Document:

entest_ex10-01.htm

Exhibit 10.01

 

 

This Contract Research Services Agreement (“Agreement”) is made effective as of the 19th day of October, 2011 by and between RenovoCyte LLC, (“RenovoCyte”), and Entest BioMedical, Inc., a Nevada corporation (“CRO”).

 

WHEREAS, RenovoCyte is desirous of conducting a 10 dog pilot study of the safety and effectiveness of utilization of stem cell therapy for the treatment of arthritis in animals (“Pilot Study”)

 

WHEREAS,  RenovoCyte wishes to retain CRO, and CRO wishes to be retained by RenovoCyte, to provide certain services to RenovoCyte  on the terms and conditions set forth herein;

 

THERFORE, It is agreed as follows:

 

	
  

	
1.

	
Provision of Services.

 

Pursuant to the Terms and Conditions of this Agreement, CRO shall provide the following services in connection with the Pilot Study:

 

	
  

	
(a)

	
See attached Protocol

 

	
  

	
2.

	
Term

 

The term of this Agreement shall commence as of October 19, 2011 and shall terminate upon completion of the Pilot Study or October 19, 2015, whichever is earlier.

 

	
  

	
3.

	
Consideration

 

Consideration to CRO for entering into this Agreement and abiding with its terms and conditions shall consist of:

 

	
  

	
(a)

	
Results of the Pilot Study shall be jointly published by CRO and RenovoCyte.

 

	
  

	
4.

	
Provision of Materials by  RenovoCyte

 

The following shall be provided to CRO by RenovoCyte for use in the Pilot Study at no charge to CRO (cost to be borne by patient):

 

	
  

	
(a)

	
Canine mesenchymal multipotent stem cell (MSC) injections per agreed on protocol (Two to three injections per patient dosed per kg body weight) – the cost for the MSC will be paid for by Medistem Inc. (MEDS).  MEDS will negotiate directly with RenovoCyte on cost of therapy.

 

	
  

	
(b)

	
Shipping and handling of MSC injections

 

	
  

	
(c)

	
CRO, RenovoCyte and MEDS will equally participate in all resulting publications.

 

 

  

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5.

	
Independent Contractors.

 

The parties hereto are independent contractors. Neither party shall have any authority to, or offer or agree to, incur or assume any obligations or commitments in the name of, or on behalf of, the other party, except as expressly provided herein.

 

	
  

	
6.

	
Confidentiality

 

           A.           Confidential Information. During the term of this Agreement the parties may exchange confidential or proprietary information. In each case the party disclosing the confidential information will be the “Disclosing Party” and the recipient of the information will be the “Recipient,” as such terms are used herein. The Materials and any and all inventions, products, product development plans, standard operating procedures, costs, profits, markets, sales, services, investigator lists, key personnel, pricing policies, billing rates, operational methods, trade secrets, know-how, scientific and technical processes, technical and business information, patent information, structures, models, techniques, formula, processes, compositions, compounds, apparatus, specifications, samples, ideas, other business affairs and methods, plans for future developments, and other information not readily available to the public relating to the Disclosing Party or to any aspect of the business of the Disclosing Party or of the business of any affiliate of the Disclosing Party (collectively, the “Confidential Information”) shall be treated as confidential information, regardless of whether or not marked as proprietary or confidential. Confidential Information may be disclosed orally, visually or in tangible form (whether by document, electronic media, or other form).

 

           B.           Non-Disclosure. The Recipient agrees to hold the Disclosing Party’s Confidential Information in confidence and shall use such Confidential Information only for the purpose of performing the Services. The Recipient shall not reproduce the Confidential Information, or disclose any Confidential Information to any third party, without prior written approval of the Disclosing Party. The Recipient agrees to protect the Confidential Information with at least the same degree of care as it normally exercises to protect its own proprietary information of a similar nature, but in any case using no less than a reasonable degree of care. The Recipient shall take all appropriate steps to ensure that all of its employees, consultants, affiliates or others only receive the Disclosing Party’s Information on a need-to-know basis, within the scope of this Agreement, and then, only if such parties are bound by obligations of confidentiality substantially similar to the terms of this Section 6. Without limiting any other provision of this Section 6, the Recipient shall not use the Disclosing Party’s Information, in whole or in part, to compete with the Disclosing Party, to develop blocking technology, or otherwise to damage the Disclosing Party or to enable or assist any other person in doing so.

