Document:

ex_10-28.htm

EXHIBIT 10.28

 

ULURU Inc.

 

INDEMNIFICATION AGREEMENT

 

 

THIS INDEMNIFICATION AGREEMENT (the “Agreement”) is made and entered into as of March 31, 2017 between ULURU Inc., a Nevada corporation (the “Company”), and Oksana Tiedt (“Indemnitee”).

 

WITNESSETH THAT:

 

WHEREAS, highly competent persons have become more reluctant to serve corporations as directors and officers or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;

 

WHEREAS, the Board of Directors of the Company (the “Board”) has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities.  Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions.  At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself.  The By-laws of the Company require indemnification of the directors, officers, employees, fiduciaries and agents of the Company.  Indemnitee may also be entitled to indemnification pursuant to Chapter 78 - Private Corporations, of the Nevada Revised Statutes (the “NRS”).  The NRS expressly provides that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the Board with respect to indemnification;

 

WHEREAS, the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons;

 

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

 

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

 

WHEREAS, this Agreement is a supplement to and in furtherance of any indemnification provisions in the Articles of Incorporation and/or the By-laws of the Company and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefore, nor to diminish or abrogate any rights of Indemnitee thereunder;

 

WHEREAS, Indemnitee does not regard the protection available under the NRS, the Company's By-laws and insurance as adequate in the present circumstances, and may not be willing to serve as an officer or a director without adequate protection, and the Company desires Indemnitee to serve in such capacity.  Indemnitee is willing to serve, continue to serve and to take on additional services for or on behalf of the Company on the condition that he be so indemnified; and

 

  

  

  

NOW, THEREFORE, in consideration of Indemnitee’s agreement to serve as a director from and after the date hereof, the parties hereto agree as follows:

 

1. Indemnity of Indemnitee.  The Company hereby agrees to hold harmless and indemnify Indemnitee to the fullest extent permitted by law, as such may be amended from time to time.  In furtherance of the foregoing indemnification, and without limiting the generality thereof:

 

(a) Proceedings Other Than Proceedings by or in the Right of the Company.  Indemnitee shall be entitled to the rights of indemnification provided in this Section l(a) if, by reason of his Corporate Status (as hereinafter defined), Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding (as hereinafter defined) other than a Proceeding by or in the right of the Company.  Pursuant to this Section 1(a), the Company shall indemnify Indemnitee against all Expenses (as hereinafter defined), judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him, or on his behalf, in connection with such Proceeding or any claim, issue or matter therein, if the Indemnitee acted in good faith and in a manner the Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and with respect to any criminal Proceeding, had no reasonable cause to believe Indemnitee’s conduct was unlawful.

 

(b) Proceedings by or in the Right of the Company.  Indemnitee shall be entitled to the rights of indemnification provided in this Section 1(b) if, by reason of his Corporate Status, the Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding brought by or in the right of the Company.  Pursuant to this Section 1(b), the Company shall indemnify Indemnitee against all Expenses and amounts paid in settlement actually and reasonably incurred by Indemnitee, or on Indemnitee’s behalf, in connection with such Proceeding or any claim, issue or matters therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company; provided, however, if applicable law so provides, no indemnification against such Expenses shall be made in respect of any claim, issue or matter in such Proceeding as to which Indemnitee shall have been adjudged by a court of competent jurisdiction, after exhaustion of all appeals therefrom, to be liable to the Company unless and to the extent that a court of competent jurisdiction shall determine that such indemnification may be made.

 

(c)            Indemnification under NRS 78.138.  Indemnitee shall be entitled to the rights of indemnification provided under Section 1(a) and Section 1(b) if Indemnitee is not liable pursuant to NRS 78.138.

 

(d)            Indemnification for Expenses of a Party Who is Wholly or Partly Successful.  Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, the Company shall indemnify Indemnitee to the maximum extent permitted by law, as such may be amended from time to time, against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.  If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection with each successfully resolved claim, issue or matter.  For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

  

  

  

2. Additional Indemnity.  In addition to, and without regard to any limitations on, the indemnification provided for in Section 1 of this Agreement, the Company shall and hereby does indemnify and hold harmless Indemnitee, to the fullest extent permitted by law, as may be amended from time to time, against all Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him or on his behalf if, by reason of his Corporate Status, he is, or is threatened to be made, a party to or participant in any Proceeding (including a Proceeding by or in the right of the Company), including, without limitation, all liability arising out of the negligence or active or passive wrongdoing of Indemnitee.  The only limitation that shall exist upon the Company’s obligations pursuant to this Agreement shall be that the Company shall not be obligated to make any payment to Indemnitee that is finally determined (under the procedures, and subject to the presumptions, set forth in Sections 6 and 7 hereof) to be unlawful.

 

3. Contribution.

 

(a) Whether or not the indemnification provided in Sections 1 and 2 hereof is available, in respect of any threatened, pending or completed action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), the Company shall pay the entire amount of any judgment or settlement of such action, suit or proceeding without requiring Indemnitee to contribute to such payment and the Company hereby waives and relinquishes any right of contribution it may have against Indemnitee.  The Company shall not enter into any settlement of any action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding) unless such settlement provides for a full and final release of all claims asserted against Indemnitee.

