Document:

Unassociated Document

 

Exhibit 10.9

 

ADMA Biologics, Inc.

Confidential Materials Omitted and Filed Separately with the

Securities and Exchange Commission

Confidential Portions denoted by [***]

 

FIRST AMENDMENT TO PLASMA PURCHASE AGREEMENT

 

This First Amendment to the Plasma Purchase Agreement (this “Amendment #1”) by and between Biotest Pharmaceuticals Corporation, a Delaware corporation, having a place of business at 5800 Park of Commerce Boulevard, N.W., Boca Raton, Florida 33487 (“BPC”) and ADMA Biologics, Inc., a Delaware corporation, having a place of business at 65 Commerce Way, Hackensack, New Jersey 07601 (“ADMA”) is effective as of December 1, 2011 (“Effective Date”),

WHEREAS, BPC and ADMA are Parties to that certain Plasma Purchase Agreement, effective November 17, 2011 (the “Agreement”); and

WHEREAS, BPC and ADMA desire to amend the Agreement in order to memorialize the amendment of certain provisions.

NOW, THEREFORE, in consideration of the respective promises contained herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties hereto agree as follows:

 

Amendment:

 

	
1.

	
The Agreement is hereby amended by adding a new section M as follows:

“M.          DISCLOSURES AND PUBLICITY.    Neither ADMA, on the one hand, nor BPC, on the other hand, shall, without the approval of the other, make any press release or other public announcement concerning the transactions contemplated by this Agreement, except as and to the extent that any such Party shall be so obligated by law, in which case the other Party shall be advised and the Parties shall use their commercially reasonable efforts to cause a mutually agreeable release or announcement to be issued; provided, however, that the foregoing shall not preclude communications or disclosures necessary to implement the provisions of this Agreement or to comply with the accounting and disclosure obligations of the Securities and Exchange Commission (“SEC”) or the rules of any stock exchange or NASDAQ.   Notwithstanding any contrary term contained in the confidentiality provisions of this Agreement, to the extent that either Party determines that it or the other Party is required to file or register this Agreement, a summary thereof, or a notification thereof, and/or descriptions related thereto, to comply with the requirements of an applicable stock exchange, SEC regulation, or any Governmental Authority, including the SEC, or to enable either Party to obtain debt or equity financing, such Party shall use its best efforts to provide the maximum amount of advance written notice of any such required disclosure to the other Party, to the extent practicable, with a minimum advance notice period of three (3) business days.  Prior to making any such filing, registration or notification, the Parties shall consult with respect thereto regarding confidentiality.  The Parties shall cooperate, each at its own expense, in such filing, registration or notification, including such confidential treatment request, and shall execute all documents reasonably required in connection therewith.”

Miscellaneous:

Each party certifies that each of its representations and warranties set forth in this Amendment #1 is true and correct as of the date hereof as though made on the date hereof.

 

Except as expressly provided herein, all terms and conditions set forth in the Agreement remain unchanged and continue in full force and effect. This Amendment #1 shall govern in the event of any conflict between this Amendment #1 and the Agreement.  It is agreed by the Parties that all references to the Agreement hereafter made by them in any document or instrument delivered pursuant to or in connection with the Agreement shall be deemed to refer to the Agreement as amended hereby.

 

BPC Initials ______

ADMA Initials ______

 

  

Page 1 of 2

  

 

This Amendment #1 and the Agreement embody the entire agreement and understanding between the Parties hereto with respect to the subject matter hereof and supersede all prior agreements and understandings relating to the subject matter.

This Amendment #1 may be executed in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same single document, and any such counterpart containing an electronically scanned or facsimile signature will have the same effect as original manual signatures.

The Parties agree that they and their employees shall execute all documents and do all other things necessary to carry out the intent to implement the provisions of this Amendment #1.

IN WITNESS WHEREOF, the Parties hereby have caused this Amendment #1 to the Agreement to be executed and the persons signing below warrant that they are duly authorized to sign for and on behalf of their respective Parties.

 

	ADMA Biologics, Inc.  	 	Biotest Pharmaceuticals Corporation
	 	 	 	 	 
	By: 	/s/ Adam Grossman  	 	By: 	/s/ Jordan Siegel
	 	 	 	 	 
	Name: 	Adam Grossman 	 	Name: 	Jordan Siegel
	 	 	 	 	 
	Title:	Pres & CEO   	 	Title:	SVP, Finance & CFO
	 	 	 	 	 
	Date: 	12-2-2011	 	Date: 	December 2, 2011

 

  

Page 2 of 2

  

 

ADMA Biologics, Inc.

Confidential Materials Omitted and Filed Separately with the

Securities and Exchange Commission

Confidential Portions denoted by [***]

 

PLASMA PURCHASE AGREEMENT

 

THIS PLASMA PURCHASE AGREEMENT (“Agreement”) between Biotest Pharmaceuticals Corporation, a Delaware corporation, having a place of business at 5800 Park of Commerce Boulevard, NW, Boca Raton, Florida 33487 (“BPC”) and ADMA Biologics, Inc., a Delaware corporation, having a place of business at 65 Commerce Way, Hackensack, New Jersey 07601 (“ADMA”) shall be effective as of November 17, 2011 (the “Effective Date”).  BPC and ADMA are each sometimes referred to herein individually as a “Party” or collectively as the “Parties”.

 

RECITALS

 

WHEREAS, BPC desires to sell, and ADMA desires to purchase certain quantities of source plasma containing antibodies to Respiratory syncytial virus (“RSV” or “RSV Plasma”) to be used by ADMA in the manufacturing of a Human Immune Globulin (“Product”), solely on the terms and conditions set forth in this Agreement.

 

PROVISIONS

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and with the intent to be legally bound hereby, ADMA and BPC agree as follows:

 

A.           PURCHASE AND SALE OF RSV PLASMA.

 

1.           TERM OF AGREEMENT.  Unless terminated earlier as provided herein, the term of this Agreement shall be for a period of ten (10) years from the Effective Date (the “Initial Term”).  After the Initial Term, this Agreement may be renewed for two (2) additional five (5) year periods upon the mutual consent of the Parties.  Each Party agrees that it will endeavor, in good faith, to conclude any negotiations relating to such renewals no less than one (1) year before the expiration of this Agreement.

 

2.           PRICE AND VOLUMES.

 

a.           From and after the Effective Date of this Agreement, ADMA agrees to purchase, and BPC agrees to sell RSV Plasma, in quantities and prices set forth by way of annual forecasts as further described in this Agreement.

 

b.           During the term of this Agreement and subject to the terms of this Agreement, ADMA agrees to purchase and BPC agrees to sell to ADMA a minimum of [***] liters of RSV Plasma per Period (“Start Up Minimum Volume”) until the earlier of such time (i) as ADMA receives Biologics License Application (BLA) approval from the United States Food and Drug Administration (“FDA”) or (ii) March 31, 2016.  Upon the earlier of the receipt of said FDA approval or March 31, 2016, and during the term of this Agreement and subject to the terms of this Agreement, ADMA agrees to purchase and BPC agrees to sell to ADMA, a minimum of [***] liters of RSV Plasma per Period (“Annual Minimum Volume”); it being acknowledged that the Annual Minimum Volume shall be in lieu of the Start Up Minimum Volume.  Each period shall commence on April 1st and terminate on March 31st of the following year (the “Period”).  Notwithstanding anything to the contrary contained herein, ADMA shall not be obligated to purchase the Start Up Minimum Volume or the Annual Minimum Volume in the event BPC ceases to provide necessary plasma samples for testing and identifying donors.

