Document:

ex_10-31.htm

 

 

Exhibit 10.31

 

 

SEPARATION AGREEMENT

 

 

THIS SEPARATION AGREEMENT between ULURU Inc., a Nevada corporation (the "Company"), and Renaat Van den Hooff (hereinafter referred to as "Executive"), dated as of June 4, 2010 (the "Agreement Date");

 

WHEREAS, Executive is President and Chief Executive Officer of the Company;

 

WHEREAS, Executive intends to resign and terminate his employment and all other positions of employment with the Company and its subsidiaries, including the offices of President and Chief Executive Officer;

 

WHEREAS, the Company intends to accept Executive's resignation and wishes to provide to Executive certain payments and to provide Executive with certain other benefits upon such termination and Executive agrees to give certain releases and provide certain services to the Company;

 

NOW, THEREFORE, in consideration of the mutual promises set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.             Resignation and Termination.

 

	
  

	
1.1. Executive hereby resigns from all employment or other positions he currently holds with the Company and any subsidiary of the Company, including without limitation the positions of President and Chief Executive Officer effective as of the Agreement Date.  The parties hereto hereby acknowledge that Executive’s employment with Administaff Companies II, L.P. (“Administaff”) terminated on May 31, 2010.

 

	
  

	
1.2. The Employment Agreement, dated as of September 25, 2007, including any amendments thereof, by and between the Company and Executive is hereby terminated in its entirety as of the Agreement Date and neither party thereto shall have any further rights or owe any further payment, duty or obligation to the other thereunder; notwithstanding the foregoing, the non-competition and non-solicitation obligations of Executive set forth in Sections 8 and 9 of the Employment Agreement shall each survive for a period of one year from the date of this Agreement.

  

  

  

 

2.            Company Covenants.

 

 

	
  

	
2.1.

	
Cash Payments. Commencing as of the Agreement Date, Executive shall be entitled for a period of eighteen (18) months, to receive a severance payment of Twelve Thousand Five Hundred and 00/100 Dollars ($12,500.00), less applicable withholdings, per month, payable semi-monthly. Because Executive may be considered a "specified employee" of a public company as determined pursuant to Section 409A as of his termination of employment, such monthly payments shall be deferred for a period of six months following the Agreement Date, and the accrued and unpaid payments ($75,000.00) during such six month period shall be paid within five (5) business days following the expiration of such six month period, with the remaining monthly $12,500 per month payments to then be made semi-monthly for the balance of the eighteen (18) month period.  Executive understands and agrees that the payments contemplated by this Section 2.1 are due solely from the Company and that Administaff has no obligation for the payments even though all or part thereof may be processed by Administaff.

 

	
  

	
 2.2. Equity. As of the Agreement Date, Executive shall be granted options to purchase 300,000 shares of Company Common Stock pursuant to the terms of the Company's Equity Incentive Plan and Standard Form of Non Statutory Stock Option Agreement. Such stock options shall (a) have an exercise price equal to the closing price of the Company's common stock on the date hereof, (b) shall be immediately exercisable and (c) shall expire on the fifth anniversary of the Agreement Date. All of Executive unvested shares of restricted stock (94,870 shares) shall become immediately vested on the Agreement Date.

 

	
  

	
 2.3. Consulting. At the Company's sole discretion, Executive and the Company hereby agree that, beginning on the Agreement Date through August 31, 2010, the Company may request that Executive serve the Company in the capacity of a consultant for the equivalent of up to two full days per month. Executive shall not be paid for such consulting.

 

	
  

	
2.4. Benefits. For a period of eighteen (18) months following the Agreement Date, the Company shall pay Executive’s COBRA premiums directly to the Administaff Group Health Plan.  Executive understands and agrees that such premium payments are due solely from the Company and that Executive will reimburse the Company for a portion of the monthly premium comparable to other executives in the Company for such medical coverage.

 

	
  

	
2.5. Withholding. All payments required to be made by the Company hereunder to Executive shall be subject to the withholding of such amounts, if any, relating to tax and other payroll deductions as the Company may reasonably determine it must withhold pursuant to any applicable law or regulation.

 

	
  

	
2.6. No Duty to Mitigate Damages. Executive's payments and benefits under Sections 2.1, 2.2 and 2.4 of this Agreement shall be considered severance pay in consideration of his past service and his agreement to comply with the provisions of his Employment Agreement relating to non-solicitation and non-competition and as an inducement to him to enter into and become bound by this Agreement, and his entitlement thereto shall not be dependent upon whether or not Executive provides further services of any type to or for the Company or any third party.

 

 

 

3.             Executive Covenants. Executive hereby covenants with the Company as follows:

 

	
  

	
3.1. Non-disclosure. Executive recognizes and acknowledges that he has had and will have access to certain highly sensitive, special, unique information of the Company that is confidential or proprietary. Executive hereby covenants and agrees not to use or disclose any Confidential Information (as hereinafter defined) except for disclosures made solely (i) to authorized representatives of the Company; or (ii) as required by any governmental, statutory or judicial authority, provided that prior to any such disclosure Executive shall provide the Company with notice of such requirement as is practicable and shall cooperate with the Company in responding to such requirement, including assisting the Company in procuring a protective order or other modification of such required disclosure.

 

	
  

	
3.2. Confidential Information. For purposes of this Agreement, "Confidential Information" means any data or information with respect to the business conducted by the Company that is (i) material to the Company, (ii) not disclosed by the Company to third parties except to persons or entities who have agreed to maintain the confidentiality of such information, and (iii) not generally known by the public or otherwise publicly available (unless such data or information has become publicly available through a breach of this Agreement by Executive). To the extent consistent with the foregoing definition, Confidential Information includes without limitation; (i) reports, pricing, sales manuals and training manuals, selling and pricing procedures, and financing methods of the Company, together with any techniques utilized by the Company in designing, developing, manufacturing, testing or marketing its products or in performing services for clients, customers and accounts of the Company and (ii) the business plans and financial statements, reports and projections of the Company.

  

  

  

 

	
  

	
3.3. Return of Property. Executive covenants, agrees and acknowledges that all Confidential Information is and shall remain the sole, exclusive and valuable property of the Company and Executive has and shall acquire no right, title or interests therein. Any and all printed, typed, written or other material which Executive may have or obtain (other than material provided to him relating to his Company-provided compensation and benefits) shall be and remain the exclusive property of the Company, and any and all such material (including any copies) shall be promptly delivered by Executive to the Company.

 

 

4.            Indemnification. The Company shall indemnify Executive to the same extent provided to its other officers by its charter and by-laws against all costs, charges and expenses, including, without limitation, attorneys' fees, incurred or sustained by Executive in connection with any action, suit or proceeding to which Executive may be made a party by reason of being an officer or employee of the Company for acts undertaken from the time of his employment by the Company through the Agreement Date (the "Indemnification Period"), and Executive will be included as an insured individual under any liability insurance policy that insures other officers or directors of the Company for acts taken during the Indemnification Period.

 

5.             Public Statement, Non-disparagement.

 

	
  

	
5.1. Executive shall make no disparaging statements, whether public or private, with regard to the Company, its current officers, employees or members of the Board unless and to the extent specifically compelled by any governmental agency or tribunal to make a statement.

 

	
  

	
5.2. The Company and the members of the Board shall make no disparaging statements, whether public or private, about Executive unless and to the extent specifically compelled by any government agency or tribunal to make a statement. In response to an inquiry, or as necessary or appropriate to make clear Executive's circumstances of his departure from the Company, the Company and the members of the Board shall inform third parties that Executive resigned voluntarily, or other words of similar effect.

 

6.            Mutual Release and Covenant Not to Sue.

 

6.1            Release and Covenant Not to Sue from Executive.

 

	
(a)             

	
Release. Executive hereby releases each of the Company, Administaff, and their respective officers, employees, directors, attorneys, agents, insurers, successors, and assigns, from each and every right, claim, debt, demand, liability, cost, expense, and/or cause of action, which he has or may have had against any of such released parties as of the Agreement Date, whether known or unknown.

 

	
(b)             

	
Covenant Not to Sue. Executive hereby covenants and agrees not to bring suit against any of the Company or any of its officers, employees, directors, attorneys, agents, successors, and assigns based upon any claim herein released.

 

 

	
(c)              

	
Rights Retained. Notwithstanding anything in this Agreement to the contrary, Executive expressly reserves his right to take action against the Company to preserve his rights under this Agreement in the event of a breach thereof by the Company, subject to Section 7 below.

 

 

 

6.2           Release and Covenant Not to Sue from the Company.

 

	
(a)             

	
Release. The Company hereby releases each of Executive and his attorneys, agents, successors, and assigns from each and every right, claim, debt, demand, liability, cost, expense, and/or cause of action arising out of Executive's service or status as an employee, officer, shareholder (in his capacity as such) or representative of shareholders of the Company, existing as of the Agreement Date and whether known or unknown.

 

	
(b)             

	
Covenant Not to Sue. The Company hereby covenants and agrees not to bring suit against each of Executive and his attorneys, agents, successors, and assigns based upon any claim herein released.

 

	
(c)             

	
Rights Retained. Notwithstanding anything in this Agreement to the contrary, the Company expressly reserves its right to take action against Executive to preserve its rights under this Agreement in the event of a breach thereof by Executive, subject to Section 7 below.

 

	
7.             

	
Arbitration. Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled exclusively by single-arbitrator arbitration, in Dallas, Texas, in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect, and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The arbitrator shall have authority to award attorneys fees and costs to the prevailing party in any such arbitration proceeding.

 

	
8.             

	
Legal Fees and Expenses. Each party hereto shall pay its own legal fees and expenses of counsel reasonably incurred by such party in connection with the negotiation, execution and delivery of this Agreement.

  

  

  

 

 

	
9.            

	
Notices. Any notices required to be given under this Agreement shall be in writing and shall be deemed given three (3) days after mailing in the continental United States by registered or certified mail, or upon personal receipt after delivery, or telecopy, to the party entitled thereto at the address stated below or to such changed address as the addressee may have given by a similar notice:

 

To the Company:          ULURU Inc.

4452 Beltway Drive

Addison, TX 75001

Attn: Chief Executive Officer

	
With a copy to:

Executive:

	
John J. Concannon III, Esq. Bingham McCutchen LLP One Federal Street

Boston, MA 02110

 

Renaat Van den Hooff

315 McClenaghan Mill Road Wynnewood, PA 19096

	  	  

 

10.            General Provisions.

 

	
  

	
10.1. Binding Agreement. This Agreement shall be binding upon and inure to the benefit of Executive and be enforceable by his personal or legal representatives or successors. If Executive dies while any amounts would still be payable to him hereunder, his rights herein shall still be exercisable by such representatives or successors. Such amounts shall be paid to Executive's estate in accordance with the terms of this Agreement. This Agreement shall not otherwise be assignable by Executive.

