Document:

lxrp_ex104.htm

EXHIBIT 10.4
 
INDEPENDENT CONTRACTOR AGREEMENT
 
THIS AGREEMENT is made the 1st day of January, 2019.
 
BETWEEN:
 
Lexaria Nicotine LLC, a limited liability company formed under the laws of the State of Delaware and having its office at #100 – 740 McCurdy Road, Kelowna, British Columbia, Canada V1X 2P7
 
(hereinafter referred to as the “Company”)
 
AND:
 
C.A.B. Financial Services Ltd., a company duly incorporated under the laws of British Columbia and having its office at [**]1
 
(hereinafter referred to as the “Consultant”)
 
WHEREAS:
 
	A.	The Company is a private corporation involved in the research and development of licensed patented technology for use in the nicotine industry (“Work”).
	 
	 

	B.	The Consultant has certain specialized skills, which will benefit the Company and its Work.
	 
	 

	C.	The Company wishes to engage the Consultant to provide to it the services noted in the attached Schedule “A” (the “Services”) on the terms and conditions hereinafter set forth.
	 
	 

	D.	The Consultant agrees to provide the Services to the Company on the terms and conditions set out in this Agreement (the “Agreement”).

 
NOW THEREFORE THIS AGREEMENT WITNESSES THAT in consideration of the premises and of the covenants and agreements hereinafter contained the parties hereto have agreed as follows:
 
	1.	ENGAGEMENT OF SERVICES
	 
	 

	1.1. 	The Company hereby engages the Consultant to provide the Services and assist the Company with its Work as an independent contractor to the Company.
	 
	 

	1.2. 	The Consultant hereby represents and warrants to the Company that it and its employees and contractors have the required skills and expertise to perform the duties and exercise the responsibilities required in the performance of the Services.
	 
	 

	1.3. 	The Consultant shall be responsible for ensuring that it and its employees and contractors have an appropriate workplace to conduct the Services and all necessary tools to perform the Services.
	 
	 

	1.4. 	The Consultant understands and agrees that, in the performance of the Services, its and/or its employees and contractors’ names and/or likeness may be announced and circulated via public disclosure documents, social media, websites, meetings, appearances and public events of the Company.

_________________
1 Certain information has been redacted: the omitted text sets forth the private residence of the consultant
 
	 
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	1.5. 	The Consultant represents and warrants that neither the Consultant’s provision of Services under this Agreement nor any items delivered or provided to the Company in connection with providing the Services under this Agreement will infringe on any patents, copyrights, trademarks, trade secret rights, or other intellectual property rights of any third party. The Consultant additionally represents and warrants that by providing the Services under this Agreement, the Consultant will not breach any other agreement to which the Consultant is a party, including any non-competition or non-solicitation provision that would prevent the Consultant from performing all or part of the Services.
	 
	 

	1.6. 	The Consultant represents and warrants that there are currently no outstanding or anticipated claims or judgments against the Consultant by any person (including any former employee or contractor of the Contractor).

 
	2.
	TERM

	 
	 

	2.1. 	The term of this Agreement shall be for a period of one (1) year (the “Term”), effective as of the 1st day of January, 2019, and will be renewable automatically for further one year terms unless terminated earlier as hereinafter provided (including termination any time before the end of the Term) (the “Expiration Date”), subject to the terms and conditions herein. The parties agree to have this agreement apply retroactive to January 1, 2019, even though the agreement is signed after January 1, 2019, for the mutual benefit of both parties.

 
	3.	STANDARD OF PERFORMANCE 
	 
	 

	3.1 	The Consultant shall perform the Services honestly and in good faith, and in an efficient, prompt, professional, skillful and careful manner in accordance with industry methods, standards and practices. The Consultant shall be free to determine the means and methods of the provision of the Services required under this Agreement, subject however to satisfaction of the Company’s reasonable standards in this regard;
	 
	 

	3.2 	The Consultant shall carry out the Services in a timely manner, and in compliance with all legal, regulatory and stock exchange requirements, as applicable;
	 
	 

	3.3 	The Consultant reserves the right to refuse any request from the Company which may, in its reasonable opinion, violate any applicable United States of America (“U.S.A”) or Canadian Federal laws, U.S.A State laws or Canadian Provincial/Territorial laws.
	 
	 

	3.4 	The Company is aware that during the term of this Agreement, the Consultant and/or its employees or contractors may have and may continue to provide services to other companies and/or have financial or business interests in other companies. The Company agrees that Consultant and/or its employees or contractors may continue to devote time to such outside interests, provided that such interests do not conflict with or hinder Consultant’s ability to perform the Services under this Agreement.
	 
	 

	3.5 	The Consultant shall obtain, at its expense, all licenses, permits and registrations required for it to provide the Services.

 	 
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	4.	NATURE OF RELATIONSHIP
	 
	 

	4.1. 	The parties acknowledge that the relationship between the Consultant and the Company is that of independent contractors. The Consultant is not an employee, agent or dependent contractor of the Company, nor are the Company and the Consultant partners or joint venturers with each other. Nothing in this Agreement shall be construed as making the Consultant and the Company partners or joint venturers, making the Consultant an employee, agent or dependent contractor of the Company, or imposing any liability as partner, joint venture, principal or agent on the Company or the Consultant, as the case may be. The Consultant shall not use the name of the Company or any of its affiliates in any advertisement, promotional or marketing material.
	 
	 

	4.2. 	The Consultant may provide services for and on behalf of third parties provided that the provision of such services by the Consultant, or employees or contractors of the Consultant who are providing the Services are outside the time such persons are required to be available to provide the Services and do not conflict with the Consultant’s responsibilities and obligations to the Company pursuant to this Agreement.
	 
	 

	5.	REMUNERATION
	 
	 

	5.1. 	The Company shall pay the cash remuneration and provide the security consideration (the “Equity Consideration”) as described in Schedule “B” (collectively, the “Remuneration”) to the Consultant for the provision of the Services.
	 
