Document:

Loan Agreement between Dexo Biopharm and Dexo Biogenerics

 Exhibit 4.58 
  

			
	DATED	  	20 December 2005

  

	(1)	DEXO BIOPHARM LIMITED 

  

	(2)	DEXO BIOGENERICS LIMITED 

 UNSECURED CONVERTIBLE LOAN AGREEMENT

 THIS AGREEMENT is made the 20th day of December 2005 
 BETWEEN: 
  

	(1)	DEXO BIOPHARM LIMITED (Company number: 05582959) whose registered office is at Golden Cross House, 8 Duncannon Street, London WC2N (“the Lender”); and

  

	(2)	DEXO BIOGENERICS LIMITED (Company Number: 05625492) whose registered office is currently at c/o BioProgress Technology Limited, Hostmoor Avenue, March, Cambridgeshire PE15
0AX (“the Borrower”). 

 IT IS HEREBY AGREED as follows: 
  

	1.	LOAN 

  

	1.1	The Lender agrees to lend to the Borrower certain cash sums (“the Principal Sum”) on the terms of this Agreement. 

  

	1.2	In the event that the Borrower requires the Lender to advance sums pursuant to this Agreement it shall serve notice (“a Request”) on the Lender containing full
details of: 

  

	 	1.2.1	the amount required; 

  

	 	1.2.2	the date required; and 

  

	 	1.2.3	the reason why the amount is required (including full and proper reasons as to why the same is in the best interests of the business of the Borrower). 

  

	1.3	The Lender shall consider each Request in a timely fashion and shall notify the Borrower whether it is prepared to advance the sums requested Provided that nothing in this Agreement
shall oblige the Lender to advance the requested funds if it has not received a written resolution from the board of the Borrower indicating that the board believes that the loan of such amount is in the best interests of the Borrower.

  

	1.4	The maximum amount that shall be outstanding at any one time from the Lender to the Borrower shall be limited to £500,000 (plus accrued interest) which such figure shall be
made up of: 

  

	 	1.4.1	the total cash amounts outstanding under this Agreement; and 

  

	 	1.4.2	the amount of any outstanding non-cash resource provided by the Lender to the Borrower under any other agreement between them both such resources to be valued at their cost to
Lender. 

  

 1 

	2.	REPAYMENT AND INTEREST 

  

	2.1	The Principal Sum will be repayable to the Lender by the Borrower on demand once the Borrower is Profitable. “Profitable” shall be defined for this purpose as
meaning that in any three consecutive quarterly periods the Borrower made a profit as shown by the management accounts provided pursuant to clause 7 and the board of the Borrower believe that such profit is likely to continue for further quarterly
periods . 

  

	2.2	The Principal Sum shall be repayable together with interest thereon calculated at the rate of 3% per annum above LIBOR (“the Interest Rate”) such interest to
accrue on a daily basis and subject to clause 2.3 below to be paid on repayment of the Principal Sum. 

  

	2.3	If the Lender shall so notify the Borrower interest shall be payable (once the Borrower is Profitable) monthly on such day of the month as is notified. 

  

	3.	DEFAULT INTEREST 

 In the event that the Principal
Sum is not repaid by the Borrower when due the Principal Sum shall thereafter (in lieu of the rate referred to in Clause 2 hereof) carry interest calculated at the rate of 2% per annum above the Interest Rate payable on the last day of each
month such interest being compounded on the last day of each month such rate of interest to be payable after as well as before any judgment. 
  

	4.	CONVERSION 

  

	4.1	The Principal Sum (together with accrued interest) which is unpaid and due for payment may be converted upon the occurrence of an Event of Default (as defined in clause 7.1 below)
at the election of the Lender into such number of Ordinary Shares of £0.01 each in the capital of the Borrower (“Ordinary Shares”) at the par value per share. The Ordinary Shares arising on a conversion hereunder shall rank
pari passu in all respects with the Ordinary Shares then in issue. 

  

	4.2	The Borrower represents, warrants and undertakes to the Lender that there shall at all times be a sufficient number of unissued Ordinary Shares and that its Directors will be
authorised to allot and issue any such Ordinary Shares to enable the Borrower to discharge its obligation with regard to the conversion under this Agreement. 

  

	4.3	In the event of any increase or variation of the equity share capital of the Borrower (whenever effected) by way of capitalisation or bonus issue, or conversion, sub-division or
consolidation, the Borrower shall make such adjustments as are required in order that the number of the Ordinary Shares to be issued to the Lender pursuant to this clause 4 shall not be prejudiced by any such variation. 