 

(b) Without diminishing or impairing the obligations of the Company set forth in the preceding subparagraph, if, for any reason, Indemnitee shall elect or be required to pay all or any portion of any judgment or settlement in any threatened, pending or completed action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), the Company shall contribute to the amount of Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by Indemnitee in proportion to the relative benefits received by the Company and all officers, directors or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, from the transaction from which such action, suit or proceeding arose; provided, however, that the proportion determined on the basis of relative benefit may, to the extent necessary to conform to law, be further adjusted by reference to the relative fault of the Company and all officers, directors or employees of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, in connection with the events that resulted in such expenses, judgments, fines or settlement amounts, as well as any other equitable considerations which applicable law may require to be considered.  The relative fault of the Company and all officers, directors or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, shall be determined by reference to, among other things, the degree to which their actions were motivated by intent to gain personal profit or advantage, the degree to which their liability is primary or secondary and the degree to which their conduct is active or passive.

 

(c) The Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims of contribution which may be brought by officers, directors or employees of the Company, other than Indemnitee, who may be jointly liable with Indemnitee.

 

  

  

  

 

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

 

4. Indemnification for Expenses of a Witness.  Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness, or is made (or asked) to respond to discovery requests, in any Proceeding to which Indemnitee is not a party, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.

 

5. Advancement of Expenses.  Notwithstanding any other provision of this Agreement, the Company shall advance all Expenses incurred by or on behalf of Indemnitee in connection with any Proceeding by reason of Indemnitee’s Corporate Status within thirty (30) days after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding.  Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and, if required by law at the time of such advance, shall include or be preceded or accompanied by a written undertaking by or on behalf of Indemnitee to repay any Expenses advanced if it shall ultimately be determined by a court of competent jurisdiction that Indemnitee is not entitled to be indemnified against such Expenses.  Any advances and undertakings to repay pursuant to this Section 5 shall be unsecured and interest free.  In furtherance of the foregoing the Indemnitee hereby undertakes to repay such amounts advanced only if, and to the extent that, it shall ultimately be determined by a court of competent jurisdiction that the Indemnitee is not entitled to be indemnified by the Company as authorized by this Agreement.

 

6. Procedures and Presumptions for Determination of Entitlement to Indemnification.  It is the intent of this Agreement to secure for Indemnitee rights of indemnity that are as favorable as may be permitted under the NRS and public policy of the State of Nevada.  Accordingly, the parties agree that the following procedures and presumptions shall apply in the event of any question as to whether Indemnitee is entitled to indemnification under this Agreement:

 

(a) To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification.  The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.  Notwithstanding the foregoing, any failure of Indemnitee to provide such a request to the Company, or to provide such a request in a timely fashion, shall not relieve the Company of any liability that it may have to Indemnitee unless, and to the extent that, the Company is actually and materially prejudiced as a direct result of such failure.

 

(b) Upon written request by Indemnitee for indemnification pursuant to the first sentence of Section 6(a) hereof, a determination with respect to Indemnitee’s entitlement thereto shall be made in the specific case by one of the following three methods, which shall be at the election of the Board:  (i) by a majority vote of a quorum consisting of Disinterested Directors (as hereinafter defined), (ii) if a majority vote of a quorum consisting of Disinterested Directors so orders, or if a quorum of Disinterested Directors cannot be obtained, by Independent Counsel (as hereinafter defined) in a written opinion to the Board, a copy of which shall be delivered to Indemnitee, or (iii) by the stockholders of the Company.

 

  

  

  

 

(c) Notwithstanding anything to the contrary set forth in this Agreement, if a request for indemnification is made after a Change in Control, at the election of Indemnitee made in writing to the Company, any determination required to be made pursuant to Section 6(b) above as to whether Indemnitee is entitled to indemnification shall be made by Independent Counsel selected as provided in this Section 6(c). The Independent Counsel shall be selected by Indemnitee, unless Indemnitee shall request that such selection be made by the Board. The party making the selection shall give written notice to the other party advising it of the identity of the Independent Counsel so selected. The party receiving such notice may, within seven (7) days after such written notice of selection shall have been given, deliver to the other party a written objection to such selection. Such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 13 hereof, and the objection shall set forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the person so selected shall act as Independent Counsel.  If a written objection is made, the Independent Counsel so selected may not serve as Independent Counsel unless and until a court has determined that such objection is without merit.  If, within twenty (20) days after submission by Indemnitee of a written request for indemnification pursuant to Section 6(a) hereof, no Independent Counsel shall have been selected (or, if selected, such selection shall have been objected to) in accordance with this paragraph, then either the Company or Indemnitee may petition the courts of the State of Nevada or other court of competent jurisdiction for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the court or by such other person as the court shall designate, and the person with respect to whom an objection is favorably resolved or the person so appointed shall act as Independent Counsel under Section 6(c) hereof.  The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting pursuant to Section 6(b) hereof.  The Company shall pay any and all reasonable and necessary fees and expenses incident to the procedures of this Section 6(c), regardless of the manner in which such Independent Counsel was selected or appointed.