 

	
  

	
10.2. Successors. This Agreement shall inure to and be binding upon the Company's successors.

 

	
  

	
10.3. Amendment or Modification: Waiver. This Agreement may not be amended or modified unless agreed to in writing by Executive and the Company. No waiver by either party of any breach of this Agreement shall be deemed a waiver of any subsequent breach.

 

	
  

	
10.4. Severability. In the event that any provision of this Agreement shall be determined to be invalid or unenforceable, such provision shall be enforceable in any jurisdiction in which valid and enforceable, and in any event the remaining provisions shall remain in full force and effect to the fullest extent permitted by law.

  

  

  

 

 

	
  

	
10.5. Rights Granted. This Agreement shall not give Executive any right to compensation or benefits from the Company or any affiliate of the Company, except for the rights specifically stated herein, including those certain severance and other benefits that become payable on or after the Agreement Date.

 

	
  

	
10.6. Governing Law. The validity, interpretation, performance, and enforcement of this Agreement shall be governed by and construed in accordance with the internal laws of the State of Texas, without giving effect to the principles of choice of law or conflicts of law.

 

 

 

	
  

	
10.7. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same Agreement.

 

	
  

	
10.8. Section Headings. The descriptive section headings in this Agreement have been inserted for convenience of reference only and are not intended to be part of, or to affect the meaning or interpretation of, this Agreement.

 

	
  

	
10.9. Section 409A.

 

(a)             Purpose. This section is intended to help ensure that compensation paid or delivered to Executive pursuant to this Agreement either is paid in compliance with, or is exempt from, Section 409A of the Internal Revenue Code of 1986, as amended and the rules and regulations promulgated thereunder (collectively, "Section 409A"). However, the Company does not warrant to Executive that all compensation paid or delivered to him for his services will be exempt from, or paid in compliance with, Section 409A. Except as otherwise provided herein, Executive understands and agrees that he bears the entire risk of any adverse federal, state or local tax consequences and penalty taxes which may result from payment of compensation for his services on a basis contrary to the provisions of Section 409A or comparable provisions of any applicable state or local income tax laws.

 

(b)            Amounts Payable On Account of Termination. For the purposes of determining when amounts otherwise payable on account of Executive's termination of employment under this Agreement will be paid, which amounts become due because of his termination of employment, "termination of employment" or words of similar import, as used in this Agreement, shall be construed as the date that Executive first incurs a "separation from service" for purposes of Section 409A on or following termination of employment. Furthermore, if Executive is a "specified employee" of a public company as determined pursuant to Section 409A as of his termination of employment, any amounts payable on account of his termination of employment which constitute deferred compensation within the meaning of Section 409A and which are otherwise payable during the first six months following Executive's termination (or prior to his death after termination) shall be paid to Executive in a cash lump-sum on the earlier of (1) the date of his death and (2) the first business day of the seventh calendar month immediately following the month in which his termination occurs.

 

 

 

(c)             Reimbursements. Any taxable reimbursement of business or other expenses as specified under this Agreement shall be subject to the following conditions: (1) the expenses eligible for reimbursement in one taxable year shall not affect the expenses eligible for reimbursement in any other taxable year; (2) the reimbursement of an eligible expense shall be made no later than the end of the year after the year in which such expense was incurred; and (3) the right to reimbursement shall not be subject to liquidation or exchange for another benefit.

 

(d)                         Interpretative Rules. In applying Section 409A to amounts paid pursuant to this Agreement, any right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments.

 

(e)                         Deferred Compensation Taxes. Notwithstanding any other provisions of this Agreement, in the event that any payment or benefit under this Agreement received or to be received by Executive (the "Payment") is determined to be subject (in whole or part) to the penalties imposed by Section 409A (the "Additional Taxes"), then Executive shall be entitled to receive an additional payment (a "Gross-Up Payment") in an amount such that after payment by Executive of the Additional Taxes imposed upon the Payment, Executive retains an amount equal to the Payment net of any otherwise applicable taxes and withholdings (that is, applicable taxes and withholdings other than Additional Taxes). Executive shall also be entitled to be reimbursed by the Company for any costs and expenses relating to any disputes with the IRS relating to Section 409A. All determinations required to be made under this Section 10.9(e), including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by the Company's accountants or such other certified public accounting firm reasonably acceptable to the Company as may be designated by Executive which shall provide detailed supporting calculations both to the Company and Executive. Any Gross-Up Payment due under this paragraph shall be paid to Executive within ten (10) business days after notice from Executive that he has made any such payment to the IRS, provided that in no event may such reimbursement be made to Executive later than December 31 of the calendar year following the calendar year in which Executive remits the Additional Taxes to the applicable authorities.

 

	
  

	
11. Exclusive Agreement. It is agreed and understood that this Agreement represents the entire agreement between the Company and Executive concerning the subject matter hereof and supersedes all prior agreements and understandings concerning Executive's rights upon the termination of his employment.

  

  

  

 

	
  

	
12. Effectiveness of Agreement.  Executive hereby acknowledges and agrees that (i) the Company has informed him of his right to consult, and that he has consulted, an attorney with respect to this Agreement, (ii) he was given the opportunity to take twenty-one (21) days from the receipt of an unsigned copy of this Agreement to decide whether or not to sign this Agreement, (iii) he is aware that if he had not executed and delivered this Agreement to the Company prior to the expiration of such twenty-one (21) day period, this Agreement would not have become valid, (iv) he has executed and delivered this Agreement to the Company prior to the expiration of such twenty-one (21) day period and (v) he has seven (7) days after the Agreement Date to revoke his execution of this Agreement, which can be accomplished by delivering a written notice of revocation to the Company before the expiration of such seven (7) day revocation period.  This Agreement shall not be effective (and the Company shall have no obligations hereunder) until the expiration of such seven (7) day revocation period.

 

 

	
  

	
[signature page follows]

 

  

  

  

 

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

 

ULURU Inc.                                                                                                  Renaat Van den Hooff

	
By:

	
/s/ Terrance K. Wallberg

	  	
By:

	
/s/ Renaat Van den Hooff

	
Name:

	
Terrance K. Wallberg

	  	
Name:

	
Renaat Van den Hooff

	
Title:

	
Chief Financial Officer

	  	
Title:ex_10-32.htm

	  	
Dated 25th June 2010

	  
	  	
 

 

 

 

 

 

 

STRAKAN INTERNATIONAL LIMITED

-and-

 

ULURU INC

 

-and-

 

ZINDACLIN LIMITED

 

-and-

 

CRAWFORD HEALTHCARE LIMITED

 

 

 

	
 

 

 

 

 

 

 

(1)

 

 

 

(2)

 

 

 

(3)

 

 

 

(4)

	  	  	
 

ACQUISITION AND LICENCE AGREEMENT

 

 

 

	  	  

123 Deansgate Manchester M3 2BU

Tel  0161 909 3000   Fax   0161 909 4444

www.pannone.com

  

  

  

THIS AGREEMENT is dated 25th June 2010

 

PARTIES

 

	
(1)  

	
STRAKAN INTERNATIONAL LIMITED a company incorporated in Bermuda and registered in Scotland under company number F000906, whose registered office is at Galabank Business Park, Galashiels, TD1 1QH (Strakan);

 

	
(2)  

	
ULURU INC, a company incorporated in Nevada, whose registered office is at 4452 Beltway Drive, Addison, Texas 75001, United States of America (Uluru);

 

	
(3)  

	
ZINDACLIN LIMITED, a company registered in England with company number 7244532, whose registered office is at Cheshire House, 164 Main Road, Goostrey, Crewe, Cheshire, CW4 8JP (Zindaclin); and

 

	
(4)  

	
CRAWFORD HEALTHCARE LIMITED, a company registered in England with company number 03262015, whose registered office is at Cheshire House, 164 Main Road, Goostrey, Crewe, Cheshire, CW4 8JP (Crawford).

 

BACKGROUND

 

	
(A)

	
Zindaclin is a member of the same Group as Crawford.

 

	
(B)

	
Strakan is the registered proprietor of certain registered and unregistered trade marks for “Zindaclin”. Pursuant to an agreement between Strakan and Crawford, dated 10 October 2005 and amended 8 December 2006 (Existing Licence Agreement) (a copy of which is appended to this agreement in Appendix 3), Strakan granted a licence to Crawford to import, promote, market, use, distribute and sell products under the Zindaclin trade marks in certain territories.

 

	
(C)

	
Pursuant to an agreement between Strakan and Access Pharmaceuticals, Inc (Access), dated 26th February 1998, as amended by addenda dated 13th April 1998, 12th March 2001, 7th March 2002, 22nd May 2002 and 11th November 2002 respectively, Strakan has an exclusive licence to use certain patents (now expired) and know how belonging to Access relating to a zinc compound for the purpose of carrying out further development and commercial exploitation of such zinc compound for human use in dermatological and topical products (Zinc Compound Licence Agreement).  During the course of development work carried out by Strakan under the Zinc Compound Licence Agreement further Patents (as hereinafter defined) were generated.  Pursuant to the third addendum dated 7th March 2002, Strakan assigned its rights under the licence agreement to its affiliate Kanford BV and, pursuant to an agreement dated 25 September 2003, Kanford assigned back such rights to Strakan.  Pursuant to a letter dated 12 October 2005, Access notified Strakan that it had assigned its rights under the agreement to Uluru.

 

	
(D)

	
Strakan has sublicensed its rights for various territories to, inter alia, Crawford and other partners under the terms of certain licence agreements (the “Licence Agreements” as hereinafter defined).

 

  

  

  

	
(E)

	
Strakan agrees to sell and Zindaclin agrees to buy certain trade marks for the name “Zindaclin” owned by Strakan in certain territories in accordance with and subject to the terms and conditions of this agreement.

 

	
(F)

	
Strakan and Uluru agree to sell to Zindaclin the Patents generated under the Zinc Compound Licence Agreement upon receipt of certain payments in accordance with and subject to the terms and conditions of this agreement and, until such time, Strakan agrees (with Uluru’s consent) to sub-license such Patents to Zindaclin, subject to the Licence Agreements.

 

	
(G)

	
Strakan agrees to sell to Zindaclin certain other registered trade marks for the name “Zindaclin” owned by Strakan and used by its partners under the Licence Agreements outside the territories reserved to Crawford (the Reserved Trade Marks as hereinafter defined) upon receipt of certain payments in accordance with and subject to the terms and conditions of this agreement and, until such time, Strakan agrees to license such Reserved Trade Marks to Zindaclin, subject to the Licence Agreements.

 

AGREED TERMS

 

	
1  

	
Interpretation

 

	
1.1  

	
The definitions and rules of interpretation in this clause apply in this agreement.

