Document:

Exhibit
10.1

 

AMENDED
AND RESTATED EXCLUSIVE LICENSE AGREEMENT

 

This
Amended and Restated Exclusive License Agreement (“AGREEMENT”) is made by and between the University of Louisiana
Lafayette, organized under the Laws of the State of Louisiana, having an address of 104 University Circle, Lafayette, LA 70503
(“LICENSOR”), herein represented by Dr. E. Joseph Savoie, its duly authorized President; and Ammo Technologies, Inc.,
an Arizona corporation, whose mailing address is 6401 E. Thomas Road, Suite 106, Scottsdale, AZ 85251 (“LICENSEE”),
represented herein by Fred W. Wagenhals, its duly authorized President. This AGREEMENT is dated as 16th day of November,
2017 and to be effective starting on January 1, 2018 (“EFFECTIVE DATE”).

 

RECITALS

 

WHEREAS,
LICENSOR is the owner of intellectual property referred to as HYRID LUMINESCENCE AMMUNITION TECHNOLOGY invented and/or developed,
in whole or in part, by Dr. William A. Holler man, Brady Broussard, and Noah Bergeron during the course of research funded in
whole or in part by the State of Louisiana;

 

WHEREAS,
LICENSOR wishes to partner with another party to commercialize the referenced invention;

 

WHEREAS,
LICENSEE is interested in obtaining an exclusive license to develop and commercialize HYBRID LUMINESCENCE AMMUNITION TECHNOLOGY;

 

WHEREAS
the arrangement contemplated by this AGREEMENT is of mutual interest to LICENSEE and LICENSOR and furthers the objectives of LICENSOR;

 

WHEREAS
the Exclusive License was previously entered into with Hallam, Inc., a Texas corporation, as Original Licensee dated May 21,2009;

 

WHEREAS,
the Exclusive License was assigned to LICENSEE pursuant to the Assignment and First Amendment to Exclusive License Agreement effective
as of the Closing (August 22, 2017) when Hallam, Inc. merged into Ammo Technologies, Inc. pursuant to a Forward Triangular Merger;
and

 

WHEREAS,
LICENSOR and LICENSEE now desire to completely amend and restate the Exclusive License.

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

ARTICLE
1. DEFINITIONS

 

1.1
“AFFILIATE” shall mean any person, directly or indirectly, controlling, controlled by or under direct or indirect
common control with LICENSEE whether such control exists on or becomes effective subsequent to the EFFECTIVE DATE, and whether
such control is partial or complete. For the purpose of this definition, the term “control” shall mean the power and
authority, whether or not exercised, to direct, cause the direction of, or influence the management and policies of another person,
whether through ownership of voting securities, by contract, or otherwise.

 

    	1	 	 

    	 

    

 

1.2
“CONFIDENTIAL INFORMATION” shall mean any and all technical information of LICENSOR AND LICENSEE made available and
disclosed by it, directly or indirectly, to the other party pursuant to the provisions of this Agreement and which is related
to the HYBRID LUMINESCENCE AMMUNITION TECHNOLOGY, except:

 

(a)
technical information which at the time of disclosure is in the public domain,

 

(b)
technical information which after disclosure is published or otherwise becomes part of the public domain through no fault of the
recipient (but only after it is published or otherwise becomes part of the public domain),

 

(c)
technical information which the recipient can show was in its possession at the time of disclosure and was not acquired, directly
or indirectly, from the other party hereto under this AGREEMENT or was not acquired from a third party under obligation of confidence
to one of the parties hereto, or

 

(d)
technical information which is received by the recipient after the time of disclosure hereunder from a third party who did not
require the recipient to hold such information in confidence and did not acquire such information, directly or indirectly, from
the disclosing party under an obligation of confidence, or from a party who obtains such technical information by fraudulent or
illegal means.

 

For
the purposes of this Paragraph 1.2, specific technical information disclosed by one party to the other pursuant to the provisions
of this AGREEMENT shall not be deemed, as to the recipient, to be within any of the above exceptions merely because it is embraced
by more general information within one of the said exceptions.

 

The
parties agree to maintain CONFIDENTIAL INFORMATION in confidence and to use the same degree of care and procedures which each
uses to protect and safeguard its own confidential information of like kind and character to prevent disclosure thereof to others.
The obligations of confidentiality imposed shall survive the termination of this AGREEMENT and shall remain in effect for five
(5) years thereafter or the life of the PATENT, whichever is longer.

 

1.3
“DERIVATIVES” shall mean any and all inventions, improved inventions, or modifications of the invention, HYBRID LUMINESCENCE
AMMUNITION TECHNOLOGY, developed by LICENSOR or LICENSEE during the term of the AGREEMENT. Those inventions, improved inventions,
and technology, developed by LICENSEE that exhibit substantially different functionality than LICENSED TECHNOLOGY shall not be
considered DERIVATIVES for the purposes of the AGREEMENT. Any process to apply the LICENSED TECHNOLOGY to ammunition is not considered
DERVIATIVES.