  

	5.	SECURITY 

 The sums advanced pursuant to this
Agreement shall be unsecured. 
  

	6.	FINANCIAL INFORMATION 

 The Borrower will provide to
the Lender within 14 days of the end of each month monthly management accounts in a form agreed by and acceptable to the Lender. 
  

 2 

	7.	EVENT OF DEFAULT 

  

	7.1	In this Agreement “Event of Default” shall mean: 

  

	 	7.1.1	the Borrower failing to pay any sum due from it hereunder on the due date or on demand, if so payable; 

  

	 	7.1.2	the Borrower not being Profitable (as determined in accordance with clause 2.1 above) in the period of 18 months from first grant of product licence by the MHRA (or such longer
period as may be agreed by the Lender) from the date of this Agreement; 

  

	 	7.1.3	any petition or application being made for the appointment of a trustee administrator, administrative receiver, administrator, receiver or similar officer in respect of all or any
part of the business or assets of the Borrower; 

  

	 	7.1.4	an encumbrancer taking possession of, or a trustee administrator, administrative receiver or similar officer being appointed in respect of all or any part of the business and assets
of the Borrower or distress or any form of execution being levied or enforced upon or sued out against any such assets and not being discharged within 7 days; 

  

	 	7.1.5	the Borrower becoming or being declared insolvent; or 

  

	 	7.1.6	the Borrower convening a meeting of its creditors or proposing or making any arrangement or composition with or any assignment for the benefit of its creditors or a petition being
presented or a meeting being convened for the purpose of considering a resolution or other steps are taken for the winding-up of the Borrower. 

  

	7.2	If and when an Event of Default occurs the Borrower shall immediately notify the Lender and all the sums due hereunder shall immediately thereupon become due and payable.

  

	8.	LEGAL COSTS 

 The Borrower shall pay to the Lender
on demand the amount of the Lender’s legal expenses incurred as a result of any delay or failure by the Borrower to pay any sums due hereunder and any costs incurred in pursuing or enforcing payment by the Lender of any sums due to the Lender
hereunder 
  

	9.	CERTIFICATE 

 The certificate of an officer of the
Lender of any amount payable under this Agreement shall be conclusive unless manifestly incorrect 
  

 3 

 SIGNED by the parties’ authorised representatives on the date written at the head
of this Agreement 
  

	
	 For and on behalf of Dexo BioPharm Limited

	  
 /s/ Georgina Godby
  

	 (signature)

	
	 Name: Georgina Godby

	
	 Position: Company Secretary

	
	 For and on behalf of Dexo BioGenerics Limited

	  
 /s/ Steve Martin
  

	 (signature)

	
	 Name: Steve Martin

	
	 Position: Director

  

 4Services Agreement between BioProgress and Dexo Biogenerics

 Exhibit 4.59 
  

			
	 Dated
	  	20 December 2005

  

	(1)	BIOPROGRESS PLC 

 - and - 
  

	(2)	DEXO BIOGENERICS LIMITED 

 SERVICES AGREEMENT 

 THIS AGREEMENT is made the 20th day of December 2005 
 BETWEEN: 
  

	(1)	BIOPROGRESS PLC , a company incorporated under the laws of England (company number 04617139) whose registered office is at Hostmoor Avenue, March, Cambridgeshire PE15
0AX (“BioProgress”); and 

  

	(2)	DEXO BIOGENERICS LIMITED, a company incorporated under the laws of England (company number 05582959) whose registered office is currently at c/o BioProgress Technology
Limited, Hostmoor Avenue, March, Cambridgeshire PE15 0AX (“Dexo”). 

 WHEREAS: 
 BioProgress has agreed to provide the Services to Dexo according to the terms of this Agreement. 
 NOW IT IS HEREBY AGREED as follows: 
  