 

  

  

  

 

During the term of this Agreement and subject to the terms of this Agreement, ADMA agrees to purchase its RSV Plasma exclusively from BPC.  For avoidance of doubt, ADMA may collect RSV Plasma at up to five (5) ADMA owned and operated plasma centers, provided ADMA purchases the minimum quantities and the annual forecasted amount as set forth in this section and Section B (3) respectively.

 

The Parties mutually agree and understand that identifying sufficient donors with naturally occurring RSV antibody levels vary.  The Parties mutually agree that this naturally occurring variation may, due to no fault of BPC or ADMA, affect total acceptable RSV Plasma volumes.  In the event that BPC cannot fulfill ADMA’s requirements for RSV Plasma, ADMA is permitted to purchase any additional plasma from other sources until such time BPC can meet ADMA’s plasma requirements.

 

Moreover, the Parties understand that, due to supervening business circumstances and a volatile market, it may be commercially difficult to attain the minimum purchase requirements set forth in this Agreement.  Accordingly, the Parties mutually agree to modify such minimum purchase requirements in an equitable manner should such circumstances arise.

 

c.           Beginning on the Effective Date of this Agreement through March 31, 2012 pricing for RSV Plasma will be [***] per liter.  For the period April 1, 2012 through March 31, 2013, the price for RSV Plasma will be [***] per liter plus the change in price of [***] as described under this Section 2(d).  This price includes all required screening tests, and NAT for HIV, HBV, HCV, HAV and [***].

 

d.           Pricing for RSV Plasma for the period after March 31, 2013 will be based on the price previously in effect adjusted in proportion to the percentage increase in the [***] Index, [***], U.S. City Average, All items, Base 1982-84 = 100, published by the United States Department of Labor, Bureau of Labor Statistics (“[***]”) as of the December 31st of the previous calendar year.

 

e.           In the event one or more new government regulation, required test, quality procedure or change in the Specifications (hereinafter defined) requested by ADMA (any of the foregoing being a “Required Change”) is required but is not contemplated in this Agreement and results in a material increase to BPC actual costs to procure, store, provide and supply the RSV Plasma, both Parties shall re-negotiate the change in the purchase price in good faith within ninety (90) days of the Required Change, which shall be retroactive to the effective date of the Required Change.

 

3.           PAYMENT TERMS.  Subject to Section C hereof, all RSV Plasma shall be paid within [***] days from the date of the invoice.  Any late payment made by ADMA shall accrue interest to be paid at the rate of 12% per annum, subject to the maximum allowed by law.  Invoice to be issued upon shipping from the BPC plasma center.  All payments due hereunder to BPC shall be sent to BPC at the times set forth herein by wire transfer to such accounts as BPC may designate to ADMA.

 

  

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Invoices to ADMA shall be directed to:

ADMA Biologics, Inc.

Attn:  Accounts Payable

65 Commerce Way

Hackensack, NJ  07601

 

Inquiries and correspondence regarding payment should be directed to:

Adam Grossman

ADMA Biologics, Inc.

Chief Operating Officer

65 Commerce Way

Hackensack, NJ  07601

Fax:  201-478-5553

 

Wire transfer instructions will be provided to ADMA by BPC under separate notice.

 

4.           SHIPMENT TERMS.  All shipments will be made FOB BPC plasma center.  BPC will invoice ADMA for the RSV Plasma at time of shipment from the center.  ADMA shall take ownership and bear all risk of loss upon pick up by ADMA’s designated carrier from the plasma center and ADMA shall at its own expense be responsible for freight charges, insurance, handling and forwarding agent’s fees, taxes, storage and all other charges applicable to the RSV Plasma.

 

The List of all plasma centers covered by this Agreement is attached hereto as Exhibit A and incorporated by reference.

 

B.           QUALITY AND QUANTITY OF RSV PLASMA.

 

1.           BPC shall provide ADMA, at no cost to ADMA, plasma samples in amounts and at times mutually agreed upon by ADMA and BPC to enable ADMA to test and identify plasma donors suitable for producing RSV Plasma for ADMA in accordance with the ADMA Specifications, attached hereto as Exhibit B and incorporated by reference.  Based on said testing, ADMA shall identify plasma donors whom ADMA has tested as suitable for producing RSV Plasma in accordance with ADMA Specifications (“Acceptable Donors”).  BPC shall produce RSV Plasma for ADMA based on the number of Acceptable Donors identified by ADMA.  ADMA’s acceptance of the donor shall constitute ADMA’s acceptance of RSV Plasma.  ADMA shall bear the cost of shipping said samples to their designated testing laboratory.

 

2.           Once ADMA has identified a donor as an Acceptable Donor and notified BPC in writing of such designation, ADMA agrees to purchase all RSV Plasma collected from the Acceptable Donor until it notifies BPC in writing that the donor is no longer an Acceptable Donor or ADMA’s quantity requirements have been met.  The Parties shall discuss ongoing quantity requirements and BPC will make any corresponding order adjustments prospectively, however, ADMA is obligated to purchase all RSV Plasma from Acceptable Donors that BPC has collected.  ADMA may, within [***] prior written notice, terminate Acceptable Donor status for any donor at any time at its sole discretion.  ADMA will not be obligated to purchase RSV Plasma from donors who are not Acceptable Donors or have been dropped as Acceptable Donors following ADMA’s [***] written drop notification.  ADMA will be obligated to purchase any RSV Plasma collected through the drop notification period.  Business days are defined as Monday through Friday 9 am to 5 pm, with weekends and holidays (applicable to each plasma center) specifically excluded.

 

  

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3.           ADMA shall, at least ninety (90) days prior to the beginning of each calendar year, deliver to BPC a good faith forecast of ADMA’s order for the ensuing year and an estimated shipment timetable for the quantity of the RSV Plasma to be purchased for the ensuing year.  This forecast shall be binding up to [***] of the annual forecasted amount, subject to the annual minimum, as set forth in Section A(2)(b), unless otherwise agreed to in writing by both Parties, except as set forth in Section B 2 above.  At the beginning of each calendar quarter, following the identification of Acceptable Donors, ADMA shall give BPC a firm purchase commitment, based on Acceptable Donors.  If greater quantities are required, BPC shall use commercially reasonable efforts to supply the difference from Acceptable Donors.

 

4.           BPC shall have no obligation to provide RSV Plasma to ADMA in the event the failure to provide the agreed upon quantity is due to a Force Majeure event pursuant to Section F or the unavailability of Acceptable Donors.

 

5.           Post donor acceptance, ADMA shall bear the expense of unusable RSV Plasma due to a recall, or the destruction of any RSV Plasma due to post-donation “look back” issues in accordance with FDA regulations and guidance.

