Document:

INDEMNIFICATION AGREEMENT

 

 

   

AGREEMENT, effective as of June 1,
2009, between Arrayit Diagnostics, Inc., a Nevada corporation (the “Company”), and John Howell (“Indemnitee”).

 

WHEREAS, Indemnitee is a director
and officer of the Company;

 

WHEREAS, both the Company and Indemnitee
recognize the increased risk of litigation and other claims being asserted against directors and officers of public companies at
a time when it has become increasingly difficult to obtain adequate insurance coverage at reasonable costs;

 

WHEREAS, in recognition of Indemnitees
need for substantial protection against personal liability in order to enhance Indemnitees continued service to the Company in
an effective manner, the Company wishes to provide in this Agreement for the identification of and the advancing of expenses to
Indemnitee to the full extent (whether partial or complete) permitted by law and as set forth in this Agreement, and, to the extent
insurance is maintained, for the continued coverage of Indemnitee under the Company’s directors’ and officers’
liability insurance policies, regardless of any future change in the Certificate of Incorporation, By-Laws, composition of the
Board of Directors, or structure of the Company.;

 

NOW, THEREFORE, in consideration
of the premises and of Indemnitee’s service to the Company, directly or indirectly, and intending to be legally bound hereby,
the parties hereto agree as follows:

 

		1.	In the event Indemnitee was, is, or becomes a party to or a witness or other participant in, or is threatened to be made a
party to or a witness or other participant in, any threatened, pending or completed action, suit or proceeding, or any inquiry
or investigation, whether conducted by the Company or any other party, that Indemnitee in good faith believes might lead to any
such action, suit or proceeding, whether civil, criminal, administrative, investigative or otherwise (a “Claim”) by
reason of (or arising in part out of) the fact that Indemnitee is or was a director, officer, employee, agent or fiduciary of the
Company, or is or was serving at the request of the Company as a director, officer, employee, trustee, agent or fiduciary of another
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, or by reason of anything done or not
done by Indemnitee in any such capacity (an “Indemnifiable Event”), the Company shall indemnify Indemnitee to the full
extent permitted by law (the determination of which shall be made by the Reviewing Party referred to below) as soon as practicable
but in any event no later than thirty days after written demand is presented to the Company, against any and all expenses (including
attorneys’ fees and all other costs, expenses, and obligations paid or incurred in connection with investigating, preparing
for and defending or participating in the defense of (including on appeal) any Claim relating to any Indemnifiable Event) (collectively
“Expenses”), judgments, fines, penalties and amounts paid in settlement (including all interest, assessments and other
charges paid or payable in connection with or in respect of such judgments, fines, penalties or amounts paid in settlement) of
such Claim and, if so requested by Indemnitee, the Company shall advance (within two business days of such request) any and all
such Expenses to Indemnitee; provided, however, that (i) the foregoing obligation of the Company shall not apply to a Claim that
was commenced by the Indemnitee without the prior approval of the Board of Directors of the Company unless the Claim was commenced
after a Change in Control (as defined in Section 5 herein); (ii) the foregoing obligation of the Company shall be subject to the
condition that an appropriate person or body (the “Reviewing Party”) shall not have determined (in a written opinion
in any case in which the special, independent counsel referred to in Section 4 hereof is involved) that Indemnitee would not be
permitted to be indemnified for such Expenses under applicable law; and (iii) if, when and to the extent that the Reviewing Party
determines that Indemnitee would not be permitted to be indemnified for such Expenses under applicable law, the Company shall be
entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the Company) for all such amounts theretofore paid (unless
Indemnitee has commenced legal proceedings in a court of competent jurisdiction to secure a determination that Indemnitee should
be indemnified under applicable law, in which event Indemnitee shall not be required to so reimburse the Company until a final
judicial determination requiring such reimbursement is made with respect thereto as to which all rights of appeal therefrom have
been exhausted or lapsed) and the Company shall not be obligated to indemnify or advance any additional amounts to Indemnitee under
this Agreement (unless there has been a determination by a court of competent jurisdiction that the Indemnitee would be permitted
to be so indemnified or entitled to such expense advances under applicable law).

 

    	 	 	 

    	 

    
 

		2.	If there has not been a Change in Control of the Company (as hereinafter defined), the Reviewing Party shall be (1) quorum
of the Board of Directors consisting of directors who are not parties to the action, suit or proceeding acting by majority vote,
or, (2) if such a quorum is not obtainable, or, even if obtainable, a quorum of disinterested directors so directs, independent
legal counsel by the use of a written opinion or (3) the stockholders. If there has been a Change in Control of the Company, the
Reviewing Party shall be the special, independent counsel referred to in Section 4 hereof.

