Document:

Unassociated Document

 

Exhibit 10.17

  

ADMA Biologics, Inc.

Confidential Materials Omitted and Filed Separately with the

Securities and Exchange Commission

Confidential Portions denoted by [***]

 

PLASMA SUPPLY AGREEMENT

 

THIS PLASMA SUPPLY AGREEMENT (“Agreement”) between Biotest Pharmaceuticals Corporation, a Delaware corporation, having a place of business at 5800 Park of Commerce Boulevard NW, Boca Raton, Florida 33487 (“BPC”) and ADMA Biologics, Inc., a Delaware corporation, having a place of business at 65 Commerce Way, Hackensack, New Jersey  07601 (“ADMA”)  shall be effective as of June 22, 2012 (the “Effective Date”).  BPC and ADMA are each sometimes referred to herein individually as a “Party” or collectively as the “Parties.”

 

RECITALS

 

WHEREAS, ADMA desires to sell, and BPC desires to purchase certain quantities of normal source plasma (“Plasma”) to be used by BPC in the manufacturing of a Human Immune Globulin (“Product”), solely on the terms and conditions set forth in this Agreement;

 

PROVISIONS

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and with the intent to be legally bound hereby, ADMA and BPC agree as follows:

 

	
A.

	
PURCHASE AND SALE OF  PLASMA.

 

1.           TERM OF AGREEMENT.

 

Unless terminated earlier as provided herein, the term of this Agreement shall continue until [***] from the Effective Date (the “Initial Term”).  After the Initial Term, this Agreement may be renewed [***].  Each Party agrees that it will endeavor, in good faith, to conclude any negotiations relating to such renewals [***].

 

2.           PRICE AND VOLUMES

 

	
YEAR

	
PRODUCT

	
VOLUME

	
PRICE

	
2012

	
Normal Source Plasma [***]

	
[***]

	
[***]

	
2012

	
Normal Source Plasma

	
[***]

	
[***]

	
2013

	
Normal Source Plasma

	
[***]

	
[***]

	
2014

	
Normal Source Plasma

	
[***]

	
[***]

 

  

- 1 -

  

 

a.           The price of all purchases of Plasma under this Agreement [***].  Any additional required testing as specified by FDA (or foreign equivelant) or due to a change in BPC’s Specifications, will be billed to BPC at [***].

 

Beginning in 2014, the pricing for Plasma will be the price in effect as of December 31, 2013, per liter, [***]. [***] is defined as the [***].

 

b.           BPC agrees to provide to ADMA a forecast [***] of the Effective Date of this Agreement,  for the desired 2012 quantities of Plasma, as defined in the table above.  ADMA will confirm [***] the minimum quantities it will provide to BPC for [***]. BPC will then issue a binding purchase order for [***]Plasma Minimum. [***].

 

c.           In addition, for 2013 and 2014, BPC agrees to provide to ADMA a forecast, [***].  ADMA will confirm [***] the minimum quantities it will provide to BPC (“Annual Plasma Minimum”). BPC will then issue a binding purchase order for the Annual Plasma Minimum. [***].

 

3.           PAYMENT TERM Subject to Section C hereof, all Plasma shall be paid for [***].  Payments shall become delinquent [***].  Any undisputed payments not paid [***] after BPC receives notification from ADMA of said late payment shall accrue interest to be paid at the rate of [***].  Invoice to be issued [***]. All payments due hereunder to ADMA shall be sent to ADMA at the times set forth herein by wire transfer to such accounts as ADMA may designate to BPC.

 

Invoices to BPC will be directed to:

 

Biotest Pharmaceuticals Corporation

[***]

5800 Park of Commerce Boulevard NW

Boca Raton, Florida  33487

[***]

 

4.           INSPECTION AND ACCEPTANCE.

a.             BPC shall inspect each shipment of Plasma for conformity with the BPC’s specifications as set forth in Exhibit A (Specifications) [***] of the Plasma’s arrival at BPC’s facility. BPC shall promptly notify BPC in writing of its determination of any non-conformity of the Plasma with BPC Specifications (“Non-conformity Notice”).

b.             If a Non-conformity Notice is received by ADMA, the Parties shall meet to determine whether such Plasma meets the BPC Specifications. If it is determined that the Plasma does not meet the BPC Specifications, ADMA shall [***], as promptly as possible, taking into account the time required to [***]. In the event the Parties fail to agree whether or not any given shipment of Plasma conforms with the BPC Specifications, then the matter will be promptly referred to an independent expert agreed in good faith by the Parties, whose decision shall be binding on the Parties.  [***].

c.             For each shipment of Plasma delivered, ADMA shall provide BPC with a quality certificate and other industry standard documents required by regulatory authorities relating to the Plasma.

 

  

- 2 -

  

 

5.           [***].  [***].  ADMA will invoice BPC for the Plasma at time of [***] and [***].  BPC will take ownership and bear all risk of loss upon [***].

 

	
B.

	
QUALITY OF  PLASMA.

 

	
  

	
1.

	
All Plasma sold under this Agreement by ADMA to BPC shall meet BPC’s Specifications.