	 

	5.2. 	In addition to the Remuneration, the Company shall also reimburse the Consultant, on a monthly basis, for disbursements (the “Disbursements”) associated with providing the Services upon receipt of an invoice or invoices, or such other documents agreed to by the Company, evidencing the Disbursements. The Disbursements will be limited to the foregoing:

 
	 
	(a)	travelling and other costs actually and properly incurred by the Consultant in connection with the Consultant’s duties hereunder, up to a maximum of $20,000.00 per month, with such additional costs being subject to pre-approval by the management of the Company prior to any reimbursement. Both parties recognize that, as the financial condition of the Company improves or deteriorates, this amount may be increased or decreased without making changes to this document and without such changes constituting a termination of this Agreement, provided the Company makes the Consultant aware of the changed amount;
	 
	 
	 

	 
	(b)	specialized training and/or educational costs as authorized by the Company for the enhancement of any Services, up to a maximum of $7,500.00 per year; and
	 
	 
	 

	 
	(c)	mileage allowance for personal vehicle use at $0.55/km when the Consultant is required to use own vehicle for business purposes.

 
	5.3. 	It is understood by the Consultant that any Equity Consideration issued by the Company as part of the Remuneration will not be, and has not been, registered under the U.S.A Securities Act of 1933, as amended, and may not be offered or sold in the U.S.A absent registration or an applicable exemption from registration requirements. Any Equity Consideration and all related share issuances will be in compliance with all applicable regulations in the U.S.A and Canada. The Equity Consideration issued will be subject to a hold period in Canada of not less than four months and one day, or for any resales possible into the U.S.A under Rule 144, not less than six months and one day. Hold periods may be longer if regulations so stipulate.

 
	 
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	6.	CONFIDENTIALITY
	 
	 

	6.1. 	The Consultant shall not, either during the continuance of its contract hereunder, or at any time thereafter, disclose the private affairs of the Company and/or any affiliate of the Company (an “Affiliate”), or any trade secrets or intellectual property of the Company and/or an Affiliate (together or separately and as described below, “Proprietary Information”), to any person other than the Managers of the Company or such other persons as authorized in writing by the Managers of the Company and further shall not (either during the continuance of its contract hereunder or at any time thereafter) use for its own purposes or for any purpose other than those of the Company and/or an Affiliate any information it may acquire in relation to the business and affairs of the Company and/or an Affiliate, unless required by law or authorized in writing by the Directors of the Company.
	 
	 

	 
	For the purposes of this Agreement, the term “Subsidiary” shall have the meaning ascribed to that term in National Instrument 45-106 Prospectus Exemptions of the Canadian Securities Administrators.

 
	6.2. 	Proprietary Information as that term is used herein shall include the following:

 
	 
	(a)	all knowledge, data and information which the Consultant may acquire from the documents and information disclosed to it by the Company, an Affiliate, their respective employees, attorneys, consultants, independent contractors, clients or representatives whether orally, in written or electronic form, or on electronic media including, by way of example and not by limitation, any products, customer lists, supplier lists, marketing techniques, technical processes, formulae, inventions or discoveries (whether patentable or not), innovations, suggestions, ideas, business models, industrial designs, reports, data, patents, trademarks, trade secrets and copyrights, made or developed by the Company or an Affiliate and related data and information related to the conduct of the business of the Company or an Affiliate;
	 
	 
	 

	 
	(b)	all discussions with officers, directors, employees, independent contractors, lawyers, consultants, clients, finance sources, customers or representatives of the Company or an Affiliate and the fact that such discussions are taking place; and
	 
	 
	 

	 
	(c)	for greater certainty, Proprietary Information shall not include matters of general public knowledge, information legally received or obtained by the Consultant from a third party or parties without a duty of confidentiality, and information independently known or developed by the Consultant without the assistance of the Company.

 
	7.	TERMINATION
	 
	 

	7.1. 	This Agreement may be terminated immediately by the Company or the Consultant without notice or any other obligation (except for the Monthly Fee prorated to the day immediately before such termination) if either party breaches the Agreement. A breach may include, but is not limited to, the following:

 
	 
	(a)	The Company or the Consultant shall commit any material breach of any of the provisions herein contained; or
	 
	 
	 

	 
	(b)	The Company or the Consultant shall be guilty of any misconduct or neglect in the discharge of its duties hereunder; or
	 
	 
	 

	 
	(c)	The Company or the Consultant shall become bankrupt or make any arrangements or composition with its creditors; or
	 
	 
	 

	 
	(d)	The Company or the Consultant shall be convicted of any criminal offence other than an offence which, in the reasonable opinion of the Managers of the Company, does not affect the Company’s ability to continue to operate or the Consultant’s ability to perform the Services, as applicable.

 
	 
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	7.2. 	This Agreement may be terminated by the Consultant at any time for convenience by providing three (3) months’ prior written notice.
	 
	 

	7.3. 	This Agreement may be terminated by the Company at any time for convenience by:

 
	 
	(a)	providing [**]2 prior written notice; or
	 
	 
	 

	 
	(b)	providing a lump sum termination break fee payment (“Termination Break Fee Payment”) to the Consultant in the amount equal to one Monthly Fee (as defined in Schedule “B” to this agreement) plus GST for the Term of the Agreement and for each subsequent year that this Agreement has been renewed.
	 
	 
	 

	 
	Provided the Company provides the above notice under 7.3(a) or Termination Break Fee Payment under 7.3(b), the Company shall have no further obligation to the Consultant and its employees and contractors.

 
	7.4. 	Upon termination or expiration of this Agreement, for any reason, at the request of the Managers of the Company, the Consultant and/or its employees or consultant shall forthwith resign any position or office which it/he then holds with the Company or any Affiliate of the Company. The provisions of sections on Proprietary Information and on confidentiality shall survive the termination or expiration of this Agreement.
	 
	 

	7.5. 	Upon termination or expiration of this Agreement, for any reason, the Consultant must immediately return to the Company all correspondence, information, reports, emails, phone recordings or transcripts, notes, Consultant contact information, and all other materials related to the work performed for the Company including all Proprietary Information during the contract period.