 

Assigned Trade Marks: those registered trade marks and applications for trade marks set out in Part 1 of Schedule 1, together with all and any unregistered trade marks for ZINDACLIN, owned by Strakan and/or used by Strakan and/or its licensees in the Territory;

 

Business Day: a day other than a Saturday, Sunday or public holiday in England when banks in London are open for business;

 

Completion Date: the date of this agreement;

 

Confidential Information: all confidential information in whatever form which is disclosed or made available (whether orally or in writing) by a party or its employees, officers, representatives or advisers to any other party in connection with this agreement, including:

 

	
(a)  

	
any information that would be regarded as confidential by a reasonable business person relating to:

 

	
(i)  

	
the business, affairs, customers, clients, suppliers, plans, intentions or market opportunities of the disclosing party or of the disclosing party’s Group; and

 

	
(ii)  

	
the operations, processes, product information, know-how, designs, trade secrets, software or Intellectual Property of the disclosing party or of the disclosing party’s Group; and

 

	
(b)  

	
the existence of and the terms of this agreement;

 

Documents: all notes, reports and/or documents in whatever form (whether in writing or on disk) in the possession and/or control of Strakan and/or Uluru embodying or relating to the Patents and Know-how or any part thereof;

 

Escrow Agent: shall mean Wragge & Co LLP;

 

  

  

  

Escrow Agreement: the escrow agreement to be entered into between Strakan, Crawford and the Escrow Agent in respect of the Escrow Documents on the agreed terms set out in Appendix 2;

 

Escrow Documents: the documents to be delivered by Uluru and Strakan to Zindaclin pursuant to clause 5.1;

 

Final Payment Date: the date of payment of the final instalment of the Licence Fee pursuant to clause 4.2(d) or such earlier date of payment of such final instalment pursuant to clause 4.3;

 

Group: in relation to a company, that company, any subsidiary or holding company from time to time of that company or of a holding company of that company;

 

holding company and subsidiary: mean a "holding company" and "subsidiary" as defined in section 1159 of the Companies Act 2006 and a company shall be treated, for the purposes only of the membership requirement contained in subsections 1159(1)(b) and (c), as a member of another company even if its shares in that other company are registered in the name of (a) another person (or its nominee), whether by way of security or in connection with the taking of security, or (b) its nominee;

 

Intellectual Property Rights: patents, rights in inventions, processes and formulae, copyright, rights in software, database rights, design rights, registered designs, unregistered designs, trade mark, service marks, domain names, know-how, utility models, confidential information and, where relevant, any and all applications for any such rights, and all and any other industrial or intellectual property rights subsisting anywhere in the world;

 

Know-how: any know-how, methods, techniques, processes, discoveries, inventions, specifications, formulae, test results, data and/or other technical information in the possession and/or control of Strakan and/or Uluru relating to the Patents;

 

Licence Agreements: means those agreements set out in Schedule 3;

 

Licence Fee: shall have the meaning set out in clause 4.2;

 

Licence Period: the period commencing on the Completion Date and terminating on the Final Payment Date;

 

Licensed Product: 30g tubes containing 1.2% clindamycin phosphate and 0.5% zinc acetate;

 

NDA: a new drug licence application (as such term is used under the United States Federal Food, Drug and Cosmetic Act, as amended from time to time) filed with the Food and Drug Administration of the United States of America;

 

Patents: the patents and patent applications, short particulars of which are set out in Schedule 2 and all continuations, continuations-in-part, divisions, reissues, renewals, extensions and patents granted in respect thereof;

 

Purchase Price: has the meaning set out in clause 4.1;

 

Reserved IP: means the Reserved Trade Marks, the Patents, Know-how, Documents, and any and all improvements, enhancements and modifications to the Patents and/or Know how (if any), and all Intellectual Property Rights subsisting in the foregoing;

 

  

  

  

Reserved Trade Marks: means those registered trade marks and applications for trade marks set out in Schedule 1 Part 2, together with any unregistered trade marks for ZINDACLIN owned by Strakan and used by Strakan and/or its licensees under the terms of the Licence Agreements;

 

Territory: the World;

 

Trade Marks: the Assigned Trade Marks and the Reserved Trade Marks.

 

	
1.2  

	
Clause and schedule headings shall not affect the interpretation of this agreement. References to clauses and schedules are to the clauses and schedules of this agreement.

 

	
1.3  

	
The schedules form part of this agreement and shall have effect as if set out in full in the body of this agreement. Any reference to this agreement includes the schedules.

 

	
1.4  

	
Unless the context otherwise requires, words in the singular include the plural and in the plural include the singular and references to one gender shall include a reference to the other genders.

 

	
1.5  

	
A reference to a statute, statutory provision or subordinated legislation is a reference to it as it is in force from time to time taking account of any amendment or re-enactment and includes any statute, statutory provision or subordinate legislation which it amends or re-enacts. A reference to a statute or statutory provision shall include any subordinate legislation made from time to time under that statute or statutory provision.

 

	
1.6  

	
Any words following the terms including, include, in particular or any similar expression shall be construed as illustrative and shall not limit the sense of the words preceding those terms.

 

	
2  

	
Assignment of Assigned Trade Marks

 

	
2.1  

	
In consideration of the payment of the Purchase Price by Zindaclin to Strakan on the Completion Date (receipt of which is hereby acknowledged by Strakan), Strakan hereby assigns to Zindaclin with full title guarantee free from all liens, equities, charges and encumbrances, all right, title and interest in and to the Assigned Trade Marks, including:

 

	
(a)  

	
all goodwill attaching to the Assigned Trade Marks; and

 

	
(b)  

	
the right to sue for infringements whether occurring before or after the date of this agreement and to benefit from any damages and other remedies obtained as a result of such action.

 

	
2.2  

	
Upon the Completion Date and upon the assignment pursuant to clause 2.1 and the licence pursuant to clause 3.1 becoming effective, the Existing Licence Agreement shall automatically terminate and:

 

	
(a)  

	
Strakan hereby waives any and all claims, rights and/or remedies (whether in contract or tort) that it may have against Crawford under such agreement other than for the royalties due and owing, as set out in Appendix 5 in respect of the period up to and including 31 May 2010 (and the parties agree that, based on the sales reports provided to Strakan by Crawford, the amount set out in Appendix 5 represents the full amount of royalties due and owing for the period up to and including 31 May 2010) plus any royalties due and owing under such agreement in respect of the period 1 June 2010 up to the Completion Date, and payment of such royalties shall be in full and final settlement of all claims for royalties due and owing under the Existing Licence Agreement;

 

  

  

  

 

	
(b)  

	
Crawford hereby waives any and all claims and/or rights that it may have against Strakan and/or Uluru under such agreement.

 

	
2.3  

	
Strakan shall be responsible for all registration, maintenance, renewal and all other fees payable in connection with the Assigned Trade Marks up to the Completion Date and Zindaclin shall be responsible for all such costs from the Completion Date.

 

	
2.4  

	
Upon the Completion Date, but subject to clause 2.5, Strakan ceases to have any right, title or interest in or to the Assigned Trade Marks and agrees that it shall not itself use, or permit any other person to use:

 

	
(a)  

	
the Assigned Trade Marks; and/or

 

	
(b)  

	
any name, word or logo which incorporates or is confusingly similar to the Assigned Trade Marks.

 

	
2.5  

	
Zindaclin undertakes not to sell, assign, transfer or otherwise dispose of the Assigned Trade Marks until after payment by Zindaclin of the final payment of the Licence Fee to Strakan pursuant to clause 4.2.

 

	
3  

	
Licence to Reserved IP

 

	
3.1  

	
In consideration of payment of the Licence Fee in accordance with clause 4.2, Strakan (with Uluru’s consent given hereunder) hereby grants to Zindaclin, subject to the Licence Agreements, from the Completion Date an exclusive, royalty free licence under the Reserved Trade Marks, the Patents, the Know-how and the Documents to develop, manufacture, use, sell, supply and otherwise deal with Licensed Products in the Territory during the Licence Period and to grant a sub-licence to any other person to do so.

 

	
3.2  

	
Uluru and Strakan shall provide to Zindaclin upon the Commencement Date on disk or such other format as agreed by the parties all Know how and deliver up to Zindaclin all and any Documents licensed to Zindaclin pursuant to clause 3.1.

 

	
3.3  

	
Strakan and Uluru each undertake during the Licence Period not to:

 

	
(a)  

	
use the Patents and not to develop, manufacture, use, sell, supply or otherwise deal with the Licensed Products in the Territory;

 

	
(b)  

	
grant a licence to any third party, other than as set out in the Licence Agreements, to use the Patents or the Reserved Trade Marks or to sell, distribute or otherwise exploit the Licensed Products in the Territory; and

 

	
(c)  

	
directly or indirectly, either on its own or in connection with or on behalf of any other person, firm or company, develop, manufacture, use, sell or supply or otherwise deal with any topical product containing zinc and clindamycin for the treatment of acne which competes with the Licensed Product in the Territory.

 

	
3.4  

	
During the Licence Period, Strakan shall continue to prosecute, maintain in force and renew the Reserved IP at Zindaclin’s cost, provided that:

 

	
(a)  

	
the amount that Zindaclin is required to pay in respect of renewals during the Licence Period shall not exceed the sum of £35,000; and

 

  

  

  

 

	
(b)  

	
Strakan agrees to keep Zindaclin informed and consult with Zindaclin in respect of the prosecution of any of the Reserved IP and will obtain Zindaclin’s consent prior to incurring any fees in respect of the prosecution of the Reserved IP (such consent not to be unreasonably delayed).

 

	
3.5  

	
Strakan shall pay the relevant prosecution, maintenance and renewal fees (including its patent and trade mark attorneys’ fees) and invoice Zindaclin, together with evidence of all fees paid, which invoice Zindaclin shall pay within fourteen (14) days.  Any unpaid invoices shall bear interest at five (5) percent per annum from the date payment was due until the date payment is made.

 

	
3.6  

	
Strakan shall notify Zindaclin promptly of all significant developments with respect to any of the Reserved IP and shall, on request, furnish Zindaclin with copies of all relevant documents and correspondence. On request from Zindaclin, Strakan shall promptly deliver a report of the Reserved IP clearly setting out the details of all the Patents and Reserved Trade Marks, the countries in which they are registered and such other information as Zindaclin reasonably requests from time to time.

 

	
3.7  

	
Strakan shall on demand from Zindaclin produce to Zindaclin evidence of payment of the renewal fees within fourteen (14) days of payment of such renewal.  Strakan shall not permit the Patents or Reserved Trade Marks to lapse or expire without Zindaclin’s prior written consent, such consent not to be unreasonably delayed.

