Document:

EX-10.1

   

  Exhibit 10.1

  INDEMNIFICATION And Advancement AGREEMENT

  This Indemnification and Advancement Agreement (“Agreement”) is made as of [ • ], 20[ • ] by and between Biomea Fusion, Inc., a Delaware corporation (the “Company”), and ______________, [a member of the Board of Directors/an officer/an employee/an agent/a fiduciary] of the Company (“Indemnitee”).  This Agreement supersedes and replaces any and all previous Agreements between the Company and Indemnitee covering indemnification and advancement.  

  RECITALS

  WHEREAS, the Board of Directors of the Company (the “Board”) believes that highly competent persons have become more reluctant to serve publicly-held corporations as directors, officers, or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification and advancement of expenses against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;

  WHEREAS, the Board has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities.  Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions.  At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself.  The Bylaws and Certificate of Incorporation of the Company require indemnification of the officers and directors of the Company.  Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware (the “DGCL”).  The Bylaws, Certificate of Incorporation, and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification and advancement of expenses;

  WHEREAS, the uncertainties relating to such insurance, to indemnification, and to advancement of expenses may increase the difficulty of attracting and retaining such persons;

  WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company and its stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;

  WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; 

  WHEREAS, this Agreement is a supplement to and in furtherance of the Bylaws,  Certificate of Incorporation and any resolutions adopted pursuant thereto, and is not a substitute therefor, nor diminishes or abrogates any rights of Indemnitee thereunder; and

  WHEREAS, Indemnitee does not regard the protection available under the Bylaws, Certificate of Incorporation, DGCL and insurance as adequate in the present circumstances, and may not be willing to serve or continue to serve as an officer or director without adequate additional protection, and the Company desires Indemnitee to serve or continue to serve in such capacity.  Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that Indemnitee be so indemnified and be advanced expenses.

  NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

   

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  Section 1.Services to the Company.  Indemnitee agrees to serve as [a/an] [director/officer/employee/agent/fiduciary] of the Company.  Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law).  This Agreement does not create any obligation on the Company to continue Indemnitee in such position and is not an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee.  

  Section 2.Definitions.  As used in this Agreement:

  (a)“Agent” means any person who is authorized by the Company or an Enterprise to act for or represent the interests of the Company or an Enterprise, respectively.

  (b)A “Change in Control” occurs upon the earliest to occur after the date of this Agreement of any of the following events:

  i.Acquisition of Stock by Third Party.  Any Person (as defined below) is or becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing fifteen percent (15%) or more of the combined voting power of the Company’s then outstanding securities unless the change in relative beneficial ownership of the Company’s securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors;

  ii.Change in Board of Directors.  During any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in Sections 2(b)(i), 2(b)(iii) or 2(b)(iv)) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds 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 at least a majority of the members of the Board;

  iii.Corporate Transactions.  The effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity;

  iv.Liquidation.  The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; and

  v.Other Events.  There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the Company is then subject to such reporting requirement.

  vi.For purposes of this Section 2(b), the following terms have the following meanings:

  1“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

  2“Person” has the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that Person excludes (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and (iii) any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.

   

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  3“Beneficial Owner” has the meaning given to such term in Rule 13d-3 under the Exchange Act; provided, however, that Beneficial Owner excludes any Person otherwise becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger of the Company with another entity.

  (c) “Corporate Status” describes the status of a person who is or was acting as a director, officer, employee, fiduciary, or Agent of the Company or an Enterprise.

  (d)“Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

  (e)“Enterprise” means any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other entity for which Indemnitee is or was serving at the request of the Company as a director, officer, employee, or Agent, including a deemed fiduciary thereto.

  (f)“Expenses” includes all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of experts and other professionals, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding.  Expenses also include (i) Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, and (ii) for purposes of Section 14(d) only, Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement, by litigation or otherwise.  The parties agree that for the purposes of any advancement of Expenses for which Indemnitee has made written demand to the Company in accordance with this Agreement, all Expenses included in such demand that are certified by affidavit of Indemnitee’s counsel as being reasonable in the good faith judgment of such counsel will be presumed conclusively to be reasonable.  Expenses, however, do not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

  (g)“Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent:  (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term “Independent Counsel” does not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.  

  (h)The term “Proceeding” includes any threatened, pending or completed action, suit, claim, counterclaim, cross claim, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative, legislative, or investigative (formal or informal) nature, including any appeal therefrom, in which Indemnitee was, is or will be involved as a party, potential party, non-party witness or otherwise by reason of Indemnitee’s Corporate Status or by reason of any action taken by Indemnitee (or a failure to take action by Indemnitee) or of any action (or failure to act) on Indemnitee’s part while acting pursuant to Indemnitee’s Corporate Status, in each case whether or not serving in such capacity at the time any liability or Expense is incurred for which indemnification, reimbursement, or advancement of Expenses can be provided under this Agreement.  A Proceeding also includes a situation the Indemnitee believes in good faith may lead to or culminate in the institution of a Proceeding.

  (i)“Sponsor Entities” means [insert names]. 

  Section 3.Indemnity in Third-Party Proceedings.  The Company will indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant 

   

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  in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 3, the Company will indemnify Indemnitee to the fullest extent permitted by applicable law against all Expenses, judgments, fines and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines and amounts paid in settlement) actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal Proceeding had no reasonable cause to believe that Indemnitee’s conduct was unlawful.  

  Section 4.Indemnity in Proceedings by or in the Right of the Company.  The Company will indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 4, the Company will indemnify Indemnitee to the fullest extent permitted by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company.  The Company will not indemnify Indemnitee for Expenses under this Section 4 related to any claim, issue or matter in a Proceeding for which Indemnitee has been finally adjudged by a court to be liable to the Company, unless, and only to the extent that, the Delaware Court of Chancery or any court in which the Proceeding was brought determines upon application by Indemnitee that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification.

  Section 5.Indemnification for Expenses of a Party Who is Wholly or Partly Successful. To the fullest extent permitted by applicable law, the Company will indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee in connection with  any Proceeding the extent that Indemnitee is successful, on the merits or otherwise.  If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company will indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with or related to each successfully resolved claim, issue or matter to the fullest extent permitted by law.  For purposes of this Section 5 and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal (with or without prejudice), motion for summary judgment, settlement (with or without court approval), or upon a plea of nolo contendere or its equivalent will be deemed to be a successful result as to such claim, issue or matter.

  Section 6.Indemnification For Expenses of a Witness.  To the fullest extent permitted by applicable law, the Company will indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with any Proceeding to which Indemnitee is not a party but to which Indemnitee is a witness, deponent, interviewee, or otherwise asked to participate.

  Section 7.Partial Indemnification.  If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses, but not, however, for the total amount thereof, the Company will indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

  Section 8.Additional Indemnification.  Notwithstanding any limitation in Sections 3, 4, or 5, the Company will indemnify Indemnitee to the fullest extent permitted by applicable law (including but not limited to, the DGCL and any amendments to or replacements of the DGCL adopted after the date of this Agreement that expand the Company’s ability to indemnify its officers and directors) if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor). 

  Section 9.Exclusions.  Notwithstanding any provision in this Agreement, the Company is not obligated under this Agreement to make any indemnification payment to Indemnitee in connection with any Proceeding:

  (a)for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except to the extent provided in Section 16(b) and except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision; provided, however, that payment made to Indemnitee pursuant to an insurance policy purchased and maintained by Indemnitee at his or her 

   

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  own expense of any amounts otherwise indemnifiable or obligated to be made pursuant to this Agreement shall not reduce the Company’s obligations to Indemnitee pursuant to this Agreement;  or

  (b)for (i) an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act (as defined in Section 2(b) hereof) or similar provisions of state statutory law or common law, (ii) any reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by the Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act) or (iii) any reimbursement of the Company by Indemnitee of any compensation pursuant to any compensation recoupment or clawback policy adopted by the Board or the compensation committee of the Board, including but not limited to any such policy adopted to comply with stock exchange listing requirements implementing Section 10D of the Exchange Act; or

  (c)initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Proceeding or part of any Proceeding is to enforce Indemnitee’s rights to indemnification or advancement, of Expenses, including a Proceeding (or any part of any Proceeding) initiated pursuant to Section 14 of this Agreement, (ii) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (iii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

  Section 10.Advances of Expenses.  

  (a)The Company will advance the Expenses incurred by Indemnitee in connection with any Proceeding (or any part of any Proceeding) not initiated by Indemnitee or any Proceeding (or any part of any Proceeding) initiated by Indemnitee if (i) the Proceeding or part of any Proceeding is to enforce Indemnitee’s rights to obtain indemnification or advancement of Expenses from the Company or Enterprise, including a proceeding initiated pursuant to Section 14 or (ii) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation. The Company will advance the Expenses within thirty (30) days after the receipt by the Company of a statement or statements requesting such advances from time to time, whether prior to or after final disposition of any Proceeding. Without limiting the generality or effect of the foregoing, within thirty days after any request by Indemnitee, the Company shall, in accordance with such request (but without duplication), (a) pay such Expenses on behalf of Indemnitee, (b) advance to Indemnitee funds in an amount sufficient to pay such Expenses, or (c) reimburse Indemnitee for such Expenses.    