 

C.           LIMITED WARRANTY.

 

1.    BPC represents and warrants to ADMA that RSV Plasma has been collected and produced in accordance with ADMA Specifications and BPC approved SOP’s.  BPC represents, warrants and agrees that any and all RSV Plasma shall be collected, produced and delivered in accordance with all local, state and national laws, regulations and requirements.  ADMA shall have all rights and remedies available to it under this Agreement and shall not be obligated to buy or pay for any RSV Plasma which does not, in all respects, comply with the ADMA Specifications and applicable law, rules and regulations and as otherwise required by this Agreement, provided ADMA must submit notification of rejection within [***] of receipt of such RSV Plasma.  This warranty shall be further limited by the expiry of the RSV Plasma and shall not apply to any expired RSV Plasma.

 

EXCEPT AS OTHERWISE SET FORTH HEREIN, BPC MAKES NO REPRESENTATIONS NOR EXTENDS ANY WARRANTIES OR CONDITIONS OF ANY KIND, EITHER EXPRESS OR IMPLIED, WITH RESPECT TO PRODUCT, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY

 

D.           MISCELLANEOUS.

 

1.           CONFIDENTIALITY.

 

a.           The Parties agree to maintain the confidentiality of the contents of this Agreement and the dealings between the Parties with the same degree of care as they use to protect their own proprietary, confidential or trade secret information.  The Parties shall not disclose to any third party any confidential information received from the other hereunder without that other Party’s prior written consent and shall use it only for the purpose of this Agreement.  The Parties agree to hold the name and location of any and all testing labs and facilities as well as names of key personnel at the testing labs as confidential information.  Said obligation of secrecy shall not apply to any information which (a) was in the public domain at the time of its disclosure or thereafter becomes part of the public domain by publication or otherwise subsequent to the time of disclosure under this Agreement through no fault of the receiving party; or (b) was known to the receiving party or in its possession prior to or at the time of disclosure as shown by written records; or (c) is independently developed by the receiving party without use of the other Party’s confidential information as shown by written documentation; or (d) is disclosed with the written approval of the disclosing party; or (e) is rightfully furnished to the receiving party by a third party having the authority to disclose such confidential information without restrictions; or (f) is disclosed by law or regulation or in response to a valid order of a court or other governmental body, or is required for registration of a product by competent authorities, but only to the extent of and for the purpose of such law, regulation, order or registration, and only if the receiving party first notifies the disclosing party of the required disclosure and permits the disclosing party, at its expense, to seek an appropriate legal remedy to maintain the information in secret.

 

  

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b.           The above obligations shall survive the termination of this Agreement and shall continue with respect to donor information without limit of time and in respect of other confidential information for a period of five (5) years.

 

2.           RELATIONSHIP OF THE PARTIES.  The relationship between ADMA and BPC during the term of this Agreement, including extensions and renewals, is strictly that of buyer and seller.  Neither Party is, in any way, the legal representative, agent, joint venture nor partner of the other for any purpose whatsoever nor neither has any control or authority whatsoever to bind the other Party or any other person with respect to the other Party.

 

3.           INDEMNIFICATION.  BPC and ADMA hereby indemnify and agree to hold harmless each other and their respective affiliates, agents, employees, officers and directors, from and against any and all third party claims, losses, liabilities, damages, reasonable attorneys’ fees, costs and expenses (hereinafter “Claims”) which may be sustained by and/or claimed against the other Party by virtue of their negligent acts, negligent omissions or the negligent handling or furnishing of materials or performance of services rendered by the other Party, the willful misconduct by the other Party or its officers, employees or agents or any representation, warranty or agreement contained in this Agreement being breached, untrue or materially misleading, by omission or otherwise.  Said indemnification will be capped at the dollar value of RSV Plasma purchased in the year in which the relevant Claim arises.  The indemnifying party’s liability shalt be reduced to the extent any such Claims arise as a result of the indemnified party’s own conduct or negligence.  To the extent RSV Plasma is being used to manufacture Product to be used in research, ADMA specifically shall indemnify and hold harmless BPC, its affiliates, directors, officers, agents and employees, from any and all liability, loss or damage including reasonable attorneys’ fees they may suffer as the result of claims, demands, costs or judgments against them caused or contributed to by the Product or any procedure required by the research protocol.

 

4.           LIMITATION OF LIABILITY.  IN NO EVENT WILL EITHER PARTY HAVE ANY LIABILITY FOR ANY LOSS OF INCOME, PROFIT, INTEREST OR SAVINGS BY THE OTHER PARTY OR FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR SPECIAL DAMAGES SUFFERED BY THE OTHER PARTY, ARISING FROM OR RELATED TO THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, THE SALE OR USE OF ANY RSV PLASMA, REGARDLESS OF THE FORM OF ACTION, AND WHETHER IN CONTRACT, INDEMNITY, WARRANTY OR TORT INCLUDING WITHOUT LIMITATION STRICT LIABILITY AND NEGLIGENCE OR ANY OTHER LEGAL OR EQUITABLE GROUNDS, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSSES OR DAMAGES.  THIS LIMITATION WILL NOT APPLY TO ANY LIABILITY FOR DAMAGES THAT MAY RESULT FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF A PARTY.

 

The Party from whom indemnity is sought under Section 4 shall be entitled at its option to defend or control the defense and/or settlement of any such claim.

 

Each Party shall notify the other of any claim or potential claim or liability as soon as it becomes aware that such claim, potential claim or liability has arisen and shall provide to the other, all-reasonable assistance in respect thereof.

 

  

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5.           INSURANCE.  ADMA and BPC shall each be required to maintain general and product liability insurance in an amount of [***].  Before commencing any work hereunder, the Parties shall furnish certificates evidencing the insurance required by this Section.  The Parties shall give each other thirty (30) days advance written notice in the event the insurance required by this Section is materially modified, or cancelled or otherwise terminated for any reason.

 

D.           TERMINATION.

 

1.           In addition to any other remedy it may have, either Party shall have the right to terminate this Agreement if the other Party fails to remedy and make good any material default in the performance of any material condition or obligation under this Agreement within sixty (60) days of written notice thereof.

 

2.           Upon giving the appropriate written notice, either Party may terminate this Agreement upon the occurrence of the following event:  a proceeding under any bankruptcy, reorganization, arrangement of debts, insolvency or receivership law is filed by or against the other Party, and is not dismissed or stayed within sixty (60) days, or a receiver or trustee is appointed for all or a substantial portion of the assets of the other Party, or the other Party makes an assignment for the benefit of its creditors or becomes insolvent.

 

3.           ADMA may terminate this Agreement upon thirty (30) days written notice if the clinical development of the Product is halted or terminated, whether by the FDA, a Data Safety Monitoring Board, or any other regulatory authority

 

4.           Upon termination of this Agreement, ADMA must pay for any RSV Plasma already delivered to ADMA and for any RSV Plasma collected under the terms of this Agreement.

 

5.           Notwithstanding anything to the contrary set forth herein, the Parties’ obligations under this Agreement in Sections B, E, and I shall survive the termination of this Agreement to the extent necessary to give effect to their reasonable intentions.

