TRANSITION
AGREEMENT
THIS TRANSITION AGREEMENT (the
“Agreement”) is made and entered into as of
August 3, 2005 (“Agreement Date”), by and between
Naturade, Inc., a Delaware corporation with its principal executive
offices located at 14370 Myford Rd. #100, Irvine, California 92606
(“Naturade”), and Symco, Incorporated a Nevada
corporation with its principal executive offices located at 2301
West Highway 89A, Suite 107, Sedona, Arizona 86336
(“Symco”), and Symbiotics, Inc., an Arizona corporation
with its principal executive offices located at 2301 West Highway
89A, Suite 107, Sedona, Arizona 86336
(“Symbiotics”) (Symco and Symbiotics are collectively
referred to herein as the “Company”).
Recitals
A. The Company and Quincy
Investments Corp., a Bahamas International Business Corporation
(“Quincy”) have entered into that certain Asset
Purchase Agreement dated as of July 22 2005 (the
“Purchase Agreement”).
B. Quincy has assigned to
Naturade, and Naturade has assumed, the rights and obligations of
Quincy under the Purchase Agreement as and to the extent provided
in that certain Assignment and Assumption Agreement of even date
herewith by and among Naturade, Quincy and the Company (the
“Assignment Agreement”).
C. This Agreement is the
transition agreement referred to in Section 2.02(f) and
2.03(d) of the Purchase Agreement, and the Company and Naturade in
satisfaction of the requirements of the Purchase Agreement intend
that the Company provide to Naturade the services set forth herein
on the terms and conditions provided for herein.
Agreement
NOW, THEREFORE, in consideration of
the premises and of the mutual covenants contained herein, the
parties agree as follows:
1.01 Access to
Premises . The Company agrees to provide Naturade with
commercially reasonable access to and use of the facility located
at 2301 W. Highway 89A, Suite 107, Sedona, AZ (the
“Premises”) as provided in this paragraph. From the
date hereof until terminated by Naturade with 30 day notice or
September 30, 2005 whichever comes first (the
“Transition Period”), the Company hereby grants to
Naturade the right to have each of its employees; officers, agents
and other representatives occupy and use the Premises. Naturade
agrees to occupy the Premises throughout such period and to occupy
and use the Premises only in a manner consistent with the terms of
the lease applicable to the Company as the tenant of the Premises.
Naturade acknowledges and agrees that the Company shall also occupy
and use the Premises throughout such period, and Naturade and the
Company agree to cooperate reasonably in connection with the shared
occupancy and use of the Premises.
1.02
Compliance with Lease Requirements . Naturade agrees not to
take any action, or refrain from taking any action, that would
cause the Company to violate its lease on the Premises or that
would constitute a violation of the lease if Naturade were the
tenant under the lease. Naturade is responsible for all damage to
the Premises it has a right to occupy hereunder and for all costs
of relocation. If, notwithstanding the other provisions of this
Agreement, Naturade occupies any portion of the Premises after the
expiration or termination of the relevant lease, Naturade must pay
the fair rental price for the Premises, which shall be not less
than the rent, common area charges and similar expenses paid or to
be paid by the Company and any penalties or other costs incurred by
the Company in connection with the Premises.
1.03
Indemnification . Naturade shall indemnify, defend, release
and hold harmless the Company from and against any or all actions,
causes of action, claims, demands, losses, costs or liabilities
(“Claims”) to the extent arising from the acts or
omissions of Naturade (including its employees), its
representatives or agents that occur on the Premises for the period
of time during which the right to occupy and use the Premises
continues, except to the extent any such Claim arises from the
gross negligence, recklessness or intentional misconduct of the
Company. The Company shall indemnify, defend, release and hold
harmless Naturade from and against any or all Claims to the extent
arising from the acts or omissions of the Company (including its
employees), its representatives or agents that occur after the date
hereof on the Premises, except to the extent any such Claim arises
from the gross negligence, recklessness or intentional misconduct
of Naturade.
1.04 Third
Party Services . During the Transition Period, Naturade and the
Company agree that the Company will use commercially reasonable
efforts to make available to Naturade the following services to the
extent and as available to the Company immediately prior to the
date of this Agreement, and other similar third party services as
may be agreed from time to time related to the operation of the
Premises and the transition of the Assets and related business to
Naturade, all of which the parties acknowledge are to be rendered
by third parties:
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1.04.3
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Telecommunications/Facsimile (excluding cell
phones, pagers and calling cards)
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1.04.4
1.04.5
1.04.6
1.04.7
1.04.8
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Telephones
Telephone Numbers
Utilities
Maintenance/janitorial services for the Premises
Certain Local Area Network/Wide Area Network
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1.05
Additional Services . During the Transition Period, the
Company agrees to provide to Naturade the following services and
other similar services as may be agreed from time to time in
addition to the services set forth in paragraph 1.04, to the extent
such services are available as of the date hereof:
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1.05.1
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Management Services (excluding the services of
Mr. David Brown)
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1.05.2
1.05.3
1.05.4
1.05.5
1.05.6
1.05.7
1.05.8
1.05.9
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Sales and Marketing Services
Accounting Services
Computing Services
Customer Service
Order Fulfillment Services
E-mail
Local Area Network/Wide Area Network
Management Information Systems
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1.06 Employee
Matters . Naturade and the Company acknowledge that the Company
intends to make available its employees as of the date of this
Agreement to perform the services