 

	
3.8  

	
Upon the grant of the licence pursuant to clause 3.1, the Licence Agreements will be novated from Strakan to Crawford materially upon the agreed terms set out in Appendix 1 (save as set out in clause 3.8(c) below) and Strakan agrees:

 

	
(a)  

	
to execute the relevant novation agreements;

 

	
(b)  

	
to procure that Kanford BV and Strakan Group Limited both execute the novation agreement in respect of the Licence Agreement to which they are a party;

 

	
(c)  

	
to use commercially reasonable endeavours to procure that the licensee to the Licence Agreement enters into a novation agreement materially upon the terms set out in Appendix 1  and, in respect of Laboratorios Biosintetica, to use commercially reasonable endeavours to procure that Laboratorios Biosintetica enters into a novation agreement materially upon the terms set out in Appendix 7, and Strakan shall deliver to Crawford the executed novation agreements at no cost to Crawford; and

 

	
(d)  

	
not to terminate, or vary or materially amend any of the terms of any of the Licence Agreements prior to their novation to Crawford without the prior written consent of Crawford, such consent not to be unreasonably delayed.

 

	
3.9  

	
In the event that any of the Licence Agreements are not novated to Crawford pursuant to clause 3.8:

 

	
(a)  

	
Strakan will promptly on request assign the benefit of and all rights under such Licence Agreements to Crawford; and

 

  

  

  

 

	
(b)  

	
unless and until such Licence Agreements are novated or assigned to Crawford, Strakan shall hold any monies, rights or other benefits received under such Licence Agreements as trustee for Crawford and shall give such assistance as Crawford may reasonably require to enable Crawford to enforce its rights under such Licence Agreements (subject to payment of Strakan’s out-of-pocket expenses, including any reasonable attorney’s fees, subject to obtaining Crawford’s prior written consent before incurring any such fees), including assisting Crawford in obtaining payment of any monies due pursuant to the Licence Agreements.

 

	
4  

	
Payment

 

	
4.1  

	
Zindaclin shall pay to Strakan and Uluru (50% each) upon the Completion Date the sum of US$100,000 (receipt of which Strakan and Uluru hereby acknowledge) in consideration of the execution of this Agreement and the assignment of the Assigned Trade Marks (Purchase Price), such payment to be satisfied in cash, payable by bank transfer to Strakan and Uluru’s nominated bank accounts (as specified in Appendix 4).

 

	
4.2  

	
In consideration of the licence to use the Reserved IP, Zindaclin shall pay to Strakan and Uluru (50% each) the sum of US$2,000,000 (Licence Fee), payable by bank transfer to Strakan’s and Uluru’s nominated bank accounts (specified on the relevant invoice) as follows:

 

	
(a)  

	
the sum of US$500,000 in cash on the Completion Date (receipt of which Strakan and Uluru hereby acknowledge);

 

	
(b)  

	
two further payments, each of US$250,000, in cash on 1 September 2010 and 1 November 2010;

 

	
(c)  

	
the sum of US$500,000 in cash on the anniversary of the Completion Date; and

 

	
(d)  

	
a final payment of US$500,000 on the second anniversary of the Completion Date,

 

in each case subject to the delivery of an invoice for such appropriate sums from Strakan and Uluru to Zindaclin.

 

	
4.3  

	
Zindaclin may, at its sole discretion, make payment of the Licence Fee prior to the second anniversary of the Completion Date.

 

	
4.4  

	
In addition to the payments set out in clauses 4.1 and 4.2, in the event that the Zindaclin NDA is approved by the Federal Food and Drug Administration of the United States of America, Zindaclin shall make an additional payment of US$3,000,000 to Strakan and Uluru (50% each) within thirty (30) days of receipt of confirmation of such approval by Zindaclin.  Zindaclin shall use commercially reasonable endeavours to obtain the Zindaclin NDA approval and shall update Strakan and Uluru in writing (including by email) on its progress in that regard on a six (6) monthly basis. The obligation to provide this update shall continue for five (5) years from the Completion Date.

 

	
4.5  

	
In the event that Zindaclin fails to pay any of the instalments of the Licence Fee above within thirty (30) days of the due date for payment pursuant to clause 4.2 and following receipt of an appropriate invoice, then Strakan and Uluru may on ten (10) days written notice terminate this agreement, provided that Zindaclin does not make the payment due within that ten (10) day period. Should Zindaclin during the notice period make payment of the relevant part of the Licence Fee due, Strakan and Uluru shall automatically be deemed to have withdrawn its notice of termination.

 

  

  

  

 

	
4.6  

	
In the event that Zindaclin fails to pay the Licence Fee in accordance with clause 4.2 then, subject to clause 4.5, Strakan and Uluru shall have the option to re-purchase the Assigned Trade Marks from Zindaclin upon payment of the sum of an aggregate of $100,000 by Strakan and Uluru to Zindaclin.

 

	
4.7  

	
In the event that Zindaclin fails to pay the Licence Fee in accordance with clause 4.2 and Strakan and Uluru terminate this agreement in accordance with clause 4.5, the Existing Licence Agreement shall automatically be deemed to take effect from the date of such termination upon the terms and conditions contained therein, as amended by the deed of amendment to the Existing Licence Agreement appended to this agreement in Appendix 6.

 

	
4.8  

	
Other than as set out in this clause 4, Zindaclin shall not be liable to make any further payments to Strakan or Uluru in respect of the assignment of the Assigned Trade Marks pursuant to clause 2.1, the licence of the Reserved IP pursuant to clause 3.1 and the assignment of the Reserved IP pursuant to clause 5.2.

 

	
5  

	
Assignment of Reserved IP

 

	
5.1  

	
Strakan shall deliver up to Zindaclin on the Completion Date:

 

	
(a)  

	
all registration and renewal documents relating to the Assigned Trade Marks;

 

	
(b)  

	
all registration and renewal documents for the Patents and Reserved Trade Marks;

 

	
(c)  

	
all duly executed, but undated, assignments, forms and such other documents necessary or desirable for the purpose of transferring legal title in and to the Reserved IP in each relevant territory to Zindaclin in order to give effect to the assignment in clause 5.2; and

 

	
(d)  

	
a legal charge in the agreed form duly executed by Strakan, Zindaclin and Crawford over the Reserved IP,

 

and all documents provided to Zindaclin pursuant to clause 5.1(b) and (c) shall be held in escrow in accordance with clause 6.1.

 

	
5.2  

	
Upon payment by Zindaclin of the final payment of the Licence Fee, Strakan and Uluru (together the Assigning Parties) each hereby automatically assign with effect from the Final Payment Date to Zindaclin with full title guarantee free from all liens, equities, charges and encumbrances, all right, title and interest in and to the Reserved IP, including:

 

	
(a)  

	
all goodwill attaching to the Reserved Trade Marks; and

 

	
(b)  

	
the right to sue for infringements whether occurring before or after the date of such assignment and to benefit from any damages and other remedies obtained as a result of such action.

 

	
6  

	
 Escrow

 

	
6.1  

	
Within five (5) Business Days of the Completion Date, the Assigning Parties shall each deposit the Escrow Documents in escrow with the Escrow Agent for the full term of the Licence Period.

 

	
6.2  

	
Within five (5) days of payment of the final instalment of the Licence Fee pursuant to clause 4.2(d), Zindaclin and Strakan shall each provide written notice to the Escrow Agent that the Licence Fee has been paid and instruct the Escrow Agent to release the Escrow Documents relating to the Reserved IP.

 

  

  

  

 

	
7  

	
Confidentiality

 

	
7.1  

	
Each party shall:

 

	
(a)  

	
keep confidential and shall not use any Confidential Information of another party for a purpose other than the performance of its obligations under this agreement;

 

	
(b)  

	
not disclose Confidential Information of another party to any person without the prior written consent of the relevant party; and

 

	
(c)  

	
only disclose the Confidential Information of another party to those of its officers, employees, agents and contractors to whom, and to the extent which, such disclosure is necessary for the purposes contemplated under this agreement and provided that all such personnel have agreed in writing on terms no less onerous than those contained in this agreement to keep such Confidential Information secret and confidential.

 

	
7.2  

	
The provisions of clause 7.1 shall not apply to information that:

 

	
(a)  

	
was known or available on a non-confidential basis to the receiving party before it was disclosed to it by the disclosing party;

 

	
(b)  

	
is or becomes generally available to the public (otherwise than through a breach of this clause 7);

 

	
(c)  

	
the parties agree in writing is not confidential or may be disclosed; or

 

	
(d)  

	
the receiving party is required to disclose by law, court order or any governmental or regulatory authority provided that, to the extent it is legally permitted to do so, it gives the disclosing party as much notice of such disclosure as possible and takes into account the reasonable requests of the disclosing party in relation to the content of such disclosure.

 

	
7.3  

	
The provisions of this clause 7 shall remain in force notwithstanding expiry or earlier termination of this agreement.

 

	
8  

	
Infringement of Reserved IP

 

	
8.1  

	
Strakan and Uluru shall each notify Zindaclin as soon as they become aware of any actual or threatened infringement of any of the Reserved IP during the Licence Period (“IP Infringement”). On service of such notice or otherwise upon Zindaclin becoming aware of such infringement, Zindaclin shall at its cost and expense take such action as it deems fit (acting reasonably) to prevent such IP Infringement and shall notify the owner(s) of the affected Reserved IP (being Strakan or Uluru or both, as applicable) as soon as reasonably possible and, in any event, within 30 days of service of such notice as to what action it proposes to take. Strakan and/or Uluru shall each give such assistance to Zindaclin in respect thereof as Zindaclin reasonably requests (including joining as joint claimant in respect of any legal proceedings), provided that Zindaclin reimburses Strakan and/or Uluru in respect of the costs that Strakan or Uluru  reasonably incurs in giving such assistance.  Unless the parties agree otherwise, any damages recovered by Zindaclin shall be retained by Zindaclin.