 

 

 

 

  

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           C.           No Transfer of Rights. Nothing in this Section 6 shall be construed as granting or implying any license or right under any trademark, service mark, patent, copyright or any other intellectual property right. None of the Confidential Information which may be disclosed by the Disclosing Party shall constitute any representation, warranty, assurance, guarantee or inducement by the Disclosing Party to the Recipient, including, without limitation, with respect to the non-infringement of intellectual property rights, or other rights of third persons, or as representing any commitment to enter into any additional agreement, by implication or otherwise.

 

           D.           Return/Destruction of Confidential Information. The Recipient, upon the written request of the Disclosing Party, shall, at the option of the Disclosing Party, (i) return, at the Disclosing Party’s expense, or (ii) destroy, all tangible or electronic forms of the Confidential Information; provided, however, that the Recipient may retain a single copy of the Confidential Information and related materials in its archives solely for the purpose of ensuring its compliance with this Agreement and applicable laws, provided that the single copy is maintained in a secure system and remains subject to the confidentiality obligations of this Section 6. The Recipient agrees to provide a written certification of destruction in accordance with clause (ii) above upon the written request of the Disclosing Party.

 

           E.           Length of Obligation. The obligations of the Recipient with respect to Confidential Information set forth herein shall continue for a period of seven (7) years from the date of disclosure of Confidential Information, or for a longer period if so required by law, unless otherwise specified in a writing signed by both of the parties.

 

           F.           Exceptions. For purposes of this Agreement, Confidential Information shall not include:

 

	
  

	
i.

	
Information that is or becomes public other than by breach of these provisions of this Agreement;

 

	
  

	
ii.

	
Information required to be disclosed in any legal, administrative or governmental proceeding, or by court order, law or applicable regulation, provided that, if possible, the Recipient has provided notice to the Disclosing Party of such requirement to disclose and affords to the Disclosing Party an opportunity to challenge such disclosure;

 

 

 

  

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iii.

	
    Information that becomes available to the Recipient without any obligation of confidentiality on Recipient from a source other than the Disclosing Party, or its representatives or affiliates, as evidenced by written records; or

 

	
  

	
iv.

	
Information that was independently developed by or for the Recipient without access to the Confidential Information, as evidenced by written records.   The Recipient shall have the burden of proving the existence of any of the foregoing exceptions.

 

	
  

	
7.

	
Intellectual Property

 

Inventions derived from the Pilot Study shall be the property of RenovoCyte.

 

	
  

	
8.

	
Warranties and Representations.

 

 Each party warrants and represents that (i) it is duly organized, validly existing and in good standing under the laws of the state of its incorporation or formation; (ii) it has the power and authority and legal right to enter into this Agreement and to perform the obligations hereunder and that it has taken all necessary action to authorize execution of this Agreement; (iii) all necessary consents, approvals and authorizations of governmental authorities and other persons required to be obtained have been obtained; (iv) the execution and delivery of this Agreement will not conflict with or violate any requirement of any applicable laws or regulations, and do not conflict with or constitute a default under any contractual obligation enforceable against it.

 

9. Binding Agreement

 

 This Agreement shall be binding on and inure to the benefit of the parties hereto and their respective legal representatives, successors and permitted assigns.