  (b)Advances will be unsecured and interest free.  Indemnitee undertakes to repay the amounts advanced (without interest) to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company, thus Indemnitee qualifies for advances upon the execution of this Agreement and delivery to the Company.  No other form of undertaking is required other than the execution of this Agreement.  The Company will make advances without regard to Indemnitee’s ability to repay the Expenses, without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement, and without regard to Indemnitee’s entitlement to and the availability of insurance coverage, including advancement, payment or reimbursement of defense costs, expenses or covered loss under the provisions of any applicable insurance policy (including, without limitation, whether such advancement, payment or reimbursement is withheld, conditioned or delayed by the insurer(s)). The Company shall not seek from a court, or agree to, a "bar order" which would have the effect of prohibiting or limiting the Indemnitee's rights to receive advancement of expenses under this Agreement.   

  Section 11.Procedure for Notification of Claim for Indemnification or Advancement.

  (a)Indemnitee will notify the Company in writing of any Proceeding with respect to which Indemnitee intends to seek indemnification or advancement of Expenses hereunder as soon as reasonably practicable following the receipt by Indemnitee of written notice thereof.  Indemnitee will provide such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of such Proceeding.  Indemnitee’s failure to notify the Company will not relieve the Company from any obligation it may have to Indemnitee under this 

   

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  Agreement, and any delay in so notifying the Company will not constitute a waiver by Indemnitee of any rights under this Agreement.  The Secretary of the Company will, promptly upon receipt of such a request for indemnification or advancement, advise the Board in writing that Indemnitee has requested indemnification or advancement.

  (b)The Company will be entitled to participate in the Proceeding at its own expense.

  Section 12.Procedure Upon Application for Indemnification.  

  (a)Unless a Change of Control has occurred, the determination of Indemnitee’s entitlement to indemnification will be made:

  i.by a majority vote of the Disinterested Directors, even though less than a quorum of the Board; 

  ii.by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Board; 

  iii. if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by written opinion provided by Independent Counsel selected by the Board; or 

  iv.if so directed by the Board, by the stockholders of the Company.

  (b)If a Change in Control has occurred, the determination of Indemnitee’s entitlement to indemnification will be made by written opinion provided by Independent Counsel selected by Indemnitee (unless Indemnitee requests such selection be made by the Board)

  (c) The party selecting Independent Counsel pursuant to subsection (a)(iii) or (b) of this Section 12 will provide written notice of the selection to the other party.  The notified party may, within ten (10) days after receiving written notice of the selection of Independent Counsel, deliver to the selecting party a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 2 of this Agreement, and the objection will set forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the person so selected will act as Independent Counsel.  If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or the Delaware Court has determined that such objection is without merit.  If, within thirty (30) days after the later of submission by Indemnitee of a written request for indemnification pursuant to Section 11(a) hereof and the final disposition of the Proceeding, Independent Counsel has not been selected or, if selected, any objection to has not been resolved, either the Company or Indemnitee may petition the Delaware Court for the appointment as Independent Counsel of a person selected by such court or by such other person as such court designates.  Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 14(a) of this Agreement, Independent Counsel will be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

  (d)Indemnitee will cooperate with the person, persons or entity making the determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination.  The Company will advance and pay any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making the indemnification determination irrespective of the determination as to Indemnitee’s entitlement to indemnification and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.  The Company promptly will advise Indemnitee in writing of the determination that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification has been denied and providing a copy of any written opinion provided to the Board by Independent Counsel.

  (e)If it is determined that Indemnitee is entitled to indemnification, the Company will make payment to Indemnitee within thirty (30) days after such determination.  

   

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  Section 13.Presumptions and Effect of Certain Proceedings.

  (a)In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination will presume Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 11(a) of this Agreement, and the Company will have the burden of proof to overcome that presumption by clear and convincing evidence.  Neither the failure of the Company (including by its directors or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, will be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

  (b)If the determination of the Indemnitee’s entitlement to indemnification has not made pursuant to Section 12 within sixty (60) days after the later of (i) receipt by the Company of Indemnitee’s request for indemnification pursuant to Section 11(a) and (ii) the final disposition of the Proceeding for which Indemnitee requested Indemnification (the “Determination Period”), the requisite determination of entitlement to indemnification will, to the fullest extent not prohibited by law, be deemed to have been made and Indemnitee will be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.  The Determination Period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, the Determination Period may be extended an additional fifteen (15) days if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 12(a)(iv) of this Agreement.

  (c)The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, will not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.

  (d)For purposes of any determination of good faith, Indemnitee will be deemed to have acted in good faith if Indemnitee acted based on the records or books of account of the Company, its subsidiaries, or an Enterprise, including financial statements, or on information supplied to Indemnitee by the directors or officers of the Company, its subsidiaries, or an Enterprise in the course of their duties, or on the advice of legal counsel for the Company, its subsidiaries, or an Enterprise or on information or records given or reports made to the Company or an Enterprise by an independent certified public accountant or by an appraiser, financial advisor or other expert selected with reasonable care by or on behalf of the Company, its subsidiaries, or an Enterprise.  Further, Indemnitee will be deemed to have acted in a manner “not opposed to the best interests of the Company,” as referred to in this Agreement if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan.  The provisions of this Section 13(d) is not exclusive and does not limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.

  (e)The knowledge and/or actions, or failure to act, of any director, officer, trustee, partner, managing member, fiduciary, agent or employee of the Enterprise may not be imputed to Indemnitee for purposes of determining Indemnitee’s right to indemnification under this Agreement.

  Section 14.Remedies of Indemnitee.  

  (a)Indemnitee may commence litigation against the Company in the Delaware Court of Chancery to obtain indemnification or advancement of Expenses provided by this Agreement in the event that (i) a determination is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) the Company does not advance Expenses pursuant to Section 10 of this Agreement, (iii) 

   

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  the determination of entitlement to indemnification is not made pursuant to Section 12 of this Agreement within the Determination Period, (iv) the Company does not indemnify Indemnitee pursuant to Section 5 or 6 or the second to last sentence of Section 12(d) of this Agreement within thirty (30) days after receipt by the Company of a written request therefor, (v) the Company does not indemnify Indemnitee pursuant to Section 3, 4, 7, or 8 of this Agreement within thirty (30) days after a determination has been made that Indemnitee is entitled to indemnification, or (vi) in the event that the Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or Proceeding designed to deny, or to recover from, the Indemnitee the benefits provided or intended to be provided to the Indemnitee hereunder.  Alternatively, Indemnitee, at Indemnitee’s option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association.  Indemnitee must commence such Proceeding seeking an adjudication or an award in arbitration within one hundred and eighty (180) days following the date on which Indemnitee first has the right to commence such Proceeding pursuant to this Section 14(a); provided, however, that the foregoing clause does not apply in respect of a Proceeding brought by Indemnitee to enforce Indemnitee’s rights under Section 5 of this Agreement.  The Company will not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

  (b)If a determination is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 14 will be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee may not be prejudiced by reason of that adverse determination.  In any judicial proceeding or arbitration commenced pursuant to this Section 14 the Company will have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be, and will not introduce evidence of the determination made pursuant to Section 12 of this Agreement.

  (c)If a determination is made pursuant to Section 12 of this Agreement that Indemnitee is entitled to indemnification, the Company will be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 14, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

  (d)The Company is precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 14 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and will stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement.  

  (e)It is the intent of the Company that the Indemnitee not be required to incur legal fees or other Expenses associated with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement by litigation or otherwise because the cost and expense thereof would substantially detract from the benefits intended to be extended to the Indemnitee hereunder.  The Company will (within thirty (30) days after receipt by the Company of a written request therefor) advance to Indemnitee such Expenses which are incurred by Indemnitee in connection with any action concerning this Agreement, Indemnitee’s right to indemnification or advancement of Expenses from the Company, or concerning any directors’ and officers’ liability insurance policies maintained by the Company, and will indemnify Indemnitee against any and all such Expenses unless the court determines that each of the Indemnitee’s claims in such action were made in bad faith or were frivolous or are prohibited by law.

  Section 15.Reserved. 

  Section 16.Non-exclusivity; Survival of Rights; Insurance; Subrogation.  

  (a)The indemnification and advancement of Expenses provided by this Agreement are not exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise.  The indemnification and advancement of Expenses provided by this Agreement may not be limited or restricted by any amendment, alteration or repeal of this Agreement in any way with respect to any action taken or omitted by Indemnitee in Indemnitee’s Corporate Status occurring prior to any amendment, alteration or repeal of this Agreement.  To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Bylaws, Certificate of Incorporation, or this 

   

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  Agreement, it is the intent of the parties hereto that Indemnitee enjoy by this Agreement the greater benefits so afforded by such change.  No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy is cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, will not prevent the concurrent assertion or employment of any other right or remedy.