 
	 
	(a)	All such materials and information as referred to in section 6.2, above, are the exclusive property of the Company. After returning, transmitting or otherwise sending such information to the Company, Consultant must destroy any and all remaining copy(ies) or records of same.
	 
	 
	 

	 
	(b)	All such materials and information as referred to in section 6.2 were obtained during the time of the paid contract with the Company, and may not be shown, lent, given, discussed or in any way disclosed with or to any other party as per the terms of the contract. The Proprietary Information Consultant gained or had access to during the period of the contract is the exclusive property of the Company and section 6 of this Agreement, which governs such Proprietary Information, shall survive the termination of this Agreement.

 
	8. 
	NOTICE

	 
	 

	8.1. 	Any notice to be given under this Agreement shall be in writing and shall be deemed to have been given if delivered to, or sent by prepaid registered post addressed to, the respective addresses of the parties appearing on the first page of this Agreement (or to such other address as one party provides to the other in a notice given according to this paragraph). Where a notice is given by registered post it shall be conclusively deemed to be given and received on the fifth day after its deposit in a Canada post office any place in Canada.

__________________ 
2 Certain information has been redacted: the omitted text sets forth the severance payable for termination without cause
 
	 
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	8.2. 	The parties agree that any written notice may be given, in lieu of registered post, by way of email, fax, scan or such other electronic transmission if forwarded to the following contact particulars:

 
For the Company:
 
Address: 100 – 740 McCurdy Road, Kelowna, BC V1X 2P7
Email: jdocherty@lexariabioscience.com
Fax: 250-7695-2599
 
For the Consultant:
 
Address: [**]3
Email: cbunka@lexariabioscience.com
Fax: ________________________
 
	9.	PAYMENT OF TAXES AND OTHER CHARGES, AND INDEMNITY BY CONSULTANT 
	 
	 

	9.1. 	The Consultant shall be solely responsible for and shall indemnify the Company from any and all taxes, governmental charges, interest, penalties and other claims by a government entity or any other person (including current and former employees and contractors of the Consultant) arising out of the Consultant’s activities with respect to this Agreement, including, but not limited to, harmonized sales tax, provincial sales tax, income tax, Canada Pension Plan contributions, Employment Insurance premiums, employer health tax, workers compensation contributions and any other taxes and statutory withholdings payable by Consultant and/or that were not withheld, deducted or remitted by the Company on behalf of the Consultant and/or its employees or contractors. The Company shall not be required to make any payment or contribution in respect of taxes payable by the Consultant or its employees or contractors. The Consultant shall maintain records in respect of income taxes, sales tax, employer health tax, employment insurance premiums, Canada Pension Plan and workers compensation contributions relating to the provision of Services hereunder, including for the Consultant’s employees and contractors.
	 
	 

	9.2. 	The Consultant shall indemnify and save harmless the Company from and against any and all claims, charges, demands, loss, damages, costs, penalties or expenses arising as a result of (a) the Consultant’s failure to provide the Services in a timely fashion, (b) a breach the Consultant’s representations, warranties or covenants in this Agreement, (c) death or personal injury caused by the Consultant’s negligence or wilful misconduct, (d) physical loss or damage to the Company’s property or premises caused by the Consultant’s negligence or wilful misconduct, and (e) the Consultant’s infringement or violation of the proprietary or intellectual property rights of any third party.
	 
	 

	10.	INSURANCE
	 
	 

	10.1. 	The Consultant assumes all risk and liability for personal injury or damage to personal property in the carrying out of this Agreement and for which adequate levels of insurance coverage is deemed to have been obtained by the Consultant. Without limiting the generality of the foregoing, the Consultant is responsible for automobile insurance in respect of any vehicle used by the Consultant or its employees, and any applicable workers’ compensation or other liability insurance.

_________________ 
3 Certain information has been redacted: the omitted text sets forth the private residence of the consultant
 	 
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	11.	MISCELLANEOUS
	 
	 

	11.1. 	This Agreement may not be assigned by either party without the prior written consent of the other.
	 
	 

	11.2. 	The titles of headings to the respective paragraphs of this agreement shall be regarded as having been used for reference and convenience only.
	 
	 

	11.3. 	This Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective directors, officers, heirs, executors, administrators, successors and permitted assigns. For this purpose, the terms "successors" and "assigns" shall include any person, firm or corporation or other entity which at any time, whether by merger, purchase or otherwise, shall acquire all or substantially all of the assets or business of the Company.
	 
	 

	11.4. 	This Agreement shall be governed by and interpreted in accordance with the laws of the Province of British Columbia, Canada.
	 
	 

	11.5. 	With the exception of any previously granted options or restricted stock, the parties agree that any and all previous agreements, written or oral, entered into between the parties hereto or on their behalf relating to the engagement of the Consultant by the Company are hereby terminated and cancelled and each of the parties hereto hereby releases and forever discharges the other party hereto of and from all manner of actions, causes of action, claims and demands whatsoever under or in respect of any such previous agreements.
	 
	 

	11.6. 	Every provision of this Agreement is intended to be severable. If any term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of the provisions of this Agreement.
	 
	 

	11.7. 	This Agreement may only be amended by an instrument in writing signed by both parties.
	 
	 

	11.8. 	This Agreement and the obligations of the Company herein are subject to all applicable laws and regulations in force at the local, State/Province, and Federal levels in both Canada and the United States. In the event that there is a dispute between the Company and Consultant, Consultant agrees to allow such dispute to be settled according to applicable Canadian law in an applicable British Columbia jurisdiction.

  
[Remainder of page intentionally left blank]
 
	 
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IN WITNESS WHEREOF the parties have executed this Agreement the day and year first above written.
 
Lexaria Nicotine LLC 
 
“John Docherty”                                                             
Authorized Signatory 
 
 
“Allan Spissinger”                                                         
Authorized Signatory
 
C.A.B. Financial Services Ltd. 
 