 

	
9  

	
Warranties

 

	
9.1  

	
Strakan warrants that:

 

	
(a)  

	
it is the sole legal and beneficial owner of the Trade Marks;

 

  

  

  

 

	
(b)  

	
the list of trade marks in Schedule 2 is a complete list of all the registered trade marks for “ZINDACLIN” owned by Strakan and, so far as Strakan is aware, and/or used by its licensees;

 

	
(c)  

	
all application, registration and renewal fees in respect of each of the Trade Marks have been paid as at the date of this agreement and in the case of the Reserved Trade Marks, will, subject to the provisions of clause 3.4, be paid up to the date of assignment of the relevant Trade Mark to Zindaclin;

 

	
(d)  

	
the use of the Trade Marks by Zindaclin will not, so far as Strakan is aware (having made enquiries of the licensees under the Licence Agreements) infringe the Intellectual Property Rights or other proprietary rights of a third party in the country or countries covered by the Licence Agreements and such other countries of the Territory where the relevant Trade Marks are registered;

 

	
(e)  

	
other than the Licence Agreements, it has not assigned or granted any licences to any third party to use any of the Trade Marks;

 

	
(f)  

	
there has not been, and it is not aware of, any infringement or any challenge to the validity of any of the Trade Marks or of anything that might render any of the Trade Marks invalid or prevent any of the Trade Marks being registered;

 

	
(g)  

	
the list of patents in Schedule 2 is a complete and accurate list of all the patents owned by Strakan and/or Uluru, as the case may be, in respect of the zinc compound sold and marketed under the name “Zindaclin”;

 

	
(h)  

	
all application, registration and renewal fees in respect of each of the Patents have been paid as at the date of this agreement and will be paid, subject to clause 3.4, up to the date of assignment of the Patents to Zindaclin;

 

	
(i)  

	
the use of the Patents and Know how will not, so far as it is aware (having made enquiries of the licensees under the Licence Agreements), infringe the Intellectual Property Rights or other proprietary rights of a third party in the country or countries covered by the Licence Agreements and such other countries of the Territory where the Patents are granted;

 

	
(j)  

	
it is not aware (having made enquiries of the licensees under the Licence Agreements) of any third party rights in the country or countries covered by the Licence Agreements and such other countries in which the Patents are registered which will be infringed by the manufacture, importation, promotion, marketing, use, distribution and sale of the Licensed Product in such countries;

 

	
(k)  

	
other than the Licence Agreements, it has not assigned or granted any licences to any third party to use any of the Patents or Know how and will not do so during the Licence Period;

 

	
(l)  

	
there has not been, and it is not aware of, any infringement or any challenge to the validity of any of the Patents or, so far as it is aware, of anything that might render any of the Patents invalid or prevent any of the Patents proceeding to grant; and

 

	
(m)  

	
it has delivered to Zindaclin copies of all the Licence Agreements and all available files, records, correspondence and documents relating thereto.

 

	
9.2  

	
Strakan and Uluru each warrant, severally, and not jointly and severally, that they are the sole legal and beneficial owners of the Patents, as set out in Schedule 2 and the Know how.

 

  

  

  

 

	
9.3  

	
Uluru warrants that:

 

	
(a)  

	
so far as it is aware, the list of patents in Schedule 2 is a complete and accurate list of all the patents owned by Strakan and/or Uluru, as the case may be, in respect of the zinc compound sold and marketed under the name “Zindaclin”;

 

	
(b)  

	
it has not received notification that the use of any of the Patents and/or Know how infringes the Intellectual Property Rights or other proprietary rights of a third party in the country or countries covered by the Licence Agreements and such other countries of the Territory in which the Patents are granted;

 

	
(c)  

	
other than the Zinc Compound Licence Agreement, it has not assigned or granted any licences to any third party to use any of the Patents or Know how and will not do so during the Licence Period; and

 

	
(d)  

	
it has the requisite corporate power and authority to execute and deliver this agreement and to perform its obligations hereunder and no consent or other agreement is necessary for it to perform its obligations hereunder.

 

	
9.4  

	
Zindaclin warrants that it has the requisite corporate power and authority to execute and deliver this agreement and to perform its obligations hereunder and no consent or other agreement is necessary for it to perform its obligations hereunder.

 

	
9.5  

	
(a) Strakan shall indemnify Zindaclin against all liabilities, costs, expenses, damages or losses (excluding any indirect consequential losses, loss of profit, loss of reputation) and all interest, penalties and legal and other professional costs and expenses (each a Claim) suffered or incurred by Zindaclin, including any Claim brought by Crawford against Zindaclin, arising out of or in connection with a breach of any of the warranties in clause 9.1 and 9.2 up to an amount not exceeding the sum actually paid by Zindaclin to Strakan under this agreement and provided that any individual claim exceeds $10,000 and shall be brought within twelve (12) months from the due date of the final payment of the Licence Fee, thereafter this clause 9.5(a) shall cease to have effect.

 

	
  

	
(b) Uluru shall indemnify Zindaclin against all Claims suffered or incurred by Zindaclin, including any Claim brought by Crawford against Zindaclin, arising out of or in connection with a breach of any of the warranties by Uluru in clause 9.2 and 9.3 up to an amount not exceeding the sum actually paid by Zindaclin to Uluru under this agreement and provided that any individual claim exceeds $10,000 and shall be brought within twelve (12) months from the due date of the final payment of the Licence Fee, thereafter this clause 9.5(b) shall cease to have effect.

 

	
9.6  

	
Strakan shall indemnify Zindaclin and Crawford against any and all liabilities, costs, expenses, damages or losses and all Claims suffered or incurred by Zindaclin or Crawford as a result of a claim made under or in connection with any indemnity provided by Strakan or any member of its Group in any of the Licence Agreements prior to execution of the relevant Novation Agreement.

 

	
9.7  

	
Zindaclin shall indemnify each of Strakan and Uluru against all liabilities, costs, expenses, damages or losses (excluding any indirect consequential losses, loss of profit, loss of reputation) and all Claims suffered or incurred by Strakan or Uluru arising out of or in connection with a breach of the warranty in clause 9.4 up to an amount not exceeding the sum actually paid by Zindaclin under this agreement and provided that any individual claim exceeds $10,000 and shall be brought within twelve (12) months from the due date of final payment of the Licence Fee, thereafter this clause 9.7 shall cease to have effect.

 

  

  

  

 

	
10  

	
Assignment and other dealings

 

	
10.1  

	
Strakan and Uluru shall not without the prior written consent of Zindaclin  assign, transfer, mortgage, charge or otherwise deal in any other manner with any of its obligations under this agreement. Strakan and Uluru may at any time and without the consent of Zindaclin, assign, transfer, mortgage, charge or otherwise deal in any other manner with any or all of its rights under this agreement.

 

	
10.2  

	
Zindaclin shall not without the prior written consent of Strakan and Uluru assign, transfer, mortgage, charge or otherwise deal in any other manner with any of its obligations under this agreement. Subject to clause 10.3, Zindaclin may at any time and without the consent of Strakan or Uluru, assign, transfer, mortgage, charge or otherwise deal in any other manner with any or all of its rights under this agreement.

 

	
10.3  

	
Until payment by Zindaclin of the amount due pursuant to clause 4.4 or until the expiry of five (5) years from the Completion Date, whichever occurs sooner, Zindaclin shall not without the prior written consent of Strakan and Uluru (such consent not to be unreasonably delayed) license, assign or transfer the US patent application number 10/432,848 or any patent resulting therefrom or US Zindaclin trade mark number 826,238 provided that any such licensee, assignee or transferee shall be obliged in writing for the benefit of Strakan and Uluru to assume the obligation to make the payment due on NDA approval pursuant to clause 4.4. If Strakan and/or Uluru fail to provide such consent within ten (10) Business Days of Zindaclin’s request, the consent of the relevant party shall be deemed to have been given. In the event that Strakan and/or Uluru has a receiver, administrator, administrative receiver, trustee or similar officer appointed over it or of any or all of its assets, Zindaclin shall not be required to obtain consent of the affected party pursuant to this clause 10.3. Zindaclin may at any time and without the consent of Strakan or Uluru mortgage or charge its rights in respect of the US patent application 10/432,848 and any patent resulting therefrom and US Zindaclin trade mark number 826,238 to any unaffiliated third party in connection with an arms-length transaction or to any unaffiliated person or entity providing finance to Zindaclin in an arms-length transaction. Zindaclin may only with the consent of Strakan or Uluru mortgage or charge its rights in respect of the US patent application 10/432,848 and any patent resulting therefrom and US Zindaclin trade mark number 826,238 to any affiliated person or entity providing finance to Zindaclin in an arms-length transaction.

 

	
10.4  

	
Zindaclin may, at its own cost, record the licence granted to it in clause 3 in the relevant registries in the Territory.

 

	
10.5  

	
Strakan and/or Uluru shall provide reasonable assistance, at Zindaclin’s cost, to enable Zindaclin to comply with clause 10.4.

 

	
11  

	
Further assurance

 

	
11.1  

	
At its own expense each party shall, as may reasonably be required, perform (or shall procure that any necessary third party shall perform), such acts and things, and execute and deliver (or procure that any third party executes and delivers) all further documents required for the purpose of giving full effect to this agreement, including to effect the assignments of the Patents set out in Schedule 2 and to vest in Zindaclin the full benefit of the right, title and interest assigned to Zindaclin under this agreement, including but not limited to the registration of Zindaclin as applicant for or proprietor of the Assigned Trade Marks and, upon the assignment of the Reserved IP pursuant to clause 5.2, of the Patents and the Reserved Trade Marks.

 

  

  

  

 

	
12  

	
Waiver

 

No failure or delay by a party to exercise any right or remedy provided under this agreement or by law shall constitute a waiver of that or any other right or remedy, nor shall it preclude or restrict the further exercise of that or any other right or remedy. No single or partial exercise of such right or remedy shall preclude or restrict the further exercise of that or any other right or remedy.

 

	
13  

	
Entire agreement

 

	
13.1  

	
This agreement and the documents referred to in it constitute the whole agreement between the parties and supersede any previous agreement between the parties relating to its subject matter.

 

	
13.2  

	
Each of the parties acknowledges that, in entering into this agreement, it has not relied on, and shall have no right or remedy in respect of, any statement, representation, assurance or warranty (whether negligently or innocently made) other than as expressly set out in this agreement.

 

	
13.3  

	
Nothing in this clause shall limit or exclude any liability for fraud.

 

	
14  

	
Variation

 

No variation of this agreement shall be effective unless it is in writing and signed by the parties (or their authorised representatives).

 

	
15  

	
Severance

 

	
15.1  

	
If any court or competent authority finds that any provision of this agreement (or part of any provision) is invalid, illegal or unenforceable, that provision or part-provision shall, to the extent required, be deemed to be deleted, and the validity and enforceability of the other provisions of this agreement shall not be affected.

 

	
15.2  

	
If any invalid, unenforceable or illegal provision of this agreement would be valid, enforceable and legal if some part of it were deleted the parties shall negotiate in good faith to amend such provision such that, as amended, it is legal, valid and enforceable, and, to the greatest extent possible, achieves the parties' original commercial intention.

 

	
16  

	
Counterparts

 

This agreement may be executed in any number of counterparts, each of which when executed and delivered shall constitute an original of this agreement, but all the counterparts shall together constitute the same agreement. No counterpart shall be effective until each party has executed at least one counterpart.

 

	
17  

	
Third party rights

 

	
17.1  

	
No person other than a party to this agreement, and their respective successors and permitted assigns, shall have any rights to enforce any term of this agreement.