	1.	DEFINITIONS 

 In this Agreement, the following
expressions shall unless the context otherwise requires have the following meanings: 
 “Commencement Date” the date of this
Agreement; 
 “Confidential Information” shall be as defined in Clause 6.1; 
 “Force Majeure” in relation to either party any circumstances beyond the reasonable control of that party including without limitation any
strike, lock-out, or other form of industrial action, act of God, war, riot, accident, fire, flood, explosion or government action; 
 “Group” in relation to any company, that company and any other company which, at the relevant time, is that company’s holding company or subsidiary (as defined by s736 of the Companies Act 1985 as amended by the Companies Act
1989), or the subsidiary of any such holding company (as so defined), and a “Member” of a Group has a corresponding meaning; 
 “Intellectual Property” all Patents, claims in Patents, utility models, registered and unregistered trade marks, service marks, registered designs, applications for any of the foregoing and the right to apply for any of the
foregoing in any part of the world, copyright, design right, approvals, data exclusivity rights, supplementary protection certificates, inventions, confidential information (including without limitation Know-how) and any other similar right situated
in any country in the world; 
 “Know How” all information and materials not in the public domain of whatsoever nature, including
without limitation ideas, discoveries, inventions, data, formulae, biological and chemical materials, techniques, procedures for experiments and tests, technical information, specifications, results of experiments and tests, design, sketches and
records; 
  

 1 

 “Patent” all patents or letters patent, utility models and applications for any of the
foregoing in any part of the world and any extensions of term thereof, continuations, continuations in part and all patents derived or claiming priority therefrom in any part of the world; 
 “Services” the Services detailed in the Schedule. 
  

	2.	PERFORMANCE OF SERVICES 

  

	2.1	BioProgress agrees to perform the Services for the term of this Agreement according to the terms of this Agreement. The Services shall be supplied at cost on a transfer pricing
basis (based on reasonable market value) and their total value shall be included in the £500,000 loaned by BioProgress and repaid at an agreed time once Dexo is profitable under the separate resource agreement between the parties of even date
herewith. 

  

	2.2	BioProgress shall provide the Services with all due care and skill. Dexo shall supply such advice and assistance as BioProgress reasonably requires in supplying the Services.

  

	2.3	Each party shall ensure that its personnel, if attending the other party’s premises pursuant to this Agreement, shall comply with all Health and Safety and other requirements
brought to their attention. 

  

	3.	INTELLECTUAL PROPERTY RIGHTS 

  

	3.1	BioProgress hereby grants to Dexo a non-exclusive licence to use any Intellectual Property of BioProgress in the field of generic pharmaceutical products to facilitate Dexo’s
exploitation of the results of the Services. 

  

	3.2	Any Intellectual Property generated by Dexo in using or exploiting the results of the Services (excluding new Product Licences applied for by Dexo (and all associated Intellectual
Property) which shall be owned by Dexo) shall be owned by BioProgress. Accordingly, Dexo hereby assigns by way of future assignment all its right, title and interest in such Intellectual Property to BioProgress and Dexo shall do such things and
execute such documents as BioProgress requires in order to effect such assignment. Such Intellectual Property shall then be licensed back to Dexo according to the provisions of clause 3.1. 

  

	4.	REPRESENTATIONS AND WARRANTIES 

 Each of the parties
warrants to the other that it has the right to enter into this Agreement and is not restricted by any provisions of any agreements of any nature which prevent it from carrying out this Agreement fully in accordance with its terms. 
  

 2 

	5.	STATUS OF BIOPROGRESS PERSONNEL 

 The parties
agree that this Agreement should be in no manner construed as a contract of employment. BioProgress’s personnel shall not be under the direct supervision of Dexo in performing the Services and may be replaced by personnel of equivalent
qualifications or experience at any time. BioProgress shall be solely responsible for the salary, and any National Insurance, PAYE and pension contributions in connection with such employees. 
  

	6.	CONFIDENTIALITY 

  

	6.1	Subject to Clause 9, each party agrees to maintain secret and confidential (a) all tangible or intangible trade secrets, Know-how and other technical or commercial information
(including Intellectual Property) disclosed to it by the other or otherwise obtained by it from the other, whether prior to and in contemplation of this Agreement or in the course of this Agreement, and which the other party has properly designated
as proprietary and/or confidential or which, by reason of its nature or the circumstances surrounding its disclosure or its being obtained ought to be treated as proprietary and/or confidential (collectively, “Confidential Information”).

  

	6.2	Clause 6.1 shall not apply to information which the recipient party can prove by documentary evidence: 

  

	 	6.2.1	prior to receipt thereof from the other party was in the possession of the recipient party and at its free disposal; or 

  

	 	6.2.2	is subsequently disclosed to the recipient party without any obligations of confidence by a third party who has not derived it directly or indirectly from the other; or

  

	 	6.2.3	is or becomes generally available to the public through no act or default of the recipient party or its employees, agents, contractors or sub-contractors; or

  

	 	6.2.4	is required by law or a court or other competent authority to be disclosed; provided that in such case the recipient party shall promptly notify the other party in writing and in
such detail as the other party may reasonably require of such requirement for disclosure and shall assist that other party in any lawful efforts to prevent or limit the disclosure. 