 

		3.	If Indemnitee has not been indemnified by the expiration of the foregoing thirty-day period or received expense advances or
if the Reviewing Party determines that Indemnitee would not be permitted to be indemnified or be entitled to receive expense advances
within two days of the request therefor in whole or in part under applicable law, Indemnitee shall have the right to commence litigation
seeking from the court a finding that Indemnitee is entitled to indemnification and expense advances or enforcement of Indemnitee’s
entitlement to indemnification and expense advances or challenging any determination by the Reviewing Party or any aspect thereof
that Indemnitee is not entitled to be indemnified or receive expense advances and the burden of proving that indemnification or
advancement of expenses is not appropriate shall be on the Company; any determination by the Reviewing Party in favor of Indemnitee
shall be conclusive and binding on the Company, unless facts supplied by Indemnitee which form the basis for the determination
are subsequently determined to have been materially incorrect at the time supplied. Indemnitee agrees to bring any such litigation
in any court in the States of Texas having subject matter jurisdiction thereof and in which venue is proper, and the Company hereby
consents to service of process and to appear in any such proceeding.

 

		4.	The Company agrees that if there is a Change in Control of the Company (as hereinafter defined), then with respect to all matters
thereafter arising concerning the rights of Indemnitee to indemnity payments and expense advances under this Agreement or any other
agreement or By-laws now or hereafter in effect relating to Claims for Indemnifiable Events, the Company shall seek legal advice
only from special, independent counsel selected by Indemnitee who a majority of the disinterested Directors approves (which approval
shall not be unreasonably withheld), and who has not otherwise performed services for the Company or Indemnitee. Such counsel,
among other things, shall determine whether and to what extent Indemnitee is permitted to be indemnified or is entitled to expense
advances under applicable law and shall render its written opinion to the Company and Indemnitee to such effect. The Company agrees
to pay the reasonable fees of the special, independent counsel referred to above and to fully indemnify such counsel against any
and all expenses (including attorney’s fees), claims, liabilities and damages arising out of or relating to this Agreement
or its engagement pursuant hereto except for willful misconduct or gross negligence.

 

		5.	For purposes of this Agreement, (a) “Change in Control of the Company” shall be deemed to have occurred if (i)
any “person” (as such term is used in Sections 13(d)(3) and 14(d) of the Securities Exchange Act of 1934, as amended),
other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company, is or becomes the beneficial
owner (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing 20% or more
of the combined voting power of the Company’s then outstanding securities, or (ii) during any period of two consecutive years,
individuals who at the beginning of such period constitute the Board of Directors of the Company and any new director whose election
by the Board of Directors or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds
(2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination
for election was previously so approved, cease for any reason to constitute a majority thereof, or (iii) the stockholders of the
Company approve a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which
would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity) at least 80% of the combined voting power of
the voting securities of the Company of such surviving entity outstanding immediately after such merger or consolidation, or if
the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition
by the Company of all or substantially all the Company’s assets.

 

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		6.	To the extent Indemnitee is successful in such proceeding, the Company shall indemnify Indemnitee against any and all expenses
(including attorney’s fees) which are incurred by the Indemnitee in connection with any claim asserted or action brought
by Indemnitee for (i) indemnification or advance payment of Expenses by the Company under this Agreement or any other agreement
or Company By-laws now or hereafter in effect relating to Claims for Indemnifiable Events and/or (ii) recovery under any directors’
and officers’ liability insurance policies maintained by the Company, regardless of whether Indemnitee ultimately is determined
to be entitled to such indemnification, advance payment of Expenses or insurance recovery, as the case may be.

 

		7.	If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of
the Expenses, judgments, fines, penalties and amounts paid in settlement of any Claim but not, however, for all of the total amount
thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled. Notwithstanding
any other provision of this Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in the defense
of any Claim relating in whole or in part to any Indemnifiable Event or in defense of any issue or matter therein, including dismissal
without prejudice, Indemnitee shall be indemnified against all Expenses incurred in connection therewith.

 

		8.	For purposes of this Agreement, the termination of any Claim by judgment, order, settlement (whether with or without court
approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that Indemnitee did
not meet any particular standard of conduct or have any particular belief or that a court has determined that Indemnitee is not
entitled to indemnification or expense advance or that indemnification or expense advance is not permitted by applicable law.

 

		9.	The Company hereby agrees that, so long as Indemnitee shall continue to serve in a capacity referred to in Section 1 hereof,
and thereafter so long as Indemnitee shall be subject to any possible claim or threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that Indemnitee served in any capacity
referred to in Section 1 hereof, the Company shall maintain in effect for the benefit of Indemnitee any Directors’ and Officers’
Liability Insurance presently in force and effect, providing, in all respects, coverage at least comparable to that presently provided;
provided, however, if, in the business judgment of the then Board, either (a) the premium cost for such insurance is substantially
disproportionate to the amount of coverage, or (b) the coverage provided by such insurance is so limited by exclusions that there
is insufficient benefit from such insurance, then and in that event the Company shall not be required to maintain such insurance
but shall and hereby agrees to the full extent permitted by law to hold harmless and indemnify Indemnitee to the fullest extent
of the coverage which would otherwise have been provided for the benefit of Indemnitee.