  (b)The Company hereby acknowledges that Indemnitee may have certain rights to indemnification, advancement of Expenses and/or insurance provided by one or more other Persons with whom or which Indemnitee may be associated [(including, without limitation, any Sponsor Entities)].  The relationship between the Company and such other Persons, other than an Enterprise, with respect to the Indemnitee’s rights to indemnification, advancement of Expenses, and insurance is described by this subsection, subject to the provisions of subsection (d) of this Section 16 with respect to a Proceeding concerning Indemnitee’s Corporate Status with an Enterprise.

  i.The Company hereby acknowledges and agrees: 

  1)the Company is the indemnitor of first resort with respect to any request for indemnification or advancement of Expenses made pursuant to this Agreement concerning any Proceeding;

  2) the Company is primarily liable for all indemnification and indemnification or advancement of Expenses obligations for any Proceeding, whether created by law, organizational or constituent documents, contract (including this Agreement) or otherwise;

  3)any obligation of any other Persons with whom or which Indemnitee may be associated [(including, without limitation, any Sponsor Entities)] to indemnify Indemnitee and/or advance Expenses to Indemnitee in respect of any proceeding are secondary to the obligations of the Company’s obligations;

  4)the Company will indemnify Indemnitee and advance Expenses to Indemnitee hereunder to the fullest extent provided herein without regard to any rights Indemnitee may have against any other Person with whom or which Indemnitee may be associated [(including, any Sponsor Entities)] or insurer of any such Person; and 

  iii.the Company irrevocably waives, relinquishes and releases (A) any other Person with whom or which Indemnitee may be associated [(including, without limitation, any Sponsor Entities)] from any claim of contribution, subrogation, reimbursement, exoneration or indemnification, or any other recovery of any kind in respect of amounts paid by the Company to Indemnitee pursuant to this Agreement and (B) any right to participate in any claim or remedy of Indemnitee against any Person [(including, without limitation, any Sponsor Entities)], whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation, the right to take or receive from any Person [(including, without limitation, any Sponsor Entities)], directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim, remedy or right.  

  iv.In the event any other Person with whom or which Indemnitee may be associated [(including, without limitation, any Sponsor Entities)] or their insurers advances or extinguishes any liability or loss for Indemnitee, the payor has a right of subrogation against the Company or its insurers for all amounts so paid which would otherwise be payable by the Company or its insurers under this Agreement.  In no event will payment by any other Person with whom or which Indemnitee may be associated [(including, without limitation, any Sponsor Entities)] or their insurers affect the obligations of the Company hereunder or shift primary liability for the Company’s obligation to indemnify or advance of Expenses to any other Person with whom or which Indemnitee may be associated [(including, without limitation, any Sponsor Entities)].  

  v.Any indemnification or advancement of Expenses provided by any other Person with whom or which Indemnitee may be associated [(including, without limitation, any Sponsor Entities)] is specifically in excess over the Company’s obligation to indemnify and advance Expenses or any valid and collectible insurance (including but not limited to any malpractice insurance or professional errors and omissions insurance) provided by the Company. 

   

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  (c)To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents of the Company, the Company will obtain a policy or policies covering Indemnitee to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or policies, including coverage in the event the Company does not or cannot, for any reason, indemnify or advance Expenses to Indemnitee as required by this Agreement.  If, at the time of the receipt of a notice of a claim pursuant to this Agreement, the Company has director and officer liability insurance in effect, the Company will give prompt notice of such claim or of the commencement of a Proceeding, as the case may be, to the insurers in accordance with the procedures set forth in the respective policies.  The Company will thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.  If requested by Indemnitee, within two business days of such request the Company will instruct the insurance carriers and the Company’s insurance broker that they may communicate directly with Indemnitee regarding such claim. Indemnitee agrees to assist the Company efforts to cause the insurers to pay such amounts and will comply with the terms of such policies, including selection of approved panel counsel, if required. In the event of a change of control or the Company’s becoming insolvent, the Company shall maintain in force any and all insurance policies then maintained by the Company in providing insurance--directors’ and officers’ liability, fiduciary, employment practices or otherwise--in respect of the individual directors and officers of the Company, for a fixed period of six years thereafter (a “Tail Policy”). Such coverage shall be non-cancellable and shall be placed and serviced for the duration of its term by the Company’s incumbent insurance broker. Such broker shall place the Tail policy with the incumbent insurance carriers using the policies that were in place at the time of the change of control event (unless the incumbent carriers will not offer such policies, in which case the Tail Policy placed by the Company’s insurance broker shall be substantially comparable in scope and amount as the expiring policies, and the insurance carriers for the Tail Policy shall have an AM Best rating that is the same or better than the AM Best ratings of the expiring policies).  

  (d)The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee for any Proceeding concerning Indemnitee’s Corporate Status with an Enterprise will be reduced by any amount Indemnitee has actually received as indemnification or advancement of Expenses from such Enterprise. The Company and Indemnitee intend that any such Enterprise (and its insurers) be the indemnitor of first resort with respect to indemnification and advancement of Expenses for any Proceeding related to or arising from Indemnitee’s Corporate Status with such Enterprise.  The Company’s obligation to indemnify and advance Expenses to Indemnitee is secondary to the obligations the Enterprise or its insurers owe to Indemnitee.  Indemnitee agrees to take all reasonably necessary and desirable action to obtain from an Enterprise indemnification and advancement of Expenses for any Proceeding related to or arising from Indemnitee’s Corporate Status with such Enterprise.

  (e)In the event of any payment made by the Company under this Agreement, the Company will be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee from any Enterprise or insurance carrier.  Indemnitee will execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

  Section 17.Duration of Agreement.  All the rights and privileges afforded by this agreement, including the right to indemnification and the advancement of legal fees provided under this Agreement, shall continue as to Indemnitee for any action taken or not taken while serving in an indemnified capacity pertaining to an Indemnifiable Event even though Indemnitee may have ceased to serve in such capacity at the time of any Proceeding.  The indemnification and advancement of Expenses rights provided by or granted pursuant to this Agreement are binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or of any other Enterprise, and inure to the benefit of Indemnitee and Indemnitee’s spouse, assigns, heirs, devisees, executors and administrators and other legal representatives. In addition, the Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all, or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement and indemnify Indemnitee to the fullest extent permitted by law.

  Section 18.Severability.  If any provision or provisions of this Agreement is held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any Section of this Agreement containing any such 

   

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  provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) will not in any way be affected or impaired thereby and remain enforceable to the fullest extent permitted by law; (b) such provision or provisions will be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) will be construed so as to give effect to the intent manifested thereby.

  Section 19.Interpretation.  Any ambiguity in the terms of this Agreement will be resolved in favor of Indemnitee and in a manner to provide the maximum indemnification and advancement of Expenses permitted by law.  The Company and Indemnitee intend that this Agreement provide to the fullest extent permitted by law for indemnification and advancement in excess of that expressly provided, without limitation, by the Certificate of Incorporation, the Bylaws, vote of the Company stockholders or disinterested directors, or applicable law.

  Section 20.Enforcement.

  (a)The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving or continuing to serve as a director or officer of the Company.

  (b)This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation, the Bylaws and applicable law, and is not a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

  (c)Monetary Damages Insufficient/Specific Performance. The Company and Indemnitee agree that a monetary remedy for breach of this Agreement may be inadequate, impracticable and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm.  Accordingly, the parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing actual damage or irreparable harm (having agreed that actual and irreparable harm will result in not forcing the Company to specifically perform its obligations pursuant to this Agreement) and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which he may be entitled.  The Company and Indemnitee further agree that Indemnitee shall be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertaking in connection therewith.  The Company acknowledges that in the absence of a waiver, a bond or undertaking may be required of Indemnitee by the Court, and the Company hereby waives any such requirement of a bond or undertaking. If Indemnitee seeks mandatory injunctive relief, it shall not be a defense to enforcement of the Company’s obligations set forth in this Agreement that Indemnitee has an adequate remedy at law for damages.

  Section 21.Modification and Waiver.  No supplement, modification or amendment of this Agreement is binding unless executed in writing by the parties hereto.  No waiver of any of the provisions of this Agreement will be deemed or constitutes a waiver of any other provisions of this Agreement nor will any waiver constitute a continuing waiver.

  Section 22.Notice by Indemnitee.  Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder.  The failure of Indemnitee to so notify the Company does not relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise. 

  Section 23.Notice by Company. If the Indemnitee is the subject of, or is, to the knowledge of the Company, implicated in any way during an investigation, whether formal or informal, that is related to Indemnitee’s Corporate Status and that reasonably could lead to a Proceeding for which indemnification can be provided under this Agreement, the Company shall notify the Indemnitee of such investigation and shall share (to the extent legally 

   

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  permissible) with Indemnitee any information it has provided to any third parties concerning the investigation (“Shared Information”). By executing this Agreement, Indemnitee agrees that such Shared Information is material non-public information that Indemnitee is obligated to hold in confidence and may not disclose publicly; provided, however, that Indemnitee may use the Shared Information and disclose such Shared Information to Indemnitee’s legal counsel and third parties, in each case solely in connection with defending Indemnitee from legal liability.

  Section 24.Notices.  All notices, requests, demands and other communications under this Agreement will be in writing and will be deemed to have been duly given if (a) delivered by hand to the other party, (b) sent by reputable overnight courier to the other party or (c) sent by facsimile transmission or electronic mail, with receipt of oral confirmation that such communication has been received:

  (a)If to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee provides to the Company.