 

10.      Force Majeure.

 

A party shall be excused from performing its obligations hereunder if its performance is directly delayed or prevented by any cause beyond such party’s reasonable control including, but not limited to, acts of God, fire, explosion, weather, disease, war, insurrection, civil strife, riots, government action, inability to obtain test subjects or power failure; provided that (a) the delayed or prevented party (i) gives the other party written notice of such cause promptly and (ii) uses its reasonable best efforts to perform its obligations notwithstanding such circumstances. Performance shall be excused only to the extent of and during the reasonable continuance of such cause if such cause continues to directly delay or prevent performance. Suspension by a party of its obligations hereunder during a force majeure event shall not constitute a breach of this Agreement or such obligations hereunder, nor shall a party have any liability to the other party for such suspension. If an event of force majeure extends for a period exceeding 4 months (120) days, RenovoCyte may, at its sole option, elect to terminate this Agreement.

 

 

 

  

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11. Amendments.

 

This Agreement may be modified or amended only by a writing executed by both parties hereto.

 

12. Entire Agreement.

 

This Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof. There are no representations, warranties, covenants or undertakings with respect to the subject matter hereof other than those expressly set forth herein. This Agreement supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions between the parties with respect to the subject matter hereof. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

 

13. Notices.

 

Notices. All notices shall be in writing and shall be personally delivered or sent by certified mail, return receipt requested, to the parties at the addresses set forth above or at such other addresses as may be furnished in writing to the other party hereto.

 

Notices to CRO shall also be sent to:

 

David R. Koos

Chairman & CEO

Entest BioMedical Inc.

4700 Spring Street, Suite 203

La Mesa, CA 91942

 

Notices to RenovoCyte:

 

Shelly J. Zacharias, DVM

Director of Veterinary Operations

RenovoCyte, LLC

1102 Indiana Avenue

Indianapolis, IN. 46202

Notices to Medistem shall be sent to:

Thomas Ichim, PhD

Chief Executive Officer

Medistem Inc.

9255 Towne Centre Drive, Suite 450

San Diego, CA 92121

 

Notices shall be deemed given on the date of actual receipt.

 

 

  

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14. Governing Law, Venue

 

The terms and conditions of this Agreement shall be governed by and construed in accordance with the laws of the State of California, without reference to its choice of law rules. Any action arising as a result of this Letter shall be brought in the state courts located in San Diego County, State of California.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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

 

	  	  	  
	
ENTEST BIOMEDICAL, INC.

	  	  
	
By:

	  	
/s/David Koos

	
Name:

	  	
David Koos

	
Title:

	  	
CEO

	
Date:

	  	
10/19/2011

	  
	
RENOVOCYTE LLC.

	  	  
	
By:

	  	
/S/Shelly Zacharias

	
Name:

	  	
Shelly Zacharias

	
Title:

	  	
Director of Veterinary Operations

	
Date:

	  	
10/21/2011

 

	
MEDISTEM, INC.

	  	  
	  	  	  
	
By:       /s/Thomas Ichim

	  	  
	
Name: Thomas Ichim

	  	  
	
Title: CEO

	  	  
	
Date: 10/19/2011

	  	  

 

 

 

 

 

 

  

7ex10-2.htm

Exhibit 10.2

 

October 20, 2011

The Board of Directors

Family Benefit Life Insurance Company

812 Madison

Jefferson City, Missouri 65101

Re: Trinity Life Insurance Company Purchase Proposal of Family Benefit Life Insurance Company

Pursuant to a request from the Board of Directors of Family Benefit Life Insurance Company (“Family Benefit Life” or the “Company”), Trinity Life Insurance Company (“Trinity Life”) presents the following Purchase Proposal to offer to acquire for cash all of the issued and outstanding shares of Family Benefit Life from its shareholders (the “transaction”).  Trinity Life thanks all of the members of the Company’s Board of Directors for the opportunity to make this Purchase Proposal.

Proposed Purchase Price

The purchase price payable and to be offered each shareholder of  the issued and outstanding shares of Family Benefit Life is estimated to be $11.09 per issued and outstanding share, based upon the statutory assets, liabilities, capital and surplus presented in accordance with statutory accounting principles plus a premium above the statutory assets, liabilities, capital and surplus with amounts determined using statutory amounts and number of shares issued and outstanding as of September 30, 2011.

