Document:

Exhibit 10.4

 

SERVICES AGREEMENT

 

THIS SERVICES AGREEMENT (“Agreement”),
is made and entered into as of February 27th, 2018 (“Effective Date”), by and between:

 

I.
Baxter Healthcare Corporation, a company duly organized under the laws of Delaware, having a place of business at One Baxter
Parkway, Deerfield, IL 60015 (“Baxter”); and

 

2. Regentis Biomaterials Ltd.,
a company duly organized under the laws of Israel with its principal place of business at 12 Ha’ilan, Northern Industrial Zone, P.O.Box
260, Or-Akiva, 3060000, Israel (“Regentis”).

 

Each of Baxter and Regentis shall sometimes
be referred to as a “Party” and collectively, as the “Parties”.

 

WHEREAS,
Baxter and Teva Medical (Marketing) Ltd. (“Teva”) are parties to a Distribution Agreement dated January 21, 1998
(“Distribution Agreement”) pursuant to which Teva is Baxter’s exclusive agent in Israel for distribution of certain
products, including Baxter’s Tisseel products; and

 

WHEREAS,
Baxter, Regentis and Teva entered into a supply agreement dated July 15, 2008, which was amended and restated on January 6, 2009,
(the “Supply Agreement”) for supply of Tisseel to Regentis for manufacture of Regentis’s product for animal and
human clinical research use and clinical studies (the “Regentis Clinical Product”); and

 

WHEREAS,
Regentis intends to purchase, from Teva, Tisseel for manufacture of Regentis’s product for commercial promotion and sale (the
“Regentis Commercial Product”); and

 

WHEREAS,
Regentis wishes to obtain from Baxter, and Baxter wishes to provide, certain services in connection with the supply of Tisseel for
the Regentis Commercial Product, and the Parties wish to otherwise agree on certain rights and responsibilities pertaining to
such supply.

 

NOW, THEREFORE, in consideration
of the mutual promises and covenants set forth herein the Parties hereby agree as follows:

 

		1.	The Supply Agreement will continue to govern the Parties’ rights and
                                                          responsibilities concerning Tisseel used in the Regentis Clinical Product. This Agreement will govern the Parties’ rights and
                                                          responsibilities concerning Tisseel used in the manufacture of the Regentis Commercial Product. This Agreement imposes no obligation
                                                          on Baxter to supply Tisseel to Regentis for the Regentis Commercial Product, via the Distribution Agreement or otherwise. This
                                                          Agreement imposes no obligation on Regentis to purchase Tisseel from Baxter or Teva for the Regentis Commercial Product.

 

		2.	The term of this Agreement shall commence on the Effective Date and shall remain
in full
force and effect for five (5) years (the “Initial Term”). Thereafter, this agreement shall
renew automatically for further consecutive terms of five (5) years each (the Initial Term
collectively with each additional term shall be referred to as the “Term”), unless either Party
desires to terminate this agreement by written notice at least two (2) years in advance. Either
Party may terminate this Agreement thirty (30) days after written notice to the other Party of
a material breach of the Agreement by such other Party, unless such breach is cured within such thirty (30) day period.

 

     

     

    

 

		3.	The Parties have executed a Quality Agreement dated February 27th, 2018
that is attached as
Exhibit A and hereby incorporated by reference into this Agreement.

 

		4.	(a) From time to time as reasonably requested by Regentis and approved by Baxter,
Baxter
shall provide to Regentis the quality, regulatory, and technical support set forth in the
Quality Agreement for the Regentis Commercial Product, up to a maximum aggregate of
forty (40) man-hours per calendar year for all such support. In consideration of receipt and
availability of such support, Regentis shall pay Baxter $60,000 per year until such time that
Regentis receives FDA approval to market the Regentis Commercial Product in the U.S.
Thereafter, Regentis shall pay Baxter $200,000 per year during the Term of this Agreement.
For the avoidance of doubt, such payments are due regardless of whether Regentis actually
requests any support and/or purchases any Tisseel in a particular year. The first such
payment shall be due thirty (30) days after the Effective Date, with such payment and
corresponding support being pro-rated for the period of the calendar year remaining.
Thereafter, such payments are due by January 15 each year except that in the year that
Regentis receives FDA approval to market the Regentis Commercial Product in the U.S.,
Regentis shall pay the $140,000 balance for that year within thirty (30) days after such
approval. (b) For any quality, regulatory, or technical support reasonably requested by
Regentis and approved by Baxter in its sole discretion beyond forty (40) man-hours in any
calendar year, Regentis will pay Baxter $2,500 per man-hour. Baxter will issue invoices for
any such additional support monthly, and payments are due thirty (30) days from the invoice
date.