 

(d) If the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 6(b) hereof, the Independent Counsel shall be selected as provided in this Section 6(d).  The Independent Counsel shall be selected by the Board.  Indemnitee may, within ten (10) days after such written notice of selection shall have been given, deliver to the Company a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 13 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the person so selected shall act as Independent Counsel.  If a written objection is made and substantiated, the Independent Counsel selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit.  If, within twenty (20) days after submission by Indemnitee of a written request for indemnification pursuant to Section 6(a) hereof, no Independent Counsel shall have been selected (or, if selected, such selection shall have been objected to) in accordance with this paragraph, then either the Company or Indemnitee may petition the appropriate courts of the State of Nevada or other court of competent jurisdiction for resolution of any objection which shall have been made by Indemnitee to the Company’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the court or by such other person as the court shall designate, and the person with respect to whom an objection is favorably resolved or the person so appointed shall act as Independent Counsel under Section 6(b) hereof.  The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting pursuant to Section 6(b) hereof, and the Company shall pay any and all reasonable fees and expenses incident to the procedures of this Section 6(d), regardless of the manner in which such Independent Counsel was selected or appointed.

 

  

  

  

(e) In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement.  Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.  Neither the failure of the Company (including by its directors or independent legal counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or independent legal counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

 

(f) Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the Enterprise (as hereinafter defined), including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Enterprise.  In addition, the knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.  Whether or not the foregoing provisions of this Section 6(f) are satisfied, it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company.  Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.

 

(g) Notwithstanding anything to the contrary set forth in this Agreement, if the person, persons or entity empowered or selected under Section 6 to determine whether Indemnitee is entitled to indemnification shall not have been appointed or shall not have made a determination within sixty (60) days after receipt by the Company of the request therefore, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification, unless the Company establishes by written opinion of Independent Counsel that (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making such determination with respect to entitlement to indemnification in good faith requires such additional time to obtain or evaluate documentation and/or information relating thereto; and provided, further, that the foregoing provisions of this Section 6(g) shall not apply if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 6(b) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination, the Disinterested Directors resolve as required by Section 6(b)(iii) of this Agreement to submit such determination to the stockholders for their consideration at an annual meeting thereof to be held within seventy-five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such determination is made thereat.

 

  

  

  

 

(h) Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination.  Any Independent Counsel or member of the Board or stockholder of the Company shall act reasonably and in good faith in making a determination regarding Indemnitee’s entitlement to indemnification under this Agreement.  Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

 

(i) The Company acknowledges that a settlement or other disposition, including a conviction or a plea of nolo contendere, short of final judgment may be successful if it permits a party to avoid expense, delay, distraction, disruption and uncertainty.  In the event that any action, claim or proceeding to which Indemnitee is a party is resolved in any manner other than by adverse judgment against Indemnitee (including, without limitation, settlement of such action, claim or proceeding with or without payment of money or other consideration) it shall be presumed that Indemnitee has been successful on the merits or otherwise in such action, suit or proceeding, and it shall not create a presumption that the Indemnitee did not act in good faith and in a manner reasonably believed to be in or not opposed to the best interest of the Company or that, with respect to any criminal Proceeding, the Indemnitee had reasonable cause to believe that his conduct unlawful.  Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.

 

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

 

7. Remedies of Indemnitee.

 

(a) In the event that (i) a determination is made pursuant to Section 6 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 5 of this Agreement, (iii) no determination of entitlement to indemnification is made pursuant to Section 6(b) or Section 6(c) of this Agreement within sixty (60) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to this Agreement within ten (10) days after receipt by the Company of a written request therefor or (v) payment of indemnification is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to Section 6 of this Agreement, Indemnitee shall be entitled to an adjudication of Indemnitee’s entitlement to such indemnification or advancement of expenses either, at the Indemnitee’s sole option, in (1) an appropriate court of the State of Nevada, or any other court of competent jurisdiction, or (2) an arbitration to be conducted by a single arbitrator, selected by mutual agreement of the Company and Indemnitee, pursuant to the rules of the American Arbitration Association. The Company shall not oppose Indemnitee’s right to seek any such adjudication.

 

  

  

  

 

(b) In the event that a determination shall have been made pursuant to Section 6(b) or Section 6(c) of this Agreement that Indemnitee is not entitled to indemnification, (i) any judicial proceeding or arbitration commenced pursuant to this Section 7 shall be conducted in all respects de novo on the merits, and Indemnitee shall not be prejudiced by reason of the adverse determination under Section 6(b) or Section 6(c); and (ii) in any such judicial proceeding or arbitration, the Company shall have the burden of proving that Indemnitee is not entitled to indemnification under this Agreement.

 

(c) If a determination shall have been made pursuant to Section 6(b) or Section 6(c), or shall have been deemed to have been made pursuant to Section 6(g), of this Agreement that Indemnitee is entitled to indemnification, the Company shall be obligated to pay the amounts constituting such indemnification within five (5) days after such determination has been made or has been deemed to have been made and shall be conclusively bound by such determination in any judicial proceeding commenced pursuant to this Section 7, unless the Company establishes by written opinion of Independent Counsel that (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s misstatement not materially misleading in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

 

(d) In the event that Indemnitee, pursuant to this Section 7, seeks a judicial adjudication of, or an award in arbitration to enforce, his rights under, or to recover damages for breach of, this Agreement, or to recover under any directors’ and officers’ liability insurance policies maintained by the Company, the Company shall pay to him or on his behalf, in advance, and shall indemnify him against, any and all expenses (of the types described in the definition of Expenses in Section 13 of this Agreement) actually and reasonably incurred by him in such judicial adjudication or arbitration, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement of expenses or insurance recovery.