 

	
  

	
2.

	
ADMA shall supply to BPC for the Initial Term, and any extensions thereof, Plasma to be derived from automated plasmapheresis procedures conducted at Center as specified in Exhibit B.  ADMA warrants that the Center is FDA approved and IQPP certified.

 

	
  

	
3.

	
[***].

 

	
  

	
4.

	
ADMA and BPC shall execute a mutually agreeable Quality Agreement [***]  of the Effective Date.

 

	
  

	
5.

	
[***].

	
  

	
6.

	
BPC shall have the right to conduct periodic inspections of ADMA’s centers and facilities dealing with the Plasma at times mutually agreeable to the parties. Such inspections shall be limited to matters directly related to this Agreement and shall be conducted in conformance with generally accepted industry practices.  BPC will provide ADMA with not less than [***] prior to any of its inspections, unless mutually agreed otherwise by the parties. Upon receipt of BPC’s audit report, ADMA shall [***] to send a response to the appropriate BPC, outlining the corrective actions that ADMA will take at its expense, to correct the audit deficiencies.  Further, ADMA agrees to provide BPC with copies of all written reports (including FDA 483’s) and correspondence between ADMA and any governmental agency regarding any such inspection or review of records [***] (i) receipt of any such report or correspondence from the governmental agency or (ii) the issuance or delivery of any response or correspondence by ADMA; provided, however, that in the event the report or correspondence relates to a serious problem that could affect the continuous supply, or quality of the Plasma, then ADMA agrees to use all reasonable efforts to notify BPC [***] of receipt of such report or correspondence and to provide BPC with a copy of such report or correspondence.

	
C.

	
LIMITED WARRANTY.

 

ADMA represents and warrants to BPC that the Plasma has been collected and produced in accordance with BPC Specifications and BPC approved SOP’s.  ADMA represents, warrants and agrees that any and all  Plasma shall be collected, produced and delivered in accordance with all local, state and national laws, regulations and requirements.  BPC shall have all rights and remedies available to it under this Agreement and shall not be obligated to buy or pay for any  Plasma which does not, in all respects, comply with the BPC Specifications and applicable law, rules and regulations and as otherwise required by this Agreement, provided BPC must submit notification of rejection [***] of receipt of such  Plasma.  This warranty shall be further limited by the expiry of the  Plasma and shall not apply to any expired  Plasma.

 

	
D.

	
MISCELLANEOUS.

 

1.           CONFIDENTIALITY.

 

a.           The Parties agree to maintain the confidentiality of the contents of this Agreement and the dealings between the Parties with the same degree of care as they use to protect their own proprietary, confidential or trade secret information.  The Parties shall not disclose to any third party any confidential information received from the other hereunder without that other Party’s prior written consent and shall use it only for the purpose of this Agreement.  The Parties agree to hold the name and location of any and all testing labs and facilities as well as names of key personnel at the testing labs as confidential information. Said obligation of secrecy shall not apply to any information which (a) was in the public domain at the time of its disclosure or thereafter becomes part of the public domain by publication or otherwise subsequent to the time of disclosure under this Agreement through no fault of the receiving party; or (b) was known to the receiving party or in its possession prior to or at the time of disclosure as shown by written records; or (c) is independently developed by the receiving party without use of the other Party’s confidential information as shown by written documentation; or (d) is disclosed with the written approval of the disclosing party; or (e) is rightfully furnished to the receiving party by a third party having the authority to disclose such confidential information without restrictions; or (f) is disclosed by law or regulation or in response to a valid order of a court or other governmental body, or is required for registration of a product by competent authorities, but only to the extent of and for the purpose of such law, regulation, order or registration, and only if the receiving party first notifies the disclosing party of the required disclosure and permits the disclosing party, at its expense, to seek an appropriate legal remedy to maintain the information in secret.

 

  

- 3 -

  

 

 

b.           The above obligations shall survive the termination of this Agreement and shall continue with respect to donor information without limit of time and in respect of other confidential information for [***].

 

2.           RELATIONSHIP OF THE PARTIES.   The relationship between ADMA and BPC during the term of this Agreement, including extensions and renewals, is strictly that of buyer and seller.  Neither Party is in any way the legal representative, agent, joint venturer nor partner of the other for any purpose whatsoever nor neither has any control or authority whatsoever to bind the other Party or any other person with respect to the other Party.

 

3.           INDEMNIFICATION.  ADMA and BPC hereby indemnify and agree to hold harmless each other and their respective affiliates, agents, employees, officers and directors, from and against any and all third party claims, losses, liabilities, damages, reasonable attorneys’ fees, costs and expenses (hereinafter “Claims”) which may be sustained by and/or claimed against the other Party by virtue of their negligent acts, negligent omissions or the negligent handling or furnishing of materials or performance of services rendered by the other Party, the willful misconduct by the other Party or its officers, employees or agents or any representation, warranty or agreement contained in this Agreement being breached, untrue or materially misleading, by omission or otherwise.  Said indemnification will be capped at the dollar value of Plasma purchased in the year in which the relevant claim arises.  The indemnifying party’s liability shall be reduced to the extent any such Claims arise as a result of the indemnified party’s own conduct or negligence. To the extent Plasma is being used to manufacture Product to be used in research or for commercial purposes, BPC specifically shall indemnify and hold harmless ADMA, its affiliates, directors, officers, agents and employees, from any and all liability, loss or damages, including reasonable attorneys’ fees they may suffer as the result of claims, demands, costs or judgments against them caused or contributed to by the Product or any procedure required by the research protocol or related to the commercial sale of such product, if such liability, loss or damages are not directly caused or contributed to by such Plasma.