 

1.4
“DOCUMENTATION” shall mean and include, without limitation, all manuals, guides, diagrams, schematics, and other related
written materials pertaining to the LICENSED TECHNOLOGY and/or DERIVATIVES, if any, which may be available and furnished by LICENSOR
to LICENSEE.

 

1.5
“INTELLECTUAL PROPERTY” shall mean all inventions, technology and their derivatives whether or not patentable, copyrightable
or considered trade secrets embodied in the LICENSED TECHNOLOGY, including any intellectual property rights related to the LICENSED
TECHNOLOGY and conceived and/or reduced to practice during the term of this AGREEMENT by LICENSOR or LICENSEE and/or any affiliates
thereof all of whom owe a duty to assign to LICENSOR any and all inventions, software and/or technology created during the term
of this AGREEMENT.

 

1.6
“LICENSED TECHNOLOGY” shall mean HYBRID LUMINESCENCE AMMUNITION TECHNOLOGY as represented in U.S. Patent application
11/499,535 filed August 4, 2006, U.S. Patent Continuation in Part application 12/260,583, filed October 29, 2008, and granted
as Patent US 8402896 BI with a publication date of March 26, 2013 (the “PATENT”) and all DERVATIVES thereof, and related
additional information or materials. The term LICENSED TECHNOLOGY shall include any and all tradenames, trademarks, service marks,
or logos of LICENSOR associated with the LICENSED TECHNOLOGY as of the date of signing.

 

    	2	 	 

    	 

    

 

 

1.7
“LICENSED TERRITORY” shall mean worldwide.

 

1.8
“NET SALES” shall mean;

 

In
the case of manufacture and sale of materials by LICENSEE or an AFFILIATE employing the LICENSED TECHNOLOGY or by any SUBLICENSEE:

 

One
cent (1ȼ) for each and every projectile and/or bullet sold by LICENSEE or SUBLICENSEE utilizing the LICENSED TECHNOLOGY.

 

1.9
“ROYALTY” or “ROYALTIES” shall mean the monetary sums to be paid to LICENSOR by LICENSEE for use by LICENSEE
and/or SUBLICENSEE of the LICENSED TECHNOLOGY and DERIVATIVES as provided in Article 4.

 

1.10
“SUBLICENSEE” shall mean any person, party, or business entity to which LICENSEE grants a license to develop, commercialize,
and/or manufacture the LICENSED TECHNOLOGY, and wherein said term SUBLICENSEE shall also include any and all licenses granted
by a SUBLICENSEE to another party.

 

1.11
“HYBRID LUNINESCENCE AMMUNITION TECHNOLOGY” shall mean LICENSOR’S information relating to tracer ammunition
which uses luminescent materials and the methods of making said ammunition, and including the information disclosed in the PATENT,
continuations, continuations-in-part, divisions, reissues, and foreign counterparts thereof.

 

ARTICLE
2. TERM AND RENEWAL

 

2.1
The initial term of this AGREEMENT shall begin on the EFFECTIVE DATE of this AGREEMENT and shall end four (4) years from the EFFECTIVE
DATE unless otherwise terminated pursuant to ARTICLE 8 of this AGREEMENT.

 

2.2
LICENSOR agrees that LICENSEE may thereafter renew this AGREEMENT for successive periods of four (4) years beyond the then current
period provided LICENSEE is in compliance with the terms of this Agreement and upon payment of the minimum Royalties due to LICENSOR
for the then-current period.

 

ARTICLE
3. LICENSE

 

3.1
LICENSOR hereby grants to LICENSEE an exclusive license to make, use, and sell, or otherwise exploit, including the grant of sub
licenses to third parties for commercial purposes, the LICENSED TECHNOLOGY, DERIVATIVES, INTELLECTUAL PROPERTY, and DOCUMENTATION
within the LICENSED TERRITORY as provided for in this AGREEMENT. This grant of the license is subject to rights retained by LICENSOR
to:

 

3.1.1
Publish the general scientific findings from research related to the LICENSED TECHNOLOGY and DERIVATIVES subject to the terms
of Article 6;

 

3.1.2
Use LICENSED TECHNOLOGY and DERIVATIVES for research, teaching, and other educationally-related purposes.

 

3.2
The license granted through this AGREEMENT is exclusive in the LICENSED TERRITORY for the term of this AGREEMENT.

 

    	3	 	 

    	 

    

 

3.3
LICENSEE may extend the license granted herein to any AFFILIATE on the condition that the AFFILIATE is bound by this AGREEMENT
to the same extent as is LICENSEE, which extension shall be agreed to in writing by AFFILIATE. The granting of sublicenses by
LICENSEE or by any SUBLICENSEE shall require fifteen (15) day notification to LICENSOR. Should LICENSOR provide any comments relative
to the granting of said sublicenses, LICENSEE shall reasonably consider said comments by LICENSOR. If no comment is made by LICENSOR
within the fifteen (15) day notification period, LICENSEE may assume that LICENSOR has no objection to the granting of said sublicense.

