Exhibit 10.13
ADDENDUM TO SETTLEMENT AGREEMENT
This addendum dated July 2, 2003 (the "Addendum") is to that certain settlement
agreement (the "Agreement") dated March 27, 2003 between Championlyte Holdings
Inc. (the "Company") Xxxxxx Xxxxxxxxxx and Xxxxxxx Xxxxxxxxxx ("Xxxxxxxxxx")
(collectively "the Parties").
WITNESSETH:
WHEREAS, the Company desires to modify the agreement between the Parties to
reflect the following:
Xxxxxxxxxx shall receive an additional 413,958 shares of the Company's common
stock which shall be paid upon execution. These shares plus the remaining shares
to be issued under the Agreement shall be included on the Company's Registration
Statement. In return, Xxxxxxxxxx has agreed to conform to 144 leakage
limitations on the timing and amount of sales of the stock received under the
Agreement
This Agreement may be signed in counterparts, each of which shall be an
original, with the same effect as if the signature thereto and hereto were upon
the same instrument.
IN WITNESS WHEREOF, the parties have executed this Amendment to the Settlement
Agreement as of the date first above written and acknowledge and incorporate
within the terms and conditions of the March 27,5003 Agreement,
CHAMPIONLYTE HOLDINGS, INC.
By /s/ Xxxxx Xxxxxxxx
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Xxxxx Xxxxxxxx
President
/s/ Xxxxxx Xxxxxxxxxx
---------------------------
Xxxxxx Xxxxxxxxxx
/s/ Xxxxxxx Xxxxxxxxxx
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Xxxxxxx Xxxxxxxxxx
CHAMPIONLYTE PRODUCTS, INC.
0000 XX 000" STREET, XXXXXXXXX XXX
XXXXXXXX, XXXXXXX 00000
March 27,2003
Xx. Xxxxxx Xxxxxxxxxx
0 Xxxxxxx Xxxxx
Xxxxxxxxxx, Xxx Xxxx 00000
Re: Xxxxxx Xxxxxxxxxx ("Xxxxxx Xxxxxxxxxx") with Championlyte Products,
Inc. ("Championlyte")
Dear Xx. Xxxxxxxxxx:
The following hereby sets forth the settlement agreement ("Agreement") between
Xxxxxxxxxx and Championlyte:
1) OBLIGATION: Championlyte presently owes Xxxxxxxxxx the sum of $140,000 plus
interest based on the following three (3) promissory notes ("Notes"):
i. A. July 23,2002- $60,000;
ii. B. July 31,2002- $40,000; and
iii. C. September 23, 2002 $40,000
2) SETTLEMENT AND PAYMENT: Championlyte hereby a p e s to pay Xxxxxxxxxx
the sum of $140,000 in Championlyte common stock ("Stock') as hull
settlement of the obligations set forth in paragraph 1 above. The
$140,000 shall be paid in four (4) equal quarterly installments of
$35,000 worth of Stock per quarter. The issuance of such Stock shall be
based on a twenty (20%) percent discount of the average closing price
of the Stock for the three (3) trading days preceding each payment
date. The first payment shall commence on April 1, 2003 and each
subsequent payment shall be made ninety days thereafter. Such shares
shall be issued in accordance With Rule 144 of the Securities Act of
1933. Notwithstanding the above, the Company has the fight, at its sole
discretion to make any payment in the form a check instead of the
issuance of the Stock. If the Company decided to make any payment by
check instead of Stock, then each such payment shall be $35,000 plus
twenty (20%) percent for a payment of $42,000. Payment by the Company
via check of my quarterly payment does not waive the Company's right to
make any subsequent payment in stock pursuant to the terms o f this
Agreement.
3) RELEASE: Xxxxxxxxxx hereby releases, waives, satisfier and forever
discharges Championlyte of and from my and all actions, suits,
controversies, damages, claims and demands whatsoever, in law ox in
equity, which Xxxxxxxxxx ever had, now has or may have against
Championlyte arising out of or relating to the Notes and my other
agreement entered into in connection therewith
4) NOTICE: All notices, requests and instructions hereunder shall be in
writing and delivered to each party at the addresses set forth above or
to such other address as may from time to rime be designed by a party
hereto.
5) SEVERABILITY: In h e event that any term, covenant, condition, or other
provision contained herein is held to be invalid, void or otherwise
unenforceable by any court Of competent jurisdiction, the invalidity of
any such term, covenant, condition; provision or Agreement shall in no
way affect any other term, covenant, condition or provision or
Agreement contained herein, which shall remain in full force and
effect.
6) ENTIRE AGREEMENTS: This Agreement contains all of the terms agreed upon
by the parties with respect to the subject matter hereof, This
Agreement has been entered into after full investigation.
7) AMENDMENTS: No amendments or additions to this Agreement shall be
binding unless in writing, signed by both parties, except as herein
otherwise provided.
8) NO ASSIGNMENTS: Neither party may assign nor delegate any of its rights
or obligations hereunder without first obtaining the written consent of
the other party.
9) TIME IS OF THE ESSENCE; & DEFAULT: All due dates shall be "time of the
essence". In the event that payment is not made, and a grace period of
five business days passes without the default being cured, then the
payments would immediately be accelerated and the entire balance would
become due and owing.
10) ATTORNEY'S FEES: Should Xxx. Xxxxxxxxxx have to retain the services of
an attorney to enforce her rights under this Agreement and provided she
is successful, then she shall be entitled to reasonable legal fees,
costs, disbursements and out o f pocket expenses associated with such
litigation.
Please sign below to acknowledge the terms of this Agreement.
CHAMPIONLYTE PRODUCTS, INC.
BY: /s/ Xxxxxxxx Xxxxxx
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XXXXXXXX XXXXXX
CHIEF OPERATING OFFICER
THE TERMS AS SET FORTS ABOVE ARE AGREEABLE AND ACCEPTABLE BY:
BY: /s/ Xxxxxx Xxxxxxxxxx
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XXXXXX XXXXXXXXXX