  

	6.3	It is acknowledged that notwithstanding the provisions of Clause 6.1 above each party shall be entitled to disclose any Confidential Information of the other party to its agents,
representatives, employees, consultants, professional advisors, and prospective and actual licensors, licensees, investors, customers and manufacturers (collectively “Third Party Recipients”) to the extent necessary to facilitate the
performance of its obligations and exercise of its rights under this Agreement Provided that any such disclosure shall only be limited to what is absolutely necessary for such purposes and the party making any such disclosure shall procure that any
such Third Party Recipient shall be bound by obligations of confidentiality substantially similar to the provisions of this Clause 6. 

  

	6.5	This Clause 6 shall survive any termination or expiry of this Agreement and continue in force without limitation in time. 

  

 3 

	7.	LIABILITY 

  

	7.1	Neither party excludes or limits its liability in negligence for death or personal injury, or for fraud or wilful default or otherwise insofar as any exclusion or limitation of its
liability is void, prohibited or unenforceable by law. All other provisions of this Agreement shall be read subject to this Clause 7.1. 

  

	7.2	Subject to Clauses 7.1:- 

  

	 	7.2.1	each party’s total liability in contract, tort (including negligence or breach of statutory duty), misrepresentation or otherwise, arising out of or in connection with this
Agreement shall be limited to £1,000,000 (one million pounds sterling) and 

  

	 	7.2.2	neither party shall have any liability to the other for any loss of profit, revenue, savings, goodwill or other financial or consequential loss of any kind whatsoever, including
loss of business, loss under current and future contracts and administrative costs arising out of or in relation to this Agreement, whether arising by reason of misrepresentation, breach of contract, in tort (including negligence or breach of
statutory duty) or under statute. 

  

	8.	FORCE MAJEURE 

 If either party to this Agreement is
prevented or delayed in the performance of any of its obligations under this Agreement by Force Majeure, and if such party gives written notice thereof to the other party specifying the matters constituting Force Majeure, together with such evidence
as it reasonably can give and specifying the period for which it is estimated that such prevention or delay will continue then the party in question shall be excused the performance or the punctual performance as the case may be as from the date of
such notice for so long as such cause of prevention or delay shall continue. 
  

	9.	PUBLICITY AND MARKETING 

 Each party hereby
authorises the other party to use the first party’s name and to refer to the subject matter of this Agreement for publicity and marketing purposes, provided that each party shall obtain the other’s written consent (which shall not be
unreasonably withheld or delayed) prior to any such use provided that BioProgress may make an announcement on the Stock Exchange pertaining to this Agreement without requiring such consent. 
  

 4 

	10.	TERMINATION 

 Subject to earlier termination in
accordance with its terms, this Agreement shall commence on the Commencement Date and continue in force thereafter. It may only be terminated by the mutual written consent of the parties. 
  

	11.	CONSEQUENCES OF TERMINATION 

  

	11.1	Termination of this Agreement for any reason shall be without prejudice to the rights of the parties accrued prior to termination and shall not bring to an end any provision of this
Agreement which needs to survive termination in order to give full effect to its meaning. 

  

	11.2	If this Agreement terminates for whatever reason, BioProgress shall cease forthwith to conduct the Services and the licences of Intellectual Property granted pursuant to Clause 3.1
shall cease forthwith. 

  

	11.3	Upon termination of this Agreement (howsoever caused) each party shall promptly deliver up to the other: 

  

	 	11.3.1	any material containing or disclosing any Confidential Information of the other party that has been provided to the first party for or in connection with this Agreement; and

  

	 	11.3.2	all documentation, records, equipment and other items which are the property of the other party and which have been provided to the first party for or in connection with this
Agreement. 

  

	12.	ASSIGNMENT 

 This Agreement is personal to the
parties and, subject as otherwise expressly provided in this Agreement, neither party shall assign, sub-license, sub-contract or delegate or purport to assign, sub-license, sub-contract or delegate its rights or obligations under this Agreement in
whole or in part, without the other party’s prior written consent which shall not be unreasonably withheld or delayed. 
  

	13.	MISCELLANEOUS 

  

	13.1	No variation or amendment of this Agreement shall bind either party unless made in writing and agreed to in writing by duly authorised officers of both parties.