 

		5.	In connection with the support services provided by Baxter under this Agreement,
including the Quality Agreement, Baxter may disclose confidential and/or proprietary
information to Regentis (“Confidential Information”). Absent Baxter’s written
consent Regentis shall not disclose Confidential Information to third parties. Regentis
may use Confidential Information as necessary to secure and maintain regulatory
approval for the Regentis Commercial Product, including, notwithstanding the
preceding sentence, disclosing Con6dential Information to an appropriate regulatory body; provided that: (i) Regentis may not use Confidential
Information for any other
purpose; and (ii) if such use/disclosure would make any Confidential Information
publicly available, Regentis must first obtain Baxter’s written consent.

 

		6.	Baxter shall have no liability to Regentis whatsoever in connection with Regentis’s
purchase
of Tisseel from Teva, for third party claims or otherwise. Baxter’s sole liability to Regentis under this Agreement and the Quality Agreement
shall be the re-performance of any service
improperly rendered. IN NO EVENT WILL BAXTER BE LIABLE TO REGENTIS FOR LOST PROFITS OR FOR ANY INDIRECT, INCIDENTAL, SPECIAL,
CONSEQUENTIAL OR PUNITIVE DAMAGES ARISING FROM OR IN CONNECTION
WITH THIS AGREEMENT.

 

		7.	Regentis shall defend, indemnify, and hold harmless Baxter, its successors, assigns,
affiliates, directors, officers, agents, and employees (collectively, “Indemnitees”) from and
against any and all liabilities, losses, damages, and expenses (including attorneys’ fees)
resulting from claims, demands, costs or judgments allegedly or actually arising out of or
relating to Regentis’s purchase and use of Tisseel and/or the purchase, possession
manufacture, packaging, distribution use, testing, sale, offer for sale, or other distribution of
the Regentis Commercial Product.

 

    2

     

    

 

		8.	If at any time during the Term, Regentis decides in good faith to commence negotiations
with any third party for the acquisition of all or substantially all of Regentis’s stock or assets,
Regentis shall provide a written notice to Baxter at least ten (10) business days in advance of
commencing such negotiations.

 

		9.	This Agreement together with the Quality Agreement constitutes the entire agreement
between the Parties relating to the subject matter herein, and all prior proposals, discussions
and writings by and between the Parties relating to the subject matter herein are superseded
hereby. None of the terms of this Agreement shall be deemed to be waived by either Party
or amended unless such waiver or amendment is written and signed by both Parties.

 

		10.	In the event any portion of this Agreement is declared void or invalid by a court
or tribunal of competent jurisdiction, such provision shall be modified or severed from this Agreement,
and the remaining provisions shall remain in effect unless the effect of such severance would be to alter substantially this Agreement
or the obligations of the Parties, in which case
this Agreement may be immediately terminated.

 

		11.	This Agreement shall be governed by and construed in accordance with the laws of
the State
of Delaware, without reference to any rules of conflict of laws. This Agreement shall not be
construed against the party preparing it but shall be construed as if the parties jointly prepared it.

 

		12.	This Agreement shall not be assignable without the prior written consent of the
other Party,
which consent shall not be unreasonably withheld, except that Baxter may assign the Agreement in connection with a transfer of the business
to which this Agreement pertains or
to a parent corporation or affiliate under common ownership.

 

		13.	All notices to either Party hereunder shall be in writing and
                                                                                        shall be deemed to have been duly given if delivered personally to such Party or sent to such Party by email or by facsimile
                                                                                        transmission with confirmation of receipt or by registered or certified mail, postage prepaid to the addresses listed above

 

Communication between Parties shall be to the
following:

 

	 	To Baxter	 	To Regentis:
	 	Patrick Boyd	 	Alastair Clemow
	 	Senior Director, US Market Development	 	President & CEO
	 	Baxter Healthcare Inc.	 	Regentis Biomaterials, Ltd
	 	Tel: 847 846 7626	 	Tel: 609 759 01313
	 	email: Patrick.boyd@baxter.com	 	email: aclemow@regentis.co.il

 

Or to such other individuals as
the Parties provide notice of.