 

  

- 4 -

  

 

 

4.           LIMITATION OF LIABILITY.  IN NO EVENT WILL EITHER PARTY HAVE ANY LIABILITY FOR ANY LOSS OF INCOME, PROFIT, INTEREST OR SAVINGS BY THE OTHER PARTY OR FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR SPECIAL DAMAGES SUFFERED BY THE OTHER PARTY, ARISING FROM OR RELATED TO THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, THE SALE OR USE OF ANY  PLASMA, REGARDLESS OF THE FORM OF ACTION, AND WHETHER IN CONTRACT, INDEMNITY, WARRANTY OR TORT INCLUDING WITHOUT LIMITATION STRICT LIABILITY AND NEGLIGENCE OR ANY OTHER LEGAL OR EQUITABLE GROUNDS, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSSES OR DAMAGES. THIS LIMITATION WILL NOT APPLY TO ANY LIABILITY FOR DAMAGES THAT MAY RESULT FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF A PARTY.

 

The Party from whom indemnity is sought shall be entitled at its option to defend or control the defense and/or settlement of any such claim.

 

Each Party shall notify the other of any claim or potential claim or liability as soon as it becomes aware that such claim, potential claim or liability has arisen and shall provide to the other, all-reasonable assistance in respect thereof.

 

5.           INSURANCE.  ADMA and BPC shall each be required to maintain general and product liability insurance in an amount of [***].  Before commencing any work hereunder, the Parties shall furnish certificates evidencing the insurance required by this Section.  The Parties shall give each other [***] days advance written notice in the event the insurance required by this Section is materially modified, or cancelled or otherwise terminated for any reason.

 

	
E.

	
TERMINATION.

 

1.           In addition to any other remedy it may have, either Party shall have the right to terminate this Agreement if the other Party fails to remedy and make good any material default in the performance of any material condition or obligation under this Agreement [***] of written notice thereof.

 

2.           Upon giving the appropriate written notice, either Party may terminate this Agreement upon the occurrence of the following event:  a proceeding under any bankruptcy, reorganization, arrangement of debts, insolvency or receivership law is filed by or against the other Party, and is not dismissed or stayed [***], or a receiver or trustee is appointed for all or a substantial portion of the assets of the other Party, or the other Party makes an assignment for the benefit of its creditors or becomes insolvent.

 

3.           Upon termination of this Agreement, BPC must pay for any  Plasma already delivered to BPC.Notwithstanding anything to the contrary set forth herein, the Parties’ obligations under this Agreement in Sections B, C, D, E and H shall survive the termination of this Agreement to the extent necessary to give effect to their reasonable intentions.

 

	
F.

	
FORCE MAJEURE.

 

1.           Neither Party shall be liable for non-performance caused by strikes, fires, explosions, Acts of God, riots, civil or international war, acts of terrorism,  an unexpected downturn in the acceptable donor population adversely affecting the industry as a whole, inability to obtain  Plasma because of Force Majeure at the producing location, or any other similar or dissimilar cause beyond the reasonable control of either Party which renders the performance of a Party’s obligations so difficult or costly as to make such performance commercially unreasonable.  The affected Party shall immediately inform the other of such occurrences and the termination thereof.

 

  

- 5 -

  

 

2.           Upon giving notice to the other Party, a Party affected by an event of Force Majeure shall be released without any liability on its part from the performance of its obligations under this Agreement, except for the obligation to pay any amounts due and owing hereunder, but only to the extent and only for the period that its performance of such obligations is prevented by the event of Force Majeure.  Such notice shall include a description of the nature of the event of Force Majeure, and its cause and possible consequences.  The Party claiming Force Majeure shall promptly notify the other Party of the termination of such event.

 

3.           Should the period of Force Majeure continue for more [***], then the Party not suffering the Force Majeure event may terminate this Agreement upon giving written notice to the other Party.

 

	
G.

	
REMEDIES EXCLUSIVE.

 

1.           The rights and remedies available to ADMA and BPC under this Agreement among the Parties are exclusive.

 

2.           [***].