 

E.           FORCE MAJEURE.

 

1.           Neither Party shall be liable for non-performance caused by strikes, fires, explosions, Acts of God, riots, civil or international war, acts of terrorism, an unexpected downturn in the acceptable donor population adversely affecting the industry as a whole, inability to obtain RSV Plasma because of Force Majeure at the producing location, or any other similar or dissimilar cause beyond the reasonable control of either Party which renders the performance of a Party’s obligations so difficult or costly as to make such performance commercially unreasonable.  The affected Party shall immediately inform the other of such occurrences and the termination thereof.

 

2.           Upon giving notice to the other Party, a Party affected by an event of Force Majeure shall be released without any liability on its part from the performance of its obligations under this Agreement, except for the obligation to pay any amounts due and owing hereunder, but only to the extent and only for the period that its performance of such obligations is prevented by the event of Force Majeure.  Such notice shall include a description of the nature of the event of Force Majeure, and its cause and possible consequences.  The Party claiming Force Majeure shall promptly notify the other Party of the termination of such event.

 

  

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3.           Should the period of Force Majeure continue for more than ninety (90) days, then the Party not suffering the Force Majeure event may terminate this Agreement upon giving written notice to the other Party.

 

F.           REMEDIES EXCLUSIVE.

 

1.           The rights and remedies available to ADMA and BPC under this Agreement among the Parties are exclusive.

 

2.           BPC agrees that all donor information supplied by ADMA and [antibody test results] supplied by ADMA are the property of ADMA and that BPC has no right to share this information with any other Party or use the information for its own commercial use, but may use the information to comply with regulatory requirements and for its own record keeping requirements.  This information shall he considered confidential.

 

G.           ASSIGNMENT.

 

Neither Party shall assign this Agreement or any of its rights or obligations hereunder without the express written consent of the other Party, except as hereinafter provided.  Any such consent shall not be unreasonably withheld.  With notice to the other Party, either Party without the other Party’s consent may assign this Agreement to (i) its affiliate, or (ii) a successor to all or substantially all of the assets relating to the business of that Party which is involved in the fulfillment of its obligations under this Agreement, which shall expressly assume in writing the performance of all of the terms and conditions of this Agreement then to be performed by such successor as if it were named herein as a Party.

 

H.           NOTICES.  All notices, demands, requests, consents or approvals required under this Agreement must be in writing and delivered personally to the Party or sent by overnight courier service or facsimile, addressed to such Party as set forth below (or to such other address or facsimile number as such Party may hereafter specify for the purpose by notice to the other Party hereto);

 

	
  

	
To BPC:

	

Ileana Carlisle

Vice President, Plasma Operations

Biotest Pharmaceuticals Corporation

5800 Park of Commerce Blvd. NW

Boca Raton, FL 33487

Fax: 561-989-5889

 

With a copy to:

Legal Department

Biotest Pharmaceuticals Corporation

5800 Park of Commerce Blvd. NW

Boca Raton, FL  33487

Fax: 561-989-5517

 

	
  

	
To ADMA:

	
Adam Grossman

	
  

	
Chief Operating Officer

	
  

	
ADMA Biologics, Inc.

	
  

	
65 Commerce Way

	
  

	
Hackensack, NJ  07601 Fax:  201-488-3968

 

  

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With copy to:

General Counsel

ADMA Biologics, Inc.

65 Commerce Way

Hackensack, NJ  07601

 

All notices, requests, consents and other communications hereunder shall be deemed to have been properly given (a) if by hand, at the time of the delivery thereof to the receiving party at the address of such Party set forth above, (b) if made by facsimile transmission, at the time that receipt thereof has been acknowledged by electronic confirmation or otherwise, (c) if sent by overnight courier, on the next business day following the day such notice is delivered to the courier service, or (d) if sent by registered or certified mail, on the fifth business day following the day such mailing is made.

 

I.           INTEGRATION; EFFECT OF AMENDMENT.

 

This Agreement, including all attachments, schedules or other agreements specifically incorporated by reference, constitute the entire agreement among the Parties with respect to the subject matter of this Agreement and supersede any and all other prior written or oral agreements, understandings, negotiations or discussions among the Parties with respect to the subject matter of this Agreement.  This Agreement may not be modified or amended in any respect except by an instrument in writing signed by both of the Parties.

 

J.           CHOICE OF LAW.  This Agreement shall be governed by, and construed under laws of the State of Delaware, without regard to its conflict of laws principles.

 

K.           REPRESENTATIONS AND WARRANTIES.  Each party hereto hereby represents and warrants to the other as follows:  (i) each party hereto has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby, (ii) the execution and delivery of this Agreement and the consummation by such party of the transactions contemplated hereby have been duly authorized by all necessary action on the part of such party, (iii) this Agreement has been duly and validly executed and delivered by such party and constitutes the valid and binding obligation of such party, enforceable against such party in accordance with its terms and (iv) the execution and delivery of this Agreement and the consummation by such party of the transactions contemplated hereby does not and will not (a) require the consent of or registration with, any court, federal state, local or foreign governmental or regulatory body, or (b) constitute a default (with or without notice or lapse of time, or both) under or conflict with any contract, agreement or order to which such party is a party or by which such party or any of its properties or assets is subject or bound.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly authorized officers as of the day and year first written above.

 

	ADMA Biologics, Inc.  	 	Biotest Pharmaceuticals Corporation
	 	 	 	 	 
	By: 	/s/ Adam Grossman  	 	By: 	/s/ Jordan Siegel
	 	 	 	 	 
	Name: 	Adam Grossman 	 	Name: 	Jordan Siegel
	 	 	 	 	 
	Title:	Pres & CEO   	 	Title:	SVP, Finance & CFO
	 	 	 	 	 
	Date: 	11/29/2011	 	Date: 	
11-29-2011

 

  

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EXHIBIT A

 

Biotest Plasma Center

2320 Cleveland

Ft. Myers, FL 33901

Biotest Plasma Center

1112 North Main Street

Gainesville, FL 32601

Biotest Plasma Center

2301 N. University Dr., # 103

Pembroke, FL 33024

Biotest Plasma Center

2704 Peach Orchard Road

Augusta, GA 30906

Biotest Plasma Center

408 South Gilbert

Iowa City, IA 52240

Biotest Plasma Center

300 S. 17th St.

Lincoln, NE 68508

Biotest Plasma Center

2860 Cerrillos Road

Santa Fe, NM 87507

Biotest Plasma Center

233-C Western Blvd.

Jacksonville, NC 28546

Biotest Plasma Center

444 Martin Luther King Blvd.

Youngstown, OH 44502

Biotest Plasma Center

409 Adams Avenue

Scranton, PA 18510

Biotest Plasma Center

711 Broadway St.

San Antonio, TX 78215

Biotest Plasma Center

233 West Hancock Avenue

Athens, Georgia 3069

* Upon FDA licensure

 

- 9 -ex10_1.htm

Exhibit 10.1

 

NONE OF THE SECURITIES TO WHICH THIS SUBSCRIPTION AGREEMENT (THE “AGREEMENT”) RELATES HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

 

STOCK OPTION AGREEMENT

(Non-Investor Relations)

 

THIS STOCK OPTION AGREEMENT made as of the __ day of June 2012.