 

(e) The Company shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 7 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement.  The Company shall indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefore) advance, to the extent not prohibited by law, such expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advance of Expenses from the Company under this Agreement or under any directors' and officers' liability insurance policies maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement of Expenses or insurance recovery, as the case may be.

 

  

  

  

 

8. Non-Exclusivity; Survival of Rights; Insurance; Subrogation.

 

(a) The rights of indemnification and advancement of expenses as provided by this Agreement shall not be deemed exclusive of, and shall be in addition to, any other rights to which Indemnitee may at any time be entitled under applicable law, the Articles of Incorporation or By-laws of the Company, any agreement, a vote of stockholders, a resolution of directors or otherwise, and nothing in this Agreement shall diminish or otherwise restrict Indemnitee’s rights to indemnification or advancement of expenses under the foregoing.  No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal.  To the extent that a change in the NRS, whether by statute or judicial decision, permits greater indemnification than would be afforded currently under the Company’s Articles of Incorporation, By-laws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change and Indemnitee shall be deemed to have such greater benefits hereunder.  No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.  The Company shall not adopt any amendments to its Articles of Incorporation or By-laws, the effect of which would be to deny, diminish or encumber Indemnitee’s right to indemnification or advancement of expenses under this Agreement, any other agreement or otherwise.

 

(b) To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents or fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any director, officer, employee, agent or fiduciary under such policy or policies.  If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies.  The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

 

(c) In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights (with all of Indemnitee’s reasonable expenses, including, without limitation, attorneys’ fees and charges, related thereto to be reimbursed by or, at the option of Indemnitee, advanced by the Company).

 

(d) The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

 

(e) The Company's obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer, employee or agent of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses from such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise.

 

  

  

  

 

9. Exception to Right of Indemnification. Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity in connection with any claim made against Indemnitee:

 

(a) for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision; or

 

(b) for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or similar provisions of state statutory law or common law; or

 

(c) in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board of the Company authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

 

10. Retroactive Effect; Duration of Agreement; Successors and Binding Agreement.  All agreements and obligations of the Company contained herein shall be deemed to have become effective upon the date Indemnitee first became an officer or director of the Company; shall continue during the period Indemnitee is an officer or a director of the Company (or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise); and shall continue thereafter so long as Indemnitee may be subject to any Proceeding (or any proceeding commenced under Section 7 hereof) by reason of his Corporate Status, whether or not he is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under this Agreement.  This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation, reorganization or otherwise to all or substantially all of the business or assets of the Company), assigns, spouses, heirs, executors and personal and legal representatives.  The Company shall require any such successor to all or substantially all of the business or assets of the Company, by agreement in form and substance satisfactory to Indemnitee and his counsel, expressly to assume and agree to perform this Agreement in the same manner and to the same extent the Company would be required to perform if no such succession had taken place.  Except as otherwise set forth in this Section 10, this Agreement shall not be assignable or delegable by the Company.

 

11. Security.  To the extent requested by Indemnitee and approved by the Board of the Company, the Company may at any time and from time to time provide security to Indemnitee for the Company’s obligations hereunder through an irrevocable bank line of credit, funded trust or other collateral.  Any such security, once provided to Indemnitee, may not be revoked or released without the prior written consent of the Indemnitee.

 

12. Enforcement.

 

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

 

(b) This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof.

 

  

  

  

 

13. Definitions.  For purposes of this Agreement:

 

(a) “Change in Control” means the occurrence of any one of the following events:

 

 

(i)           any “person” (as such term is defined in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 35% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of the Board (the “Company Voting Securities”); provided, however, that the event described in this paragraph (i) shall not be deemed to be a Change in Control by virtue of any of the following acquisitions:  (A) by the Company or any subsidiary; (B) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any subsidiary; (C) by any underwriter temporarily holding securities pursuant to an offering of such securities; (D) pursuant to a Non-Control Transaction (as defined in paragraph (iii) below); or (E) a transaction (other than one described in paragraph (iii) below) in which Company Voting Securities are acquired from the Company, if a majority of the Incumbent Board (as defined in paragraph (ii) below) approves a resolution providing expressly that the acquisition pursuant to this clause (E) does not constitute a Change in Control under this paragraph (i);

 

(ii)           individuals who, on June 17, 2009, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to June 17, 2009, whose election or nomination for election was approved by a vote of at least two-thirds of the directors comprising the Incumbent Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without objection to such nomination) shall be considered a member of the Incumbent Board; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to directors or any other actual or threatened solicitation of proxies or consents by or on behalf of any person other than the Board shall be deemed to be a member of the Incumbent Board;

 

(iii)           the consummation of a merger, consolidation, share exchange or similar form of corporate transaction involving the Company or any of its subsidiaries that requires the approval of the Company’s stockholders (whether for such transaction or the issuance of securities in the transaction or otherwise) (a “Reorganization”), unless immediately following such Reorganization:  (A) more than 60% of the total voting power of (x) the corporation resulting from such Reorganization (the “Surviving Company”), or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 95% of the voting securities eligible to elect directors of the Surviving Company (the “Parent Company”), is represented by Company Voting Securities that were outstanding immediately prior to such Reorganization (or, if applicable, is represented by shares into which such Company Voting Securities were converted pursuant to such Reorganization), and such voting power among the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities among holders thereof immediately prior to the Reorganization; (B) no person (other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Company or the Parent Company) is or becomes the beneficial owner, directly or indirectly, of 20% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Parent Company (or, if there is no Parent Company, the Surviving Company); and (C) at least a majority of the members of the board of directors of the Parent Company (or, if there is no Parent Company, the Surviving Company) following the consummation of the Reorganization were members of the Incumbent Board at the time of the Board’s approval of the execution of the initial agreement providing for such Reorganization (any Reorganization which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Control Transaction”);

  

  

  

 

 

(iv)           the stockholders of the Company approve a plan of complete liquidation or dissolution; or

 

(v)           the consummation of a sale (or series of sales) of all or substantially all of the assets of the Company and its subsidiaries to an entity that is not an affiliate of the Company.