 

3.4
LICENSOR shall retain ownership of the LICENSED TECHNOLOGY, DERIVATIVES, TRADENAMES developed by it, DOCUMENTATION of LICENSOR
and any patents, copyrights, technology, and tangible research materials and other INTELLECTUAL PROPERTY related thereto as of
the date of signing without regard to whether DERIVATIVES or INTELLECTUAL PROPERTY created during the term of this AGREEMENT were
developed by LICENSOR or LICENSEE and/or LICENSEE’S AFFILIATES. LICENSEE will own any trademarks developed by it.

 

3.5
LICENSEE acknowledges that LICENSOR is the owner of all of the INTELLECTUAL PROPERTY associated with the LICENSED TECHNOLOGY and
its DERIVATIVES. LICENSEE hereby agrees that it will not do or cause to be done any act or thing contesting or interfering with
such ownership.

 

3.6
LICENSEE shall disclose all derivatives of the LICENSED TECHNOLOGY and its DERIVATIVES which LICENSEE and/or its AFFLIATES may
develop during the term of this AGREEMENT. LICENSEE shall also be obligated to disclose to LICENSOR all derivatives of the LICENSED
TECHNOLOGY and DERIVATIVES that LICENSEE may develop that relate to any other potential uses of the LICENSED TECHNOLOGY and its
DERIVATIVES. LICENSOR agrees that all disclosures of LICENSEE made to LICENSOR hereunder shall be deemed confidential.

 

3.7
LICENSEE shall cooperate fully in any efforts made by LICENSOR to obtain and perfect LICENSOR’S interest in the INTELLECTUAL
PROPERTY, such cooperation including, but not limited to, LICENSEE and its AFFILIATES’ review and execution of patent applications,
copyright registrations, trademark registrations, assignments, and any other related documents. LICENSEE also agrees to cooperate
fully in any litigation involving the INTELLECTUAL PROPERTY. LICENSEE’S duty to cooperate in obtaining protection for, and
in any litigation concerning, the LICENSED TECHNOLOGY, DERIVATIVES, and INTELLECTUAL PROPERTY related thereto shall continue beyond
the term of this AGREEMENT. In performing its obligations pursuant to this section 3.7, LICENSEE agrees to bear TWO THOUSAND AND
NO/lOO ($2,000.00) DOLLARS of the cost of same subject to the limitations set forth in section 5.2 hereof once a defendable patent
related to LICENSED TECHNOLOGY AND THIS AGREEMENT has been issued.

 

3.8
LICENSEE shall provide to LICENSOR monthly backups of all data related to this AGREEMENT and/or LICENSED TECHNOLOGY, as indicated
in Section 4.4. To the extent that compliance with this section 3.8 is determined to be a violation of any duty to protect the
privacy of such information, LICENSEE shall not be required to comply; but rather, will archive said information and in the event
of a Termination of this Agreement, cooperate in securing the consent of the appropriate parties for release of the information
to LICENSOR.

 

ARTICLE
4. CONSIDERATION: ROYALTY COMPUTATION, PAYMENT AND REPORTING

 

4.1
LICENSEE shall pay to LICENSORS a nonrefundable license issue fee of SIX THOUSAND AND NO/l00 ($6,000.00) DOLLARS, payable within
5 days of the execution of this AGREEMENT. This fee is creditable toward royalties or minimums due to LICENSOR from LICENSEE up
to the EFFECTIVE DATE.

 

4.2
During the term of this AGREEMENT, LICENSEE or SUBLICENSEE shall pay to LICENSOR, in accordance with Section 4.5, a ROYALTY on
quarterly NET SALES, as defined in Section 1.8, calculated on a quarter calendar year basis, of One Cent (1ȼ) per projectile
and/or bullet as ROYALTY on NET SALES.

 

    	4	 	 

    	 

    

 

 

4.3
If the minimum ROYALTIES, as listed in this section, for current calendar year have not been met, commencing January 1, 2018 and
on each calendar year thereafter, LICENSEE guarantees that it will pay to LICENSOR within 30 days of the end of each designated
period set forth below, the minimum ROYALTIES, prescribed herein, during the term of this AGREEMENT. No credit for amounts paid
in excess of minimum ROYALTIES will be carried forward.

 

4.3.1
$20,000 per calendar year commencing for the calendar year January 1, 2018, with the first payment due on January 30, 2019 (for
the period ending December 31, 2018) less ROYALTIES on Net Sales.

 

4.4
LICENSEE will provide quarterly written royalty reports (“Royalty Reports”) to LICENSOR, accompanied by payment for
ROYALTIES due within thirty (30) days after the last day of March, June, September, and December of each calendar year during
the term of the AGREEMENT. Royalty Reports shall include at least the following information, receipts, and/or other documentation
as it relates to LICENSED TECHNOLOGY covered by this AGREEMENT:

 

1.
Gross Sales;

 

2.
Net Sales.

 

Royalty
Reports shall be certified as accurate by a duly authorized representative of LICENSEE and shall separately state for the preceding
quarterly period the following information: the type and quantity of royalty bearing transactions and the total ROYALTY payable.
Royalty Reports shall be furnished to LICENSOR regardless of whether any ROYALTY bearing transactions were completed during the
reporting period or whether any ROYALTY is actually owed. The receipt or acceptance by LICENSOR of Royalty Reports or ROYALTY
payments shall not prevent LICENSOR from subsequently challenging the validity or accuracy of Royalty Reports or the accompanying
ROYALTY payments.

