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EXHIBIT 10.7
AMENDMENT TO CONSULTING AGREEMENT
THIS AMENDMENT TO CONSULTING AGREEMENT made and entered to this 31st day
of December, 1998, by and among GENELINK, INC. (the "Company"), a Pennsylvania
corporation, and XXXXXX X. XXXXXXXXX, PH.D. (the "Consultant").
BACKGROUND
The Company and the Consultant are parties to a Consulting Agreement
dated as of February, 1998 (the "Consulting Agreement"). The parties desire to
amend the Consulting Agreement as set forth below.
NOW, THEREFORE, the parties hereto, intending to be legally bound,
hereby agree as follows:
1. Amendment to Consulting Agreement. Section 7(a) of the Consulting
Agreement is hereby amended by deleting current Section 7(a) and
replacing it in its entirety as follows:
"(a) Consultant is granted the right and option to purchase
1,000,000 shares (the "Shares") of the Company's Common Stock, exercised at the
price of $.10 per Share, which right and option may be exercised from time to
time, in whole or in xxx, on a cumulative basis at any time. Subject to the
provisions of this Section 7(a) to the contrary, in the event that Consultant
ceases to be an employee, consultant, representative or agent of the Company on
or before the dates listed below, Consultant shall be obligated to forfeit to
the Company any and all Shares exercised by Consultant in excess of the number
of Shares set forth below:
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No. of Shares No. of Shares
Consultant May Retain Subject to Termination
Forfeiture Date
200,000 800,000 Prior to January 1, 1999
400,000 600,000 Prior to January 1, 2000
600,000 400,000 Prior to January 1, 2001
800,000 200,000 Prior to January 1, 2002
1,000,000 0 On or after January 1, 2002
Notwithstanding anything in this Section 7(a) to the contrary, Consultant's
obligation to forfeit any Shares he has purchased shall terminate upon a "change
in control" of the Company. For purposes of this Agreement, the term "change in
control" shall be deemed to have occurred when (i) the sale in any one or more
related transaction of 33% or more of the outstanding voting stock of the
Company, (ii) the Company sells 50% or more of its assets in one or a number of
related transactions, or (iii) as a result of a tender offer, merger,
consolidation, sale of assets, or contest for election of directors, or any
combination of the foregoing transactions or events, individuals who were
members of the Board of Directors of the Company immediately prior to any such
transaction or event. The Consultant may exercise options by giving the Company
a note equal to the exercise price of the options exercised, which will bear
interest at a floating rate equal to the Federal Funds Rate published in The
Wall Street Journal as adjusted form time to time. In the alternative, the
Consultant may use Shares owned by the Consultant, valued at the then prevailing
market price of the Shares."
2. No Other Amendment. The Consulting Agreement as amended hereby
remains in full force in effect and, except as expressly as stated
herein, there are no other amendments thereto.
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IN WITNESS WHEREOF, the parties have executed this Amendment to
Consulting Agreement as of the date set forth above.
GENELINK, INC.
By: /s/ Xxxx X. XxXxxxxxxx
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Chief Executive Officer
By: /s/ Xxxxxx X. Xxxxxxxxx
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Xxxxxx X. Xxxxxxxxx, Ph.D.
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