“Chris Bunka”                                                               
Authorized Signatory
 
	 
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SCHEDULE “A”
 
The Services shall include the following:
 
	 
	(a)	Developing and expanding the Company’s new and existing product pipeline based on its current proprietary technologies, and implementing new technologies as they become available with a continued focus on improving and optimizing speed and extent of drug delivery and flavour profile;
	 
	 
	 

	 
	(b)	Maintaining and developing the Company’s marketing materials;
	 
	 
	 

	 
	(c)	Identifying, researching, evaluating and completing transactions for capital raising and/or strategic collaborations with suitable third-parties, all of which create value for the Company;
	 
	 
	 

	 
	(d)	Assisting in the management and development of the Company’s subsidiaries and parent company including day-to-day operations, evaluating and implementing supply chain efficiencies and facilitating distribution and sales growth;
	 
	 
	 

	 
	(e)	Serving the Company (and/or such subsidiary or subsidiaries of the Company as the Company may from time to time require) in such consulting capacity or capacities as may from time to time be determined by resolution of the Managers or senior management of the Company and shall perform such duties and exercise such powers as may from time be determined by resolution of the Managers, as an independent contractor;
	 
	 
	 

	 
	(f)	Work as needed with lawyers, partners, shareholders and other stakeholders; and
	 
	 
	 

	 
	(g)	Fulfill all duties expected of the Consultant for a biotechnology/bioscience company and any other duties that should be reasonably expected by and at the pleasure of the Managers.

 
	 
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SCHEDULE “B”
 
The Remuneration issuable to the Consultant shall consist of the following:
 
	1.	the sum of CDN$5,666.67 plus Goods and Services Tax (GST) per month, payable the last day of each calendar month (the “Monthly Fee”), together with any such increments or performance based incentives thereto as the CEO or the Managers of the Company may from time to time determine. The Consultant has the GST number 121887822RT0001;
	 
	 

	2.	an annual increase to the Monthly Fee equal to 1.25x the prior calendar rate of inflation as published by the Bank of Canada, beginning January 1, 2020, and on each subsequent anniversary thereafter until the end of the Term; and
	 
	 

	3.	options entitling the Consultant to purchase voting shares of the Company’s publicly listed parent company at a price equal to the market price on the date of issuance of such options, if and as determined appropriate by the Managers upon annual review in January of each year.

 
The Consultant shall not be entitled to participate in, or receive any benefits from, any employee benefit programs or plans operated by the Company (including without limitation, vacation pay, statutory holidays and health benefits).
 
	 
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EXHIBIT 10.5
 
AMENDING AGREEMENT
 
This Amending Agreement (this “Agreement”) dated as of May 15, 2019 (the “Effective Date”) is made by and between Lexaria Bioscience Corp., a Nevada corporation with offices at 100 – 740 McCurdy Road, Kelowna, British Columbia, V1X 2P7, Canada (the “Assignor”), Lexaria CanPharm ULC, a British Columbia company with offices at 100 – 740 McCurdy Road, Kelowna, British Columbia, V1X 2P7 (the “Licensor”) and Nuka Enterprises, LLC, a Delaware limited liability company with offices at 9690 Dallas St., Henderson, Colorado (together with its successors and assigns the “LICENSEE”). LICENSOR and LICENSEE are sometimes referred to individually herein as a “Party” and collectively as the “Parties”.
 
RECITALS
 
WHEREAS the Assignor and the LICENSEE entered into an Intellectual Property License Agreement dated April 24, 2018 (the “Original Agreement”) whereby the Assignor granted the LICENSEE a license to the Technology as defined in the Original Agreement;
 
WHEREAS, pursuant to the terms of the Original Agreement, the LICENSEE was granted certain options to expand the Territory, by way of adding Subsequent Territories, and/or the End Products, by way of adding Product Options, as those terms are defined in the Original Agreement;
 
WHEREAS, the Assignor has granted the LICENSOR a license to the Technology and has further granted the LICENSOR the right to sublicense the Technology;
 
WHEREAS pursuant to the terms of the Original Agreement, the Assignor has the right to assign the Original Agreement and the related rights and duties of the Assignor without needing the prior consent of the LICENSEE and accordingly, the Assignor has assigned the Original Agreement and the respective rights and duties thereunder of the Assignor to the LICENSOR;
 
WHEREAS the LICENSEE has provided a notice of an Exercise of License Option for the following Subsequent Territories and Product Options:
 
	Subsequent Territory
	Product Option

	Michigan
	#1 - Any product that is generally recognized as chocolates, chocolate bars, chocolate treats, chocolate truffles, caramels, chocolate caramels, caramel treats, or primarily composed of a form of chocolate or cocoa and is infused with cannabis oil/isolate or equivalent containing 0.3% or greater THC.

	#2 - Any READY TO DRINK consumable liquid products including, but not limited to, cold brew or hot coffee, teas, lemonades, flavored waters, juices, beers, wines, spirits, protein drinks, sport drinks, cocoa drinks, kombuchas, probiotics, energy drinks/shots, vitamin waters, tinctures, dressings, honeys and syrups, flavored sprays for consumption by way of ingestion that are infused with cannabis oil/isolate or equivalent containing 0.3% or greater THC.

	#3 - All products that are not Chocolates but are generally recognized as “candies,” “gummies and jellies,” “suckers,” “hard or rock candies,” “jelly beans”, mints and non-chocolate mint products, etc, that are primarily made with sugar and/or other sweeteners and not generally recognized as a natural food and is infused with cannabis oil/isolate or equivalent containing 0.3% or greater THC. This category excludes pills, tablets and capsules that are not primarily made with sugar and/or other sweeteners, that are generally recognized as vitamins, supplements, medicines, sublingual or rapidly dissolving mouth-melts. This category also excludes any solid tablet or form factor meant to dissolve in a food product, liquid or beverage for purposes of seasoning, flavoring or infusing cannabis oil therein. 

 
	 
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	Massachusetts
	#1 - Any product that is generally recognized as chocolates, chocolate bars, chocolate treats, chocolate truffles, caramels, chocolate caramels, caramel treats, or primarily composed of a form of chocolate or cocoa and is infused with cannabis oil/isolate or equivalent containing 0.3% or greater THC.