 

BETWEEN:

 

TITAN IRON ORE CORP., with an office at 3040 N. Campbell Ave., Suite 110, Tucson, Arizona 85719

 

(the “Company”)

 

AND:

 

__________, residing at ________________

 

 

(the “Optionee”)

 

WHEREAS:

 

A.                      The Company’s board of directors (the “Board”) has approved and adopted an incentive stock option plan (the “Plan”), whereby the Board is authorized to grant Options (as defined herein) to purchase common shares of the Company to directors, officers, employees, management company employees and consultants of the Company;

 

B.                      The Optionee provides services to the Company as ____of the Company (the “Services”); and

 

C.                      The Company wishes to grant the Options to the Optionee as an incentive for the continued provision of the Services;

 

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of other good and valuable consideration and the sum of One ($1.00) dollar now paid by the Optionee to the Company (the receipt and sufficiency whereof is hereby acknowledged), it is hereby agreed by and between the parties as follows:

 

	
1.

	
In this Agreement, the following terms shall have the following meanings:

 

	
  

	
(a)

	
“1933 Act” means the United States Securities Act of 1933, as amended;

 

  

  

  

 

	
  

	
(b)

	
“Date of Grant” means the date of this Agreement;

 

	
  

	
(c)

	
“Exercise Payment” means the amount of money equal to the Exercise Price multiplied by the number of Optioned Shares specified in the Notice of Exercise;

 

	
  

	
(d)

	
“Exercise Price” means $0.20 per Optioned Share;

 

	
  

	
(e)

	
“Expiry Date” means the date which is ten (10) years after the Date of Grant;

 

	
  

	
(f)

	
“Notice of Exercise” means a notice in writing addressed to the Company at its address first recited (or such other address of the Company as may from time to time be notified to the Optionee in writing), substantially in the form attached as Exhibit “A” hereto, which notice shall specify therein the number of Optioned Shares in respect of which the Options are being exercised;

 

	
  

	
(g)

	
“Options” means the irrevocable right and option to purchase, from time to time, all, or any part of the Optioned Shares granted to the Optionee by the Company pursuant to Section 2 of this Agreement;

 

	
  

	
(h)

	
“Optioned Shares” means the Shares subject to the Options;

 

	
  

	
(i)

	
“Questionnaires” means the National Instrument 45-106 Questionnaire attached as Exhibit “B” to this Agreement and the U.S. Accredited Investor Questionnaire attached as Exhibit “C” to this Agreement;

 

	
  

	
(j)

	
“Securities” means, collectively, the Options and the Optioned Shares;

 

	
  

	
(k)

	
“Shareholders” means holders of record of the Shares;

 

	
  

	
(l)

	
“Shares” means the common shares in the capital of the Company; and

 

	
  

	
(m)

	
“U.S. Person” has the meaning set out in Regulation S promulgated under the 1933 Act and for the purposes of this Agreement includes any person in the United States.

 

	
2.

	
Upon the execution and delivery of this Agreement by the Optionee to the Company, the Company hereby grants to the Optionee, subject to the terms and conditions hereinafter set forth, Options to purchase a total of __________________ (__________) Optioned Shares at the Exercise Price.

 

	
3.

	
The Options shall vest as follows

 

	
  

	
(a)

	
25% six (6) months from the Date of Grant;

 

	
  

	
(b)

	
25% nine (9) months from the Date of Grant;

 

	
  

	
(c)

	
25% twelve (12) months from the Date of Grant;

 

	
  

	
(d)

	
25% eighteen (18) months from the Date of Grant;

 

	
4.

	
The Options shall, at 5:00 p.m. (Tucson Time) on the Expiry Date, forthwith expire and be of no further force or effect whatsoever.

 

  

- 2 -

  

 

	
5.

	
Subject to the provisions hereof, the Options shall be exercisable in whole or in part (at any time and from time to time as aforesaid) by the Optionee or his personal representative giving a Notice of Exercise together with the Exercise Payment by cash or by certified cheque, made payable to the Company.

 

	
6.

	
Upon the exercise of all or any part of the Options and upon receipt by the Company of the Exercise Payment, the Company shall cause to be delivered to the Optionee or his personal representative, within ten (10) days following receipt by the Company of the Notice of Exercise, a certificate in the name of the Optionee or his personal representative representing, in aggregate, the number of Optioned Shares specified in the Notice of Exercise.

 

	
7.

	
Nothing in this Agreement shall obligate the Optionee to purchase any Optioned Shares except those Optioned Shares in respect of which the Optionee shall have exercised the Options in the manner provided in this Agreement.

 

	
8.

	
In the event the Plan does not set out the rights and obligations of the Optionee and the Company in respect of a consolidation or subdivision of the Shares, or an amalgamation, merger, business combination or similar event, the terms of the Options shall be subject to adjustment as follows:

 

	
  

	
(a)

	
In case the Company shall (i) subdivide its outstanding Shares into a greater number of Shares, (ii) combine its outstanding Shares into a smaller number of shares, or (iii) issue by reclassification, recapitalization, stock dividend or other similar event a different number or kind of securities of the Company in exchange for its Shares, (A) the Exercise Price shall be increased or decreased, as the case may be, to any amount which shall bear the same relation to the Exercise Price in effect immediately prior to such action as the total number of Shares outstanding immediately prior to such action shall bear to the total number of Shares outstanding immediately after such action, and (B) the Options shall automatically be adjusted so that it shall thereafter evidence the right to purchase the kind and number of Optioned Shares or other securities which the Optionee would have owned and would have been entitled to receive after such action if the Options had been exercised immediately prior to such action or any record date with respect thereto.  An adjustment made pursuant to this subparagraph (a) shall become effective immediately after the effective date in the case of a subdivision, combination or reclassification.

 

	
  

	
(b)

	
In case of any consolidation or merger of the Company with or into another corporation or the sale of all or substantially all of the assets of the Company to another corporation, the Options thereafter shall be exercisable for the kind and amount of shares of stock or other securities or property to which a holder of the number of Shares of the Company deliverable upon exercise of the Options would have been entitled upon such consolidation, merger or sale; and, in such case, appropriate adjustment (as determined in good faith by the Company’s Board of Directors) shall be made in the application of the provisions in this Section 8, to the end that the provisions set forth in this Section 8 (including provisions with respect to changes in and adjustments of the Exercise Price) shall thereafter be applicable, as nearly as reasonably may be, in relation to any shares of stock or other securities or property thereafter deliverable upon the exercise of the Options.

 

	
9.

	
The Optionee shall have no rights whatsoever as a Shareholder in respect of any of the Optioned Shares (including any right to receive dividends or other distribution therefrom or thereon) except in respect of which the Option has been properly exercised in accordance with Section 5 hereof.

 

  

- 3 -

  

 

	
10.