 

  

- 6 -

  

 

H.           DISCLOSURES AND PUBLICITY.    Neither ADMA, on the one hand, nor BPC, on the other hand, shall, without the approval of the other, make any press release or other public announcement concerning the transactions contemplated by this Agreement, except as and to the extent that any such Party shall be so obligated by law, in which case the other Party shall be advised and the Parties shall use their commercially reasonable efforts to cause a mutually agreeable release or announcement to be issued; provided, however, that the foregoing shall not preclude communications or disclosures necessary to implement the provisions of this Agreement or to comply with the accounting and disclosure obligations of the Securities and Exchange Commission (“SEC”) or the rules of any stock exchange or NASDAQ.   Notwithstanding any contrary term contained in the confidentiality provisions of this Agreement, to the extent that either Party determines that it or the other Party is required to file or register this Agreement, a summary thereof, or a notification thereof, and/or descriptions related thereto, to comply with the requirements of an applicable stock exchange, SEC regulation, or any Governmental Authority, including the SEC, or to enable either Party to obtain debt or equity financing, such Party shall use its best efforts to provide the maximum amount of advance written notice of any such required disclosure to the other Party, to the extent practicable, with a minimum advance notice [***].  Prior to making any such filing, registration or notification, the Parties shall consult with respect thereto regarding confidentiality.  The Parties shall cooperate, each at its own expense, in such filing, registration or notification, including such confidential treatment request, and shall execute all documents reasonably required in connection therewith.

 

I.           ASSIGNMENT.  Neither Party shall assign this Agreement or any of its rights or obligations hereunder without the express written consent of the other Party, except as hereinafter provided.  Any such consent shall not be unreasonably withheld.  With notice to the other Party, either Party without the other Party’s consent may assign this Agreement to (i) its affiliate, or (ii) a successor to all or substantially all of the assets relating to the business of that Party which is involved in the fulfillment of its obligations under this Agreement, which shall expressly assume in writing the performance of all of the terms and conditions of this Agreement then to be performed by such successor as if it were named herein as a Party.

 

J.           NOTICES.   All notices, demands, requests, consents or approvals required under this Agreement must be in writing and delivered personally to the Party or sent by overnight courier service or facsimile, addressed to such Party as set forth below (or to such other address or facsimile number as such Party may hereafter specify for the purpose by notice to the other Party hereto):

 

	
  

	
To BPC:

	
[***]

	
  

	
[***]

	
  

	
Biotest Pharmaceuticals Corporation

	
  

	
5800 Park of Commerce Boulevard NW

	
  

	
Boca Raton, FL   33487

	
  

	
[***]

 

	
  

	
With a copy to:

	
  

	
[***]

	
  

	
Biotest Pharmaceuticals Corporation

	
  

	
5800 Park of Commerce Boulevard NW

	
  

	
Boca Raton, FL   33487

	
  

	
[***]

 

	
  

	
To ADMA:

	
Adam Grossman

	
  

	
Chief Executive Officer

	
  

	
ADMA Biologics, Inc.

	
  

	
65 Commerce Way

	
  

	
Hackensack, NJ  07601

	
  

	
Fax: 201-478-5553

 

  

- 7 -

  

 

With a copy to:

General Counsel

ADMA Biologics, Inc.

65 Commerce Way

Hackensack, NJ 07601

 

All notices, requests, consents and other communications hereunder shall be deemed to have been properly given (a) if by hand, at the time of the delivery thereof to the receiving party at the address of such Party set forth above, (b) if made by facsimile transmission, at the time that receipt thereof has been acknowledged by electronic confirmation or otherwise, (c) if sent by overnight courier, on the next business day following the day such notice is delivered to the courier service, or (d) if sent by registered or certified mail, on the fifth business day following the day such mailing is made.

 

K.           INTEGRATION; EFFECT OF AMENDMENT.  This Agreement, including all attachments, schedules or other agreements specifically incorporated by reference, constitute the entire agreement among the Parties with respect to the subject matter of this Agreement and supersede any and all other prior written or oral agreements, understandings, negotiations or discussions among the Parties with respect to the subject matter of this Agreement.  This Agreement may not be modified or amended in any respect except by an instrument in writing signed by both of the Parties.

 

L.           CHOICE OF LAW.  This Agreement shall be governed by, and construed under laws of the [***], without regard to its conflict of laws principles.

 

M.           REPRESENTATIONS AND WARRANTIES.  Each party hereto hereby represents and warrants to the other as follows:  (i) each party hereto has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby, (ii) the execution and delivery of this Agreement and the consummation by such party of the transactions contemplated hereby have been duly authorized by all necessary action on the part of such party, (iii) this Agreement has been duly and validly executed and delivered by such party and constitutes the valid and binding obligation of such party, enforceable against such party in accordance with its terms and (iv) the execution and delivery of this Agreement and the consummation by such party of the transactions contemplated hereby does not and will not (a) require the consent of or registration with, any court, federal state, local or foreign governmental or regulatory body, or (b) constitute a default (with or without notice or lapse of time, or both) under or conflict with any contract, agreement or order to which such party is a party or by which such party or any of its properties or assets is subject or bound.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly authorized officers as of the day and year first written above.

 

	
ADMA Biologics, Inc.