  (b)If to the Company to:

  Name: Biomea Fusion, Inc.

  Address: 900 Middlefield Road, 4th Floor

  	       Redwood City, California 94063

  Attention:  Chief Executive Officer

   

  or to any other address as may have been furnished to Indemnitee by the Company.

  Section 25.Contribution.  To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, will contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

  Section 26.Applicable Law and Consent to Jurisdiction.  This Agreement and the legal relations among the parties are governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules.  Except with respect to any arbitration commenced by Indemnitee pursuant to Section 14(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or Proceeding arising out of or in connection with this Agreement may be brought only in the Delaware Court of Chancery and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or Proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue of any such action or Proceeding in the Delaware Court, and (iv) waive, and agree not to plead or to make, any claim that any such action or Proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum. The Company hereby agrees to fully indemnify and hold harmless Indemnitee from any claims for contribution which may be brought by officers, directors or employees of the Company (other than Indemnitee) who may be jointly liable with Indemnitee.

  Section 27.Identical Counterparts.  This Agreement may be executed in one or more counterparts, each of which will for all purposes be deemed to be an original but all of which together constitutes one and the same Agreement.  Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

  Section 28.Headings.  The headings of this Agreement are inserted for convenience only and do not constitute part of this Agreement or affect the construction thereof.

   

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  IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year first above written.

   COMPANY						INDEMNITEE

By:											
Name:							Name:
Office:							Address:			
											
											

   

   

  -13-xeri_ex101.htm

EXHIBIT 10.1
  
 JOINT VENTURE AGREEMENT
  
 XERIANT, INC.
  
 MOVYCHEM, s.r.o.
  
 April __, 2022
  
  	 
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 JOINT VENTURE AGREEMENT
  
 This Joint Venture Agreement (this “Agreement“), effective as of April __, 2022 (the “Effective Date“) is between Xeriant, Inc., a Nevada corporation (“Xeriant“) with its principal executive office at Innovation Center #1, 3998 FAU boulevard, Suite 309, Boca Raton, Florida 33431, registered in the office of the State of Nevada Secretary of State, Entity Number E0649622009-0; and Movychem, s.r.o, a Slovakian limited liability company (“Movychem“) with its registered office at Svabska 1433/2, 951 31 Mocenok, the Slovak Republic, Identification No. 46515224 registered in the Commercial Register maintained by the No. 28814/T District Court Trnava; and will constitute the initial operating agreement of the Company under the Florida Revised Limited Liability Act (the “Florida Act“). Xeriant and Movychem shall be hereinafter referred to collectively as the “Parties“ and individually as a “Party.“ This Agreement is entered into with reference to the following facts:
  
  	  
	 A. 
	 The Parties wish to set forth herein the terms for the establishment of a joint venture (the “Joint Venture“ or the “Company“) to be used as a vehicle to distribute earnings, hold patents and issue licenses. As used herein, the Company and the Joint Venture shall have the same meaning and shall be used interchangeably.

	  
	  
	  

	  
	 B.
	 As soon as practicable the Parties shall file the Articles of Organization in accordance with the Florida Act.

	  
	  
	  

	  
	 C.
	 Xeriant is an aerospace company dedicated to the emerging aviation market called Advanced Air Mobility, the transition to eco-friendly on-demand flight. Xeriant is focused on the development and deployment of next-generation electrically powered aircraft capable of vertical takeoff and landing, breakthrough technologies and advanced materials which can be successfully integrated and commercialized, and the critical infrastructure components needed to support operations. Xeriant is a publicly traded company (OTCQB: XERI).

	  
	  
	  

	  
	 D. 
	 Movychem develops and manufactures advanced materials and chemicals and has created a series of flame retardants (Retacell) in the form of polymer gels, powders, liquids and pellets as presently existing and as hereinafter developed pursuant to this Agreement, (the “Products“).

	  
	  
	  

	  
	 E. 
	 As set forth herein, Movychem will contribute to Joint Venture all right, title and interest in and to its know-how and intellectual property exclusive of all patents related thereto (collectively, the “Movychem Intellectual Property“) now existing or hereinafter developed pursuant to this Agreement related to the Products.

 
  
  	 
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 Now, therefore, with reference to the foregoing facts, the Parties agree as follows: 
  
 1. Definitions and Interpretation. 
  
 1.1 Definitions. Capitalized terms used herein and not otherwise defined shall have the meanings set forth below: 
  
 “Affiliate“ means, with respect to any Person, any other Person who, directly or indirectly (including through one or more intermediaries), controls, is controlled by, or is under common control with, such Person. For purposes of this definition, “control,“ when used with respect to any specified Person, shall mean the power, direct or indirect, to direct or cause the direction of the management and policies of such Person, whether through ownership of voting securities or partnership or other ownership interests, by contract or otherwise; and the terms “controlling“ and “controlled“ shall have correlative meanings.
  
 “Agreement“ means this Joint Venture Agreement, as executed and as it may be amended, modified, supplemented or restated from time to time, as provided herein.
  
 “Applicable Law“ means all applicable provisions of (a) constitutions, treaties, statutes, laws (including the common law), rules, regulations, decrees, ordinances, codes, proclamations, declarations or orders of any Governmental Authority; (b) any consents or approvals of any Governmental Authority; and (c) any orders, decisions, advisory or interpretative opinions, injunctions, judgments, awards, decrees of, or agreements with, any Governmental Authority.
  
 “Approval“ means, with respect to the Approval of the Members, the unanimous Vote of the Members. 
  
 “Assignee“ means a Transferee of Units who does not become a Member. 
  
 “Business Day“ means a day other than a Saturday, Sunday or other day on which commercial banks in the City of Boca Raton, Florida are authorized or required to close.
  
 “Capital Contribution“ means, for any Member, the total amount of cash and cash equivalents and the Book Value of any other property contributed to the Company by such Member, in each case net of any liabilities assumed by the Company from such Member in connection with such contribution and net of any liabilities to which assets contributed by such Member in respect thereof are subject.
  
 “Cash Available for Distribution“ means all cash of the Company excluding (a) amounts necessary for the payment of the liabilities of the Company including the Xeriant Services Fee and the Movychem Patent Purchase Price payments, (b) such additional amounts as the Management Committee determines to be necessary or desirable as a reserve for the operation of the business and future or contingent liabilities of the Joint Venture and (c) amounts to be utilized for research and development (the “R & D Retention“).
  
 “Distribution“ means a transfer of money or other property to a Member or Assignee on account of a Unit.
  
 “Electronic Transmission“ means any form of communication not directly involving the physical transmission of paper that creates a record that may be retained, retrieved and reviewed by a recipient thereof and that may be directly reproduced in paper form by such a recipient through an automated process.
  
  	 
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 “Fiscal Year“ means the calendar year, unless the Company is required to have a taxable year other than the calendar year, in which case Fiscal Year shall be the period that conforms to its taxable year.
  
 “Governmental Authority“ means any federal, state, local or foreign government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority have the force of law), or any arbitrator, court or tribunal of competent jurisdiction.
  
 “IRC“ means the U.S. Internal Revenue Code of 1986, as amended.
  
 “Joinder Agreement“ means a joinder agreement in form and substance acceptable to the Company by which the Member agrees to be bound by the provisions of this Agreement.
  
 Joint Venture Intellectual Property means the Movychem Intellectual Property, the Joint Venture Patents and all other intellectual property developed or granted to the Joint Venture.
  
 “Joint Venture Patents“ means all patents and any patent applications licensed to or purchased by the Joint Venture pursuant this Agreement.
  
 “Manager“ means any member of the Management Committee.
  
 “Member“ means an owner of Units who is not an Assignee.
  
 “Membership Interest“ means an interest in the Company owned by a Member to any and all benefits to which such Member may be entitled as provided in this Agreement or the Florida Act. 
  
 “Movychem Patents“ means all patents and patent applications owned by Movychem prior to the transfer of ownership to the Joint Venure.
  
 “Movychem Patent Purchase Price“ means (a) $2,000,000 payable when Xeriant makes its capital contribution pursuant to Section 3.3(b); (b) $600,000 payable at the rate of $25,000 per month commencing the next month following the execution of the Xeriant Services Agreement and (c) 40% of all royalty payments received by the Joint Venture for the licensing of the Joint Venture Patents.
  
 “Party“ means a party to this Agreement and “Parties“ means two or more parties to this Agreement.
  
 “Patent Agreement“ means the agreement between the Joint Venture and Movychem pursuant to which the Joint Venture shall license and, after payment in full of the $2,000,000 portion of the Xeriant capital contribution pursuant to Section 3.3(b) , acquire the Movychem Patents from Movychem as referenced in Section 5.9.
  
  	 
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 “Percentage Interest“ means, for any Member, a ratio, expressed as percentage, equal to the number of Units held by such Member over the aggregate number of Units held by all the Members. 
  
 “Permitted Transfer“ has the meaning set forth in Section 7.6.
  
 “Permitted Transferee“ means the Transferee of Units in a Permitted Transfer.
  
