TERMINATION AGREEMENT
EXHIBIT 10.17
THIS
TERMINATION AGREEMENT (the “Agreement”) is entered into
this 29th day of
March 2006 by and between Odimo Incorporated, a Delaware corporation (the “Company”), and
SDG Marketing, Inc., a British Virgin Island corporation (“SDG”).
RECITALS
WHEREAS, the Company and SDG are parties to that certain Supply Agreement dated as of March
30, 2004 (the “Supply Agreement”) pursuant to which SDG agreed to sell diamonds and jewelry to the
Company upon the terms and conditions contained therein; and
WHEREAS, the Company and SDG desire to terminate the Supply Agreement upon the terms and
subject to the conditions contained in this Agreement.
NOW THEREFORE, in consideration of the mutual promises and undertakings set forth in this
Agreement, the parties, intending to be legally bound, agree as follows:
1. TERMINATION OF SUPPLY AGREEMENT. Effective as of the date hereof, the Supply Agreement and the
respective rights and obligations of the parties thereunder are hereby terminated, cancelled and of
no further force or effect.
2. RETURN OF INVENTORY; RISK OF LOSS ON RETURNED INVENTORY; RELEASE
2.1 Return of Inventory. Immediately upon execution of this Agreement, the Company shall
return to SDG the Loose Diamonds previously delivered to the Company by SDG and such other
diamonds listed on Exhibit A hereto. For purposes of this Agreement, “Loose Diamonds”
shall mean loose stone diamonds accompanied by a GIA certificate and supplied by SDG.
2.2 Risk of Loss. Risk of loss to the Loose Diamonds shall pass to SDG upon delivery thereof
to SDG, except such loss or damage resulting from any negligent act of the Company or its agents.
If requested by SDG, the Company shall provide SDG with a certificate of insurance naming SDG as
loss payee on any insurance policy covering the Loose Diamonds whereby any losses shall be paid to
SDG and the Company as their interest may appear.
2.3 Release.
(a) In consideration of each party’s mutual release and the performance of all duties and
obligations imposed hereunder, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, SDG, its predecessors, successors, officers,
directors, current and former employees, agents, representatives, heirs, attorneys, and assigns,
and the Company, its predecessors, successors, officers, directors, current and former employees,
agents, representatives, heirs, attorneys, and assigns, hereby completely release and forever
discharge each other and each party’s past, present, and future officers, directors, shareholders,
employees, attorneys, principals, agents, servants, representatives, subsidiaries, parents, related
entities, affiliates, partners, predecessors, successors-in-interest, heirs, assigns, and all other
persons, corporations, or other entities with whom any of the parties’ have now or may hereafter be
affiliated, of and from any and all claims, demands, obligations, actions, causes of actions,
orders, judgments, rights, damages, costs, attorneys’ fees, losses of services, expenses, profits,
or compensation, whether based on a tort, contract, contribution, indemnification, or any other
theory of recovery, and whether for compensatory, statutory, punitive, or other damages, which
either
party now has or may have against the other party relating to any claim, obligation, or right
in any way relating to, in whole or in part, the Supply Agreement, but excluding any claims under
this Agreement and any claims relating to amounts owed by the Company to SDG or its affiliates
under the Supply Agreement or this Agreement. This mutual release by each party shall be a binding
and complete settlement, to be conducted in accordance with the executory provisions of this
Agreement.
(b) Each party hereto hereby irrevocably covenants to refrain from, directly or indirectly,
asserting any claim or demand, or commencing, instituting or causing to be commenced, any
proceeding of any kind against the other released party, based upon any matter purported to be
released hereby.
3. NEW SUPPLY ARRANGEMENT. From time to time, subject to the agreement of the parties, the Company
will post diamonds from SDG’s inventory on its websites for sale to consumers.
4. REPRESENTATIONS & WARRANTIES. The Company and SDG each represents and warrants to the other
that such party has the full power and authority to enter into this Agreement without the joinder
or approval of any other person or entity and that the person executing this Agreement on behalf of
such party was duly authorized to do so.
5. MISCELLANEOUS.
4.1 Governing Law. This Agreement shall be governed in all respects by the laws of the State
of New York without regard to principles of conflict of laws.
4.2 Severability. If any provision of this Agreement is held invalid or unenforceable by any
court of competent jurisdiction, the other provisions of this Agreement will remain in full force
and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree
will remain in full force and effect to the extent not held invalid or unenforceable.
4.3 Amendment. This Agreement may not be changed except in a writing signed by the parties
hereto.
4.4 Gender. All words used in this Agreement will be construed to be of such gender or
number, as the circumstances require.
4.5 Notices. All notices required or permitted hereunder shall be in writing and shall be
deemed effectively given: (i) upon personal delivery to the party to be notified; (ii) when sent by
confirmed telex or facsimile if sent during normal business hours of the recipient, if not, then on
the next business day; (iii) five (5) days after having been sent by registered or certified mail,
return receipt requested, postage prepaid; or (iv) one (1) day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written verification of receipt.
All communications shall be sent to the parties at the address set forth on the signature page
hereto or at such other address as the parties may designate.
4.6 Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be an original, but all of which together shall constitute one instrument.
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4.7 Expenses. The Company and SDG shall each pay its respective costs and expenses that they
incur with respect to the negotiation, execution, delivery and performance of this Agreement and
all of the transactions contemplated herein.
4.8 Specific Enforcement. Any party shall be entitled to specific enforcement of its rights
under this Agreement. Each party acknowledges that money damages would be an inadequate remedy for
its breach of this Agreement and consents to an action for specific performance or other injunctive
relief in the event of any such breach.
4.9 Further Assurances. The parties agree to perform any acts and/or execute any documents,
including without limitation, executing, amending or supplementing any instrument to be executed
hereunder, as may be reasonable requested by the other party in order to effect the purposes of
this Agreement.
4.10 Attorneys’ Fees. If any action at law or in equity is necessary to enforce or interpret
the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees,
costs and necessary disbursements in addition to any other relief to which such party may be
entitled.
4.11 Entire Agreement. This Agreement (including the exhibits hereto) constitutes the entire
agreement between the parties with respect to the subject matter hereof, and supercedes all prior
negotiations, understandings, agreements, correspondence and statements, both oral and written,
including without limitation, the Supply Agreement.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date set forth
in the first paragraph hereof.
ODIMO INCORPORATED,
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SDG MARKETING, INC. | |
a Delaware corporation
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a British Virgin Islands corporation | |
By: /s/ Xxxx Xxxxxx
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By: /s/ Xxxxx Xxxxxxxxx | |
Name: Xxxx Xxxxxx
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Name: Xxxxx Xxxxxxxxx | |
Title: President
|
Title: Attorney in Fact |
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