	 	Biotest Pharmaceuticals Corporation
	 	 	 
	
By:  /s/ Adam Grossman

	  	
By:  /s/ Jordan Siegel

	 	 	 
	
Name: Adam Grossman

	  	
Name: Jordan Siegel

	 	 	 
	
Title: President & CEO

	  	
Title: Chief Executive Officer

	 	 	 
	
Date: June 22, 2012

	  	
Date: June 22, 2012

 

  

- 8 -

  

                                

 

EXHIBIT A

 

SPECIFICATIONS

 

[***]

 

  

- 9 -

  

 

EXHIBIT B

 

ADMA PLASMA CENTERS

 

ADMA BioCenters Georgia Inc

 

6290 Jimmy Carter Boulevard

Suite 208

Norcross, GA 30071

 

 

- 10 -f1012gex10ii_pacificgreen.htm

Exhibit 10.2

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR RECEIPT BY THE MAKER OF AN OPINION OF COUNSEL IN THE FORM, SUBSTANCE AND SCOPE REASONABLY SATISFACTORY TO THE MAKER THAT THIS NOTE MAY BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF, UNDER AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND SUCH STATE SECURITIES LAWS.

 

 

PACIFIC GREEN TECHNOLOGIES, INC.

 

Promissory Note

 

	Dated: June ___, 2012	$5,000,000

 

For value received, PACIFIC GREEN TECHNOLOGIES, INC., a Delaware corporation (the "Maker"), hereby promises to pay to the order of Pacific Green Group Limited (together with its successors, representatives, and permitted assigns, the "Holder"), in accordance with the terms hereinafter provided, the principal amount of Five Million Dollars ($5,000,000), together with interest thereon.

 

The parties acknowledge that this Note is being issued to the Holder as a result of the Holder and the Maker entering into an Assignment and Share Transfer Agreement (the “Agreement”), dated concurrently herewith, with this Note constituting a portion of the consideration described therein. Among other items, the Agreement provided for the assignment of a representation agreement dated June 7, 2010 (the “Representation Agreement”) with EnviroResolutions Inc. that the Holder has assigned to the Maker.

 

The Maker shall pay to the Holder $1,000,000 on each anniversary date of the Issuance Date, up to and including the fifth anniversary, in satisfaction of the principal amount of this Note, provided that the Maker has generated gross revenue under the Representation Agreement in that amount by the anniversary date, and provided that the making of such payment would not trigger an Event of Default (as defined herein).  In the event that the required revenues are not achieved, any lesser amount of gross revenues shall be paid towards the Note, and at the election of the Holder any unpaid portion (1) shall otherwise become due and payable on the following anniversary date, or (2) shall be convertible into share of common stock of the Maker as described herein.

 

All payments under or pursuant to this Note shall be made in United States Dollars in immediately available funds to the Holder at the address of the Holder first set forth in the Agreement at such other place as the Holder may designate from time to time in writing to the Maker or by wire transfer of funds to the Holder's account, instructions for which will be provided.  The outstanding principal balance of this Note shall be due and payable on June ____, 2017 (the "Maturity Date") or at such earlier time as provided herein, subject to the conditions described below.

 

ARTICLE 1

 

	
1.1  

	
Interest

 

Beginning on the issuance date of this Note (the “Issuance Date”), the outstanding principal balance of this Note shall not bear interest.

 

  

1

  

 

	
1.2  

	
Conversion

 

At any time after the  Issuance Date, if the Maker has not paid any amount due under this Note on an applicable anniversary date of the Note, the Holder may by providing written notice (the “Notice”) and the Declaration attached hereto as Schedule A to the Maker, exercise its rights of Conversion in respect of the portion of the outstanding amount of such payment into shares of common stock (the “Shares”) of the Maker (the “Conversion Right”), on the following terms:

 

	
(a)  

	
The number of Shares issuable under the Conversion Right (the "Conversion Rate") shall be determined by dividing (x) that portion of the outstanding payment due on such anniversary date that the Holder elects to convert by (y) the Conversion Price (as defined below) then in effect on the date on which the Holder faxes the Notice of conversion, duly executed, to the Maker (facsimile number 1-702-943-0233, Attn.: President) (the “Conversion Date”).  With respect to partial conversions of this Note, the Maker shall keep written records of the amount of this Note converted as of each Conversion Date.

 

	
(b)  

	
The term "Conversion Price" shall mean the average Closing Bid Prices for the twenty trading days immediately preceding the Conversion Date.

 

	
(c)  

	
The term "Closing Bid Price" shall mean, on any particular date (i) the closing bid price per share of the Common Stock on such date on the OTC Bulletin Board or another registered national stock exchange on which the Common Stock is then listed, or if there is no such price on such date, then the closing bid price on such exchange or quotation system on the date nearest preceding such date, or (ii) if the Common Stock is not listed then on the OTC Bulletin Board or any registered national stock exchange, the closing bid price for a share of Common Stock in the over-the-counter market, as reported by the OTC Bulletin Board or in the National Quotation Bureau Incorporated or similar organization or agency succeeding to its functions of reporting prices) at the close of business on such date, or (iii) if the Common Stock is not then reported by the OTC Bulletin Board or the National Quotation Bureau Incorporated (or similar organization or agency succeeding to its functions of reporting prices), then the average of the "Pink Sheet" quotes for the relevant conversion period, as determined in good faith by the Holder, or (iv) if the Common Stock is not then publicly traded the fair market value of a share of Common Stock as determined by the Holder and reasonably acceptable to the Maker.