	#2 - Any READY TO DRINK consumable liquid products including, but not limited to, cold brew or hot coffee, teas, lemonades, flavored waters, juices, beers, wines, spirits, protein drinks, sport drinks, cocoa drinks, kombuchas, probiotics, energy drinks/shots, vitamin waters, tinctures, dressings, honeys and syrups, flavored sprays for consumption by way of ingestion that are infused with cannabis oil/isolate or equivalent containing 0.3% or greater THC.

	#3 - All products that are not Chocolates but are generally recognized as “candies,” “gummies and jellies,” “suckers,” “hard or rock candies,” “jelly beans”, mints and non-chocolate mint products, etc, that are primarily made with sugar and/or other sweeteners and not generally recognized as a natural food and is infused with cannabis oil/isolate or equivalent containing 0.3% or greater THC. This category excludes pills, tablets and capsules that are not primarily made with sugar and/or other sweeteners, that are generally recognized as vitamins, supplements, medicines, sublingual or rapidly dissolving mouth-melts. This category also excludes any solid tablet or form factor meant to dissolve in a food product, liquid or beverage for purposes of seasoning, flavoring or infusing cannabis oil therein. 

	Illinois
	#1 - Any product that is generally recognized as chocolates, chocolate bars, chocolate treats, chocolate truffles, caramels, chocolate caramels, caramel treats, or primarily composed of a form of chocolate or cocoa and is infused with cannabis oil/isolate or equivalent containing 0.3% or greater THC.

	#2 - All products that are not Chocolates but are generally recognized as “candies,” “gummies and jellies,” “suckers,” “hard or rock candies,” “jelly beans”, mints and non-chocolate mint products, etc, that are primarily made with sugar and/or other sweeteners and not generally recognized as a natural food and is infused with cannabis oil/isolate or equivalent containing 0.3% or greater THC. This category excludes pills, tablets and capsules that are not primarily made with sugar and/or other sweeteners, that are generally recognized as vitamins, supplements, medicines, sublingual or rapidly dissolving mouth-melts. This category also excludes any solid tablet or form factor meant to dissolve in a food product, liquid or beverage for purposes of seasoning, flavoring or infusing cannabis oil therein. 

 	 
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	Ohio
	#1 - Any product that is generally recognized as chocolates, chocolate bars, chocolate treats, chocolate truffles, caramels, chocolate caramels, caramel treats, or primarily composed of a form of chocolate or cocoa and is infused with cannabis oil/isolate or equivalent containing 0.3% or greater THC.

	#2 - All products that are not Chocolates but are generally recognized as “candies,” “gummies and jellies,” “suckers,” “hard or rock candies,” “jelly beans”, mints and non-chocolate mint products, etc, that are primarily made with sugar and/or other sweeteners and not generally recognized as a natural food and is infused with cannabis oil/isolate or equivalent containing 0.3% or greater THC. This category excludes pills, tablets and capsules that are not primarily made with sugar and/or other sweeteners, that are generally recognized as vitamins, supplements, medicines, sublingual or rapidly dissolving mouth-melts. This category also excludes any solid tablet or form factor meant to dissolve in a food product, liquid or beverage for purposes of seasoning, flavoring or infusing cannabis oil therein. 

	Colorado (Original Territory)
	#1 - READY TO DRINK consumable liquid products including, but not limited to, cold brew or hot coffee, teas, lemonades, flavored waters, juices, beers, wines, spirits, protein drinks, sport drinks, cocoa drinks, kombuchas, probiotics, energy drinks/shots, vitamin waters, tinctures, dressings, honeys and syrups, flavored sprays for consumption by way of ingestion that are infused with cannabis oil/isolate or equivalent containing 0.3% or greater THC.

 
NOW, THEREFORE, in consideration of the promises and the respective covenants and agreements of the Parties contained in this Agreement, the Parties hereto agree as follows:
 
AGREEMENT
 
	1.	All capitalized terms contained within this Agreement shall have the same meaning and effect as provided for in the Original Agreement.
	 
	 

	2.	The Parties agree that all references to LICENSOR in the Original Agreement will be deemed to be references to Lexaria CanPharm ULC and that all address references for LICENSOR shall be deemed to be 100 – 740 McCurdy Road, Kelowna, BC V1X 2P7;
	 
	 

	3.	Paragraph 2 b. of the Original Agreement is rescinded and shall be replaced in its entirety with the following paragraph 2 b.:

 
	 
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“License Option: 
 
Furthermore, during the life of this Agreement, LICENSOR will reserve one license in each other State in the United States where there is a lawful and regulated adult use or medical cannabis market and in the country of Canada for each product line in Exhibit B for the benefit of LICENSEE to be semi-exclusive in the case of the End Products, to distribute and/or sell End Products in locations compliant with all local and state laws applicable therein both at the time of effecting this Agreement and as laws evolve in America during the life of this Agreement under this option arrangement (the “License Option”). Financial terms of the License Option are as disclosed in Exhibit C. 
 
If it chooses to accept a License Option, LICENSEE shall provide notice in writing to the LICENSOR in the form attached hereto as Exhibit E at least thirty (30) calendar days prior to the effective date of the exercise of any License Option (the “Exercise of License Option”). License Fees for an Exercise of License Option, shall be in the amount and paid in the manner prescribed by the attached Exhibit C. For territories where a final, semi-exclusive license is the only remaining license available, LICENSOR shall notify LICENSEE that such final license exists, and LICENSEE shall have the option of receiving the final, semi-exclusive license for each Subsequent Territory under this License Option if it accepts the option within sixty (60) days of being notified in writing by LICENSOR. Upon any Exercise of License Option, LICENSOR does hereby agree to extend the license of the Technology to include each state and/or such additional End Products that use the Technology for which LICENSEE has exercised the License Option (an “Extension”) whereby any such Extension will have an expiration date that matches exactly the expiration date of this Agreement (ie: April 2028). Any such Exercise of License Option which occurs prior to September 1, 2023 shall follow to the greatest extent possible the same proportionate appropriate Territory License fees and Usage fees of this Agreement subject to those terms found in Exhibit C below. Any such Exercise of License Option which occurs on or after September 1, 2023 shall be subject to good faith negotiations to determine appropriate fair market value Territory License fees and Usage Fees relative to the then-current market conditions. For the avoidance of doubt, the “then-current market conditions” may include conditions that are less favorable to expansion into any such territory or are less suitable for licensing in which case, the “then-current market conditions” would dictate lower fees than those contemplated in this Agreement and the reverse is also true in which case “then-current market conditions” would dictate higher fees than those contemplated in this Agreement.” 
 
