CEO
WITNESS:
Paul Silas("Celebrity")
By: /s/CarolynSilas
By: /s/Paul Silas
Date: March 8, 2012