The amounts shown below are representations of the ultimate purchase price payable and are based upon the amounts presented in Family Benefit Life’s Quarterly Statutory Statement as of June 30, 2011 plus an estimate of the Company’s statutory third quarter 2011 results.  This purchase price will be adjusted to the appropriate actual statutory amounts and number of shares issued and outstanding as presented in the Company’s Quarterly Statutory Statement as of September 30, 2011, with such adjustments set forth below to be  finalized no later than seven (7) days from the date that Trinity Life receives Company’s statutory financial statement prepared in
accordance with statutory accounting principles for the quarter ending September 30, 2011, along with all requested due diligence items.

	
  

	
1.

	
$10,600,000 (estimated aggregate statutory capital and surplus as of September 30, 2011) as presented on Line 38, page 3 of Company’s statutory financial statement prepared in accordance with statutory accounting principles as of September 30, 2011.

	
  

	
2.

	
$3,679,928 (premium above the estimated September 30, 2011 statutory capital and surplus)

 

  

  

  

 

	
  

	
3.

	
$14,279,928 (total estimated proposed purchase price as of September 30, 2011)

	
  

	
4.

	
1,287,640 (estimated shares issued and outstanding as of September 30, 2011)

	
  

	
5.

	
$11.09 (estimated proposed purchase price per issued and outstanding share as of September 30, 2011)

	
  

	
6.

	
This Purchase Proposal assumes that Trinity Life will offer to purchase the shares of Family Benefit Life common stock issued and outstanding from the Company’s shareholders for cash at the proposed purchase price (adjusted to the appropriate actual statutory amounts and number of shares issued and outstanding as presented in the Company’s Quarterly Statutory Statement as of September 30, 2011).  In addition to the terms described elsewhere in this Purchase Proposal, the aforementioned agreement would provide that the Board of Directors of Family Benefit Life, on behalf of Family Benefit Life, agree to the following:

	
  

	
a.

	
Recommend the Purchase Proposal to the Company’s shareholders, with the terms of the recommendation to be mutually agreed upon,

	
  

	
b.

	
Support any regulatory application(s) filed by Trinity Life in connection with this transaction,

	
  

	
c.

	
Refrain from entertaining offers from or negotiating with third parties that would frustrate the purpose of this transaction, and

	
  

	
7.

	
Each party shall notify and obtain consent of the other in advance of any public announcement of this agreement or the transactions contemplated hereby.

Future Plans for Family Benefit Life

If this Purchase Proposal is accepted and the transaction is completed, Trinity Life intends to

	
  

	
1.

	
Continue the marketing and sale of Family Benefit Life annuity and insurance products through the same procedures and distribution channels in which the Company has conducted its business complimented by introducing additional products and marketing teams.  Trinity Life’s philosophy is to maintain the benefits inherent in Family Benefit Life’s policies and contracts.  It has been our practice in acquisitions to not undertake actions detrimental to policyholders and agents such as reducing policyholder annuity interest rates to the guaranteed minimums, reduce or withhold agent commissions, etc.

	
  

	
2.

	
Trinity Life ultimately intends to operate Family Benefit Life as a wholly owned subsidiary of Trinity Life.   Effectuation of such intent depends upon, or may depend upon, transactions or occurrences to take place after consummation of the transaction herein.  Consummation of the transaction herein is not dependent upon such later transactions.  There are no plans or proposals to liquidate Family Benefit Life, to change the Company’s name, to sell its assets or merge it with any person or persons.

  

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3.

	
Maintain the statutory and administrative office of Family Benefit Life at its current location in Jefferson City, Missouri.

 

	
  

	
4.

	
Retain the current officers, management, staff, operating processes and systems of Family Benefit Life.

 

	
  

	
5.

	
Retain Ross Walquist as Family Benefit Life’s President.

 

	
  

	
6.