 

4.5
LICENSEE shall make all payments required under this AGREEMENT in United States dollars by check(s) representing current and available
funds written against LICENSEE’S account in a federally insured United States bank. Payment should be made payable to the
University of Louisiana at Lafayette referencing HYBRID LUMINESCENCE AMMUNITION TECHNOLOGY and sent to:

 

Dr.
E. Joseph Savoie

Office
of the President

University
of Louisiana at Lafayette

104
University Circle

Lafayette,
LA 70503

 

4.6
“Final” Royalty Reports and ROYALTY payments shall be made within thirty (30) days after the expiration or termination
of this AGREEMENT with respect to all ROYALTY bearing transactions completed by LICENSEE but not previously reported and/or paid.

 

4.7
Any ROYALTY payment not made by LICENSEE to LICENSOR when first due shall thereafter additionally bear interest payable at a ten
(10%) per cent per annum rate until such payments and interest thereon are paid in full.

 

4.8
LICENSEE will make and retain, and as necessary, and cause its AFFILIATE(s) to make and retain, for at least seven (7) years following
the submission of a Royalty Report to LICENSOR hereunder, true and accurate records, files, and books of account containing all
data reasonably required for the full computation and verification of the amounts to be paid under this AGREEMENT and set forth
in said Royalty Report.

 

    	5	 	 

    	 

    

 

4.9
Upon thirty (30) days advance notice by LICENSOR, and at any reasonable time during normal business hours, but no more frequently
than once during each consecutive twelve-month period beginning with the EFFECTIVE DATE of the AGREEMENT, LICENSEE will permit,
and will cause its AFFILIATE(S) to permit, the reasonable inspection of the aforementioned records, files, and books of account
by LICENSOR through a duly authorized representative mutually accepted by both parties, or a representative of the Office of the
State Legislative Auditor as required by law, for the sole purpose of verifying the information set forth in the Royalty Reports.
In the event that such inspection reveals an overpayment by LICENSEE of the actual amount owed to LICENSOR, such overpayment with
interest thereon calculated at a per annum rate equal to the applicable, allowable legal interest rate will be credited against
future ROYALTIES due LICENSOR by LICENSEE. If however, such inspection reveals an underpayment by LICENSEE of the actual amount
owed to LICENSOR, LICENSEE will, within thirty (30) days of such determination, pay LICENSOR such underpayment in full together
with interest thereon calculated monthly at a per annum rate equal to the applicable, allowable legal interest rate.

 

4.10
The cost of the inspection of LICENSEE’S records, files, and books of account prescribed in paragraph 4.9 above shall be
borne by LICENSOR; provided, however, that in the event such inspection reveals an underpayment of ROYALTIES due by LICENSEE to
LICENSOR of ten percent (10%) or more of ROYALTIES due, then LICENSEE shall pay for the inspection.

 

4.11
All taxes resulting by operation of this AGREEMENT shall be borne by the party obligated to pay them under applicable law. Each
party shall be responsible for its payment of taxes as required by law.

 

ARTICLE
5. FUTURE PATENTS AND FUTURE PATENT EXPENSES

 

5.1
LICENSOR will control the prosecution of its own patents, copyrights, and trademarks developed by it and pursued after the EFFECTIVE
DATE of this Agreement and will own all patents, copyrights, and trademarks developed by it included in LICENSED TECHNOLOGY.

 

5.2
LICENSEE shall reimburse LICENSOR for all reasonable patent expenses, incurred after the latter of the EFFECTIVE DATE of the,
or after a defendable patent related to the LICENSED TECHNOLOGY has been issued. LICENSOR will invoice LICENSEE for those expenses
and LICENSEE shall pay LICENSOR the invoiced amount within 30 days of receipt of said invoice. The total patent expenses for which
LICENSEE shall be responsible during the term of the AGREEMENT shall not exceed $2,000.00 in any one calendar year during the
term of this AGREEMENT.

 

ARTICLE
6. CONFIDENTIALITY, PUBLICATION, USE OF NAME

 

6.1
LICENSOR shall not use LICENSEE’S name, corporate name, or name of any corporate officer, or affiliates without LICENSEE’S
prior written consent. LICENSEE shall not use LICENSOR’S name, or the name of any officer, faculty member, student or employee
thereof, without LICENSOR’S prior written consent.

 

ARTICLE
7. DISCLAIMER OF WARRANTIES, INDEMNIFICATION

 

7.1
LICENSOR MAKES NO WARRANTIES, EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER, INCLUDING, WITHOUT LIMITATION, WARRANTIES WITH
RESPECT TO THE CONDUCT, COMPLETION, SUCCESS, OR PARTICULAR RESULTS OF THE RESEARCH FROM WHICH THE LICENSED TECHNOLOGY OR DERIVATIVES
ARE DEVELOPED, OR THE CONDITION, OWNERSHIP, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE OF THE LICENSED TECHNOLOGY OR
DERIVATIVES. LICENSOR SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, OR PUNITIVE DAMAGES SUFFERED BY LICENSEE OR
ANY OTHER PERSON RESULTING FROM THE USE OF LICENSED TECHNOLOGY OR DERIVATIVES, OR ANY PRODUCTS RESULTING THEREFROM.