	4.	Paragraph 2 e) is amended by adding the following words prior to the final period: “with such utilization being governed by a trademark license which is granted concurrently with, and forms part of, this technology license issued by the LICENSOR to the LICENSEE”
	 
	 

	5.	The following paragraph is added as new paragraph 3 with all such subsequent paragraphs being renumbered and with any and all paragraph references being adjusted to accommodate such renumbering:
	 
	 

		“3) Microfluidizer Option. In order to assist certain licensees of LICENSOR with respect to the production of End Products that are comprised of Consumable Liquids Products, as more particularly described in Exhibit B, LICENSOR is providing an option whereby LICENSOR will purchase a Microfluidizer for the purposes of combining the Technology with Nanoemulsions and/or Nanodispersions in connection with the production of such Consumable Liquid Products. The LICENSEE may exercise the Microfluidizer Option by initialing the appropriate box on the attached Exhibit F and agreeing to be subject to the terms and conditions set out in the attached Exhibit F.”

 	 
	4
	
 
	 

 
	6.	Exhibit A to the Original Agreement is rescinded and is updated and replaced with the attached Schedule “I” to this Agreement in order to reflect the LICENSOR’s current patent portfolio;
	 
	 

	7.	Exhibit C to the Original Agreement shall be amended by:

 
	 
	a.	replacing the last sentence of paragraph 1 prior the commencement of subparagraphs (a) – (d), with the following:
	 
	 
	 

	 
	 
	“Territory License Fees for Colorado and for each Subsequent Territory that is the subject of an Exercise of License Option shall start on the earlier of: (i) ninety (90) days after the first sale of the first new Product; and (ii) one (1) year after the date that the LICENSEE provides the LICENSOR with an Exercise of License Option and will accrue and be payable as follows:”

	 
	 
	 

	 
	b. 
	replacing paragraph 6 with the following:

	 
	 
	 

	 
	 
	“Beginning on September 1, 2019, the LICENSEE will pay a yearly fee of $37,500, in advance, to validly hold a License Option for any Subsequent Territory that has not been the subject of an Exercise of License Option as of that date, where there is a lawful and regulated adult use or medical cannabis market. The yearly fee, aggregated over time but only applicable to each Subsequent Territory, will be deducted from the applicable Territory License Fee otherwise payable when the LICENSEE exercises the License Option for such Subsequent Territory.

 
	8.	Exhibit E be added to the Original Agreement in the form and content attached hereto as Schedule “II”;
	 
	 

	9.	Exhibit F be added to the Original Agreement in the form and content attached hereto as Schedule “III”;
	 
	 

	10.	All other terms and conditions of the Original Agreement shall remain in full force and effect and the Parties hereto agree to be bound by the rights, obligations and liabilities of the Original Agreement, as specifically amended by this Amending Agreement. Further the Parties agree that the Territory License Fees and the Usage Fees as set out in Exhibit C to the Original Agreement shall be payable by the LICENSEE in the manner prescribed in Exhibit C for the Subsequent Territories and Product Options for which LICENSEE has provided its Exercise of License Option.

 
[The Signature Page to Follow]
 
	 
	5
	
 
	 

 
IN WITNESS WHEREOF, the parties have executed this Agreement intending to be legally bound as of the date set forth above.
 
	“LICENSOR”
LEXARIA CANPHARM ULC
	 	“LICENSEE”NUKA ENTERPRISES, LLC
	 
	 
	 
	 
	 

	By: 
	“John Docherty” 	 	By: 	“Peter Barsoom” 	 
	 
	John Docherty, President 	 	 	Peter Barsoom, CEO 	 
	 
		 	 		 
	 
	 
	 
	 
	 
	 

	By:
	“Chris Bunka” 
	 
	 
	 
	 

	 
	Chris Bunka, CEO  
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	“ASSIGNOR” 
LEXARIA BIOSCIENCE CORP. 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	By: 
	“John Docherty” 
	 
	By: 
	“Chris Bunka” 
	 

	 
	John Docherty, President 
	 
	 
	Chris Bunka, CEO 
	 

 
	 
	6
	
 
	 

 
SCHEDULE “I”
 
EXHIBIT A
TECHNOLOGY
 
The Technology consists of:
 
	 
	(1)	the following patent applications, patents granted, and PCT International Patent Applications;
	 
	 
	 

	 
	(2)	all technical know-how and trade secrets in regard to such named patents, including the use, manufacture or formulation thereof, that is owned or controlled by LICENSOR as of the Effective Date of this Agreement, as well as any future continuations, continuations in part or divisional applications filed pursuant to the patent applications. (the “Licensed Patents”):

 
In the USA:
U.S. Patent Granted No. 9,474,725 awarded October 25, 2016.
U.S. Patent Granted No. 9,839,612 B2 awarded November 21, 2017
U.S. Patent Granted No. 9,972,680 B2 awarded May 15, 2018.
U.S. Patent Granted No. 9,974,739 B2 awarded May 22, 2018
U.S. Patent Granted No. 10,084,044 B2 awarded September 25, 2018
U.S. Patent Granted No. 10,103,225 B2 awarded October 16, 2018
U.S. Non-Provisional Patent Application No. 62/010,601.
U.S. Non-Provisional Patent Application No. 62/037,706.
U.S. Non-Provisional Patent Application No. 62/153,835.
U.S. Non-Provisional Patent Application No. 62/161,324.
U.S. Non-Provisional Patent Application No. 62/264,959.
U.S. Non-Provisional Patent Application No. 62/264,967.
U.S. Utility Patent Application No. 14/735,844.
U.S. Patent Pending Application No. 15/565,680
U.S. Patent Pending Application No. 62/519,511
U.S. Patent Pending Application No. 62/582,700
U.S. Patent Pending Application No. 62/642,737
U.S. Patent Pending Application No. 62/659,059
U.S. Patent Pending Application No. 62/658,473
U.S. Patent Pending Application No. 62/689,096
U.S. Patent Pending Application No. 62/730,645
 
International Patent Cooperation Treaty Filings:
PCT International Patent Application No. PCT/US15/35128.
PCT International Patent Application No. PCT/US16/64295.
PCT International Patent Application No. PCT/US16/64296.
PCT International Patent Application No. PCT/US18/38232.
 