 “Person“ means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association or other entity.
  
 “Related Party Agreement“ means any agreement between the Company, on one hand, and any Member, Manager or Officer of the Company (or any Affiliate thereof), on the other hand, as such agreement may be amended. 
  
 “Representative“ means, with respect to any Person, any and all directors, officers, employees, consultants, financial advisors, counsel, accountants and other agents of such Person.
  
 “Securities Act“ means the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations thereunder, which shall be in effect at the time.
  
 “Services Agreement“ means the Services Agreement between Xeriant and the Joint Venture pursuant to which Xeriant is to perform the services specified therein for a fee equal to 40% of the royalties received by the Joint Venture for the licensing of its intellectual property as referenced in Section 5.10.
  
 “Subsidiary“ means, with respect to any Person, any other Person of which a majority of the outstanding shares or other equity interests having the power to vote for directors or comparable managers are owned, directly or indirectly, by the first Person.
  
  “Transfer“ means to, directly or indirectly, sell, transfer, assign, pledge, encumber, hypothecate or similarly dispose of, either voluntarily or involuntarily, by operation of law or otherwise, or to enter into any contract, option or other arrangement or understanding with respect to the sale, transfer, assignment, pledge, encumbrance, hypothecation or similar disposition of, any Units owned by a Person or any interest (including a beneficial interest) in any Units owned by a Person. “Transfer“ when used as a noun shall have a correlative meaning. “Transferor“ and “Transferee“ mean a Person who makes or receives a Transfer, respectively.
  
 “Unit“ means an equity interest in the Company as defined in Section 3.1(a). 
  
 “Xeriant Services Fee“ means the fees payable to Xeriant pursuant to the Services Agreement.
   
  	 
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 1.2 Interpretation. For purposes of this Agreement: (a) the words “include,“ “includes“ and “including“ shall be deemed to be followed by the words “without limitation“; (b) the word “or“ is not exclusive; and (c) the words “herein,“ “hereof,“ “hereby,“ “hereto“ and “hereunder“ refer to this Agreement as a whole. The definitions given for any defined terms in this Agreement shall apply equally to both the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. Unless the context otherwise requires, references herein: (x) to Sections, and Exhibits mean the Sections of, and Exhibits attached to, this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof; and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the Party drafting an instrument or causing any instrument to be drafted. Any Exhibits referred to herein shall be construed with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein.
  
 2. Organization.
  
 2.1 Formation.
  
 (a) The Company will be formed as provided in the Recitals. 
  
 (b) This Agreement shall constitute the initial “operating agreement“ (as that term is used in the Florida Act) of the Company. The rights, powers, duties, obligations and liabilities of the Members shall be determined pursuant to the Florida Act and this Agreement. To the extent that the rights, powers, duties, obligations and liabilities of any Member are different by reason of any provision of this Agreement than they would be under the Florida Act in the absence of such provision, this Agreement shall, to the extent permitted by the Florida Act, control.
  
 2.2 Name. The name of the Company shall be such name or names as may be designated by the Management Committee; provided, that the name shall always contain the words “Limited Liability Company“ or the abbreviation “L.L.C.“ or the designation “LLC.“ The Management Committee shall give notice to the Members of any change to the name of the Company. The initial name of the Company shall be Ebenberg, LLC.
  
 2.3 Principal Office. The principal office of the Company is located at the offices of Xeriant, or such other place as may from time to time be determined by the Management Committee. The Management Committee shall give notice of any such change to each of the Members.
  
 2.4 Registered Office; Registered Agent.
  
 (a) The registered office of the Company shall be the office of the initial registered agent named in the Articles of Organization or such other office (which need not be a place of business of the Company) as the Management Committee may designate from time to time in the manner provided by the Florida Act and Applicable Law.
  
 (b) The registered agent for service of process on the Company in the State of Florida shall be the initial registered agent named in the Articles of Organization or such other Person or Persons as the Management Committee may designate from time to time in the manner provided by the Florida Act and Applicable Law.
  
  	 
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 2.5 Purpose; Powers.
  
 (a) The purpose of the Joint Venture will be to exploit the Movychem Intellectual Property and the Purchased Patents.
  
 (b) The Company shall have all the powers necessary or convenient to carry out the purposes for which it is formed, including the powers granted by the Florida Act.
  
 2.6 Term. The term of the Company commenced on the date the Articles of Organization was filed in accordance with the Florida Act and shall continue until the Company is dissolved in accordance with the provisions of this Agreement.
  
 2.7 No State-Law Partnership. Except to the extent provided in the next sentence, the Parties intend that the Company not be a partnership (including a limited partnership), and that no Member be a partner or joint venturer of any other Member by virtue of this Agreement, for any purposes other than as set forth in the last sentence of this Section 2.7, and neither this Agreement nor any other document entered into by the Company or any Member relating to the subject matter hereof shall be construed to suggest otherwise. The Members intend that, (i) as of the Effective Date, the Company shall be treated as a partnership for U.S. federal and, if applicable, state or local income tax purposes, and (ii) each Member and the Company shall file all tax returns and shall otherwise take all tax and financial reporting positions in a manner consistent with clauses (i) and (ii) of this sentence.
  
 3. Units; Capital Contributions; Capital Accounts.
  
 3.1 Units. The Company’s equity interests shall be represented by “Units.“ As of the date of this Agreement, the Company shall have one class of Units. The initial Units of the Company shall be 50 Units to Movychem and 50 Units to Xeriant.
  
 3.2 Additional Classes of Units. Subject to any other approval requirements set forth in this Agreement, the Management Committee may from time to time and at any time authorize the creation one or more additional classes or series of Units and shall have the right fix the relative privileges, preferences, duties, liabilities, obligations, and rights of any such new class of series of Units, including the preference over any other Units, and any contributions required in connection therewith, and may amend this Agreement to reflect such new class or series of Units and its relative privileges, preference, duties, liabilities, obligations, and rights. The Management Committee shall not have the power to amend adversely the rights, preferences or privileges of any outstanding class of Units without the Approval of Members holding that class of Units; provided that the issuance a new class of Units with rights, preferences or privileges that are on parity with or senior to a class of Units shall not be deemed a change in the rights, preferences or privileges of that class of Units.
  
  	 
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 3.3 Capital Contributions.
  
 (a) In consideration for the initial issuance of Units to Movychem, Movychem shall transfer all right, title and interest in and to the Movychem Intellectual Property pursuant to transfer documents in form and substance approved by the Management Committee.
  
 (b) In consideration for the initial issuance of Units to Xeriant, Xeriant shall contribute the amount of $2,600,000 payable as follows: (i) $600,000 payable at the rate of $25,000 per month over a 24 month period commencing the first day of the month immediately following the establishment of the Joint Venture and its related bank account, and (ii) $2,000,000 within five Business Days of the closing of a financing in which Xeriant receives net proceeds of at least $3,000,000 but in no event later than six months from the Effective Date.
  
 3.4 Issuance of Additional Units. The Management Committee may in its sole discretion authorize the Company to issue and sell Units on the terms and conditions, including purchase price, as the Management Committee shall believe appropriate.
  
 4. Members; Assignees.
  
 4.1 No Personal Liability. Except as otherwise provided in the Florida Act, by Applicable Law or expressly in this Agreement, no Member will be obligated personally for any debt, obligation or liability of the Company or other Members, whether arising in contract, tort or otherwise, solely by reason of being a Member.
  
 4.2 No Withdrawal. So long as a Member continues to hold any Units, such Member shall not have the ability to withdraw or resign as a Member prior to the dissolution and winding up of the Company and any such withdrawal or resignation or attempted withdrawal or resignation by a Member prior to the dissolution or winding up of the Company shall be null and void. As soon as any Person who is a Member ceases to hold any Units, such Person shall no longer be a Member. A Member shall not cease to be a Member as a result of the bankruptcy of such Member.
  
 4.3 Meetings of Members.
  
 (a) Meetings of the Members may be called only by the Management Committee or with the Approval of the Members.
  
 (b) Written notice stating the place, date and time of the meeting and describing the purposes for which the meeting is called shall be delivered not fewer than two days and not more than 30 days before the date of the meeting to each Member or Member of the applicable class, by or at the direction of the Management Committee or the Member(s) calling the meeting, as the case may be. Meetings of Members may be held at the Company’s principal office or at such other place as the Management Committee or the Member(s) calling the meeting may designate in the notice for such meeting.
  
 (c) Any Member shall be permitted to participate in a meeting of the Members by means of conference telephone or video or other communications equipment by means of which all Persons participating in the meeting can hear each other, and participation in a meeting by such means shall constitute presence in person at such meeting.
  
  	 
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 (d) On any matter that is to be voted on by Members or class of Members, a Member may vote in person or by proxy, and such proxy may be granted in writing, by means of Electronic Transmission or as otherwise permitted by Applicable Law. Every proxy shall be revocable in the discretion of the Member executing it unless otherwise provided in such proxy; provided, that such right to revocation shall not invalidate or otherwise affect actions taken under such proxy prior to such revocation.
  