 

    	6	 	 

    	 

    

 

7.2
LICENSEE shall protect, defend, indemnify, and hold harmless LICENSOR, and any employees, trustees, members, officers, directors,
faculty and students (collectively, the “INDEMNIFIED PERSONS”) from and against any and all liability, claims, demands,
lawsuits, losses, damages, costs, or expenses (including attorney’s fees), for which the INDEMNIFIED PERSONS may be alleged
to be responsible, or be required to pay arising out of or related to LICENSEE’S performance of this AGREEMENT. LICENSEE
shall notify LICENSOR upon learning of the institution or threatened institution of any such liability, claims, demands, lawsuits,
losses, damages, costs, and expenses and LICENSOR shall cooperate with LICENSEE in every proper way in the defense or settlement
thereof at LICENSEE’S request and expense. LICENSEE shall not be required to indemnify, defend, release, or hold LICENSOR
harmless of or from allegations of its own negligence or the failure to perform its obligations under this AGREEMENT .

 

ARTICLE
8. TERMINATION

 

8.1
LICENSEE may terminate this AGREEMENT by giving LICENSOR written notice at least 60 days in advance of the effective date of termination
selected by LICENSEE.

 

8.2
LICENSOR may terminate this AGREEMENT if LICENSEE:

 

8.2.1
Is delinquent on any report or payment and such delinquency continues for 60 days following written notice thereof;

 

8.2.2
Is in breach of any provision and fails to cure said breach following 30 days written notice;

 

8.2.3
Provides any knowingly false report; or

 

8.2.4
LICENSEE fails to pay LUMINESCENCE AMMUNITION ROYALTY PAYMENTS as provided in Section 2.3.

 

8.3
Termination of this AGREEMENT shall not affect the rights and obligations of the parties accrued prior to termination
hereof. The provisions of Article 6 entitled CONFIDENTIALITY, PUBLICATION, USE OF NAME; Article 7, entitled DISCLAIMER OF
WARRANTIES, INDEMNIFICATION; and Article 9, entitled ADDITIONAL PROVISIONS, shall survive such termination.

 

ARTICLE
9. ADDITIONAL PROVISIONS

 

9.1
No rights hereunder may be assigned by LICENSEE, directly or by merger or other operation of law, without the express written
consent of LICENSOR, which consent shall not be unreasonably withheld. Any prohibited assignment of this AGREEMENT or the rights
hereunder shall be null and void. No assignment shall relieve LICENSEE of responsibility for the performance of any accrued obligations,
which it has prior to such assignment.

 

9.2
A waiver by either party of a breach or violation of any provision of this AGREEMENT will not constitute or be construed as a
waiver of any subsequent breach or violation of that provision or as a waiver of any breach or violation of any other provision
of this AGREEMENT.

 

9.3
Nothing herein shall be deemed to establish a relationship of principal and agent between LICENSOR and LICENSEE, nor any of their
agents or employees, nor shall this AGREEMENT be construed as creating any form of legal association or arrangement which would
impose liability upon one party for the act or failure to act of the other party. Nothing in this AGREEMENT, express or implied,
is intended to confer on any person other than the parties hereto or their permitted assigns, any benefits, rights or remedies.

 

    	7	 	 

    	 

    

 

9.4
Notices, statements, reports and other communications under this AGREEMENT shall be in writing and shall be deemed to have been
received as of the date dispatched if sent by public overnight courier (e.g., Federal Express) and addressed as follows:

 

If
to LICENSOR:

 

Dr.
E. Joseph Savoie

Office
of the President

University
of Louisiana at Lafayette

104
University Cir.

 

Lafayette
LA 70503

 

And

 

Office
of Innovation Management

University
of Louisiana at Lafayette

P.O.
Box 43610

Lafayette,
LA 70504-3610

 

If
to LICENSEE:

 

Fred
W. Wagenhals

Ammo
Technologies, Inc.

 

6401
E. Thomas Road, Suite 106

Scottsdale,
AZ 85251

 

9.5
This AGREEMENT and all claims arising out of or relating to this AGREEMENT shall be governed exclusively by the laws of the State
of Louisiana, without regard to conflicts of law principles and federal law, as applicable.

 

9.6
LICENSOR AND LICENSEE shall not discriminate on the basis of race, color, national origin, age, religion, sex, sexual orientation,
or disability in admission to, access to, treatment in or employment as required by Title VI and Title VII of the Civil Rights
Act of 1964, Age Discrimination in Employment Act of 1967, Age Discrimination Act of 1975, the Equal Pay Act of 1963, Title IX
of the Education Amendments of 1972, Executive Order 11246, Section 503 and 504 of the Rehabilitation Act of 1973, Section 402
of the Vietnam Era Veterans Readjustment Assistance Act of 1974 and the 1990 Americans with Disabilities Act.