 

	
(d)  

	
Within seven (7) days of Notice by the Holder exercising its Conversion Rights hereunder, the Maker shall deliver a Share Certificate to the Holder representing the number of Shares acquired by the Holder pursuant to the Conversion Rate set out in subparagraph 1.2(a) of this Note.

 

	
(e)  

	
the Holder understands that any certificates representing any Bonus Shares or any Shares acquired by the Holder upon exercise of the Conversion Right will have a resale legend on them that will read substantially as follows:

 

THE SECURITIES COVERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“ACT”). THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT, AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISPOSITION THEREOF, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO OR FOR THE ACCOUNT OR THE BENEFIT OF U.S. PERSONS (I) AS PART OF THEIR DISTRIBUTION AT ANY TIME OR (ii) OTHERWISE UNTIL ONE YEAR AFTER THE LATER OF THE COMMENCEMENT OF THE OFFERING OF SUCH SECURITIES OR THE CLOSING DATE OF THE SALE AND TRANSFER THEREOF, EXCEPT IN EITHER CASE IN ACCORDANCE WITH REGULATION S (OR RULE 144A, IF AVAILABLE) UNDER THE ACT. TERMS USED ABOVE HAVE THE MEANING GIVEN TO THEM BY REGULATION S.

 

  

2

  

 

	
1.3  

	
Payment on Non-Business Days

 

Whenever any payment to be made shall be due on a Saturday, Sunday or a public holiday under the laws of the State of Delaware, such payment may be due on the next succeeding business day and such next succeeding day shall be included in the calculation of the amount of accrued interest payable on such date.

 

	
1.4  

	
Transfer

 

This Note may not be transferred or sold, or pledged, hypothecated or otherwise granted as security by the Holder without the consent of the Maker.

 

	
1.5  

	
Replacement

 

Upon receipt of a duly executed, notarized and unsecured written statement from the Holder with respect to the loss, theft or destruction of this Note (or any replacement hereof), and without requiring an indemnity bond or other security, or, in the case of a mutilation of this Note, upon surrender and cancellation of such Note, the Maker shall issue a new Note, of like tenor and amount, in lieu of such lost, stolen, destroyed or mutilated Note.

 

ARTICLE 2

EVENTS OF DEFAULT, REMEDIES

 

	
2.1  

	
Events of Default

 

The occurrence of any of the following events shall be an "Event of Default" under this Note:

 

	
(a)  

	
the Maker shall fail to make the payment of any amount of principal or interest outstanding on the date such payment is due hereunder; or

 

	
(b)  

	
default shall be made in the performance or observance of any material covenant, condition or agreement contained in this Note and such default is not fully cured within five (5) business days after the occurrence thereof; or

 

	
(c)  

	
any material representation or warranty made by the Maker herein shall prove to have been false or incorrect or breached in a material respect on the date as of which made; or

 

	
(d)  

	
the Maker shall:

 

  

3

  

 

	
(i)  

	
default in any payment of any amount or amounts of principal of or interest on any indebtedness (other than the indebtedness hereunder) the aggregate principal amount of which Indebtedness is in excess of $100,000; or

 

	
(ii)  

	
default in the observance or performance of any other agreement or condition relating to any Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist, the effect of which default or other event or condition is to cause, or to permit the holder or holders or beneficiary or beneficiaries of such Indebtedness to cause with the giving of notice if required, such Indebtedness to become due prior to its stated maturity; or

 

	
(e)  

	
the Maker shall:

 

	
(i)  

	
apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator of itself or of all or a substantial part of its property or assets;

 

	
(ii)  

	
make a general assignment for the benefit of its creditors;

 

	
(iii)  

	
commence a voluntary case under the United States Bankruptcy Code (as now or hereafter in effect) or under the comparable laws of any jurisdiction (foreign or domestic);

 

	
(iv)  

	
file a petition seeking to take advantage of any bankruptcy, insolvency, moratorium, reorganization or other similar law affecting the enforcement of creditors' rights generally;

 

	
(v)  

	
acquiesce in writing to any petition filed against it in an involuntary case under United States Bankruptcy Code (as now or hereafter in effect) or under the comparable laws of any jurisdiction (foreign or domestic);

 

	
(vi)  

	
issue a notice of bankruptcy or winding down of its operations or issue a press release regarding same; or

 

	
(vii)  

	
take any action under the laws of any jurisdiction (foreign or domestic) analogous to any of the foregoing; or

 

	
(f)  

	
a proceeding or case shall be commenced in respect of the Maker, without its application or consent, in any court of competent jurisdiction, seeking:

 

	
(i)  

	
the liquidation, reorganization, moratorium, dissolution, winding up, or composition or readjustment of its debts;

 