Multiple National Filings:
Canada, The European Union, China, Japan, Australia, Mexico, and India
Australian Patent Granted No. 2015274698 awarded June 15, 2017
Australian Patents Granted No. 2017203054; 2018202562; 2018202583 awarded August 30, 2018
Australian Divisional Patent Granted No. 2018202584 awarded on January 10, 2019
 
	 
	7
	
 
	 

 SCHEDULE “II”
 
EXHIBIT E
 
EXERCISE OF LICENSE OPTION NOTICE
 
	TO: 	LEXARIA CANPHARM ULC (“Licensor”)
	 
	 

	FROM: 	NUKA ENTERPRISES, LLC (“Licensee”)
	 
	 

	RE: 	EXERCISE OF LICENSE OPTION

 
Pursuant to the terms of an Intellectual Property License Agreement dated April 24, 2018 as amended May , 2019 (collectively the “Agreement”), the Licensee has the option to extend the license for the Technology granted by the Licensor to certain additional territories (the “Subsequent Territories”) or products (the “Product Options”) upon thirty (30) days written notice (the “Extension”).
 
The Licensee is providing the Licensor with this Exercise of License Option Notice to effectively provide 30 days written notice that Licensee intends to obtain an Extension for the following Subsequent Territories and/or Product Options:
 
	Subsequent Territory
	Product Options

		
		
		

 
Pursuant to the terms and conditions of the Agreement, the Licensee agrees to pay the prescribed Territory License Fees and/or Usage Fees, as applicable, in the prescribed manner, all as more particularly disclosed in Exhibit C to the Agreement.
 
Dated this __________ day of ___________, 20__________.
 
 
NUKA ENTERPRISES, LLC
 
By: ______________________________ 
       Peter Barsoom, CEO 
 
	 
	8
	
 
	 

 
SCHEDULE “III”
 
EXHIBIT F
 
MICROFLUIDIZER OPTION
 
The Microfluidizer Option is available to the LICENSEE provided that:
 
	 
	i.	The LICENSEE intends to produce End Products that fit in the category of “Consumable Liquids Products” as more specifically defined in Exhibit “B”;
	 
	 
	 

	 
	ii.	The LICENSEE enters a license agreement with a minimum term of [**]1 years;
	 
	 
	 

	 
	iii.	The LICENSEE initials the box below acknowledging that the LICENSEE wishes to exercise the Microfluidizer Option and the effective date of such Microfluidizer Option exercise; and
	 
	 
	 

	 
	iv.	The LICENSEE agrees to be bound by the additional terms and conditions set out under this Exhibit F as if they formed a part of the main Intellectual Property License Agreement with the LICENSOR.

 
	Initial to Confirm Exercise of Microfluidizer Option
	 
	By initialing the box to the left of this statement, I, __________________ being the _______________________ of the LICENSEE hereby confirm that I have the authority to exercise the Microfluidizer Option and agree, on behalf of the LICENSEE, to be bound by the terms and conditions contained herein. This effective date of the exercise of the Microfluidizer Option is______________ , 20              (the “Effective Date”).

 
MICROFLUIDIZER OPTION ADDITONAL TERMS AND CONDITIONS
 
	 
	1.	Purchase. The LICENSOR shall order one (1) Lab Scale LM20 Microfluidizer® processor for High Shear cGMP-Ready Fluid Processing, as manufactured by MicrofluidicsTM, or equivalent, (the “Standard Equipment”) for each State contained within the Territory, and any Subsequent Territory that has been added due to an Exercise of License Option, which includes Consumable Liquid Products as an End Product as at the Effective Date (referred to herein as a “Microfluidizer Territory”), provided that concurrently with exercising this Microfluidizer Option the LICENSEE:

 
	 
	a.	advises the LICENSOR of each Microfluidizer Territory for which LICENSEE is exercising this Microfluidizer Option; and
	 
	 
	 

	 
	b.	pays the prescribed quarterly payment of the Territory License Fee, as set out in Exhibit C, for each Microfluidizer Territory in which the Microfluidizer Option is being exercised , regardless of the quarterly payment date prescribed by paragraph 1 (b) or (c), as applicable.

_____________ 
1 Certain information has been redacted: the omitted text sets forth a condition for receiving the microfluidizer option
 
	 
	9
	
 
	 

 
	 
	2.	Delivery. The LICENSOR shall direct the Standard Equipment or any Upgrade, as defined below, to be delivered to the LICENSEE’S specified lab facility located in a Microfluidizer Territory (each a “Facility”).
	 
	 
	 

	 
	3.	Upgrade of Standard Equipment. The LICENSEE may request an upgrade to the Standard Equipment at the time of exercising the Microfluidizer Option (the “Upgrade”), however such Upgrade will be subject to the additional consideration as noted below, (check boxes as applicable):

 
	Microfluidizer Upgrade
	Additional Consideration Option #1
	Initial
	OR: Additional Consideration Option #2
	Initial

	M110-P for processing Pilot Scale and Small Production Batches or equivalent
 
	2 year increase on Term
0% increase on Usage Fee
	 
	0 year increase on Term
1% increase on Usage Fee
	
	 
OR
 

	M-110EH for processing Pilot Scale and Small Production Batches or equivalent
	3 year increase on Term
1% increase on Usage Fee 
	 
	1 year increase on Term
2% increase on Usage Fee
	

 
The Standard Equipment or any Upgrade thereto is referred to herein as the “Equipment” and the provision by the LICENSOR of the Equipment shall be deemed to be a lease for same until the completion of the Term of the Agreement.
 