 (e) The business to be conducted at such meeting need not be limited to the purpose described in the notice and can include business to be conducted by Members or class of Members; provided, that the appropriate Members shall have been notified of the meeting in accordance with Section 4.3(b). Attendance of a Member at any meeting shall constitute a waiver of notice of such meeting, except where a Member attends a meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened.
  
 4.4 Quorum; Action by Members. A quorum of any meeting of the Members shall require the presence of the Members holding a majority of the Units held by Members. No action at any meeting may be taken by the Members or class(es) of Members unless the appropriate quorum is present. Unless this Agreement expressly provides for a different approval threshold, Members shall act by unanimous vote of the Members.
  
 4.5 Action without a Meeting. Notwithstanding the provisions of Section 4.3, any matter that is to be Approved by Members may be taken without a meeting, without prior notice and without a vote if consented to, in writing or by Electronic Transmission, by Members holding not less than a majority of the outstanding Units held by Members (or such lesser or greater percentage to approve such matter as may be specified in this Agreement). A record shall be maintained by the Management Committee of each such action taken by written consent of the Members.
  
 4.6 Power of Members. The Members shall have the power to exercise any and all rights or powers granted to Members pursuant to the express terms of this Agreement and the Florida Act. Except as otherwise specifically provided by this Agreement or required by the Florida Act, no Member, in its capacity as a Member, shall have the power to act for or on behalf of, or to bind, the Company.
  
 4.7 No Interest in Company Property. No real or personal property of the Company shall be deemed to be owned by any Member individually, but shall be owned by, and title shall be vested solely in, the Company. Without limiting the foregoing, each Member hereby irrevocably waives during the term of the Company any right that such Member may have to maintain any action for partition with respect to the property of the Company.
  
 4.8 Other Activities; Business Opportunities. Nothing contained in this Agreement shall prevent any Member or any of its Affiliates from engaging in any other activities or businesses, regardless of whether those activities or businesses are similar to or competitive with the Business. None of the Members nor any of their Affiliates shall be obligated to account to the Company or to the other Member for any profits or income earned or derived from other such activities or businesses. None of the Members nor any of their Affiliates shall be obligated to inform the Company or the other Member of any business opportunity of any type or description.
  
  	 
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 5. Management
  
 5.1 Management Committee. 
  
 The management and control of the Joint Venture shall be exclusively vested in a Management Committee (the “Management Committee“). Without limiting the generality of the foregoing, the responsibilities and obligations of the Management Committee shall include the following:
  
 (a) Establishing and modifying the business plan of the Joint Venture;
  
 (b) Enter into, make, and perform contracts in furtherance of the purposes of the Joint Venture;
  
 (c) Open and maintain bank accounts;
  
 (d) Purchase, lease, or otherwise acquire personal property; and
  
 (e) Retain services of third parties in connection with the business of the Joint Venture.
  
 5.2 Composition of Management Committee. The Management Committee shall consist of five members, two of whom shall be appointed by Xeriant, two of whom shall be appointed by Movychem and one of whom shall be appointed by mutual agreement of the Members (the “Independent Member“). The Independent Member shall serve for a period of six months for the first two terms, with all subsequent terms to be for a period of 12 months. An appointee of a Party may be removed or replaced only at the discretion of such Party. The members of the Management Committee shall not receive any compensation in connection with their acting in the capacity as a member of the Management Committee.
  
 5.3 Actions of the Management Committee. All actions of the Management Committee shall require a majority vote of the Management Committee, except that the following actions shall require the unanimous approval of all members of the Management Committee:
  
 (a) Any agreement with a Party or any Affiliate of a Party;
  
 (b) The entering into of License Agreements, Sub-License Agreements, or Services Agreements, and the entering into of any other agreement pertaining to the exploitation or development of the Joint Venture Intellectual Property;
  
 (c) Approving any transfer of securities held by either Party other than to Affiliates;
  
 (d) Any sale of the Company;
  
  	 
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 (e) Admitting new members to the Joint Venture;
  
 (f) Increasing or decreasing the size of the Management Committee;
  
 (g) Dissolving and liquidating the Joint Venture;
  
 (h) Except as expressly provided herein, issuing any securities including additional Units or adopting any new class of securities; and
  
 (i) The payment of the R &D Retention Amount
  
 5.4 Appointment of Personnel From time to time, the Management Committee may employ individuals (who may also be employees of a Party) or consultants to provide services to the Joint Venture on terms and conditions established by the Management Committee (including receipt of compensation).
  
 5.5 Management Committee Meetings.
  
 (a) Meetings. Meetings of the Management Committee for any purpose or purposes may be called at any time by any Manager.
  
 (b) Notice of Meetings. Unless the Managers waive notice of, or consent to, a meeting, a notice stating the date, hour and place of any meeting of the Management Committee shall be given at least 48 hours and not more than 10 days prior to the meeting. Notice of any meeting of the Management Committee need not state the purpose of such meeting. Notice of meetings of the Management Committee shall be given to each Manager by at least one of the following methods:
  
 (i) Oral notice, effective when communicated;
  
 (ii) Facsimile or electronic mail, effective when sent to the facsimile number or electronic mail address maintained in the corporate records.
  
 (c) Waiver of Notice. Any Manager may waive notice of any meeting in writing before, at, or after such meeting. A Manager’s attendance at or participation in a meeting waives any required notice of the meeting unless the Manager at the beginning of the meeting, or promptly upon the Manager’s arrival, objects to holding the meeting, or transacting business at the meeting and does not thereafter vote for or assent to action taken at the meeting.
  
 (d) Telecommunications. Meetings of the Management Committee may be held by means of conference telephone or video or similar communications equipment by which all persons participating may simultaneously hear each other during the meeting. A Manager participating in a meeting by this means is deemed to be present in person at the meeting.
  
 (e) Quorum. The majority of the authorized number of Managers shall constitute a quorum for any meeting of the Management Committee. Except as expressly provided herein, at any meeting of the Management Committee at which a quorum is present, the affirmative vote or consent of a majority of such quorum shall be the approval or consent of the Management Committee unless this Agreement requires a greater vote.
  
  	 
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 (f) Management Committee Action Without a Meeting. Any action required or permitted to be taken by the Management Committee at a meeting may be taken without a meeting if (i) the action is authorized by written consent resolution signed by not less than the minimum number of Managers which would be necessary to authorize or take the action at a meeting at which all Managers were present and voted and (ii) the consents are filed with the records of the Company. Action taken by consent is effective when the last Manager signs the consent, unless the consent specifies a different effective date. A signed consent has the effect of a meeting vote and may be so described in any document.
  
 5.6 Limitation of Liability. To the maximum extent permitted under the Florida Act, no Person shall have personal liability to the Company or the Members for monetary damages for conduct as a Manager, except as specifically provided in this Agreement or to the extent that the Florida Act, as the same may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment does not adversely affect any right or protection of such person for actions or omissions prior to such amendment), prohibits elimination or limitation of such Person’s liability.
  
 5.7 Delegation of Authority. The Management Committee shall have the power to delegate authority to such committees of the Management Committee, officers, employees, agents and representatives of the Company as it may from time to time deem appropriate. Any delegation of authority to take any action must be approved in the same manner as would be required for the Management Committee to approve such action directly.
  
 5.8 Reliance by Third Parties. Any Person dealing with the Company, the Managers or any Member may rely (without duty of further inquiry) upon a certificate signed by any Manager as to (a) the identity and authority of a Manager to act on behalf of the Company; (b) any factual matters relevant to the affairs of the Company; (c) the persons who are authorized to execute and deliver any document on behalf of the Company; or (d) any action taken or omitted by the Company or the Managers.
  
 5.9 Movychem Patents. Until payment in full of the $2,000,000 portion of the capital contribution of Xeriant pursuant to Section 3.3(b), Movychem will grant to the Joint Venture an exclusive worldwide license to use the Movychem Patents until the earlier to occur of the payment of the $2,000,000 portion of the Xeriant capital contribution or the dissolution of the Joint Venture pursuant to Section 10.1(c). After such portion of the capital contribution is paid (and provided that (a)Xeriant is then current in the monthly payments portion of its capital contribution and (b)the Joint Venture has made to Movychem all such payments), the Movychem Patents will be transferred to the Joint Venture for the Movychem Patent Purchase Price. The foregoing shall be reflected in a Patent Agreement in form and substance satisfactory to the Parties.
  
 5.10 Services Agreement. As soon as reasonably practicable after the date hereof, the Joint Venture shall enter into the Services Agreement with Xeriant in form and substance satisfactory to the Parties.
  
  	 
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 6. Distributions; Payment to Members.
  
 6.1 Cash Available for Distribution shall be made to the Members when and in such amounts as determined by the Management Committee in its sole discretion. The Cash Available for Distribution shall be distributed in accordance with the Percentage Interest of the Members as of the time of the Distribution.
  
 6.2 Tax Withholding; Withholding Advances.
  
 (a) Tax Withholding. Each Member agrees to furnish the Company with any representations and forms as shall be required or otherwise reasonably requested by the Company to assist it in determining the extent of, and in fulfilling, any withholding obligations it may have and represents and warrants that the information, forms and certifications furnished by it shall be true, correct and complete in all material respects.
  