 

    3

     

    

 

		14.	This Agreement may be executed by the Parties hereto in separate counterparts,
each of
which when so executed and delivered shall be deemed an original and all of which
counterparts taken together shall constitute but one and the same instrument.

 

IN WITNESS WHEREOF, the Parties have signed this
Agreement as of the Effective Date,

 

	Regentis Biomaterials Ltd.	 	Baxter Healthcare Corporation
	 	 	 
	By:	       	 	By:	                    
	Name:	 Alastrair Clemow, Ph.D.	 	Name:	 
	Title:	 President & CEO	 	Title:	 
	Date: 	February 27th, 2018	 	Date:	 

 

    4

     

    

 

Exhibit A

 

Quality Agreement

 

 

5Exhibit 10.1
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	$200,000.00
	    
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	September 27, 2022

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	Irvine, California

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RIDGEFIELD ACQUISITION CORP.
REVOLVING PROMISSORY NOTE
FOR VALUE RECEIVED, the undersigned, Ridgefield Acquisition Corp., a Nevada corporation (“Borrower”), promises to pay to the order of Qualstar Corporation, a California corporation (hereafter, together with any holder hereof, called “Lender”), immediately upon demand by Lender made at any time on or after December 31, 2024 (the “Maturity Date”) (in accordance with the terms herein) at such place as Lender may designate in writing to Borrower, in lawful money of the United States of America, and in immediately available funds, such amount as may from time to time be advanced by Lender to Borrower pursuant to an Advance (as defined below) hereunder, plus interest as hereinafter provided. Such Advances may be endorsed from time to time on the Schedule of Advances attached hereto but the failure to make such notations shall not affect the validity of Borrower’s obligation to repay unpaid principal and interest hereunder.
Subject to the terms hereof, Lender may, in its absolute discretion, but shall not be required to, make advances of funds available hereunder (each, an “Advance” and collectively, the “Advances”) to Borrower, up to a maximum principal amount of $200,000.00 (the “Maximum Amount”). Borrower shall give Lender irrevocable written notice requesting an Advance at least five (5) business days before the date on which Borrower wishes to receive the Advance (unless a shorter period is consented to by Lender). Notwithstanding any term or provision of this Note that may be construed to the contrary, at no time shall Lender be required to make an Advance hereunder if (a) an Event of Default (as defined below) shall have occurred; or (b) the Lender determines, in its absolute discretion, not to make such Advance.
From and after the date hereof (until maturity or default as hereinafter provided), interest shall accrue on the principal amount of this Note that is outstanding from time to time at a rate per annum equal to ten percent (10.0%), compounded quarterly. Interest shall be payable quarterly, on the last business day of each calendar quarter commencing with the calendar quarter ended December 31, 2022. Interest shall be computed on the daily outstanding principal balance hereunder on the basis of a 360 day year, as the case may, counting the number of actual days elapsed. Interest shall accrue and be payable quarterly. The principal balance of all Advances then outstanding, together with all accrued but unpaid interest thereon shall be due and payable on the Maturity Date or on such earlier date on which the maturity hereof is accelerated pursuant to the provisions hereof.
From and after the occurrence of an Event of Default, interest shall accrue on any amounts past due hereunder (whether by acceleration, maturity or otherwise) at a rate equal to three percent (3%) per annum in excess of the interest rate otherwise payable hereunder. All such interest accruing on amounts past due hereunder shall be due and payable on demand.
The loan represented by this Note is a revolving credit line such that, during the term hereof, Borrower may borrow (if Lender agrees to loan), repay and re-borrow (if Lender agrees to loan) from time to time hereunder, subject to the terms and conditions set forth herein; provided, however, that the aggregate principal amount outstanding hereunder may increase or decrease, but shall never exceed the Maximum Amount. Borrower, at its option, may repay or prepay all or any portion of the outstanding principal amount on the Advances, together with all accrued and unpaid interest, at any time without penalty by giving Lender at least one (1) business day’s prior written notice of any such prepayment. All payments received by Lender shall be applied first, to fees, costs and expenses that may be due to Lender, second, to accrued and unpaid interest on the Advances and third, to the outstanding principal balance of the Advances.