	
The Company agrees that prior to the earlier of the expiration of the Options and the exercise and purchase of the total number of Shares represented by the Options, there shall be reserved for issuance and delivery upon exercise of the Options such number of the Company’s authorized and unissued Shares as shall be necessary to satisfy the terms and conditions of this Agreement.

 

	
11.

	
The Optionee acknowledges, represents and warrants to the Company that:

 

	
  

	
(a)

	
no securities commission or similar regulatory authority has reviewed or passed on the merits of the Securities;

 

	
  

	
(b)

	
there is no government or other insurance covering the Securities;

 

	
  

	
(c)

	
the Optionee has been independently advised as to the applicable hold period imposed in respect of the Securities by securities legislation in the jurisdiction in which the Optionee resides and confirms that no representation has been made respecting the applicable hold periods for the Securities and acknowledges that the hold period indicated in this Agreement does not constitute such representation and is aware of the risks and other characteristics of the Securities and of the fact that the Optionee may not be able to resell the Securities except in accordance with the applicable securities legislation and regulatory policies;

 

	
  

	
(d)

	
the Company has advised the Optionee that the Company is relying on an exemption from the requirements to provide the Optionee with a prospectus and to sell the Securities through a person registered to sell securities under applicable securities legislation and, as a consequence of acquiring the Securities pursuant to this exemption, certain protections, rights and remedies provided by applicable securities legislation, including, in most circumstances, statutory rights of rescission or damages, will not be available to the Optionee;

 

	
  

	
(e)

	
the Optionee is a U.S. Person;

 

	
  

	
(f)

	
the Securities have not been registered under the 1933 Act or under any state securities or “blue sky” laws of any state of the United States, and are being offered only in a transaction not involving any public offering within the meaning of the 1933 Act, and, unless so registered, may not be offered or sold in the United States or to U.S. Persons, except pursuant to an effective registration statement under the 1933 Act, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act, and in each case only in accordance with applicable state securities laws;

 

	
  

	
(g)

	
the Company will refuse to register any transfer of the Securities not made in accordance with the provisions of Regulation S, pursuant to an effective registration statement under the 1933 Act or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act;

 

	
  

	
(h)

	
the Optionee has received and carefully read this Agreement;

 

	
  

	
(i)

	
all information contained in this Agreement is complete and accurate and may be relied upon by the Company;

 

	
  

	
(j)

	
the Optionee understands and agrees that the Company and others will rely upon the truth and accuracy of the acknowledgements, representations, warranties, covenants and agreements contained in this Agreement and agrees that if any of such acknowledgements, representations and agreements are no longer accurate or have been breached, the Optionee shall promptly notify the Company;

 

  

- 4 -

  

 

	
  

	
(k)

	
the Optionee is purchasing the Securities for its own account for investment purposes only and not for the account of any other person and not for distribution, assignment or resale to others, and no other person has a direct or indirect beneficial interest is such Securities, and the Optionee has not subdivided his interest in the Securities with any other person;

 

	
  

	
(l)

	
the Optionee is not an underwriter of, or dealer in, the shares of the Shares, nor is the Optionee participating, pursuant to a contractual agreement or otherwise, in the distribution of the Securities;

 

	
  

	
(m)

	
the Optionee is not aware of any advertisement of any of the Securities and is not acquiring the Securities as a result of any form of general solicitation or general advertising including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;

 

	
  

	
(n)

	
no person has made to the Optionee any written or oral representations:

 

	
  

	
(i)

	
that any person will resell or repurchase any of the Securities,

 

	
  

	
(ii)

	
that any person will refund the purchase price of any of the Securities, or

 

	
  

	
(iii)

	
as to the future price or value of any of the Securities.

 

	
12.

	
If the Company becomes listed for trading on a stock exchange in Canada, and if any of the Options are exercised prior to the date which is four months and one day from the Date of Grant, the certificates representing the Optioned Shares to be issued pursuant to such exercise shall bear the following legend:

 

“UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THE SECURITIES SHALL NOT TRADE THE SECURITIES BEFORE [THE DATE THAT IS FOUR MONTHS AND ONE DAY FROM THE DATE OF GRANT].”

 

	
13.

	
If the Company becomes listed for trading on a stock exchange in Canada, and if any of the Options are granted where the Exercise Price is based on the Discounted Market Price, as such term is defined by the policies of the TSX Venture Exchange, and if any of the Options are exercised prior to the date which is four months and one day from the Date of Grant, the certificates representing the Securities shall bear the following legend:

 

“WITHOUT PRIOR WRITTEN APPROVAL FROM THE EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED THROUGH THE FACILITIES OF THE TSX VENTURE EXCHANGE OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL [THE DATE THAT IS FOUR MONTHS AND ONE DAY FROM THE DATE OF GRANT].”

 

  

- 5 -

  

 

	
14.

	
The Optionee hereby acknowledges that that upon the issuance thereof, and until such time as the same is no longer required under the applicable securities laws and regulations, the certificates representing any of the Securities will bear a legend in substantially the following form:

 

“NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT OR PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.”

 

	
15.

	
The Optionee hereby acknowledges and agrees to the Company making a notation on its records or giving instructions to the registrar and transfer agent of the Company in order to implement the restrictions on transfer set forth and described in this Agreement.

 

	
16.

	
Unless the Company permits otherwise, the Optionee shall pay the Company in cash all local, provincial and federal withholding taxes applicable to the grant or exercise of the Options, or the transfer or other disposition of Shares acquired upon exercise of the Options.  Any such payment must be made promptly when the amount of such obligation becomes determinable.  The Company may, in lieu of such cash payment, withhold that number of Shares sufficient to satisfy such withholding.

 

	
17.

	
The Company will pay all issuance taxes, if any, attributable to the initial issuance of Shares upon the exercise of the Option; provided, however, that the Company shall not be required to pay any tax or taxes which may be payable in respect of any transfer involved in the issue or delivery of any certificates for Shares in a name other than that of the Optionee.

 

	
18.

	
This Agreement shall enure to the benefit of and be binding upon the Company, its successors and assigns, and the Optionee and his personal representative, if applicable.

 

	
19.

	
This Agreement shall not be transferable or assignable by the Optionee or his personal representative and the Options may be exercised only by the Optionee or his personal representative; provided that, subject to the prior approval of the Board and, if necessary, any applicable stock exchange, the Optionee may assign the Options to a company of which all of the voting securities are beneficially owned by the Optionee, which ownership will continue for as long as any portion of the Options remain unexercised.

 

	
20.

	
The granting of the Options and the terms and conditions hereof shall be subject to the approval of any applicable regulatory authority or stock exchange.

 

	
21.

	
The Optionee and the Company represent that the Optionee is either a director, officer, employee, management company employee or consultant of the Company or any subsidiary of the Company (a “Subsidiary”), or a company of which all of the voting securities are beneficially owned by one or more of the foregoing.

 

	
22.

	
The Optionee represents that he has not been induced to enter into this Agreement by the expectation of employment or continued employment or retention or continued retention by the Company or any Subsidiary.

 

  

- 6 -

  

 

	
23.