 (b) Withholding Advances. The Company is hereby authorized at all times to make payments with respect to each Member in amounts required to discharge any obligation of the Company ( based on the advice of legal or tax counsel to the Company, and which shall include, without limitation, any taxes, interest, penalties or additions to tax imposed thereon, ) to withhold or make payments to any U.S. federal, state, local or foreign taxing authority (a “Taxing Authority“) with respect to any Member (or former Member, in the case of an Imputed Underpayment Amount) (such amounts, “Withholding Advances“) and to withhold the same from distributions to such Member.
  
 6.3 Equity Payment to Movychem.
  
 In consideration for Movychem to transfer the Movychem Intellectual Property to the Joint Venture, provided that Movychem has transferred ownership of the Movychem Patents to the Joint Venture, Xeriant shall issue to Movychem five-year warrants (the “Warrants“) to purchase an aggregate of 170,000,000 shares (the “Warrant Shares“) of its Common Stock at an exercise price of $.01 per share (as adjusted for stock splits, stock dividends, recapitalizations and similar events) with a cashless exercise feature as follows:
  
 (a) Within five Business Days from written verification of certification of authorization from the equivalent of the National Fire Protection Association (NFPA) for use and exploitation of the Movychem Technology for any Licensed Product in the European Union, 42,500,000 Warrant Shares as follows: 10,625,000 Warrant Shares to Jiri Vylimec, 10,625,000 Warrant Shares to Roman Magdina, 10,625,000 Warrant Shares to Lubomir Nemecek and 10,625,000 Warrant Shares to Martin Stloukal.
  
 (b) Within five Business Days from written verification of certification of UL-94 of Polypropylene with Retacell additive resulting in UL-94-5VA, 42,500,000 Warrant Shares as follows: 10,625,000 Warrant Shares to Jiri Vylimec, 10,625,000 Warrant Shares to Roman Magdina, 10,625,000 Warrant Shares to Lubomir Nemecek, and 10,625,000 Warrant Shares to Martin Stloukal.
  
  	 
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 (c) Within five business days of generating $5,000,000 in gross revenue from the sale of Products licensed by the Joint Venture, 42,500,000 Warrant Shares as follows: 10,625,000 Warrant Shares to Jiri Vylimec, 10,625,000 Warrant Shares to Roman Magdina, 10,625,000 Warrant Shares to Lubomir Nemecek and 10,625,000 Warrant Shares to Martin Stloukal.
  
 (d) Within five business days of generating an additional $10,000,000 in gross revenues from the sale of Products licensed by the Joint Venture, 42,500,000 Warrant Shares as follows: 10,625,000 Warrant Shares to Jiri Vylimec, 10,625,000 Warrant Shares to Roman Magdina, 10,625,000 Warrant Shares to Lubomir Nemecek and 10,625,000 Warrant Shares to Martin Stloukal.
  
 7. General Restrictions on Transfer. 
  
 7.1 Each Member agrees not to Transfer any Units except in compliance with the provisions of this Agreement.
  
 7.2 Notwithstanding any other provision of this Agreement, each Member agrees not to Transfer any Units:
  
 (a) if such Transfer or issuance would violate the registration or qualification provisions of the Securities Act and other applicable state securities, and then if requested by the Company, only upon delivery to the Company of an opinion of counsel in form and substance satisfactory to the Company to the effect that such Transfer may be effected without registration under the Securities Act;
  
 (b) if such Transfer would be to a Person that the Management Committee reasonably deems a competitor of the Company; 
  
 (c) Any Transfer or attempted Transfer of any Unit in violation of this Agreement shall be null and void, no such Transfer shall be recorded on the Company’s books and the purported Transferee in any such Transfer shall not be treated (and the purported Transferor shall continue be treated) as the owner of such Unit for all purposes of this Agreement.
  
 7.3 For the avoidance of doubt, any Transfer of a Unit permitted by this Agreement shall be deemed a Transfer of such Unit in its entirety as intended by the parties to such Transfer. 
  
 7.4 No Member may Transfer all or any portion of its Units without first providing to the Company such information, documentation and forms requested by the Company to determine whether any tax withholding applies to the Transfer and evidence satisfactory to the Company that any such required tax withholding has been done in accordance with Applicable Law
  
 7.5 No Member may pledge, hypothecate or grant a security interest in its Units without the prior written consent of the Management Committee.
  
  	 
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 7.6 Permitted Transfers. A Member may Transfer all or any portion of its Units as follows (each, a “Permitted Transfer“) only: to an entity Affiliate of such entity. If the Transferring Member is a Member, the Permitted Transferee shall become a Member automatically without the approval of the Management Committee provided that, if requested by the Management Committee, such Transferee executes a Joinder Agreement.
  
 8. Confidentiality.
  
 Each party shall maintain confidentiality of all confidential information of the other Party and the Joint Venture, and without obtaining the written consent of the other Party, it shall not disclose any relevant confidential information to any third parties, except for information that: (a) is or will be in the public domain (other than through the receiving Party’s unauthorized disclosure) ) (b) is under the obligation to be disclosed pursuant to Applicable Law, rules of any stock exchange or orders of any Governmental Authority; or (c) is required to be disclosed by any Party to its shareholders, investors, legal counsel of financial advisors regarding the transactions contemplated hereunder, provided that such parties shall be bound by the confidentiality obligations similar to those set forth in this Section. The obligations hereunder shall survive the termination of this Agreement.
  
 9. Reports; Accounting; Tax Matters.
  
 9.1 Books and Records. The books and records of the Company shall be kept, and the financial position and the results of its operations recorded, in accordance with the accounting methods followed for U.S. federal income tax purposes. The books and records of the Company shall reflect all the Company transactions and shall be appropriate and adequate for the Company’s business. The Company shall maintain at its principal office:
  
 (a) A copy of the Articles of Organization and any and all amendments thereto;
  
 (b) Copies of the Company’s U.S. federal, state and local income tax or information returns and reports, if any, for the three most recent taxable years;
  
 (c) A copy of this Agreement and any and all amendments thereto together with executed copies of any powers of attorney pursuant to which this Agreement or any amendments thereto have been executed; and
  
 (d) Copies of the financial statements of the Company, if any, for the three most recent Fiscal Years.
  
 9.2 Delivery to Members and Inspection.
  
 (a) Upon the request of any Member, the Company shall promptly deliver to the requesting Member at the expense of the Company a copy of the information required to be maintained by Section 9.1 except for financial statements as of dates or for periods ending more than two years prior to the request.
  
  	 
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 (b) Upon reasonable notice from a Member, the Company shall afford such Member and its representatives access during normal business hours to (a) the Company’s properties, offices, plants and other facilities; and (b) the corporate, financial and similar records, reports and documents of the Company, including, without limitation, all books and records, minutes of proceedings, internal management documents, reports of operations, reports of adverse developments, copies of any management letters and communications with Members or Managers. Each Member and its representatives to examine such documents and make copies thereof.
  
 (c) Income Tax Status. It is the intent of this Company and the Members that this Company shall be treated as a partnership for U.S. federal, state and local income tax purposes. Neither the Company nor any Member shall make an election for the Company to be classified as other than a partnership for U.S. income tax purposes.
  
 9.3 Tax Returns. At the expense of the Company, the Company shall endeavor to cause the preparation and filing of all tax returns required to be filed by the Company pursuant to the IRC as well as all other required tax returns in each jurisdiction in which the Company owns property or does business. Within 120 days after the end of each Fiscal Year, or as soon as reasonably practicable thereafter, the Partnership Representative will cause to be delivered to each Person who was a Member at any time during such Fiscal Year, IRS Schedule K-1 to Form 1065 and any other tax information reasonable requested by the Member in order to complete their tax returns.
  
 9.4 Company Funds. All funds of the Company shall be deposited in its name, or in such name as may be designated by the Management Committee, in such checking, savings or other accounts, or held in its name in the form of such other investments as shall be designated by the Management Committee. The funds of the Company shall not be commingled with the funds of any other Person. All withdrawals of such deposits or liquidations of such investments by the Company shall be made exclusively upon the signature or signatures of such Officer or Officers as the Management Committee may designate.
  
 10. Dissolution and Liquidation.
  
 10.1 Events of Dissolution. The Company shall be dissolved and its affairs wound up only upon the occurrence of any of the following events:
  
 (a) The affirmative vote or written Approval of the Members, or
  
 (b) The entry of a decree of judicial dissolution under the Florida Act.
  
 (c) In the event that Xeriant fails to make any of the contributions set forth in Section 3.3(b) of this Agreement, or the Company fails to make any payments required to be made by the Company to Movychem hereunder, Movychem shall have the right to issue a written default notice under Section 11.3 of this Agreement. Xeriant or the Company, as the case may be, shall have a period of 30 days from receipt of such notice to cure such default except that in respect of a default under Section 3.3(b)(ii), Xeriant shall have the right to extend the cure period by an additional 30 days upon payment of $100,000 to Movychem. In the event that Xeriant or the Company fails to cure its breach within the time period provided, Movychem shall have a right to cause the dissolution of the Company upon written notice to Xeriant and the Company. In connection with this subparagraph (c), the provisions of Section 10.4 shall apply.
  