 

9.7
Neither party shall be liable for any failure to perform as required by this AGREEMENT to the extent such failure to perform is
due to circumstances reasonably beyond such party’s control, including, without limitation, labor disturbances or labor
disputes of any kind, failure of any governmental approval required for full performance, civil disorders or commotions, acts
of aggression, acts of God, energy or other conservation measures imposed by law or regulation, failure of utilities, disease,
or other such occurrences.

 

9.8
LICENSEE and LICENSOR shall comply with all laws, regulations, and other legal requirements applicable in coimection with this
AGREEMENT, including, but not limited to, any legal requirements applicable to the use of the results of the LICENSED TECHNOLOGY
or DERIVATIVES and laws controlling the export of technical data, HYBRID LUMINESCENCE AMMUNITION TECHNOLOGY, and all other export
controlled commodities.

 

9.9
Notwithstanding the definitions set forth in section 1.3, 1.5, 1.6 and any other provision of this AGREEMENT, this AGREEMENT does
not in any way affect, apply to, include, or otherwise grant any rights to LICENSEE in connection with any intellectual property
or programs other than HYBRID LUMINESCENCE AMMUNITION TECHNOLOGY.

 

9.10
This AGREEMENT embodies the entire understanding between the parties relating to the subject matter hereof and supersedes all
prior understandings and agreements, whether written or oral. This AGREEMENT may not be varied except by a written document signed
by duly authorized representatives of both parties.

 

[Remainder
ofpage intentionally left blank. Signature page to follow.]

 

Signatures
Appear on the Following Page

 

    	8	 	 

    	 

    

 

 

IN
WITNESS WHEREOF, the duly authorized representatives of the parties hereby execute this AGREEMENT as of the date first written
above.

 

	WITNESSES:	 	University
    of Louisiana at Lafayette
	 	 	 
	 	 	/s/
    Dr. E. Joseph Savoie
	 	 	Dr.
    E. Joseph Savoie, President
	 	 	 
	 	 	Ammo
    Technologies, Inc.
	 	 	 
	 	 	/s/
    Fred W. Wagenhals
	 	 	Fred
    W. Wagenhals, President

 

    	9Document

Description of Registrant’s Securities Registered
Pursuant to Section 12 of the Exchange Act of 1934

The following summarizes general terms and provisions that apply to the Class E Subordinate Voting Shares (the “Fixed Shares”), the Class D Subordinate Voting Shares (the “Floating Shares”, and together with the Fixed Shares, the “Subordinate Voting Shares”), and the Class F Multiple Voting Shares (the “Fixed Multiple Shares”, together with the Subordinate Voting Shares, the “Company Shares”) of the Company as of December 31, 2020. The summary of the general terms and provisions of the Company Shares set forth below does not purport to be complete and is subject to and qualified by reference to the Company’s Articles of Incorporation (“Articles”), which is incorporated by reference as an exhibit to the Annual Report on Form 10-K. For additional information, please read the Articles and the applicable provisions of the Business Corporations Act (Ontario). 

Per the Company’s Articles, the Company is authorized to issue an unlimited number of Fixed Shares, an unlimited number of Floating Shares and 117,600 Fixed Multiple Shares, without nominal or par value. 

Class E Subordinate Voting Shares (Fixed Shares)

Holders of Fixed Shares are entitled to notice of and to attend any meeting of the shareholders of the Company, except a meeting of which only holders of another particular class or series of shares of the Company shall have the right to vote. At each such meeting, holders of Fixed Shares are entitled to one vote in respect of each Fixed Share held. 

As long as any Fixed Shares remain outstanding, the Company may not, without the consent of the holders of the Fixed Shares by separate special resolution, alter or amend its Articles if the result would prejudice or interfere with any right or special right attached to the Fixed Shares. 

The holders of Fixed Shares shall be entitled to receive such dividends payable in cash or property of the Company as may be declared thereon by the directors from time to time, provided that at any particular time in the period from the Acquisition Effective Time as defined in the Arrangement Agreement between the Company and Canopy Growth Corporation dated April 18, 2019, as amended on May 15, 2019 and September 23, 2020 (the “Arrangement Agreement”) until the earlier to occur of the Acquisition Date (as defined in the Arrangement Agreement) and the End Date (as defined in the Arrangement Agreement), the aggregate amount of dividends per Fixed Share declared from the Effective Date until such particular time shall not exceed the product obtained when (i) the aggregate amount of dividends, per share, declared by Canopy Growth Corporation (or any successor thereto) on its common shares from the Effective Date until such particular time, is multiplied by (ii) the Exchange Ratio (as defined in the Arrangement Agreement). 

The directors may declare no dividend payable in cash or property on the Fixed Shares unless the directors simultaneously declare a dividend payable in cash or property on: (x) the Floating Shares, in an amount per Floating Share equal to the amount of the dividend declared per Fixed Share; and (y) the Fixed Multiple Shares, in an amount per Fixed Multiple Share equal to the amount of the dividend declared per Fixed Share.

In the event of the liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, or in the event of any other distribution of assets of the Company among its shareholders for the purpose of winding up its affairs, the holders of Fixed Shares are entitled to participate pari passu with the holders of Floating Shares and Fixed Multiple Shares, with the amount of such distribution per Fixed Share equal to each of: (i) the amount of such distribution per Floating Share; and (ii) the amount of such distribution per Fixed Multiple Share. 