 

	10.	(a)	In the event of any changes after the date of
this Agreement in any applicable law, statute, or rule which expands the right of the Company to indemnify a person serving in
a capacity referred to in Section 1 hereof, such change shall be within the purview of Indemnitee’s rights, and the Company’s
obligations, under this Agreement. In the event of any changes in any applicable law, statute, or rule which narrow the right
of the Company to indemnify a person serving in a capacity referred to in Section 1 hereof, such changes, to the extent not otherwise
required by such law, statute or rule to be applied to this Agreement, shall have no effect on this Agreement or the parties’
rights and obligations hereunder.

 

		(b)	The indemnification provided by this Agreement shall not be deemed exclusive of any rights to which Indemnitee may be entitled
under the Company’s Certificate of Incorporation, its By-laws, any agreement, any vote of stockholders or disinterested directors,
laws and regulations in effect now or in the future, or otherwise, both as to action in Indemnitee’s official capacity and
as to action in another capacity while holding such office.

 

		11.	If the indemnification provided in Section 1 is unavailable and may not be paid to Indemnitee because such indemnification
is not permitted by law, then in respect of any threatened, pending or completed action, suit or proceeding in which the Company
is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), the Company shall contribute to the
full extent permitted by law, to the amount of expenses, judgments, fines (including excise taxes and penalties) and amounts paid
in settlement actually and reasonably incurred and paid or payable by Indemnitee in such proportion as is appropriate to reflect
(i) the relative benefits received by the Company on the one hand and Indemnitee on the other hand from the transaction from which
such action, suit or proceeding arose, and (ii) the relative fault of the Company on the one hand and of Indemnitee on the other
in connection with the events which resulted in such expenses, judgments, fines or settlement amounts, as well as any other relevant
equitable considerations. The relative fault of the Company on the one hand and of Indemnitee on the other shall be determined
by reference to among other things, the parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent the circumstances resulting in such expenses, judgments, fines or settlement amounts. The Company agrees that it would
not be just and equitable if contribution pursuant to this paragraph were determined by pro rata allocation or any other method
of allocation which does not take account of the foregoing equitable considerations.

 

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		12.	All obligations of the Company contained herein shall continue during the period Indemnitee serves in a capacity referred to
in Section 1 hereof of the Company and shall continue thereafter so long as Indemnitee shall be subject to any possible Claim relating
to an Indemnifiable Event.

 

	13.	(a)	Promptly after receipt by Indemnitee of notice
of the commencement of any Claim relating to an Indemnifiable Event or proceeding in which Indemnitee is made or is threatened
to be made a party or a witness, Indemnitee shall notify the Company of the commencement of such Claim; but the omission so to
notify the Company shall not relieve the Company from any obligation it may have to indemnify or advance expenses to Indemnitee
otherwise than under this Agreement.

 

		(b)	Indemnitee shall not settle any claim or action in any manner which would impose on the Company any penalty, constraint, or
obligation to hold harmless or indemnify Indemnitee pursuant to this Agreement without the Company’s prior written consent,
which consent shall not be unreasonably withheld.

 

		14.	If any Claim relating to an Indemnifiable Event, commenced against Indemnitee is also commenced against the Company, the Company
shall be entitled to participate therein at its own expense, and, except as otherwise provided hereinbelow, to the extent that
it may wish, the Company shall be entitled to assume the defense thereof. After notice from the Company to Indemnitee of its election
to assume the defense of any Claim, the Company shall not be obligated to Indemnitee under this Agreement for any legal or other
expenses subsequently incurred by Indemnitee in connection with the defense thereof other than reasonable costs of investigation,
travel, and lodging expenses arising out of Indemnitee’s participation in such Claim. Indemnitee shall have the right to
employ Indemnitee’s own counsel in such Claim, but the fees and expenses of such counsel incurred after notice from the Company
to Indemnitee of its assumption of the defense thereof shall be at the expense of Indemnitee unless (i) otherwise authorized by
the Company, (ii) Indemnitee shall have reasonably concluded, and so notified the Company, that there may be a conflict of interest
between the Company and Indemnitee in the conduct of the defense of such Claim, or (iii) the Company shall not in fact have employed
counsel to assume the defense of such Claim, in which cases the fees and expenses of Indemnitee’s counsel shall be at the
expense of the Company. The Company shall not be entitled to assume the defense of any Claim brought by or on behalf of the Company
or its stockholders or as to which Indemnitee shall have made the conclusion set forth in (ii) of this Section 14.