 

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any person acquires beneficial ownership of 35% or more of the Company Voting Securities as a result of the acquisition of Company Voting Securities by the Company which reduces the number of Company Voting Securities outstanding; provided, that, if after such acquisition by the Company such person becomes the beneficial owner of additional Company Voting Securities that increases the percentage of outstanding Company Voting Securities beneficially owned by such person, a Change in Control shall then occur.

 

(b)            “Corporate Status” describes the status of a person who is or was a director, officer, employee, agent or fiduciary of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving at the request of the Company.

 

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

 

(d) “Enterprise” shall mean the Company and any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that Indemnitee is or was serving at the express written request of the Company as a director, officer, employee, agent or fiduciary.

 

(e) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all other disbursements or expenses of the types customarily incurred or actually incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, participating, or being or preparing to be a witness in a Proceeding, or responding to, or objecting to, a request to provide discovery in a Proceeding.  Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, and any federal, state, local or foreign taxes imposed on the Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, including, without limitation, the premium, security for, and other costs relating to any cost bond, supersede as bond, or other appeal bond or its equivalent.  Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

 

(f) “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five (5) years has been, retained to represent:  (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.  The Company agrees to pay the reasonable fees of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

 

  

  

  

 

(g) “Proceeding” includes any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought by or in the right of the Company or otherwise and whether civil, criminal, administrative or investigative, in which Indemnitee was, is or will be involved as a party or otherwise, by reason of the fact that Indemnitee is or was an officer or a director of the Company, by reason of any action taken by him or of any inaction on his part while acting as an officer or a director of the Company, or by reason of the fact that he is or was serving at the request of the Company as a director, officer, employee, agent or fiduciary of another corporation, partnership, joint venture, trust or other Enterprise; in each case whether or not he is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under this Agreement; including one pending on or before the date of this Agreement, but excluding one initiated by an Indemnitee pursuant to Section 7 of this Agreement to enforce his rights under this Agreement.

 

14. Severability.  The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.  Without limiting the generality of the foregoing, this Agreement is intended to confer upon Indemnitee indemnification rights to the fullest extent permitted by applicable laws.  In the event any provision hereof conflicts with any applicable law, such provision shall be deemed modified, consistent with the aforementioned intent, to the extent necessary to resolve such conflict.

 

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

 

16. Notice By Indemnitee.  Indemnitee agrees promptly to notify the Company in writing upon being served with or otherwise receiving any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification covered hereunder.  The failure to so notify the Company shall not relieve the Company of any obligation which it may have to Indemnitee under this Agreement unless, and only to the extent that, the Company is actually and materially prejudiced as a direct result of such delay or failure.

 

17. Notices.  All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given:  (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, and if not so confirmed, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.  All communications shall be sent:

 

(a) To Indemnitee at the address set forth below Indemnitee’s signature hereto.

 

(b) To the Company at:

 

	
ULURU Inc.

4452 Beltway Drive

	
Addison, Texas 75001

Attention: Chief Financial Officer

or to such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

 

  

  

  

 

18. Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement.  Executed counterparts may be delivered by facsimile and shall be deemed an original, but all of such counterparts  together shall constitute one and the same instrument.

 

19. Headings.  The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

 

20.            Successors and Assigns.  The terms of this Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit of Indemnitee and Indemnitee’s spouse, assigns, heirs, devisees, executors, administrators and other legal representatives.

 

21. Governing Law and Consent to Jurisdiction.  This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Nevada, without regard to its conflict of laws rules. The Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement (other than an arbitration pursuant to Section 7 hereof) shall be brought only in the appropriate court of the State of Nevada (the “Nevada Court”), and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Nevada Court for purposes of such action or proceeding, (iii) waive any objection to the laying of venue of any such action or proceeding in the Nevada Court, and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Nevada Court has been brought in an improper or inconvenient forum.

 

 

SIGNATURE PAGE TO FOLLOW

 

  

  

  

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

 

ULURU Inc.

By:/s/ Terrance K. Wallberg                                                               

Name: Terrance K. Wallberg                                                               

Title: Vice President & Chief Financial Officer 

INDEMNITEE

/s/ Oksana Tiedt____________________________

Oksana Tiedt

Address:

______________________________________

______________________________________

______________________________________

______________________________________Blueprint

 

Exhibit 10.1

 

AMENDED AND RESTATED
INTELLECTUAL PROPERTY LICENSE AGREEMENT

 

This Amended and Restated Intellectual Property
License Agreement (this "Agreement")
is made and entered into as of the 30th
day of September, 2016
("Effective
Date"), by and between Wrap
Technologies, LLC, a Delaware limited liability company (the
"Company")
and Syzygy Licensing LLC, a Nevada limited liability company
("Licensing
Member"). Licensing Member and
Company may each individually be referred to as a
"Party"
and collectively as the "Parties."