	 
	4.	Delivery and Acceptance: Upon acceptance by LICENSEE of the Equipment at its Facility, which acceptance shall be identified by LICENSEE taking possession of the Equipment, such acceptance shall acknowledge that the Equipment is in good order and new condition and that LICENSEE is satisfied with same and that LICENSOR has made no representation or warranty, expressed or implied, with respect to such item of Equipment. The Equipment is delivered to LICENSEE in an “as is” condition.
	 
	 
	 

	 
	5.	Set Up: LICENSEE is responsible to pay all costs associated with any Equipment set up including but not limited to engineering, electrical, manufacturer installation and training.
	 
	 
	 

	 
	6.	Title to Equipment: LICENSOR represents that it owns the Equipment leased herein free and clear of all liens.

  	 
	10
	
 
	 

 
	 
	7.	Use and Right to Equipment: Until the completion of the Term, the LICENSOR shall maintain all right, title and interest in and to the Equipment. In addition, the LICENSOR shall have the right during the Term to access and use the Equipment at the LICENSEE’s Facility, upon fourteen (14) calendar days written notice to LICENSEE, for up to two visits in any month with each such visit lasting a minimum of a half-day to a maximum of two (2) business days for the following purposes:

 	 
	a.	Conduct research, analysis and clinical trials;
	 
	 
	 

	 
	b.	Perform formulation work on an anonymous basis for third parties to demonstrate the effectiveness of combining the Equipment with the Technology in the creation of liquid products; and
	 
	 
	 

	 
	c.	For such other purposes as the LICENSOR sees fit for the purposes of advancing its Technology and expanding its client base.
	 
	 
	 

	 
	with all such purposes being conducted (i) according to any and all applicable laws and regulations; (ii)in strict privacy; and (iii) under the confidentiality provisions contained in paragraph 8 of this Agreement.

 
	 
	8.	Maintenance and Repair: Other than with respect to any maintenance or repairs incurred in connection with or required as a result of LICENSOR’S use of the Equipment as described above, all maintenance and repair costs to the Equipment shall be paid by LICENSEE, and LICENSOR is hereby relieved from any responsibility to maintain or repair said Equipment, all said Equipment being leased in an “as is” condition.
	 
	 
	 

	 
	9.	Insurance and Risk of Loss: LICENSEE shall acquire and maintain insurance on the Equipment in the amount of at least US$40,000.00 dollars with LICENSOR named as Lost Payee during the Term and shall provide LICENSOR with proof of same.
	 
	 
	 

	 
	10.	Taxes and Licenses: All taxes, license fees and other expenses associated with the lease of the Equipment shall be paid by LICENSEE.
	 
	 
	 

	 
	11.	LICENSOR’S Indemnification: LICENSEE shall indemnify, protect and hold harmless the LICENSOR, its agents, servants, successors and assigns from and against all losses, damages, injuries, claims, demands and expenses, including legal expenses, of whatever nature, arising out of the use, condition or operation of any item of Equipment (excluding use or operation by LICENSOR as described below), regardless of where, how and by whom operated. LICENSEE shall assume the settling of, and the defense of any suits or other legal proceedings brought to enforce all such losses, damages, injuries, claims, demands and expenses and shall pay all judgments entered in the suit for other legal proceedings. The indemnifications and assumptions of liability and obligation herein provided shall continue in full force and effect notwithstanding the termination of this agreement, whether by expiration of time, by operation of law or otherwise for any such claims made or accruing during the term of this lease.
	 
	 
	 

	 
	12.	LICENSEE’S Indemnification: LICENSOR shall indemnify, protect and hold harmless the LICENSEE, its agents, servants, successors and assigns from and against all losses, damages, injuries, claims, demands and expenses, including legal expenses, of whatever nature, arising out of LICENSOR’S use or operation of any item of Equipment pursuant to Section 7 of this Exhibit F.
	 
	 
	 

	 
	13.	Assignment and Sublease: LICENSEE may not assign or sublease the Equipment without the written consent of LICENSOR, which consent shall not be unreasonably withheld.
	 
	 
	 

	 
	14.	Relocation: Equipment may not be relocated or moved to any other building other than the one it is delivered to by the manufacturer, without express written consent from the LICENSOR, not less than 30 days in advance. Equipment is not readily portable and may not be temporarily transported to any other building even if it is returned to the original building.

 	 
	11
	
 
	 

 
	 
	15.	LICENSEE’S Default: Time is of the essence under this agreement and any of the following events shall constitute defaults on the part of LICENSEE hereunder:

 
	 
	a.	any breach or failure of LICENSEE to observe or perform any of its material obligations under the Agreement;
	 
	 
	 

	 
	b.	insolvency of bankruptcy of LICENSEE or assignment for the benefit of creditors;
	 
	 
	 

	 
	c.	any other act of LICENSEE which will allow LICENSOR to reasonably deem itself insecure in the prospect of payment.
	 
	 
	 

	 
	Upon the occurrence of any default LICENSOR may exercise this option with at least five (5) days’ notice to the LICENSEE and thereupon all Equipment and rights of LICENSEE therein shall be surrendered unto LICENSOR; upon default, LICENSOR may take possession of the Equipment where found with or without process of law in court, may enter upon the leased premises without liability for suit, action, or other proceedings by LICENSEE and remove same; hold, sell, lease or otherwise dispose of the Equipment or keeping of any of them as LICENSOR so chooses.

 
	 
	16.	Purchase Agreement: LICENSEE agrees that on the final date of the Term that it shall purchase the Equipment from the LICENSOR for the purchase price of US$1.00 (the “Purchase Price”) which sum shall be payable by the 5th day following the completion of the Term. If LICENSEE fails to purchase the Equipment and pay the Purchase Price pursuant to this paragraph 12, LICENSOR may repossess the Equipment. In the event LICENSEE pays the Purchase Price in accordance with this paragraph 12, LICENSOR shall convey the Equipment unto LICENSEE free and clear of all liens.

 
 
	 
	12

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