 

	
17.2  

	
Crawford is only a party to this agreement for the purpose of clause 2.2 and to enforce its rights under clause 3.9 and 9.6. In the event that Crawford enforces its rights against Strakan under such clauses, Zindaclin agrees not to make a claim against Strakan in respect of the losses or damages of Crawford pursuant to such clauses.

 

  

  

  

 

	
18  

	
No partnership or agency

 

Nothing in this agreement is intended to, or shall be deemed to, establish any partnership or joint venture between the parties, constitute either party the agent of the other party, nor authorise either party to make or enter into any commitments for or on behalf of the other party.

 

	
19  

	
Force majeure

 

Neither party shall be in breach of this agreement nor liable for delay in performing, or failure to perform, any of its obligations under this agreement if such delay or failure results from events, circumstances or causes beyond its reasonable control, and in such circumstances the affected party shall be entitled to a reasonable extension of the time for performing such obligations, provided that if the period of delay or non-performance continues for  three (3) months, the party not affected may terminate this agreement by giving 14 days' written notice to the other party.

 

	
20  

	
Notices

 

	
20.1  

	
Any notice required to be given under this agreement shall be in writing and shall be delivered personally, or sent by pre-paid first-class post or recorded delivery or by commercial courier, to each party required to receive the notice at its address as set out below:

 

	
(a)  

	
Strakan: FAO: Legal Department

Strakan International Limited

Galabank Business Park

Galashiels

TD1 1QH

UK

Tel: +44 (0) 1896 664000

Email: legaladmin@prostrakan.com

	
(b)  

	
Uluru:FAO: Kerry P. Gray

Chief Executive Officer

4452 Beltway Drive

Addison

Texas 75001

United States of America

Tel: +1 214-905-5145

Email: kgray@uluruinc.com

	
(c)  

	
Zindaclin: FAO: Richard Anderson

	
  

	
Chief Executive Officer

	
  

	
Zindaclin Limited

	
  

	
Cheshire House

	
  

	
164 Main Road

	
  

	
Goostrey

	
  

	
Crewe

	
  

	
Cheshire, CW4 8JP

	
  

	
Tel: +44 (0) 1477 537596

	
  

	
Email: Richard.Anderson@crawfordpharma.com

or as otherwise specified by the relevant party by notice in writing to each other party.

 

  

  

  

 

	
20.2  

	
Any notice shall be deemed to have been duly received:

 

	
(a)  

	
if delivered personally, when left at the address and for the contact referred to in this clause; or

 

	
(b)  

	
if sent by pre-paid first-class post or recorded delivery, on the second Business Day after posting; or

 

	
(c)  

	
if delivered by commercial courier, on the date and at the time that the courier's delivery receipt is signed.

 

	
20.3  

	
A notice required to be given under this agreement shall not be validly given if sent by e-mail.

 

	
20.4  

	
The provisions of this clause 20 shall not apply to the service of any proceedings or other documents in any legal action.

 

	
21  

	
Governing law and jurisdiction

 

	
21.1  

	
This agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with the law of England and Wales.

 

This agreement has been entered into on the date stated at the beginning of it.

 

  

  

  

Schedule 1

 

Trade Marks

Part 1 – Assigned Trade Marks

	
 

MARK

	
 

COUNTRY

	
 

STATUS

	
APPLICATION/

REGISTRATION

NUMBER

	
APP.

DATE

	
REG.

DATE

	
ZINDACLIN

 

 

	
European Community

	
Registered

	
1721745

	
23/06/2000

	
23/06/2000

	
ZINDACLIN

	
Madrid Protocol

 

Designating:

 

Croatia

Russia

Turkey

United States

	
Registered

 

 

 

 

Protected

Protected

Protected

Protected

	
826238

	
31/03/2004

	
31/03/2004

	
ZINDACLIN

 

	
United Kingdom

	
Registered – renewal instructed

	
2236795

	
23/06/2000

	
23/06/2000

	
ZINDACLINE

	
France

	
Registered

	
23184061

	
18/09/2002

	
18/09/2002

Part 2 – Reserved Trade Marks

	
 

MARK

	
 

COUNTRY

	
 

STATUS

	
APPLICATION/

REGISTRATION

NUMBER

	
APP.

DATE

	
REG.

DATE

	
ZINDACLIN

	
Canada

	
Registered

	
TMA690127

	
22/06/2004

	
19/06/2007

	
ZINDACLIN

	
Hong Kong

	
Registered

	
300148419

	
28/01/2004

	
28/01/2004

	
ZINDACLIN

	
India

	
Pending

 

 

	
1589379

	
10/08/2007

	  
	
ZINDACLIN

	
Israel

	
Registered

	
171763

	
28/04/2004

	
08/02/2006

	
ZINDACLIN

	
Korea (South)

	
Registered

	
569534

	
30/09/2002

	
22/12/2003

	
ZINDACLIN

in Korean

	
Korea

(South)

	
Registered

	
569533

	
30/09/2002

	
22/12/2003

	
ZINDACLIN

	
Madrid Protocol

 

Designating:

 

Australia

China

Japan

Morocco

Singapore

	
Registered

 

 

 

 

Protected

Protected

Protected

Protected

Protected

	
826238

	
31/03/2004

	
31/03/2004

	
ZINDACLIN

	
Malaysia

	
Registered

	
2004/01588

	
12/02/2004

	
12/02/2004

	
ZINDACLIN

	
New Zealand

	
Registered

	
710663

	
05/04/2004

	
28/01/2004

	
ZINDACLIN

	
Switzerland

	
Registered

	
499520

	
06/03/2002

	
06/03/2002

	
ZINDACLIN

	
Taiwan

	
Registered

	
1140244

	
11/02/2004

	
16/02/2005

  

  

  

Schedule 2

Patents

	
COUNTRY

	
NAME OF PATENT HOLDER

	
APPLICATION NO.

	
GRANT NO.

	
APPLICATION DATE

	
GRANT DATE

	
STATUS

	
Australia

	
Strakan International Limited

	
2002223091

	
2002223091

	
28/11/2001

	
14/12/2006

	
Granted

	
Austria

	
Strakan International Limited

	
01998353.5

	
E 321560

	
28/11/2001

	
29/03/2006

	
Granted

	
Belgium

	
Strakan International Limited

	
01998353.5

	
1347765

	
28/11/2001

	
29/03/2006

	
Granted

	
Brazil

	
Strakan International Limited 

	
PI0115727-2

	  	
28/11/2001

	  	
Pending

	
Canada

	
Strakan International Limited

	
2,429,205

	  	
28/11/2001

	  	
Pending

	
Croatia

	
Strakan International Limited

	
P20030433

	
P20030433

	
28/11/2001

	
16/10/2007

	
Granted

	
Cyprus

	
Strakan International Limited

	
01998353.5

	
1347765

	
28/11/2001

	
29/03/2006

	
Granted

	
Czech Republic

	
Strakan International Limited 

	
PV2003-1491

	  	
28/11/2001

	  	
Pending

	
Denmark

	
Strakan International Limited

	
01998353.5

	
1347765

	
28/11/2001

	
29/03/2006

	
Granted

	
Finland

	
Strakan International Limited

	
01998353.5

	
1347765

	
28/11/2001

	
29/03/2006

	
Granted

	
France

 

	
Strakan International Limited

	
01998353.5

	
1347765

	
28/11/2001

	
29/03/2006

	
Granted

	
Germany

	
Strakan International Limited

	
01998353.5

	
601 18 441.6

	
28/11/2001

	
29/03/2006

	
Granted

	
Greece

	
Strakan International Limited

	
01998353.5

	
3058203

	
28/11/2001

	
29/03/2006

	
Granted

	
Hong Kong

	
Strakan International Limited

	
04102115.2

	
HK1059218

	
28/11/2001

	
03/11/2006

	
Granted

	
Hungary

	
Strakan International Limited 

	
P0400520

	  	
28/11/2001

	  	
Pending

	
Ireland

	
Strakan International Limited

	
01998353.5

	
1347765

	
28/11/2001

	
29/03/2006

	
Granted

	
Israel

	
Strakan International Limited

	
152,720

	
152720

	
28/11/2001

	
07/04/2008

	
Granted

	
Italy

	
Strakan International Limited

	
01998353.5

	
027591BE/2006

	
28/11/2001

	
29/03/2006

	
Granted

	
Japan

	
Strakan International Limited 

	
2002-545709

	
4272425

	
28/11/2001

	
06/03/2009

	
Granted

	
Luxembourg

	
Strakan International Limited

	
01998353.5

	
1347765

	
28/11/2001

	
29/03/2006

	
Granted

	
Mexico

	
Strakan International Limited

	
PA/a/2003/004733

	  	
28/11/2001

	  	
Pending

	
Monaco

	
Strakan International Limited 

	
01998353.5

	
1347765

	
28/11/2001

	
29/03/2006

	
Granted

	
Netherlands

	
Strakan International Limited

	
01998353.5

	
1347765

	
28/11/2001

	
29/03/2006

	
Granted

	
New Zealand

	
Strakan International Limited

	
526170

	
526170

	
28/11/2001

	
11/05/2006

	
Granted

	
Poland

	
Strakan International Limited

	
P362279

	  	
28/11/2001

	  	
Pending

	
Portugal

	
Strakan International Limited

	
01998353.5

	
1347765

	
28/11/2001

	
29/03/2006

	
Granted

	
Republic of Korea

	
Strakan International Limited 

	
10-2002-7013077

	
10-0629326

	
28/11/2001

	
21/09/2006

	
Granted

Cont’d...

  

  

  

	
COUNTRY

	
NAME OF PATENT HOLDER

	
APPLICATION NO.

	
GRANT NO.