 

Recitals

 

WHEREAS, Licensing Member and Scot Cohen have formed the
Company to jointly develop certain technology, devices and products
relating to non-lethal weapons as described on Exhibit A
hereto (the “Business”);

 

WHEREAS, the Parties entered into the Intellectual
Property License Agreement dated as of March 10, 2016 (the
“Prior Licensing Agreement”) pursuant to which certain
Intellectual Property owned by Licensing Member shall be licensed
to the Company; and

 

WHEREAS, each Party is willing amend and restate the
Prior Licensing Agreement in its entirety with this Agreement and
grant the licenses contemplated hereby on the terms and conditions
set forth herein.

 

NOW,
THEREFORE, for and in
consideration of the mutual promises and covenants hereinafter
contained, the Parties hereto agree as follows:

 

Agreement

 

1.

Definitions.

 

"Intellectual
Property" means all worldwide
intellectual property rights, including (a) inventions,
patents and patent applications; (b) Trademarks, service
marks, trade names, trade dress, Internet domain names and other
source indicators, together with the goodwill associated
exclusively therewith; (c) copyrights, Software, websites;
(d) registrations and applications for registration of any of
the foregoing in (a) – (c); and (e) trade secrets,
know-how and proprietary or confidential
information.

 

"Improvement"
means any improvement, modification, translation, update, upgrade,
new version, enhancement or other derivative
work.

 

"Licensed Intellectual
Property" means any
Intellectual Property developed and owned by the Licensing Member
that is used in the Business, including without limitation the
Patents and any Improvements thereto created by the Licensing
Member or the Company.

“Licensed Product(s)”
shall include any
product that is covered by the Intellectual Property.

 

"Patents
" means any patent applications,
patents and trade secrets related to products developed by the
Licensing Member for the Business.

 

"Software"
means any and all computer programs, software (in object and source
code), firmware, middleware, applications, APIs, web widgets, code
and related algorithms, models and methodologies, files,
documentation and all other tangible embodiments
thereof.

 

"Trademarks"
means trademarks, service marks, domain names, trade dress, trade
names, corporate names, logos, designs, symbol, slogan, social
media identifiers and other identifiers of source or
goodwill.

 

 

-1-

 

 

2.

Grant, Scope of
License and Costs.

 

2.1
Subject to the terms and conditions herein, Licensing Member hereby
grants to the Company a worldwide, exclusive license relating to
the Licensed Intellectual Property and any Licensed Product, to
use, reproduce, modify, prepare derivative works of, perform,
display, or otherwise exploit. Licensing Members agrees that,
during the term of this Agreement, it will not, directly or
indirectly, use or allow third parties to use the Licensed
Intellectual Property without the written consent of the
Company.

 

2.1.1 Royalty. In consideration of the rights conveyed by this
Agreement the Company shall pay Licensing Member a royalty
of four percent (4.0%) of the Net Sales of Licensed
Products until the earlier of (1) payment of aggregate royalties of
$1,000,000 or (2) ten years from the date of this Agreement (the
“Royalty”). “Net Sales” shall be defined as the Company’s
gross receipts or revenue, computed on a cash basis, for each
Licensed Product that is sold, distributed, leased, or otherwise
transferred for monetary payment to any third party, less the
following:

 

2.1.1.1
The actual cost of freight charges or of freight absorption, if
any, separately stated in such invoice;

 

2.1.1.2
Any trade, quantity or standard trade cash discounts, if any,
allowed;

 

2.1.1.3
Any tax, duties, imposts or other government charge on the sale,
transportation, or delivery which is separately stated on the
invoice (unless in the nature of a value added tax, which need not
be separately stated);

 

2.1.1.4
Any credit and cash refunds for returned goods; and

 

2.1.1.5
Any allowances for damaged, obsolete, and defective
goods.

 

2.1.2
Quarterly Payments. The
Royalties set forth in this Section shall accrue on the Net Sales
made day-to-day, on a cash receipts basis, in each calendar
quarter. On or before the thirtieth day following the end of a
calendar quarter (i.e. April 30th, July
30th,
October 30th, and January
30th),
Company shall submit payment of all accrued royalties on the Net
Sales made in that calendar quarter.

 

2.1.3 
Late Payments. In the event
that any payment due hereunder is not received by Licensing Member
within 10 days of the due date for said payment, then Licensing
Member shall be entitled to charge Company interest at the rate of
five percent (5%) per annum on said payments accrued from the date
such payment was due.

 

2.1.4 
Quarterly Reports. Company
shall provide Licensing Member with a quarterly report on or before
the thirtieth day following the end of a calendar quarter (i.e.
April 30th, July
30th,
October 30th, and January
30th)
detailing the Net Sales made in that calendar quarter. This
quarterly report shall include at least an accounting of the Net
Sales made, with any deductions therefore, and of all payments
due.