  	 
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 10.2 Effectiveness of Dissolution. Dissolution of the Company shall be effective on the day on which the event described in Section 10.1 occurs, but the Company shall not terminate until the winding up of the Company has been completed, the assets of the Company have been Distributed as provided in Section 10.3.
  
 10.3 Liquidation. If the Company is dissolved pursuant to Section 10.1, the Company shall be liquidated and its business and affairs wound up in accordance with the Florida Act and the following provisions:
  
 (a) Winding-Up Period. Upon a dissolution of the Company pursuant to Section 10.1 hereof, all property, income and other interests of the Company shall be distributed or returned to the Parties as provided herein and the business of the Company shall be fully and finally wound up and terminated within sixty (60) days after the date of the occurrence of the event causing dissolution (“Date of Dissolution“) or such longer period as the Management Committee shall designate in order to preserve the Company’s rights with respect to any of its assets.
  
 (b) Liquidating Manager. The Management Committee shall direct and control the winding-up of the affairs of the Company, subject to the terms of this Section 10, and is hereby appointed the true and lawful attorney-in-fact of the Company, and of each Party with full power of substitution and delegation, irrevocable and coupled with an interest, to execute and deliver such documents and instruments as may be necessary to wind up the affairs of the Company and to distribute the property, income and interests of the Company as herein provided.
  
 (c) Payments in Dissolution. Upon the dissolution and liquidation of the assets of the Company, the Management Committee shall take the proceeds from such liquidation to the extent they are sufficient, and apply and distribute them in the following order of priority:
  
 (i) To the payment of creditors (including any Party to whom the Company may be indebted) in the order of priority as provided by law or this Agreement.
  
 (ii) To the establishment of any reserves that the Management Committee may deem advisable for contingent liabilities.
  
 (iii) To each Party in proportion and to the extent of their respective positive capital account balances after allocating all net income and net losses of the Company for all periods.
  
 (iv) To the Parties in equal amounts.
  
 Upon completion of the dissolution and winding up of the Company, the Company shall terminate.
  
  	 
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 10.4 Dissolution Pursuant to Section 10.1(c). Notwithstanding anything herein to the contrary, in the event of a dissolution pursuant to Section 10.1(c): (i) the Company shall transfer back to Movychem all Joint Venture Intellectual Property, (ii) the license agreement to the Joint Venture referred to in Section 5.9 shall terminate, (iii) any outstanding licenses pursuant to which the Company is licensor shall be assigned by the Company to Movychem, (iv) Movychem shall have the right to retain any portion of the Movychem Patent Purchase Price it has thenreceived and (v) the Services Agreement between the Company and Xeriant shall be assigned by the Company to Movychem and such agreement shall be amended to provide that the 40% of royalties to be paid to Xeriant pursuant thereto shall be limited to licensees who were first introduced to the Company or Movychem, as the case may be. Additionally, all unvested Warrants issued pursuant to Section 6.3 shall be extinguished and be of no force and effect.
  
 10.5 Survival of Rights, Duties and Obligations. Dissolution, liquidation, winding up or termination of the Company for any reason shall not release any Party from any Loss that at the time of such dissolution, liquidation, winding up or termination already had accrued to any other Party or thereafter may accrue in respect of any act or omission prior to such dissolution, liquidation, winding up or termination except that Section 10.4 shall be the exclusive remedy for any breach referred to in Section 10.1(c).
  
 11. Miscellaneous.
  
 11.1 Expenses. Except as otherwise expressly provided herein, all costs and expenses, including fees and disbursements of counsel, financial advisors and accountants, incurred in connection with the preparation and execution of this Agreement, or any amendment or waiver hereof, and the transactions contemplated hereby shall be paid by the Party incurring such costs and expenses.
  
 11.2 Further Assurances. Each Party hereto agrees to execute and deliver all such other and additional instruments and documents and do all such other acts and things as may be necessary to more fully effectuate this Agreement and carry on the business contemplated herein.
  
 11.3 Notices. All notices, approvals, requests or demands (“Notices“) which any party is required or may desire to give to the other hereunder shall be in writing, unless otherwise specified, and shall be addressed to the address provided for herein. All Notices shall be given in one of the following ways: (i) by delivery to the address set forth in the first paragraph for such Party; (ii) by Federal Express or similar service; or (iii) by transmittal by any electronic means whether now known or hereafter developed, including but not limited to, pdf, telecopier, or laser transmissions, able to be received by the party intended to receive notice. Each Notice shall, except as herein expressly provided, be conclusively deemed to be effective when received. The addresses of the parties shall be those of which the other party actually receives written Notice and until further notice as set forth in the first paragraph of this Agreement.
  
 11.4  Captions. The various captions of this Agreement are for reference only and shall not be considered or referred to in resolving questions of interpretation of this Agreement.
  
  	 
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 11.5 Severability. Every provision of this Agreement is severable. If any provision is held to be invalid, illegal or unenforceable under Applicable Law in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction.
  
 11.6 Entire Agreement. This Agreement, together with the Articles of Organization and any related Exhibits and Schedules, constitutes the sole and entire agreement of the Parties with respect to the subject matter contained herein and therein, and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter. In the event of any conflict between the provisions of this Agreement and the Term Sheet, the provisions of this Agreement shall prevail.
  
 11.7 Successors and Assigns. Subject to the restrictions on Transfers set forth herein, this Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective heirs, executors, administrators, successors and assigns.
  
 11.8 No Third-party Beneficiaries. Except as provided in Section 10 which shall be for the benefit of and enforceable by Covered Persons as described therein, this Agreement is for the sole benefit of the Parties (and their respective heirs, executors, administrators, successors and assigns) and nothing herein, express or implied, is intended to or shall confer upon any other Person, including any creditor of the Company, any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
  
 11.9 Amendment. This Agreement may be amended only by the Approval of all of the Members.
  
 11.10  Waiver. No consent or waiver, express or implied, by any Party to or of any breach or default by any other Party in the performance by the other of its obligations hereunder shall be deemed or construed to be a consent to or waiver of any other breach or default in the performance by such other Parties of the same or any other obligations of such Party hereunder. 
  
 11.11 Governing Law. All issues and questions concerning the application, construction, validity, interpretation and enforcement of this Agreement shall be governed by and construed in accordance with the internal laws of the State of Florida, without giving effect to any choice or conflict of law provision or rule (whether of the State of Florida or any other jurisdiction) that would cause the application of laws of any jurisdiction other than those of the State of Florida.
  
 11.12 Equitable Remedies. Each Party acknowledges that a breach or threatened breach by such Party of any of its obligations under this Agreement would give rise to irreparable harm to the other Parties, for which monetary damages would not be an adequate remedy, and hereby agrees that in the event of a breach or a threatened breach by such Party of any such obligations, each of the other Parties shall, in addition to any and all other rights and remedies that may be available to them in respect of such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance and any other relief that may be available from a court of competent jurisdiction (without any requirement to post bond).
  
  	 
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 11.13 Attorneys’ Fees. If any Party is a party to any action or proceeding to enforce any of the terms of this Agreement or any action or proceeding in any other way pertaining to this Agreement, the prevailing party in such action or proceeding (as determined by the judge or presiding official therein) shall be entitled to receive from the opposing party or parties the prevailing party’s costs and reasonable accountants’, experts’ and attorneys’ fees incurred in prosecuting, defending or appearing in such action or proceeding.
  
 11.14 Remedies Cumulative. Each right, power and remedy provided for herein or now or hereafter existing at law, in equity, by statute or otherwise shall be cumulative and concurrent and shall be in addition to every other right, power or remedy provided for herein or now or hereafter existing at law, in equity, by statute or otherwise, and the exercise or beginning of the exercise or the forbearance of exercise by any party of any one or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by such party of any or all of such other rights, powers or remedies.
  
 11.15 Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each Party and delivered to the other Parties, it being understood that the Parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by email delivery of a “pdf“ format data file, such signature shall create a valid and binding obligation of the Party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “pdf“ signature page were an original thereof.
  
  [SIGNATURE PAGE FOLLOWS]
  
  	 
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.
  
  	 	Members:	
	  
	  
	  

	  
	 Xeriant, Inc.
	  

	 	 	 	 
		By:		
	  
	  
	Keith Duffy, CEO	 

 
  
  	 	Movychem, s.r.o.	
	 	 	 	 
		By:		
	  
	  
	Jiri Vylimec	 

 
  
  		By:		
	  
	  
	Roman Magdina	 
	 	 		 
	 	By:	 	 
	  
	  
	 Lubomir Nemecek
	  

	  
	  
	  
	  

 
  
  	Equity Payment Recipients (Section 6.3):	
	 	 	 
	By:		
	  
	Jiri Vylimec/Rodne Cislo:	 
	 		 
	By:	 	 
	  
	 Roman Magdina/Rodne Cislo:
	  

	  
	  
	  

	 By:
	  
	  

	  
	 Lubomir Nemecek/Rodne Cislo:
	  

	  
	  
	  

	 By:
	  
	  

	  
	 Martin Stloukal/Rodne Cislo:
	  

 
  
  	 
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