	
APPLICATION DATE

	
GRANT DATE

	
STATUS

	
Russian Federation

	
Strakan International Limited 

 

	
2003119158

	
2277419

	
28/11/2001

	
10/06/2006

	
Granted

	
Slovakia

	
Strakan International Limited 

	
PV 632-2003

	  	
28/11/2001

	  	
Pending

	
South Africa

	
Strakan International Limited

	
2003/5012

	
2003/5012

	
28/11/2001

	
26/04/2005

	
Granted

	
Spain

	
Strakan International Limited

	
01998353.5

	
1347765

	
28/11/2001

	
29/03/2006

	
Granted

	
Sweden

	
Strakan International Limited

	
01998353.5

	
1347765

	
28/11/2001

	
29/03/2006

	
Granted

	
Switzerland

	
Strakan International Limited

	
01998353.5

	
1347765

	
28/11/2001

	
29/03/2006

	
Granted

	
Turkey

	
Strakan International Limited 

	
01998353.5

	
1347765

	
28/11/2001

	
29/03/2006

	
Granted

	
United Kingdom

	
Strakan International Limited

	
01998353.5

	
1347765

	
28/11/2001

	
29/03/2006

	
Granted

	
USA

	
Strakan International Limited

	
10/432,848

	  	
28/11/2001

	  	
Pending

 

	
 -

	
Assignments from Kanford BV to SIL filed with the Brazilian, Korean and Slovakian Patent Offices, dated 26 October 2009, 3 March 2010 and 3 August 2009 respectively.  Recordal of the assignments at the respective Patent Offices is pending

 

	
 -

	
Assignments from Kanford BV and Access Pharmaceuticals, Inc to SIL filed with the Czech, Hungarian and Japanese Patent Offices, dated 14 January 2009, 16 December 2008 and 15 March 2010  respectively.  Recordal of the assignments at the respective Patent Offices is pending

 

	
 -

	
Assignments from Access Pharmaceutical, Inc. to SIL filed with the Monacan, Russian and Turkish Patent Offices on 23 February 2010, 12 November 2008 and 19 November 2009 respectively.  Recordal of the assignments at the respective Patent Offices is pending

 

 

  

  

  

Schedule 3

Licence Agreements

	
1.  

	
Agreement between Strakan International Limited and GenePharm Australasia Ltd (assigned from Epitan Pharmaceuticals Pty Limited on 30 September 2006) dated 16 July 2004.

	
2.  

	
Agreement between Strakan International Limited and Laboratorios Biosintetica dated 22 December 2003

	
3.  

	
Agreement between Kanford BV (1), Strakan Group Limited (2) and Hyun Dai Pharm. Ind. Co. Ltd. (3), dated 23 December 2002

	
4.  

	
Agreement between Strakan International Limited and Industrial Farmaceutica Cantabria S.A. dated 26 July 2005

	
5.  

	
Agreement between Strakan International Limited (1), Orient Europharma Co. Ltd (2) and Cyntec Co. Ltd (3) dated 5 February 2004

	
6.  

	
Agreement between Strakan International Limited and Dankos Laboratories Tbk (now PT Kalbe Farma Tbk) dated 10 November 2003

	
7.  

	
Agreement between Strakan International Limited and Taro International Limited dated 5 January 2005

  

  

  

Appendix 1

	
  

	
Form of Novation Agreement

DATED         [   ] 2010

STRAKAN INTERNATIONAL LIMITED

and

CRAWFORD HEALTHCARE LIMITED

and

[SUBLICENSEE]

                                                   

NOVATION AGREEMENT

  

  

  

 

NOVATION AGREEMENT

 

 

DATE             [   ] 2010

 

PARTIES

 

	
(1)  

	
STRAKAN INTERNATIONAL LIMITED (the "Company") (incorporated in Bermuda and registered in Scotland under company number F000906) with its principal place of business at Galabank Business Park, Galashiels, TD1 1QH, UK (the "Transferor");

 

	
(2)  

	
CRAWFORD HEALTHCARE LIMITED (incorporated and registered in England under company registration number 03262015, the registered office of which is at 25 Cheshire House, 164 Main Road, Goostrey, Crewe, Cheshire, CW4 8JP, UK (the "Transferee"); and

 

	
(3)  

	
[SUBLICENSEE], (incorporated and registered in [   ] under company number [   ]) the registered office of which is at [      ] (the "Continuing Party").

 

RECITALS

 

	
(A)  

	
This Novation Agreement is supplemental to the existing [distribution] agreement dated [   ] between the Transferor and the Continuing Party (the “Agreement”).

 

	
(B)  

	
Pursuant to an agreement dated [    ] 2010 entered into between (1) the Transferor, (2) Uluru, Inc. and (3) Zindaclin Limited (the "Acquisition and Licence Agreement"), the Transferor, Uluru, Inc. and Zindaclin Limited (“Zindaclin”) have agreed to the sale to Zindaclin of certain assets of the Transferor and Uluru, Inc, including the intellectual property licensed to the Continuing Party under the Agreement.

 

	
(C)  

	
Zindaclin is a member of the same Group as the Transferee. With effect on and from the date of completion of the Acquisition and Licence Agreement (the “Effective Date”), the Transferee shall have an exclusive licence to the assets transferred to Zindaclin under the Acquisition and Licence Agreement.

 

	
(D)  

	
The Transferor wishes to assign and transfer all of its rights, privileges, duties, obligations and liabilities arising out of the Agreement to the Transferee with effect on and from the Effective Date.

 

	
(E)  

	
With effect on and from the Effective Date the Transferor wishes to be released from, and the Transferee wishes to assume and perform, all the obligations of the Transferor under or in respect of the Agreement.

 

	
(F)  

	
The Continuing Party gives its consent to the assignment, transfer and assumption referred to in Recitals (D) and (E) above taking place.

 

	
1.  

	
DEFINITIONS AND INTERPRETATION

 

 

	
1.1

	
Except where the context otherwise requires, expressions defined in the Agreement shall have the same meanings when used in this Novation Agreement.

 

 

	
1.2

	
Words importing the singular only shall import the plural and vice versa.

 

	
1.3

	
References to “Group” mean in relation to a company, that company, any subsidiary or holding company from time to time of that company or of a holding company of that company and references to “holding company” and “subsidiary” are as defined in section 1159 of the Companies Act 2006.

	
2.  

	
NOVATION OF THE AGREEMENT

 

 

	
2.1

	
As from the Effective Date, the Transferor unconditionally and irrevocably releases and discharges the Continuing Party from further performance or discharge of the obligations and liabilities of the Continuing Party owed to the Transferor under the Agreement and from all future claims and demands in respect of the Agreement.

 

 

	
2.2

	
As from the Effective Date, the Transferee accepts the liability of the Transferor under the Agreement and undertakes with the Continuing Party to observe and perform all the obligations and to discharge all the liabilities of the Transferor arising under the Agreement and shall be bound by the terms of the Agreement in every way as if the Transferee had at all times been a party to the Agreement in place of the Transferor.

 

 

	
2.3

	
The Continuing Party unconditionally and irrevocably releases and discharges the Transferor from further performance or discharge of the obligations and liabilities of the Transferor owed to the Continuing Party under the Agreement and from all future claims and demands in respect of the Agreement as from the Effective Date and accepts the liability of the Transferee to undertake such performance or discharge pursuant to clause 2.2 of this Novation Agreement in lieu of the liability of the Transferor.

 

 

	
2.4

	
The Continuing Party agrees to be bound by the terms and conditions of the Agreement in every way as if the Transferee and the Continuing Party had always been named as parties to the Agreement, and accordingly the Continuing Party acknowledges and agrees that the Transferee shall have the right to enforce the Agreement and pursue all future claims and demands by the Transferor in respect of the Agreement as from the Effective Date.

 

 

	
2.5

	
Nothing in this Novation Agreement shall operate to discharge the Continuing Party or the Transferor from any liability or affect or prejudice any claim or demand which either the Transferor or the Continuing Party may have against the other in respect of matters arising prior to the Effective Date.

 

 

	
3.  

	
TRANSFEREE'S ACKNOWLEDGEMENTS

 

 

	
3.1

	
The Transferee agrees to indemnify the Transferor (on a full indemnity basis) from and against all actions, proceedings, claims and demands which may be brought or made against the Transferor and all losses and properly incurred costs which the Transferor may incur or sustain arising from the failure of the Transferee to comply with its obligations under this Novation Agreement.

 

 

	
3.2

	
The Transferor agrees to indemnify the Transferee (on a full indemnity basis) from and against all actions, proceedings, claims and demands which may be brought or made against the Transferee and all losses and properly incurred costs which the Transferee may incur or sustain arising from the failure of the Transferor to comply with the terms of the Agreement prior to the Effective Date.

 

 

	
3.3

	
The Transferee and Transferor each acknowledge that no representation, warranty or condition, express or implied is given by or on behalf of the other or their respective officers, staff, employees or agents in relation to this letter.

 

 

	
4.  

	
COUNTERPARTS

 

 

This Novation Agreement may be executed in one or more counterparts each of which shall be deemed to be an original but all of which shall constitute one and the same instrument.

 

 

	
5.  

	
ENTIRE AGREEMENT

 

 

The terms and conditions of this Novation Agreement represent the entire agreement between the parties relating to the novation of the Agreement and except as expressly amended by this Novation Agreement all the terms and conditions of the Agreement remain in full force and effect.

 

 

	
6.  

	
LAW AND JURISDICTION

 

 

	
6.1

	
This Novation Agreement, and all disputes or claims arising out of or in connection with it, shall be governed by and construed in accordance with English law.

 

 

	
6.2

	
The parties to this Novation Agreement irrevocably and unconditionally agree that the High Court of Justice in England shall have exclusive jurisdiction in relation to all disputes or claims arising out of or in connection with this Novation Agreement.

 

 

 

 

[Signature page follows]

 

 

 

  

  

  

 

This Novation Agreement is executed and delivered as a Deed and shall come into force on the Effective Date.

 

 

 

 

Executed and Delivered as a Deed for and on behalf of STRAKAN INTERNATIONAL LIMITED

 

 

Date:

 

 

Signed by:

 

 

Full name:

 

 

Position:

 

 

In the presence of:

 

 

Witness Signature:

 

 

Name:

 

 

Address:

 

 

Occupation:

 

 

 

 

Executed and Delivered as a Deed for and on behalf of CRAWFORD HEALTHCARE LIMITED

 

 

Date:

 

 

Signed by:

 

 

Full name                        

 

 

Position:

 

 

In the presence of:

 

 

Witness Signature:

 

 

Name:

 

 

Address:

 

 

 

 

Occupation:

 

  

  

  

 

 

 

Executed and Delivered as a Deed for and on behalf of [SUBLICENSEE]

 

 

Date:

 

 

Signed by:

 

 

Full name                        

 

 

Position:

 

 

In the presence of:

 

 

Witness Signature:

 

 

Name:

 

 

Address:

 

 

 

 

Occupation:

 

 

 

 

 

  

  

  

	
  

	
Appendix 2

	
  

	
Escrow Agreement

	
Strakan International Limited

and

Zindaclin Limited

and

Wragge & Co LLP

  

ESCROW DEED

  

 

 

 

	  

  

  

  

THIS DEED is made on             [Ÿ] 2010

 

BETWEEN:

 

	
(1)  

	
Strakan International Limited, a company incorporated in Bermuda and registered in Scotland under company number F000906, whose registered office is at Galabank Business Park, Galashiels, TD1 1QH ("Strakan");

 

	
(2)  

	
Zindaclin Limited, a company registered in England with company number 7244532, whose registered office is at Cheshire House, 164 Main Road, Goostrey, Crewe, Cheshire, CW4 8JP ("Zindaclin");

 

	
(3)  

	
Wragge & Co LLP of 3 Waterhouse Square, 142 Holborn, London, EC1N 2SW ("Wragge").