	
Form a nine (9) member Board of Directors composed of six (6) of Trinity Life’s Directors or Officers and three (3) of Family Benefit Life’s Directors or Officers.

 

	
  

	
7.

	
Begin the recruitment of new agents to Family Benefit Life to market its existing products in Missouri and other states where Family Benefit Life is currently licensed.  Trinity Life would file its current portfolio of products in Missouri and other states where Family Benefit Life is licensed.  Trinity Life would begin to seek admission to conduct business in additional states.

Other Technical Items

Due Diligence

This transaction is subject to Trinity Life’s completion to its sole satisfaction of its due diligence on Family Benefit Life, to be completed no later than seven (7) days from the date that Trinity Life receives Company’s statutory financial statement prepared in accordance with statutory accounting principles as of September 30, 2011, along with all requested due diligence items.  During business hours and upon reasonable notice to Family Benefit Life by Trinity Life after acceptance of this proposal by both parties and prior to completing the transaction, Family Benefit Life will
permit lawyers, accountants and other authorized representatives of Trinity Life to examine all of the books, records, assets, contracts and other information relating to Family Benefit Life and to engage in and complete a thorough due diligence review of Family Benefit Life including all tax returns and actuarial information.  Such representatives may also examine any other financial or corporate documents as they reasonably deem appropriate.  Family Benefit Life agrees to cooperate with such examinations and analyses and to make its employees and agents reasonably available to discuss such matters.  In the event the transaction is not consummated, Trinity shall return all materials obtained by its due diligence efforts to Family Benefit Life.

  

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Licenses

 

Family Benefit Life will maintain in good standing and full force and effect all seven (7) licenses and certificates of authority to conduct the business of Family Benefit Life.

Significant Developments

After the acceptance of this proposal by both parties and through the completion of the transaction, each party shall promptly provide the other party with information as to any significant developments in the performance of this agreement, and shall promptly notify the other parties if it discovers that any of the representations, warranties and covenants arising from this transaction or in any document or disclosure delivered or provided in this transaction was not true and correct in material respects or became untrue or incorrect in material respects.

Continue to Conduct Business in the Ordinary Course

After the acceptance of this proposal by both Parties and through the completion of the transaction, Family Benefit Life will conduct the business only in the ordinary course of business consistent with past business and industry custom and practice, and will incur no liabilities other than in the ordinary course of business consistent with past custom and industry practice, and no event, fact or circumstance will have an adverse effect on the assets, condition (financial or otherwise), operating results, employee or customer relations or business activities of Family Benefit Life (other than any events, facts or circumstances that relate primarily to (1) economic conditions in general; and
(2) the economic performance of the entire industry in which the Company is engaged).

Without limit to the foregoing, Family Benefit Life will not:

	
(a)

	
Sell, assign or transfer any material tangible asset (other than the sale of invested assets in the ordinary course of business consistent with past practices) or property right used in the business, or mortgaged, pledged or subjected them to any encumbrance, charge or other restriction, except for encumbrances for current property taxes not yet due and payable;

	
(b)

	
Sell, assign, transfer, abandon or permit to lapse any Governmental Permits that, individually or in the aggregate, are material to the business or the operation or any portion thereof, or received any notice from any Governmental Body of any restrictions, limitations, suspensions, or revocations of any such Governmental Permits, or disclosed any material proprietary confidential information to any person;

	
(c)

	
Conduct the cash management customs and practices (including the timing of collection of receivables and payment of payables and other current liabilities) and maintained the books and records of Family Benefit Life other than in the usual and ordinary course of business consistent with past custom and practice;

	
(d)

	
Make any material change in any underwriting, actuarial, investment, financial reporting or accounting practice or policy followed by Family Benefit Life, or in any assumption underlying such practice or policy, or in any method of calculating any bad debt, contingency, or other reserve for financial reporting purposes or for any other purposes;

 

  

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(e)

	
Make any loans or advances to, or guarantees or unwritten promises for the benefit of, or entered into any transaction with any shareholder, officer, director or affiliate of Family Benefit Life;