 

		15.	No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties
hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions
hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

 

		16.	In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights,
including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights.

 

		17.	The Company shall not be liable under this Agreement to make any payment in connection with any claim made against Indemnitee
to the extent Indemnitee has otherwise actually received payment (under any insurance policy, By-law or otherwise) of the amounts
otherwise indemnifiable hereunder.

 

		18.	This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective
successors, assigns, including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially
all of the business and/or assets of the Company, spouses, heirs, executors, and personal and legal representatives. This Agreement
shall continue in effect regardless of whether Indemnitee continues to serve as an officer or director of the Company or of any
other enterprise at the Company’s request.

 

		19.	The provisions of this Agreement shall be severable in the event that any of the provisions hereof (including any provision
within a single section, paragraph or sentence) are held by a court of competent jurisdiction to be invalid, void or otherwise
unenforceable, and the remaining provisions shall remain enforceable to the full extent permitted by law.

 

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		20.	This Agreement shall be governed by and construed in accordance with the laws of the State of Texas applicable to contracts
made and to be performed in such state, but excluding any conflicts-of-law rule or principle which might refer such governance,
construction or enforcement to the laws of another state or country.

 

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement on and as of the day and year first above written.

 

	ARRAYIT DIAGNOSTICS, INC.
	 	 
	By:	 	 
	John Howell, President	 
	 	 
	INDEMNITEE	 
	 	 
	 	 
	John Howell	 

 

    	5Exhibit 10.1

 

 

 

 

 

EXPENSE REIMBURSEMENT AGREEMENT 

 

This Expense Reimbursement Agreement (the
“Agreement”) is made as of November 9th, 2012, by and between VII Peaks-KBR Co-Optivist Income
BDC II, Inc., a Maryland corporation (the “Company”) and VII Peaks-KBR BDC Advisor II, LLC, a Delaware
limited liability company (the “Advisor”).

 

The Company was formed on August 3, 2011,
is an externally managed, non-diversified, closed-end management investment company that has elected to be treated as a business
development company under the Investment Company Act of 1940, as amended (the “1940 Act”).

 

WHEREAS, the Company and the Advisor have
determined that it is in the best interests of the Company to formalize the Agreement for the Advisor and its affiliates to reimburse
the Company or all U.S. GAAP compliant operating and offering expenses recognized on the quarterly financial statements of the
Company.  This will include all operating and offering expenses from the timeframe of the Company inception forward.

 

WHEREAS, the Company and the Advisor have
determined that it is in the best interests of the Company to include in the Agreement a “Right of Offset” for the
Advisor.

 

NOW, THEREFORE, the parties hereby agree
as follows:

 

	1.	Advisor Payments to the Company and Right of Offset
	 	 

		(a)	The Advisor and its affiliates will reimburse the Company for all U.S. GAAP compliant operating and offering expenses recognized
on the quarterly financial statements. This will include all operating and offering expenses from the timeframe of the Company
inception forward, August 3, 2011.
	 	 	 

		(b)	Commencing in the quarter when the Company reaches its minimum offering requirement, the Company will recognize a receivable
from the Advisor on the Company’s books, in an amount equal to the retro-active operating and offering expenses since the
Company inception. The Advisor will recognize a liability on its books in the same amount.
	 	 	 

		(c)	The Advisor and the Company agree to allow the other party to offset the related receivables from and payables to each other
resulting in a net receivable/payable position.
	 	 	 

		(d)	Going forward following the Company reaching its minimum offering requirement, the Advisor’s obligation to make a reimbursement
shall automatically become a liability of the Advisor and an asset of the Company on the last business day of each quarter. The
liability of the Advisor will be paid to the Company in any combination of cash or other immediately available funds, and/or offsets
against amounts otherwise due from the Company to the Advisor. No payment will be made by the Advisor if the Company payable to
the Advisor exceeds the Company receivable from the Advisor.
	 	 	 

		(e)	Any payment due and payable to the Company will be paid by the Advisor in the subsequent quarter.

 

	2.	Effective Period of Agreement 

 

The Agreement will continue until such
time that the Advisor and Company mutually agree that the Company is financially self-supporting, but no later than three years
from the August, 2011 retroactive date of this agreement.

 

    	 

    	 

    
 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be duly executed on the date above written.

 

VII PEAKS-KBR CO-OPTIVIST INCOME BDC II, INC.

a Maryland corporation

 

By: /s/ Gurpreet S. Chandhoke 

Name: Gurpreet S. Chandhoke

Title: Chief Executive Officer

 

 

VII PEAKS-KBR BDC ADVISOR II, LLC 

A Delaware limited liability company

  

By: /s/ Gurpreet S. Chandhoke

Name: Gurpreet S. Chandhoke

Title: Managing Member

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