There may be no subdivision or consolidation of the Fixed Shares unless, simultaneously, the Floating Shares and Fixed Multiple Shares are subdivided or consolidated utilizing the same divisor or multiplier. 

Class D Subordinate Voting Shares (Floating Shares) 

Holders of Floating Shares are entitled to notice of and to attend any meeting of the shareholders of the Company, except a meeting of which only holders of another particular class or series of shares of the Company shall have the right to vote. At each such meeting, holders of Floating Shares are entitled to one vote in respect of each Floating Share held. 

As long as any Floating Shares remain outstanding, the Company may not, without the consent of the holders of the Floating Shares by separate special resolution, alter or amend its Articles if the result would prejudice or interfere with any right or special right attached to the Floating Shares. 

The holders of Floating Shares shall be entitled to receive such dividends payable in cash or property of the Company as may be declared thereon by the directors from time to time, provided that at any particular time in the period from the Acquisition Effective Time (as defined in the Arrangement Agreement) until the earlier to occur of the Acquisition Date (as defined in the Arrangement Agreement) and the End Date (as defined in the Arrangement Agreement), the aggregate amount of dividends per Floating Share declared from the Effective Date until such particular time shall not exceed the product obtained when (i) the aggregate amount of dividends, per share, declared by Canopy Growth Corporation (or any successor thereto) on its common shares from the Effective Date until such particular time, is multiplied by (ii) the Exchange Ratio (as defined in the Arrangement Agreement). 

The directors may declare no dividend payable in cash or property on the Floating Shares unless the directors simultaneously declare a dividend payable in cash or property on: (x) the Fixed Shares, in an amount per Fixed Share equal to the amount of the dividend declared per Floating Share; and (y) the Fixed Multiple Shares, in an amount per Fixed Multiple Share equal to the amount of the dividend declared per Floating Share.

In the event of the liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, or in the event of any other distribution of assets of the Company among its shareholders for the purpose of winding up its affairs, the holders of Floating Shares are entitled to participate pari passu with the holders of Fixed Shares and Fixed Multiple Shares, with the amount of such distribution per Floating Share equal to each of: (i) the amount of such distribution per Fixed Share; and (ii) the amount of such distribution per Fixed Multiple Share. 

There may be no subdivision or consolidation of the Floating Shares unless, simultaneously, the Fixed Shares and Fixed Multiple Shares are subdivided or consolidated utilizing the same divisor or multiplier. 

Fixed Multiple Shares 

Holders of Fixed Multiple Shares are entitled to notice of and to attend any meeting of the shareholders of the Company, except a meeting of which only holders of another particular class or series of shares of the Company shall have the right to vote. At each such meeting, holders of Fixed Multiple Shares are entitled to 4,300 votes per Fixed Multiple Share, and each fraction of a Fixed Multiple Share shall entitle the holder to the number of votes calculated by multiplying the fraction by 4,300 and rounding the product down to the nearest whole number.

Fixed Multiple Shares provide voting control of the Company to Kevin Murphy, the Company’s Founder and Chairman of the Board of Directors. As long as any Fixed Multiple Shares remain outstanding, the Company will not, without the consent of the holders of the Fixed Multiple Shares by separate special resolution, alter or amend its Articles if the result would be to prejudice or interfere with any right or special right attached to the Fixed Multiple Shares, or affect the rights or special rights of the holders of Fixed Shares, Floating Shares and Fixed Multiple Shares on a per share basis as provided in the Articles. Consent of the holders of a majority of the outstanding Fixed Multiple Shares is required for any action that authorizes or creates shares of any class or series having preferences superior to or on a parity with the Fixed Multiple Shares. In connection with the exercise of the voting rights in respect of any such 

approvals, each holder of Fixed Multiple Shares has one vote in respect of each Fixed Multiple Share held. 

In the event of the liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, or in the event of any other distribution of assets of the Company among its shareholders for the purpose of winding up its affairs, the holders of Fixed Multiple Shares are entitled to participate pari passu with the holders of Fixed Shares and Floating Shares, in an amount equal to: (i) the amount of such distribution per Fixed Share; and (ii) the amount of such distribution per Floating Share; and each fraction of a Fixed Multiple Share will be entitled to the amount calculated by multiplying the fraction by the amount payable per whole Fixed Multiple Share.

No dividend may be declared on the Fixed Multiple Shares unless the Company simultaneously declares dividends: (i) on the Fixed Shares, in an amount equal to the dividend declared per Fixed Multiple Share; and (ii) on the Floating Shares, in an amount equal to the dividend declared per Fixed Multiple Share. Holders of fractional Fixed Multiple Shares shall be entitled to receive any dividend declared on the Fixed Multiple Shares, in an amount equal to the dividend per Fixed Multiple Share multiplied by the fraction thereof held by such holder.