	
(f)

	
Suffer any decrease in the number of, or any change in the nature of, the insurance policies or annuity contracts in force of Family Benefit Life, or any change in the amount or nature of reserves, liabilities or other similar amounts of the Company with respect to such insurance policies and annuity contracts that might be expected to have an adverse effect, or any termination, amendment or execution by the Company of any reinsurance, coinsurance or other similar contract, as ceding or assuming reinsurer;

	
(g)

	
Declare, set aside or pay any dividend or distribution of cash or other property to any shareholder of the Company or sell, purchase, redeem or otherwise acquire or dispose of any shares of the Company’s capital stock including treasury stock, or make any other payments to any shareholder;

	
(h)

	
Amend or authorize the amendment of the Certificate of Incorporation or By-laws of the Company;

	
(i)

	
Pay or make a commitment to pay any severance or termination payment to any employee or consultant;

	
(j)

	
Make any capital expenditures, including without limitation, replacements of equipment in the ordinary course of business, or entered into commitments, except for capital expenditures or commitments which do not, in the aggregate, exceed $5,000;

	
(k)

	
Make any equity or debt investment or commitment in any person in excess of $5,000, other than in the ordinary course of business and consistent with past practice;

	
(l)

	
Make any amendment to or introduction of any new insurance policy or annuity contract on forms other than those issued in the past, other than in the ordinary course of business; or

	
(m)

	
Enter into any other material transaction, other than in the ordinary course of business consistent with past custom and practice.

Disclosures

After the acceptance of this proposal and through the completion of the transaction, except as may be required by applicable law, the parties will each consult with the others before issuing or making any reports, statements or releases to the public with respect to this transaction contemplated hereby and will use good faith efforts to agree on the text of a joint public report, statement or release or will use good faith efforts to obtain the other’s party’s approval of the text of any public report, statement or release to be made solely on behalf of a party.  If all of the parties are unable to agree on or approve any such public report, statement or release and such
report statement or release is, in the opinion of legal counsel to the party seeking to make such disclosure, required by law to discharge such party's disclosure obligations, then such party may make or issue the legally required report, statement or release. Any such report, statement or release approved or permitted to be made pursuant to this section on Disclosure may be disclosed or otherwise provided by any party to any person or entity, including to any employee or customer of either party hereto and to any governmental or regulatory authority.

  

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Expiration of Purchase Proposal

In the event that this Purchase Proposal with respect to the transaction contemplated herein from Trinity Life dated October 14, 2011 is not signed and accepted by Family Benefit Life on or prior to 1:00 P.M. on Friday, October 21, 2011, this purchase proposal will terminate and the Parties shall no longer have any rights or obligations with respect to this document.

Additional Questions and Contact Information

 

	
Gregg Zahn

President and Chief Executive Officer  

gzahn@firsttrinityfinancial.com

(918) 249-2438 (T)

(918) 249-2478 (F)

(918) 289-8514 (C)

7633 East 63rd Place Suite 230

Tulsa, Oklahoma 74133	
Jeffrey J. Wood

 
Chief Financial Officer, Secretary and Treasurer

jwood@firsttrinityfinancial.com

(918) 249-2438 (T)

(918) 249-2478 (F)

(405) 802-6072 (C)

7633 East 63rd Place Suite 230 

Tulsa, Oklahoma 74133

 

Acceptance Signatures and Acknowledgement

Should this Purchase Proposal be acceptable by Family Benefit Life, this memorandum shall become binding upon the signature of each party below.  This Agreement may be executed in several counterparts, which shall constitute a single agreement.

 

	Family Benefit Life Insurance Company	Trinity Life Insurance Company
	 	 
	/s/ Ross A. Walquist 	/s/ Gregg E. Zahn
	 	 
	Ross Walquist 	Gregg E. Zahn
	 	 
	President 	President and Chief Executive Officer
	 	 
	October 20, 2011	October 20, 2011

 

 

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