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Notwithstanding any provision to the contrary contained in this Note, Borrower shall not be required to pay, and Lender shall not be permitted to collect any amount of interest in excess of the maximum amount of interest permitted by law (“Excess Interest”). If any Excess Interest is provided for or determined by a court of competent jurisdiction to have been provided for in this Note, then in such event: (1) the provisions of this paragraph shall govern and control; (2) Borrower shall not be obligated to pay any Excess Interest; (3) any Excess Interest that Lender may have received hereunder shall be, at Lender’s option, applied as a credit against the outstanding principal balance of this Note or the accrued and unpaid interest (not to exceed the maximum amount permitted by law), or refunded to the payor thereof, or any combination of the foregoing; (4) the interest rate provided for herein shall be automatically reduced to the maximum lawful rate allowed from time to time under applicable law (the “Maximum Rate”), and this Note shall be deemed to have been and shall be, reformed and modified to reflect such reduction; and (5) Borrower shall not have any action against Lender for any damages arising out of the payment or collection of any Excess Interest. Notwithstanding the foregoing, if, for any period of time, interest on this Note is calculated at the Maximum Rate rather than the applicable rate under this Note, and thereafter the Maximum Rate exceeds the applicable rate, the rate of interest payable on this Note shall become the Maximum Rate until Lender shall have received the amount of interest which Lender would have received during such period on this Note had the rate of interest not been limited to the Maximum Rate during such period.
Each of the following events shall constitute an “Event of Default” under this Note: (i) failure of Borrower to pay any principal, interest or other amount due hereunder within five (5) business days of the date due, or Borrower shall in any way fail to comply with the other terms, covenants or conditions contained in this Note, when such failure continues for a period of five (5) days following notice thereof from Lender; (ii) Borrower shall (a) commence a voluntary case under the Bankruptcy Code of 1978, as amended or other federal bankruptcy law (as now or hereafter in effect); (b) file a petition seeking to take advantage of any other laws, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding up or composition for adjustment of debts; (c) consent to or fail to contest in a timely and appropriate manner any petition filed against it in an involuntary case under such bankruptcy laws or other laws; (d) apply for or consent to, or fail to contest in a timely and appropriate manner, the appointment of, or the taking of possession by, a receiver, custodian, trustee, or liquidator of Borrower or of a substantial part of Borrower’s property, domestic or foreign; (e) admit in writing its inability to pay its debts as they become due; (f) make a general assignment for the benefit of creditors; or (g) make a conveyance fraudulent as to creditors under any state or federal law; or (iii) a case or other proceeding shall be commenced against Borrower in any court of competent jurisdiction seeking (a) relief under the Bankruptcy Code of 1978, as amended or other federal bankruptcy law (as now or hereafter in effect) or under any other laws, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding up or adjustment of debts or (b) the appointment of a trustee, receiver, custodian, liquidator or the like for Borrower of all or any substantial part of its assets, domestic or foreign, and such proceeding shall not have been stayed or dismissed within sixty (60) days.
Upon the occurrence of an Event of Default described in clause (i) of the definition thereof, any and all of the obligations hereunder, at the option of Lender, exercisable in its sole discretion, and without demand or notice of any kind, may be immediately declared, and thereupon shall immediately be in default and due and payable and Lender may exercise any and all rights and remedies available to it at law, in equity or otherwise. Upon the occurrence of an Event of Default described in clause (ii) or (iii) of the definition thereof, any and all of the obligations hereunder, without demand or notice of any kind, shall immediately be in default and due and payable and Lender may exercise any and all rights and remedies available to it at law, in equity or otherwise. Nothing in this paragraph shall limit the right of Lender to make demand, at any time, with or without the occurrence of an Event of Default, for payment in full of all amounts due hereunder.
Borrower agrees to pay all costs and expenses (including without limitation attorney’s fees) incurred by Lender in connection with or related to this Note, or its enforcement, whether or not suit be brought.
All payments of principal, interest and other amounts to be made by Borrower under this Note shall be made without any deduction, set-off or counterclaim whatsoever. The receipt of any check or other item of payment by Lender shall not be considered a payment on this Note until such check or other item of payment is honored at the drawee