	The Option will terminate under the following circumstances:

 

	
  

	
(a)

	
If the Optionee is an employee, management company employee, consultant, director or officer of the Company or a Subsidiary, and ceases to be an employee, management company employee, consultant, director or officer by reason of termination or removal for cause, the Option will terminate on the effective date of the Optionee ceasing to be an employee, management company employee, consultant, director or officer, as the case may be, for that reason.

 

	
  

	
(b)

	
If the Optionee dies, the Optionee’s personal representative will have the right to exercise any unexercised portion of the Option, in whole or in part, at any time until the earlier of (i) the Expiry Date and (ii) the date that is thirty (30) days after the date of the Optionee’s death.

 

	
  

	
(c)

	
If the Optionee is a director, officer, employee, management company employee or consultant of the Company or a Subsidiary, and ceases to be a director, officer, employee, management company employee or consultant for any reason other than as set out in subparagraphs (a) or (b) above, the Option will terminate on the earlier of (i) the Expiry Date and (ii) the date that is 90 days after the effective date of the Optionee ceasing to be a director, officer, employee, management company employee or consultant for that other reason.

 

	
  

	
(d)

	
If the Optionee ceases to be one type of Optionee (i.e., director, officer, employee, management company employee, or consultant, or a company 100% beneficially owned by one of them) but concurrently is or becomes one or more other type of Optionee, the Option will not terminate but will continue in full force and effect and the Optionee may exercise the Option until the earlier of (i) the Expiry Date and (ii) the applicable date set forth in subparagraphs (a), (b) or (c) above where the Optionee ceases to be any type of Optionee.

 

	
  

	
(e)

	
The Option will not be affected by any change of the Optionee’s employment where the Optionee continues to be employed by the Company or any Subsidiary.

 

	
24.

	
Neither this Agreement nor the Plan confers on the Optionee the right to continue in the employment of or association with the Company or any Subsidiary, nor do they interfere in any way with the right of the Optionee or the Company or any Subsidiary to terminate the Optionee’s employment at any time.

 

	
25.

	
Reference is made to the Plan for particulars of the rights and obligations of the Optionee and the Company in respect of:

 

	
  

	
(a)

	
the terms and conditions on which the Option is granted; and

 

	
  

	
(b)

	
a consolidation or subdivision of the Company’s share capital or an amalgamation or merger;

 

all to the same effect as if the provisions of the Plan were set out in this Agreement and to all of which the Optionee assents.

 

	
26.

	The Company will give a copy of the Plan to the Optionee on request.

 

	
27.

	Time is of the essence of this Agreement.

 

  

- 7 -

  

 

	
28.

	
The terms of the Option are subject to the provisions of the Plan, as the same may from time to time be amended, and any inconsistencies between this Agreement and the Plan, as the same may be from time to time amended, shall be governed by the provisions of the Plan.

 

	
29.

	
If at any time during the term of this Agreement the parties deem it necessary or expedient to make any alteration or addition to this Agreement, they may do so by means of a written agreement between them which shall be supplemental hereto and form part hereof and which shall be subject to the approval of any applicable stock exchange.

 

	
30.

	
Wherever the plural or masculine are used throughout this Agreement, the same shall be construed as meaning singular or feminine or neuter or the body politic or corporate where the context of the parties thereto require.

 

	
31.

	
This Agreement may be executed in several parts in the same form and such parts as so executed shall together constitute one original agreement, and such parts, if more than one, shall be read together and construed as if all the signing parties hereto had executed one copy of this Agreement.

 

	
32.

	
Delivery of an executed copy of this Agreement by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy will be deemed to be execution and delivery of this Agreement as of the date first above written.

 

	
33.

	
Unless otherwise expressly stated, all amounts set out in this Agreement are stated in United States dollars.

 

	
34.

	
Time shall be of the essence of this Agreement.

 

	
35.

	
This Agreement shall be exclusively governed by and construed in accordance with the laws of the State of Arizona without giving effect to any choice or conflict of law provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction, and shall bind and inure to the benefit of the parties hereto and their respective successors and assigns.

 

  

- 8 -

  

 

IN WITNESS WHEREOF the parties have executed this Agreement as of the date set out above.

 

TITAN IRON ORE CORP.

 

	
Per:

	  	  	  
	  	
Authorized Signatory

	  	  

 

	
SIGNED by ___________ in the presence of:

	
)

	  
	  	
)

	  
	  	
)

	  
	
Signature

	
)

	  
	  	
)

	  
	
Print Name

	
)

	  
	  	
)

	  
	
Address

	
)

	  
	  	
)

	  
	  	
)

	  
	  	
)

	  
	
Occupation

	
)

	  
	  	
)

	  

 

 

 

 

 

 

  

- 9 -

  

 

EXHIBIT A

 

	
TO:

	
TITAN IRON ORE CORP.. (the “Company”)

	
  

	
3040 N. Campbell Ave., Suite 110

	
  

	
Tuscon, Arizona 85719

 

NOTICE OF EXERCISE

 

This Notice of Exercise shall constitute proper notice pursuant to Section 5 of that certain Stock Option Agreement (the “Agreement”) dated as of the ____ day of _____________, 2012, between the Company and the undersigned.

 

The undersigned hereby elects to exercise Optionee’s option to purchase __________________ shares of the common stock of the Company at a price of $_______ per share, for aggregate consideration of $__________, on the terms and conditions set forth in the Agreement and the Plan.  Such aggregate consideration, in the form specified in Section 5 of the Agreement, accompanies this notice.  The undersigned reconfirms the representations and warranties set out in the Agreement as of the date hereof.

 

The Optionee hereby directs the Company to issue, register and deliver the certificates representing the shares as follows:

 

	
Registration Information:

	  	
Delivery Instructions:

	  	  	  
	
Name to appear on certificates

	  	
Name

	  	  	  
	
Address

	  	
Address

	  	  	  
	  	  	  
	  	  	  
	  	  	
Telephone Number

 

DATED at _____________________________, the _______ day of _____________________, _______.

	 	 
	  	  
	  	
(Name of Optionee – Please type or print)

	  	  
	  	  
	  	
(Signature and, if applicable, Office)

	  	  
	  	  
	  	
(Address of Optionee)

	  	  
	  	  
	  	
(Address of Optionee)

	  	  
	  	  
	  	
(Fax Number)

 

  

  

  

 

EXHIBIT B

 

NATIONAL INSTRUMENT 45-106 QUESTIONNAIRE

 

REQUIRED FOR CANADIAN OPTIONEES ONLY

 

All capitalized terms herein, unless otherwise defined, have the meanings ascribed thereto in the Option Agreement.