 

RECITALS

 

	
(A)  

	
This agreement is supplemental to the Acquisition and Licence Agreement dated [Ÿ] 2010 between Strakan and Uluru Inc. (together the “Sellers”) and Zindaclin (the "Acquisition and Licence Agreement") whereby the Sellers have agreed upon the terms and subject to the conditions stated therein to sell certain intellectual property to Zindaclin.

 

	
(B)  

	
In addition, Strakan has agreed to deliver certain documents to Wragge to be held in escrow within 5 days of the Completion Date (as defined in the Acquisition and Licence Agreement). The parties are entering into this agreement in order to regulate the operation of such documents being held in escrow by Wragge.

 

THE PARTIES AGREE AS FOLLOWS:

 

	
1.  

	
INTERPRETATION

 

	
1.1  

	
In this Agreement unless the context otherwise requires the following words and expressions shall have the following meanings:

 

"Escrow Account" means the premises of Wragge for the sole purpose of receiving and holding the Escrow Documents;

 

“Escrow Documents” means the documents delivered to Wragge pursuant to Clause 3.1 of this Agreement;

 

"Instructions" means Strakan's Instructions and Zindaclin’s Instructions;

 

"Strakan’s Instructions" means the written instructions to Wragge from Strakan to release the Escrow Documents which instructions shall be irrevocable once delivered;

 

"Zindaclin’s Instructions" means the written instructions to Wragge from Zindaclin to release the Escrow Documents which instructions shall be irrevocable once delivered.

 

  

  

  

 

	
1.2  

	
Unless the context otherwise requires, words and expressions defined in the Acquisition and Licence Agreement shall have the same meaning in this agreement.

 

	
1.3  

	
Reference to a "party" means a party to this agreement and includes its assignees (if any) and/or the successors in title to substantially the whole of its undertaking.

 

	
2.  

	
APPOINTMENT AND STATUS OF WRAGGE

 

	
2.1  

	
The Sellers and Zindaclin hereby appoint Wragge to act as escrow agent under and for the purposes of this Agreement and the Acquisition and Licence Agreement and Wragge hereby accepts such appointment on the terms and conditions set forth herein.

 

	
2.2  

	
Wragge shall have no obligations in connection with the Escrow Account or its administration other than as set out in this agreement.

 

	
3.  

	
OPERATION OF THE ESCROW ACCOUNT

 

	
3.1  

	
Pursuant to clause 6 of the Acquisition and Licence Agreement, Strakan shall deliver the following documents to Wragge to be held in escrow, within 5 days of the Completion Date (as defined in the Acquisition and Licence Agreement):

 

	
(a)  

	
all registration and renewal (if any) documents for the Patents and Reserved Trade Marks (as defined in the Acquisition and Licence Agreement);

 

	
(b)  

	
engrossed and executed (but undated) version of the assignments of the Reserved IP (as defined in the Acquisition and Licence Agreement) and such other forms or documents required to register such assignments in each relevant territory on terms that these documents are to be held to the order of Strakan pending fulfilment of the escrow conditions pursuant to Clause 6.2 of the Acquisition and Licence Agreement.

 

	
3.2  

	
Wragge shall release the Escrow Documents within 5 days of receipt by Wragge of all of the following: Strakan’s Instructions and Zindaclin’s Instructions. If Strakan’s Instructions are not received within ten days of the date of Zindaclin’s Instructions, then Wragge shall contact Strakan and if no instructions are forthcoming within a further ten (10) days then Strakan’s Instructions shall be deemed to have been received and Wragge shall release the Escrow Documents accordingly.

 

	
3.3  

	
Unless otherwise required by law or regulatory requirement, Wragge shall not release the Escrow Documents to any person save in accordance with the terms of Clause 3.2 of this Agreement.

 

  

  

  

 

	
3.4  

	
Strakan and Zindaclin confirm to Wragge that the only obligations of Wragge are to hold and release the Escrow Documents in accordance with this Clause 3.

 

	
3.5  

	
On release of the Escrow Documents pursuant to Clause 3.2 of this Agreement, Wragge shall be released and discharged from all further obligations under this Agreement.

 

	
4.  

	
PROFESSIONAL CHARGES

 

Wragge shall be entitled to be paid professional fees at the usual rates they charge from time to time and reimbursed for expenses incurred by them, in relation to the establishment and administration of the Escrow Account.  Strakan shall be responsible for the fees of Wragge incurred pursuant to this Agreement.

 

	
5.  

	
SUPREMACY OF THIS AGREEMENT

 

In the event of any conflict between the terms of this agreement and the terms of the Acquisition and Licence Agreement, the terms of the Acquisition and Licence Agreement shall prevail.

 

	
6.  

	
VARIATIONS

 

This agreement may be varied only by a document signed by or on behalf of each of the parties.

 

	
7.  

	
WAIVER

 

	
7.1  

	
A waiver of any term, provision or condition of, or consent granted under, this Agreement shall be effective only if given in writing and signed by the waiving or consenting party and then only in the instance and for the purpose for which it is given.

 

	
7.2  

	
No failure or delay on the part of any party in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

	
7.3  

	
No breach of any provision of this Agreement shall be waived or discharged except with the express written consent of the parties.

 

	
8.  

	
INVALIDITY

 

If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction:

 

	
(a)  

	
the validity, legality and enforceability under the law of that jurisdiction of any other provision; and

 

  

  

  

 

	
(b)  

	
the validity, legality and enforceability under the law of any other jurisdiction of that or any other provision,

 

shall not be affected or impaired in any way.

 

	
9.  

	
NOTICES

 

	
9.1  

	
Any notice given or made under or in connection with the matters contemplated by this agreement shall be in writing and shall be delivered personally or sent by fax:

 

	
In the case of the Wragge to:

	
Wragge LLP

3 Waterhouse Square

142 Holborn

London

EC1N 2SW

	  	  
	
Fax:

	
+ 44 870 904 1000

	
Attention:

	
Patrick Duxbury and/or James Rowlands

	  	  	  
	  	
In the case of Strakan to:

	
Galabank Business Park

Galashiels

TD1 1QH

	  	  	  
	  	
Fax:

	
+44 1896 664001

	  	
Attention:

	
legaladmin@prostrakan.com

	  	  	  
	  	
In the case of Zindaclin to:

	
Cheshire House

164 Main Road

Goostrey

Crewe

Cheshire, CW4 8JP

	  	  	  
	  	
Fax:

	
[Ÿ]

	  	
Attention:

	
[Ÿ]

and shall be deemed to have been duly given or made as follows:

 

	
(a)  

	
if personally delivered, upon delivery at the address of the relevant party;

 

	
(b)  

	
if sent by fax, when received;

 

provided that if, in accordance with the above provisions, any such notice, demand or other communication would otherwise be deemed to be given or made outside 9.00 a.m. - 5.00 p.m. on a Business Day such notice, demand or other communication shall be deemed to be given or made at 9.00 a.m. on the next Business Day.

 

  

  

  

 

	
10.  

	
COUNTERPARTS

 

	
10.1  

	
This Agreement may be executed in any number of counterparts which together shall constitute one agreement.  Any party may enter into this Agreement by executing a counterpart and this Agreement shall not take effect until it has been executed by all parties.

 

	
10.2  

	
Delivery of an executed signature page of a counterpart by facsimile transmission or in AdobeTM Portable Document Format (PDF) sent by electronic mail shall take effect as delivery of an executed counterpart of this agreement.  If either method is adopted, without prejudice to the validity of such agreement, each party shall provide the others with the original of such page as soon as reasonably practicable thereafter.

 

	
11.  

	
ASSIGNMENT

 

	
11.1  

	
This Agreement is personal to the parties and accordingly no party without the prior written consent of the other shall assign, transfer, charge or declare a trust of the benefit of all or any of any other party's obligations or any benefit arising under this Agreement.

 

	
12.  

	
GOVERNING LAW AND JURISDICTION

 

This Agreement (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in any way relating to this Agreement or its formation) shall be governed by and construed in accordance with English law and shall be subject to the exclusive jurisdiction of the courts of England.

 

	
13.  

	
THIRD PARTY RIGHTS

 

The operation of the Contracts (Rights of Third Parties) Act 1999 is hereby excluded.

 

AS WITNESS whereof the parties have executed and delivered this Agreement as a deed on the date set out above

 

 

SIGNED as a DEED by

STRAKAN INTERNATIONAL LIMITED

acting by a Director and its Secretary (or two Directors)

Director....................................................

In the presence of:

Witness............................................

Name                      ............................................

Address                      ............................................

............................................

............................................

 

SIGNED as a DEED by

ZINDACLIN LIMITED

acting by a Director and its Secretary (or two Directors)

Director..............................................................

In the presence of:

Witness...........................................

Name                      ............................................

Address                      ............................................

............................................

............................................

SIGNED as a DEED by

PATRICK DUXBURY on behalf of

WRAGGE & CO. LLP

in the presence of:.........................................................

Signature of witness......................................................

Name (in BLOCK CAPITALS)..........................................

Address..............................................................................

 

  

  

  

	
  

	
Appendix 3

	
  

	
Existing Licence Agreement

  

  

  

	
  

	
Appendix 4

	
  

	
Strakan’s and Uluru’s Nominated Bank Accounts

  

  

  

Appendix 5

Royalties for the period up to 31 May 2010

  

  

  

Appendix 6

Deed of Amendment to the Existing Licence Agreement

  

  

  

Appendix 7

Novation Agreement - Laboratorios Biosintetica

  

  

  

SIGNED by Andrew McLean                                                                )

)           /s/ Andrew McLean

on behalf of                                                                )           Director & Authorised Signatory

STRAKAN INTERNATIONAL LIMITED                                                                           )

	
in the presence of: Steve Dunkerley

	
)

 

/s/ Steve Dunkerley

 

	
SIGNED by Kerry P. Gray

	
)

)           /s/ Kerry P. Gray

on behalf of                                                                )           Director & Authorised Signatory

ULURU INC                                                                )

	
in the presence of: Daniel G. Moro

	
)

 

/s/ Daniel G. Moro

 

	
SIGNED by Richard Anderson

	
)

)           /s/ Richard Anderson

on behalf of                                                                )           Director & Authorised Signatory

ZINDACLIN LIMITED                                                                )

	
in the presence of:

	
)

 

..........................

 

	
SIGNED by Richard Anderson

	
)

)           /s/ Richard Anderson

on behalf of                                                                )           Director & Authorised Signatory

CRAWFORD HEALTHCARE LIMITED                                                                           )

	
in the presence of:

	
)

 

..........................

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]