 

2.1.5 
Records. Company shall keep records for a
reasonable period of time of the Licensed Products manufactured,
sold and distributed in sufficient detail to enable the Royalty
Payment and any other payments due to Licensing Member to be
determined. In the event that Licensing Member disagrees with any
such accounting, Licensing Member or its designated representative
shall have the right, upon reasonable notice to Company, at
Licensing Member’s expense and no more often than
semi-annually to review and inspect the books and records of
Company relating to the sale and distribution of the Licensed
Products during normal business hours of Company at the location
where such books and records are maintained, but for no more than
the preceding two (2) years. In the event that any inspection by
Licensing Member discloses any deficiencies in payments made to
Licensing Member, then Company shall pay such additional amounts to
Licensing Member within twenty (20) days following receipt of
written notice thereof, together with all documentation necessary
to support such additional payment by Company. In the event that
any such inspection discloses an overpayment by Company, then
Company shall be entitled to deduct and offset any such overpayment
from the subsequent amounts that become due. In the event that
there are no such subsequent payments to become due, then Licensing
Member agrees to pay Company the full amount of any such
overpayment within twenty (20) days following receipt of written
notice thereof from Company.

 

 

 

-2-

 

 

2.1.6 
Payment in U.S. Dollars.
All payments due hereunder shall be made in U.S.
Dollars.

 

2.1.7 
Taxes. Licensee will pay
any taxes incurred by it due to the use, manufacture, sale,
distribution, or importation or exportation by Licensee of the
Licensed Products.

 

2.1.8 
Sublicenses by Company.
Company may not sublicense its rights under this Agreement unless
it obtains Licensing Member’s written permission to do so.
Any Licensed Products sold under such a sublicense shall be subject
to the provisions of this Section; however the royalty rates of any
such sublicense may differ from those delineated in this Section.
The parties agree to negotiate royalty rates of any sublicense in
good faith with the intent to provide for gross margins to Company
and Licensing Member comparable to those delineated in and/or being
the consequence of this Section.

 

2.2
The Company may sublicense the licenses received herein solely
(a) to its vendors, consultants, contractors and suppliers,
solely in connection with their providing services to the Company;
and (b) to its distributors, customers and end-users, solely
in connection with the distribution, licensing, offering and sale
of their current and future products related to its
businesses.

 

2.3
The Company shall be obligated for the costs of development of the
Licensed Intellectual Property and for Patent costs during the term
of this Agreement. While it is contemplated the Company shall pay
directly such costs, the Company shall reimburse Licensing Member
for any reasonable Patent and development costs paid or incurred
through the date of assignment (Section 4.3) or through the date of
termination (Section 4.1).

 

3.

Confidential
Information.

 

Each
Party hereto shall maintain the confidentiality of confidential
information in accordance with procedures adopted by such Party in
good faith to protect confidential information of third parties
delivered to such Party, provided that such Party may deliver or
disclose confidential information to (a) such Party's
officers, directors, employees, investors, agents, representatives,
accountants and counsel who agree to hold confidential the
confidential information; (b) any governmental authority
having jurisdiction over such Party to the extent required by law;
or (c) any other person to which such delivery or disclosure
may be necessary or appropriate (i) to effect compliance with
any law applicable to such party, (ii) in response to any
subpoena or other legal process, or (iii) in connection with
any litigation to which such Party is a Party; provided further
that, in the cases of clauses (b) or (c), such Party shall
provide each other Party hereto with prompt written notice thereof
so that the appropriate Party may seek (with the cooperation and
reasonable efforts of each other Party) a protective order,
confidential treatment or other appropriate remedy.

 

4.

Term and
Termination.

 

4.1
Subject to Section 4.2, this Agreement shall commence as of the
date first above written and shall continue in effect until
December 31, 2016. Thereafter, or after the extension in Section
4.4, should the requirement of Section 4.2 not be satisfied, all
Intellectual Property (including the Patents) shall be the sole
property of the Licensing Member without obligation to the Company
for any royalties or reimbursements of any costs or expenses
incurred by the Company related thereto.

 

4.2
At any time following an aggregate capitalization of $300,000 in
the Company (the “Trigger Amount”), the term of this
Agreement shall be perpetual and the license granted in Section 2
above shall not be terminable by the Licensing Member, but subject
to the Royalty set forth in Section 2.1.1.

 

4.3.
Within 30 days of the satisfying the Trigger Amount, both Parties
covenant and hereby agree that the Licensing Member shall assign,
transfer and sell the Licensed Intellectual Property including
Patents to the Company for $10, but subject to the Royalty set
forth in Section 2.1.1.

 

4.4
The Company shall have a right to an automatic 6 month extension to
the termination date set forth in Section 4.1 if the Company is in
the process of funding the Trigger Amount in good
faith.

 

 

-3-

 

 

5.

Disclaimer.

 

EXCEPT
AS PROVIDED IN THIS AGREEMENT, (I) THE INTELLECTUAL PROPERTY
LICENSED HEREUNDER IS PROVIDED "AS IS," (II) NEITHER PARTY PROVIDES
ANY WARRANTIES, EITHER EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE,
WITH RESPECT TO ANY SUCH INTELLECTUAL PROPERTY, AND (III) THE
PARTIES SPECIFICALLY DISCLAIM ALL IMPLIED WARRANTIES, INCLUDING THE
IMPLIED WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT AND FITNESS
FOR A PARTICULAR PURPOSE OR ANY WARRANTIES THAT MAY BE OTHERWISE
IMPLIED FROM ANY COURSE OF DEALING OR COURSE OF PERFORMANCE OR
USAGE.

 

6.

Limitation of
Liability.