	
(ii)  

	
the appointment of a trustee, receiver, custodian, liquidator or the like of it or of all or any substantial part of its assets in connection with the liquidation or dissolution of the Maker; or

 

  

4

  

 

	
(iii)  

	
similar relief in respect of it under any law providing for the relief of debtors, and such proceeding or case described in clause (i), (ii) or (iii) shall continue undismissed, or unstayed and in effect, for a period of sixty (60) days or any order for relief shall be entered in an involuntary case under United States Bankruptcy Code (as now or hereafter in effect) or under the comparable laws of any jurisdiction (foreign or domestic) against the Maker or action under the laws of any jurisdiction (foreign or domestic) analogous to any of the foregoing shall be taken with respect to the Maker and shall continue undismissed, or unstayed and in effect for a period of sixty (60) days; or

 

	
(g)  

	
the failure of the Maker to pay any amounts due to the Holder herein within three (3) business days of receipt of notice to the Maker.

 

	
2.2  

	
Remedies Upon An Event of Default

 

If an Event of Default shall have occurred and shall be continuing, the Holder of this Note may at any time at its option:

 

	
(a)  

	
declare the entire unpaid principal balance of this Note, together with all interest accrued hereon, due and payable, and thereupon, the same shall be accelerated and so due and payable, without presentment, demand, protest, or notice, all of which are hereby expressly unconditionally and irrevocably waived by the Maker; or

 

	
(b)  

	
exercise or otherwise enforce any one or more of the Holder's rights, powers, privileges, remedies and interests under this Note, or applicable law.

 

No course of delay on the part of the Holder shall operate as a waiver thereof or otherwise prejudice the right of the Holder.  No remedy conferred hereby shall be exclusive of any other remedy referred to herein or now or hereafter available at law, in equity, by statute or otherwise.

 

ARTICLE 3

PREPAYMENT

 

	
3.1  

	
Redemption

 

The Maker shall have the right to redeem and prepay this Note at any time prior to the Maturity Date upon payment to the Holder of the amount of principal and accrued interest outstanding on the date of such redemption.

 

	
3.2  

	
No Rights as Shareholder

 

Nothing contained in this Note shall be construed as conferring upon the Holder, prior to the conversion of this Note, the right to vote or to receive dividends or to consent or to receive notice as a shareholder in respect of any meeting of shareholders for the election of directors of the Maker or of any other matter, or any other rights as a shareholder of the Maker.

 

ARTICLE 4

MISCELLANEOUS

 

	
4.1  

	
Notices

 

Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and shall be effective:

 

  

5

  

 

	
(a)  

	
upon hand delivery by telex (with correct answer back received), telecopy or facsimile at the address or number designated in the Purchase Agreement (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received); or

 

	
(b)  

	
on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.

 

	
4.2  

	
Governing Law

 

This Note shall be governed by and construed in accordance with the internal laws of the State of Delaware, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction.  This Note shall not be interpreted or construed with any presumption against the party causing this Note to be drafted.

 

	
4.3  

	
Headings

 

Article and section headings in this Note are included herein for purposes of convenience of reference only and shall not constitute a part of this Note for any other purpose.

 

	
4.4  

	
Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief

 

The remedies provided in this Note shall be cumulative and in addition to all other remedies available under this Note, at law or in equity (including, without limitation, a decree of specific performance and/or other injunctive relief), no remedy contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy and nothing herein shall limit a holder's right to pursue actual damages for any failure by the Maker to comply with the terms of this Note.  Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the holder thereof and shall not, except as expressly provided herein, be subject to any other obligation of the Maker (or the performance thereof).  The Maker acknowledges that a breach by it of its obligations hereunder will cause irreparable and material harm to the Holder and that the remedy at law for any such breach may be inadequate. Therefore the Maker agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available rights and remedies, at law or in equity, to seek and obtain such equitable relief, including but not limited to an injunction restraining any such breach or threatened breach, without the necessity of showing economic loss and without any bond or other security being required.

 

	
4.5  

	
Enforcement Expenses

 

The Maker agrees to pay all costs and expenses of enforcement of this Note, including, without limitation, reasonable attorneys' fees and expenses.

 

	
4.6  

	
Binding Effect

 

The obligations of the Maker and the Holder set forth herein shall be binding upon the successors and assigns of each such party, whether or not such successors or assigns are permitted by the terms hereof.

 

	
4.7  

	
Amendments

 

  

6

  

 

This Note may not be modified or amended in any manner except in writing executed by the Maker and the Holder.

 

	
4.8  

	
Compliance with Securities Laws

 

The Holder of this Note acknowledges that this Note is being acquired solely for the Holder's own account and not as a nominee for any other party, and for investment.  This Note, any Note issued in substitution or replacement thereof and any Shares issued pursuant hereto shall be stamped or imprinted with a legend in substantially the following form:

 

"THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR RECEIPT BY THE MAKER OF AN OPINION OF COUNSEL IN THE FORM, SUBSTANCE AND SCOPE REASONABLY SATISFACTORY TO THE MAKER THAT THIS NOTE MAY BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE DISPOSED OF, UNDER AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND SUCH STATE SECURITIES LAWS."