 

The Optionee covenants, represents and warrants to the Company that:

 

	
  

	
1.

	
the Optionee is (tick one or more of the following boxes):

 

	                                    	
(A)           

	
a director, executive officer or control person of the Company or an affiliate of the Company

	
o

	 	 	 	 
	 	
(B)

	
a spouse, parent, grandparent, brother, sister, child or grandchild of a director, executive officer or control person of the Company or an affiliate of the Company

	
o

	 	 	 	 
	 	
(C)

	
a parent, grandparent, brother, sister, child or grandchild of the spouse of a director, executive officer or control person of the Company or an affiliate of the Company

	
o

	 	 	 	 
	 	
(D)

	
a close personal friend of a director, executive officer, control person of the Company or affiliate of the Company

	
o

	 	 	 	 
	 	
(E)

	
a close business associate of a director, executive officer, control person of the Company or affiliate of the Company

	
o

	 	 	 	 
	 	
(F)

	
an accredited investor

	
o

	 	 	 	 
	 	
(G)

	
a company, partnership or other entity of which a majority of the voting securities are beneficially owned by, or a majority of the directors are, persons described in paragraphs A to F

	
o

	 	 	 	 
	 	
(H)

	
a trust or estate of which all of the beneficiaries or a majority of the trustees or executors are persons described in paragraphs A to F

	

o

 

	
  

	
2.

	
if the Optionee has checked box B, C, D, E, G or H in paragraph 1 above, the director, executive officer, founder or control person of the Company with whom the undersigned has the relationship is:

 

 

(Instructions to Optionee: fill in the name of each director, executive officer and control person which you have the above-mentioned relationship with.  If you have checked box G or H, also indicate which of A to F describes the securityholders, directors, trustees or beneficiaries which qualify you as box G or H and provide the names of those individuals.  Please attach a separate page if necessary).

 

	
  

	
3.

	
if the Optionee has ticked box F in Section 1 above, the Optionee satisfies one or more of the categories of “accredited investor” (as that term is defined in National Instrument 45-106) indicated below (please check the appropriate box):

 

  

  

  

 

	
  

	o	
(a) an individual who either alone or with a spouse beneficially owns, directly or indirectly, financial assets (as defined in National Instrument 45-106) having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $1,000,000;

 

	
  

	o	
(b) an individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of those years and who, in either case, reasonably expects to exceed that net income level in the current calendar year;

 

	
  

	o	
(c) an individual who, either alone or with a spouse, has net assets of at least $5,000,000; or

 

	
  

	o	
(d) a person, other than an individual or investment fund, that had net assets of at least $5,000,000 as reflected on its most recently prepared financial statements.

 

IN WITNESS WHEREOF, the undersigned has executed this Questionnaire as of the ________ day of __________________, 2012.

	
If an Individual:

	  	
If a Corporation, Partnership or Other Entity:

	  
	  	  	  	  
	 	 	 	 
	  	  	  	  
	
Signature

	  	
Print or Type Name of Entity

	  
	  	  	  	  
	 	 	 	 
	  	  	  	  
	
Print or Type Name

	  	
Signature of Authorized Signatory

	  
	  	  	  	  
	 	 	 	 
	  	  	  	  
	  	  	
Type of Entity

	  

  

  

  

 

EXHIBIT C

 

U.S. ACCREDITED INVESTOR QUESTIONNAIRE

 

All capitalized terms herein, unless otherwise defined, have the meanings ascribed thereto in the Option Agreement.

 

This US Questionnaire is for use by the Optionee in connection with a grant of Options from Titan Iron Ore Corp. (the “Company”).  The purpose of this US Questionnaire is to assure the Company that the Optionee will meet the standards imposed by the Securities Act of 1933, as amended (the “1933 Act”) and the appropriate exemptions of applicable state securities laws.  The Company will rely on the information contained in this US Questionnaire for the purposes of such determination.  This US Questionnaire is not an offer of securities in any state other than those specifically authorized by the Company.

 

The Optionee covenants, represents and warrants to the Company that it satisfies one or more of the categories of “Accredited Investor”, as defined by Regulation D promulgated under the 1933 Act, as indicated below:  (Please initial in the space provide those categories, if any, of an “Accredited Investor” which the Optionee satisfies.)

 

	
                  

	
  Category 1          

	
An organization described in Section 501(c)(3) of the United States Internal Revenue Code, a corporation, a Massachusetts or similar business trust or partnership, not formed for the specific purpose of acquiring the Shares, with total assets in excess of US $5,000,000.

	  	  	  
	

                  

	
  Category 2

	
A natural person whose individual net worth, or joint net worth with that person's spouse, on the date of purchase exceeds US $1,000,000.

	  	  	  
	

                  

	
  Category 3

	
A natural person who had an individual income in excess of US $200,000 in each of the two most recent years or joint income with that person's spouse in excess of US $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year.

	  	  	  
	

                  

	
  Category 4

	
A “bank” as defined under Section (3)(a)(2) of the 1933 Act or savings and loan association or other institution as defined in Section 3(a)(5)(A) of the 1933 Act acting in its individual or fiduciary capacity; a broker dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934 (United States); an insurance corporation as defined in Section 2(13) of the 1933 Act; an investment corporation registered under the Investment Corporation Act of 1940 (United States) or a business development corporation as defined in Section 2(a)(48) of such Act; a Small Business Investment Corporation licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958 (United States); a plan with total assets in excess of US$5,000,000 established and maintained by a state, a political subdivision thereof, or an agency or instrumentality of a state or a political subdivision thereof, for the benefit of its employees; an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 (United States) whose investment decisions are made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance corporation or registered investment adviser, or if the employee benefit plan has total assets in excess of US$5,000,000, or, if a self-directed plan, whose investment decisions are made solely by persons that are accredited investors.

	

                  

	
  Category 5

	
A private business development corporation as defined in Section 202(a)(22) of the Investment Advisers Act of 1940 (United States).

 

  

  

  

 

	

                  

	
  Category 6          

	
A director or executive officer of the Company.

	  	  	  
	

                  

	
  Category 7

	
A trust with total assets in excess of US$5,000,000, not formed for the specific purpose of acquiring the Shares, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) under the 1933 Act.

	  	  	  
	

                  

	
  Category 8

	
An entity in which all of the equity owners satisfy the requirements of one or more of the foregoing categories.

 

Note that the Optionee claiming to satisfy one of the above categories of Accredited Investor may be required to supply the Company with a balance sheet, prior years’ federal income tax returns or other appropriate documentation to verify and substantiate the Optionee’s status as an Accredited Investor.

 

If the Optionee is an entity which initialled Category 8 in reliance upon the Accredited Investor categories above, state the name, address, total personal income from all sources for the previous calendar year, and the net worth (exclusive of home, home furnishings and personal automobiles) for each equity owner of the said entity:

 

 

The Optionee hereby certifies that the information contained in this US Questionnaire is complete and accurate and the Optionee will notify the Company promptly of any change in any such information.  If this US Questionnaire is being completed on behalf of a corporation, partnership, trust or estate, the person executing on behalf of the Optionee represents that it has the authority to execute and deliver this US Questionnaire on behalf of such entity.

 

IN WITNESS WHEREOF, the undersigned has executed this US Questionnaire as of the ___ day of _______________, 2012.

	
If a Corporation, Partnership or Other Entity:

	  	
If an Individual:

	  	  	  
	  	  	  
	  	  	  
	
Print of Type Name of Entity

	  	
Signature

	  	  	  
	  	  	  
	
Signature of Authorized Signatory

	  	
Print or Type Name

	  	  	  
	  	  	  
	
Type of Entity

	  	
Social Security/Tax I.D. No. (if applicable)

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