 

EXCEPT
FOR ANY BREACH OF SECTION 2 OF THIS AGREEMENT, IN NO EVENT SHALL
EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY LOST PROFITS OR
CONSEQUENTIAL, INDIRECT, PUNITIVE, EXEMPLARY, SPECIAL, OR
INCIDENTAL DAMAGES ARISING FROM OR RELATING TO THIS AGREEMENT,
WHETHER IN CONTRACT OR TORT OR OTHERWISE, EVEN IF SUCH PARTY KNEW
OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH
DAMAGES.

 

7.

General
Provisions.

 

7.1
All notices, requests, claims, demands, and other communications
under this Agreement shall be in writing and shall be given or made
(and shall be deemed to have been duly given or made upon receipt)
by delivery in person, by an internationally recognized overnight
courier service, or by facsimile to the respective parties hereto
at the following addresses (or at such other address for a party as
shall be specified in a notice given in accordance with this
Section 9.1):

 

(a)
if to
Licensing Member:

 

Syzygy
Licensing LLC

8617
Canyon View Drive

Las
Vegas, Nevada 89117

email:
jimbarnes@cox.net

Attention:
Jim Barnes

 

 

(b)
if to
the Company:

 

Wrap
Technologies, LLC

55 5th
Avenue, Suite 1702

New
York, NY 10003

Facsimile:
212-504-0863

Attention:
Scot Cohen

 

7.2
This Agreement shall be governed by, and construed in accordance
with, the laws of New York without regard to the conflict of laws
rules stated therein. Both Parties hereby submit to jurisdiction of
the state and federal courts located in the State of New York,
County of New York.

 

7.3
This Agreement may not be amended or modified except (a) by an
instrument in writing signed by, or on behalf of, both Parties that
expressly references the section of this Agreement to be amended;
or (b) by a waiver in accordance with
Section 7.4.

 

7.4
Any Party to this Agreement may (a) extend the time for the
performance of any of the obligations or other acts of the other
Party; (b) waive any inaccuracies in the representations and
warranties of the other Party contained herein or in any document
delivered by the other Party pursuant to this Agreement; or
(c) waive compliance with any of the agreements of the other
Party or conditions to such obligations contained herein. Any such
extension or waiver shall be valid only if set forth in an
instrument in writing signed by the Parties to be bound thereby.
Notwithstanding the foregoing, no failure or delay by any Party
hereto in exercising any right hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude
any other or future exercise of any other right hereunder. The
failure of any Party hereto to assert any of its rights hereunder
shall not constitute a waiver of any of such rights.

 

 

-4-

 

 

7.5
If any term or other provision of this Agreement is invalid,
illegal or incapable of being enforced by any Law or public policy,
all other terms and provisions of this Agreement shall nevertheless
remain in full force and effect for so long as the economic or
legal substance of the transactions contemplated by this Agreement
is not affected in any manner materially adverse to any Party
hereto. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the Parties hereto
shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the Parties hereto as closely as
possible in a mutually acceptable manner in order that the
transactions contemplated by this Agreement are consummated as
originally contemplated to the greatest extent
possible.

 

7.6
The headings in this Agreement are for purposes of reference only
and shall not in any way limit or affect the meaning or
interpretation of any of the terms hereof.

 

7.7
The Parties hereto acknowledge and agree that the Parties hereto
may be irreparably damaged if any of the provisions of this
Agreement are not performed in accordance with their specific terms
or are otherwise breached and that any non-performance or breach of
this Agreement by any Party hereto may not be adequately
compensated by monetary damages alone and that the Parties hereto
may not have any adequate remedy at law. Accordingly, in addition
to any other right or remedy to which any Party hereto may be
entitled, at law or in equity (including monetary damages), such
Party shall be entitled to enforce any provision of this Agreement
(including Sections 2.1 and 2.2) by a decree of specific
performance and to temporary, preliminary and permanent injunctive
relief to prevent breaches or threatened breaches of any of the
provisions of this Agreement without posting any bond or other
undertaking.

 

7.8
This Agreement, together with all the Schedules and other
attachments hereto, constitutes the entire agreement of the Parties
hereto as of the date hereof with respect to the subject matter
hereof and thereof and supersedes all prior agreements, including
the Prior Licensing Agreement, and undertakings, both written and
oral, among the Parties hereto with respect to the subject matter
hereof and thereof.

 

 

[Signature Page to Follow]

 

 

-5-

 

 

IN
WITNESS WHEREOF, the Parties hereto, each acting under due and
proper authority, have executed this Agreement as of the day, month
and year first written above.

 

	
 

	

WRAP TECHNOLOGIES, LLC

 

By:  /s/ Scot
Cohen________________________

  Name:
Scot Cohen

  Title:
Manager

 

 

SYZYGY LICENSING LLC

 

By:  /s/ James A.
Barnes___________________

  Name:
James A. Barnes

  Title:
Manager

 

	
 

	
 

 

 

 

-6-

 

 

Schedule A

 

Licensed Intellectual Property

 

A non-lethal ensnarement device technology utilizing a bola
mechanism for capturing or slowing fleeing persons primarily
targeting use by law enforcement and military. The word
“bola” generally describes a weapon consisting of a
number of balls connected by strong cord, which when thrown
entangles the limbs of the quarry. The subject technology being
developed employs the use of a firearm (or firearm type) device as
a housing for launching a bola and incorporates a number of
improvements (believed to be patentable) over prior attempts to
employ a bola mechanism for such purpose.

 

 

 

-7-

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