 

 

	
4.9  

	
Consent to Jurisdiction

 

Each of the Maker and the Holder:

 

	
(a)  

	
hereby irrevocably submits to the exclusive jurisdiction of the State of Delaware for the purposes of any suit, action or proceeding arising out of or relating to this Note; and

 

	
(b)  

	
hereby waives, and agrees not to assert in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper.

 

Each of the Maker and the Holder consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under the Purchase Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing in this 4.9 shall affect or limit any right to serve process in any other manner permitted by law.  Each of the Maker and the Holder hereby agree that the prevailing party in any suit, action or proceeding arising out of or relating to this Note shall be entitled to reimbursement for reasonable legal fees from the non-prevailing party.

 

	
4.10  

	
Parties in Interest

 

This Note shall be binding upon, inure to the benefit of and be enforceable by the Maker, the Holder and their respective successors and permitted assigns.

 

	
4.11  

	
Failure or Indulgence Not Waiver

 

No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege.

 

  

7

  

 

	
4.12  

	
Maker Waivers

 

Except as otherwise specifically provided herein, the Maker and all others that may become liable for all or any part of the obligations evidenced by this Note, hereby waive presentment, demand, notice of nonpayment, protest and all other demands' and notices in connection with the delivery, acceptance, performance and enforcement of this Note, and do hereby consent to any number of renewals of extensions of the time or payment hereof and agree that any such renewals or extensions may be made without notice to any such persons and without affecting their liability herein and do further consent to the release of any person liable hereon, all without affecting the liability of the other persons, firms or Maker liable for the payment of this Note, AND DO HEREBY WAIVE TRIAL BY JURY.

 

	
(a)  

	
No delay or omission on the part of the Holder in exercising its rights under this Note, or course of conduct relating hereto, shall operate as a waiver of such rights or any other right of the Holder, nor shall any waiver by the Holder of any such right or rights on any one occasion be deemed a waiver of the same right or rights on any future occasion.

 

	
(b)  

	
THE MAKER ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS NOTE IS A PART IS A COMMERCIAL TRANSACTION, AND TO THE EXTENT ALLOWED BY APPLICABLE LAW, HEREBY WAIVES ITS RIGHT TO NOTICE AND HEARING WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH THE HOLDER OR ITS SUCCESSORS OR ASSIGNS MAY DESIRE TO USE.

 

	
4.13  

	
Definitions

 

For the purposes hereof, the following terms shall have the following meanings:

 

	
(a)  

	
"Person" means an individual or a corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or political subdivision thereof) or other entity of any kind.

 

 

PACIFIC GREEN TECHNOLOGIES, INC.

 

 

Per:                                                                 

Authorized Signatory

 

  

8

  

 

Schedule A

 

DECLARATION OF REGULATION S ELIGIBILITY

 

Regulation S of the Securities Act is available for the use of non-U.S. Persons only.  This Declaration must be answered fully and returned to PACIFIC GREEN TECHNOLOGIES, INC. with your conversion notice to ensure the Maker is in compliance with the Securities Act.  All information will be held in the strictest confidence and used only to determine investor status.  No information will be disclosed other than as required by law or regulation, other demand by proper legal process or in litigation involving the company or its affiliates, controlling persons, officers, directors, partners, employees, attorneys or agents.

 

I, _________________________________, HEREBY AFFIRM AND DECLARE THAT:

 

	
1.  

	
I am not a resident of the United States of America.

 

	
2.  

	
I am not purchasing securities for the benefit of a resident of the United States of America.

 

	
3.  

	
I am not purchasing securities in the name of a company incorporated in the United States of America or for the benefit of a company incorporated in the United States of America.

 

	
4.  

	
I am not purchasing securities in my capacity as Trustee for a U.S.-based Trust.

 

	
5.  

	
I am not purchasing securities in my capacity as the Executor or Administrator of the Estate of a U.S. resident.

 

	
6.  

	
I am not a U.S. resident purchasing securities through a brokerage account located outside of the United States of America, nor am I using a non-U.S. brokerage account to purchase securities for the benefit of individuals or corporate entities resident within the United States of America.

 

	
7.  

	
I am not purchasing the securities in an attempt to create or manipulate a U.S. market.

 

	
8.  

	
I am purchasing the securities as an investment and not with a view towards resale.

 

	
9.  

	
I will only resell the securities to other non-U.S. residents in accordance with Rule 905 of Regulation S, or to U.S. residents in accordance with the provisions of Rule 144 following the expiration of one year from the date of acquiring the securities.

 

	
10.  

	
I am permitted to purchase the securities under the laws of my home jurisdiction.

 

	
11.  

	
I understand that if I knowingly and willingly make false statements as to my eligibility to purchase or resell securities under Regulation S, I may become subject to civil and criminal proceedings being taken against me by the United States Securities and Exchange Commission.

 

	
 

DATED: _______________________, 20____

	
 

__________________________________

Signature

	  	
__________________________________

Print Name

 

 

 

 

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00205-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00205-of-00352.parquet"}]]