  

	13.2	If it transpires that the whole or any part of any provision of this Agreement is illegal, void or unenforceable under any law that is applicable hereto, or if any competent
authority or court of competent jurisdiction in a final decision so determines, this Agreement shall continue in force save that such provision (or the relevant part of it) shall be deemed to be deleted from this Agreement with effect from the date
of such agreement or decision or such earlier date as the parties may in writing agree. 

  

 5 

	13.3	A failure by either party hereto to exercise or enforce any rights conferred upon it by this Agreement shall not be deemed to be a waiver of any such rights or operate so as to bar
the exercise or enforcement thereof at any subsequent time or times. 

  

	13.4	This Agreement supersedes any other arrangements, undertakings, promises, representations or agreements (whether or not in writing) made or existing between the parties hereto prior
to or simultaneously with this Agreement and relating to the subject matter of this Agreement. 

  

	13.5	This Agreement is not intended to confer a benefit on any third party, whether pursuant to the Contracts (Rights of Third Parties) Act 1999 or otherwise and no third party shall
have any right to enforce any of the provisions of this Agreement. 

  

	13.6	The relationship of the parties under this Agreement is that of independent contractors and, subject as otherwise expressly provided in this Agreement, neither party is the agent of
the other for any purpose and neither party shall make any representation, give any warranty or enter into any contractual or other commitment purporting to be binding on the other. 

  

	14.	NOTICES 

 Any notice given under this Agreement
shall be sufficiently served if in writing and sent to the address of the recipient party as set out below 
 BioProgress Plc 
 Hostmoor Avenue 
 March 
 Cambridgeshire 
 PE15 0AX 
 Fax 01354 655858 
 FAO Chief Executive
Officer 
 Copy to: Legal Counsel 
 Dexo BioGenerics Limited 
 c/o BioProgress Technology Limited 
 Hostmoor Avenue 
 March 
 Cambridgeshire 
 PE15 0AX 
 Fax 01354 655858 
 FAO Managing Director

 Copy to: Company Secretary 
 Provided that:- 
  

	14.1	if served by facsimile it will be deemed received when sent, subject to issue of a valid transmission slip; 

  

 6 

	14.2	if served by hand (including courier) it will be deemed received when delivered; and 

  

	14.3	if served by post it will be deemed received 2 business days after posting. 

  

	15.	GOVERNING LAW AND DISPUTES 

  

	15.1	The parties will attempt in good faith to resolve any dispute or claim arising out of or relating to this Agreement within 30 days by negotiations between their respective nominated
representatives. If the matter is not so resolved within such 30 day period, either party may at its option submit the matter for resolution through a procedure such as mediation, conciliation or executive tribunal or other dispute resolution
technique recommended to them by the Centre for Dispute Resolution in England or by such bodies as may replace it (“ADR Procedure”). 

  

	15.2	If a party elects to submit to the ADR Procedure, the other party shall be obliged to submit to the ADR Procedure and both parties shall attempt in good faith to resolve the matter
through the ADR Procedure. In such circumstances, neither party may resort to the jurisdiction of the courts under Clause 15.3 until the dispute or claim has been resolved pursuant to the ADR Procedure or until the person or tribunal in charge of
the ADR Procedure notifies both parties in writing that in his, her or its opinion the matter is not capable of resolution through the ADR Procedure or is unlikely to be so resolved. 

  

	15.3	This Agreement shall be governed by and construed in all respects in accordance with the laws of England and, subject to Clauses 15.1 and 15.2, the parties submit to the exclusive
jurisdiction of the English courts in respect of any dispute or claim arising out of or relating to this Agreement. 

  

 7 

 SCHEDULE 
 Services 
 BioProgress shall supply its team, material science and engineering resources to Dexo in such
manner as the parties shall agree in writing from time to time. BioProgress shall also supply secretarial and administrative resources to Dexo as agreed in writing from time to time. 
  

 8 

 SIGNED by the parties’ authorised representatives on the date written at the head
of this Agreement. 
  

	
	For and on behalf of BioProgress plc
	  
 /s/ Georgina Godby
  

	(signature)
	
	Name: Georgina Godby
	
	Position: Company Secretary
	
	For and on behalf of Dexo BioGenerics Limited
	  
 /s/ Steve Martin
  

	(signature)
	
	Name: Steve Martin
	
	Position: Director

  

 9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}]]