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bank. Lender may delay the credit of such payment until the funds become available and interest under this Note shall accrue until the funds are in fact collected.
Time is of the essence of this Note.
No delay or failure on the part of Lender in the exercise of any right or remedy shall operate as a waiver thereof, and no single or partial exercise by Lender of any right or remedy shall preclude other or further exercise thereof or the exercise of any other right or remedy.
All amendments to this Note, and any waiver or consent of Lender, must be in writing and signed by Lender and Borrower.
Borrower hereby waives notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor, and all other notices or demands of any kind or character, and to the fullest extent permitted by law, the right to invoke any statute of limitations as a defense to any demand hereunder. No delay or failure on the part of Lender in the exercise of any right or remedy shall operate as a waiver thereof and no single or partial exercise of any right or remedy shall preclude other or further exercise thereof or the exercise of any other right or remedy. Borrower acknowledges that this Note is executed as part of a commercial transaction and that the proceeds of this Note will not be used for any personal or consumer purpose.
THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO THE CONFLICTS OF LAW PROVISIONS) OF THE STATE OF CALIFORNIA, AS THE SAME MAY FROM TIME TO TIME BE IN EFFECT. BORROWER HEREBY (i) IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY FEDERAL COURT, OR AT THE OPTION OF LENDER, ANY STATE COURT, LOCATED IN LOS ANGELES COUNTY, CALIFORNIA OVER ANY CLAIMS OR DISPUTES BETWEEN BORROWER AND LENDER, PERTAINING DIRECTLY OR INDIRECTLY TO THIS NOTE OR TO ANY MATTER ARISING THEREFROM OR RELATING THERETO; (ii) WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON BORROWER, AND CONSENTS SO THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY MESSENGER, CERTIFIED MAIL OR REGISTERED MAIL AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED UPON THE EARLIER OF ACTUAL RECEIPT OR THREE (3) DAYS AFTER THE SAME SHALL HAVE BEEN POSTED TO BORROWER’S ADDRESS; (iii) IRREVOCABLY WAIVES, TO THE FULLEST EXTENT BORROWER MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF ANY SUCH ACTION OR PROCEEDING; (iv) AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN ANY OTHER JURISDICTION BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW; AND (v) AGREES NOT TO INSTITUTE ANY LEGAL ACTION OR PROCEEDING AGAINST LENDER OR ANY OF LENDER’S EMPLOYEES, AGENTS OR PROPERTY, CONCERNING ANY MATTER ARISING OUT OF OR RELATING TO THIS NOTE IN ANY COURT OTHER THAN ONE LOCATED IN LOS ANGELES COUNTY, CALIFORNIA. NOTHING IN THIS PARAGRAPH SHALL AFFECT OR IMPAIR LENDER’S RIGHT TO SERVE LEGAL PROCESS IN ANY MANNER PERMITTED BY LAW OR LENDER’S RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST BORROWER OR BORROWER’S PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION.
In the event any one or more of the provisions of this Note shall for any reason be held to be invalid, illegal or unenforceable, the same shall not affect any other provision of this Note and the remaining provisions of this Note shall remain in full force and effect.
This Note inures to and binds the heirs, successors and assigns of Borrower and Lender. Lender may assign its rights under this Note. However, Borrower may not assign any rights or obligations under this Note without Lender’s prior written consent.
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All notices and other communications provided for hereunder shall be in writing and shall be sent to Lender’s principal place of business or Borrower’s address set forth below its signature hereto, as the case may be. All such notices and other communications shall be effective when received.
IN WITNESS WHEREOF Borrower has executed and delivered this Note as of the date first written above.
RIDGEFIELD ACQUISITION CORP.
	By: /s/ 
	Steven N. Bronson
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	Name: Steven N. Bronson
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	Title: Chief Executive Officer
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	Address for notices:
	3250 Retail Drive, Suite 120 - 518
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	Carson City, Nevada 89706-0686
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	Attn: Chief Executive Officer
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SCHEDULE A
TO REVOLVING PROMISSORY NOTE OF RIDGEFIELD ACQUISITION CORP.
RECORD OF LOANS AND REPAYMENT OF LOANS
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DATE
	PRINCIPAL
AMOUNT
OF LOAN
MADE
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AMOUNT
OF LOAN
REPAID
	AMOUNT
OF
INTEREST 
PAID
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UNPAID
PRINIPAL
BALANCE
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NOTATION OF LOAN
MADE BY

	9/27/2022
	$20,000.00
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	$20,000.00
	Ryan J. Hoffman

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