There may be no subdivision or consolidation of the Fixed Multiple Shares unless, simultaneously, the Fixed Shares and Floating Shares are subdivided or consolidated utilizing the same divisor or multiplier. 
Each Fixed Multiple Share is convertible, at the option of the holder, into one Fixed Share. Each Fixed Multiple Share will automatically convert, without any action on the part of the holder thereof, into Fixed Shares on the basis of one Fixed Share for one Fixed Multiple Share upon the earliest of the date that (i) the aggregate number of Fixed Multiple Shares held by the holder of Fixed Multiple Shares together with its affiliates are reduced to a number which is less than fifty percent (50%) of the aggregate number of Fixed Multiple Shares held by such holder together with its affiliates on the date of completion of the Transaction (defined as the High Street Capital Partners, LLC (“High Street”) reverse take-over of Applied Inventions Management, Inc.), (ii) the aggregate number of units of High Street (“High Street Units”) held by the holder of Fixed Multiple Shares together with its affiliates are reduced to a number which is less than fifty percent (50%) of the aggregate number of High Street units held by such holder together with its affiliates on the date of completion of the Transaction and (iii) is five (5) years following completion of the Transaction.  

Coattail Agreement 

The Company, Odyssey Trust Company (in such capacity, the “Trustee”), as trustee for the benefit of the holders of the Subordinate Voting Shares of the Company (the “Holders”), Mr. Murphy and Murphy Capital, LLC (together, the “MVS Shareholders”) entered into a coattail agreement dated November 14, 2018, as amended and restated on September 23, 2020 (the “Coattail Agreement”) under which the MVS Shareholders, as the only holders of Fixed Multiple Shares, and holders of High Street Units, are prohibited from selling, directly or indirectly, any Fixed Multiple Shares or High Street Units pursuant to a takeover bid, if applicable securities legislation would have required the same offer to be made to the Holders had the sale been a sale of Fixed Shares or Floating Shares rather than Fixed Multiple Shares or High Street Units. 

The prohibition does not apply if a concurrent offer is made to (a) purchase Fixed Shares if: (i) the price per Fixed Share under such concurrent offer is at least as high as (A) the highest price to be paid for the Fixed Multiple Shares or, (B) 70% of the highest price per share to be paid for the High Street Units, assuming their conversion into Fixed Shares; (b) purchase Floating Shares if: (ii) the price per Floating Share under such concurrent offer is at least as high as (A) 42.86% of the highest the price to be paid for the Fixed Multiple Shares or, (B) 30% of the highest price per share to be paid for the High Street Units, assuming their conversion into Floating Shares; (c) the percentage of Fixed Shares and Floating Shares to be taken up under such concurrent offer is at least as high as the percentage of Fixed Multiple Shares or High Street Units to be sold; (d) such concurrent offer is unconditional, other than the right not to take up and pay for any Fixed Shares and Floating Shares tendered if no Fixed Multiple Shares or High Street 

Units are purchased; and (e) such concurrent offer is in all other material respects identical to the offer for Fixed Multiple Shares or High Street Units. 

In addition, the Coattail Agreement does not apply to prevent the sale or transfer of High Street Units to Mr. Murphy and members of his immediate family, or a person or company controlled by Mr. Murphy or a member of his immediate family. 
If Holders representing not less than 10% of the then outstanding Fixed Shares or Floating Shares, as applicable, determine that the MVS Shareholders or the Company have breached or intend to breach any provision of the Coattail Agreement, they may by written requisition require the Trustee to take such action as is specified in the requisition in connection with the breach or intended breach, and the Trustee is to forthwith take such action or any other action it considers necessary to enforce its rights under the Coattail Agreement on behalf of the Holders. The obligation of the Trustee to take such action on behalf of the Holders is conditional upon the provision to the Trustee of such funds and indemnity as it may reasonably require in respect of any costs or expenses it may incur in connection with such action. Holders may not institute any action or proceeding, or exercise any other remedy to enforce rights under the Coattail Agreement unless they have submitted such a requisition, and provided such funds and indemnity, to the Trustee, and the Trustee shall have failed to act within 30 days of receipt thereof. 

Change of Control 

In the event of any business consolidation, amalgamation, arrangement, merger, redemption, compulsory acquisition or similar transaction of or involving Canopy Growth Corporation, or a sale or conveyance of all or substantially all of the assets of Canopy Growth Corporation to any other body corporate, trust, partnership or other entity, but excluding, for greater certainty, any transactions involving Canopy Growth Corporation and one or more of its subsidiaries (a “Canopy Growth Change of Control”) during the period between the entering into the Arrangement Agreement and the earlier of the closing of such acquisition or the termination of the Arrangement Agreement in accordance with its terms, holders of Fixed Shares, Floating Shares, Fixed Multiple Shares and High Street Units (collectively, the “Acreage Holders”) will not be entitled to vote or exercise any dissent rights in connection with such proposed acquisition, however, all such Acreage Holders will be bound by the terms of any such acquisition if approved. Accordingly, in the event of the exercise or deemed exercise of the “Canopy Growth Call Option” (which allows Canopy Growth Corporation to acquire all issued and outstanding shares of the Company) following a successful Canopy Growth Change of Control, it is anticipated that Acreage Holders would receive securities of the entity resulting from such Canopy Growth Change of Control.

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