Document:

llpp_ex104.htm

EXHIBIT 10.4

 

FIRST AMERICAN GROUP, INC.

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”) is dated as of June 29, 2015, by and between Daniel Solomita (“Executive”) and First American Group, Inc., a Nevada corporation (the “Company”).

 

1. Duties.

 

1.1 Position. Executive is employed as President and Chief Executive Officer of the Company, reporting to the Company’s Board of Directors (the “Board”). The duties and responsibilities of Executive shall include the duties and responsibilities for the direct supervision, direction and control of the Company’s operations and activities. The Executive shall perform such duties as from time to time may be prescribed for him by the Board, in all cases to be consistent with Executive’s corporate offices and positions.

 

1.2 Obligations to the Company. Executive agrees to the best of his ability and experience that he will at all times loyally and conscientiously perform all of the duties and obligations required of and from Executive pursuant to the express and implicit terms hereof, and to the reasonable satisfaction of the Company. During the term of Executive’s employment relationship with the Company, Executive further agrees that he will devote all of his business time and attention to the business of the Company, the Company will be entitled to all of the benefits and profits arising from or incident to all such work services and advice, and Executive will not render commercial or professional services of any nature to any person or organization, whether or not for compensation, without the prior written consent of the Board, and will not directly or indirectly engage or participate in any business that is competitive in any manner with the business of the Company. Executive will comply with and be bound by the Company’s operating policies, procedures and practices from time to time in effect during the term of Executive’s employment.

 

2. Term of Employment. The employment of Executive under this Agreement shall be for an for an indefinite term.

 

3. Compensation. For the duties and services to be performed by Executive hereunder, the Company shall pay Executive, and Executive agrees to accept, the salary and other benefits described below in this Section 3.

 

3.1 Salary. During the Term, Executive shall receive a monthly base salary of $15,000, which is equivalent to $180,000 on an annualized basis. Executive’s monthly base salary will be payable pursuant to the Company’s normal payroll practices for payment of salary to executive employees. Executive’s base salary will be reviewed as part of the Company’s normal salary review process.

 
	 
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3.2 Bonus and Other Incentive Compensation. Executive shall be entitled to receive an annual bonus pursuant to a unique or general plan that the Company shall make available to Executive. The executive shall also be eligible to receive other benefits, including stock options or restricted stock units. The Company and Executive shall agree upon goals and objectives to be required for Executive to meet to be eligible for payment of a bonus and such goals and objectives shall be set forth in Exhibit A attached hereto (or to be attached hereto) and incorporated herein by this reference. Exhibit A may be replaced, revised or updated from time to time by agreement of the parties.

 

3.3 Employee Benefit Plans. Executive shall participate in the employee benefit plans, programs and policies maintained by or for the Company for similarly situated employees in accordance with the terms and conditions to participate in such plans, programs and policies as in effect from time to time. The introduction and administration of benefit plans, programs and policies are within the Company’s sole discretion and the introduction, deletion or amendment of any benefit plan, program or policy will not constitute a breach of this Employment Agreement, provided the Executive is provided with substantially similar benefits or compensation in lieu.

 

3.4 Indemnification. Executive has previously entered into the Company’s standard form of Indemnification Agreement, attached hereto as Exhibit B, providing indemnification to Executive to the maximum extent permitted by law, and in accordance therewith, the Company has agreed to advance any expenses for which indemnification is available to the extent allowed by applicable law.

 

3.5 Vacation. Executive shall be eligible for vacation as provided to similarly situated employees under policies set forth in the Company’s, if there is one, or other policies in place, which vacation time shall be taken at such time or times in each year so as not to materially and adversely interfere with the business of the Company. Unused vacation will be paid out and may not be carried over from any one-year period to any other period except as may be required by law.

 

3.6 Other Benefits. The Company shall pay for costs related to Executive’s reasonable monthly cell phone and other mobile Internet costs, home office Internet costs, car and commuting costs and club membership costs, payable not later than 10 days after the end of each month. The Company shall not be liable to pay more than $1,000 per month for car and commuting costs.

 

4. Severance Benefits. Executive shall be entitled to receive severance benefits upon termination of employment as set forth in this Section 4 or as may be required by applicable law. Executive’s entitlement to such severance benefits shall be conditioned upon Executive’s execution and delivery to the Company of (i) a mutual release of all claims and (ii) a resignation from all of Executive’s positions with the Company. Any payment of severance benefits under the terms of this Agreement will be subject to all applicable tax withholding

 

4.1 Voluntary Termination or Termination for Cause. If Executive voluntarily elects to terminate his employment with the Company other than by Executive’s Resignation for Good Reason, as defined in Section 5.3 below, or if the Company or a successor entity terminates Executive’s employment for Cause, as defined in Section 5.2 below, or the Executive dies or becomes incapacitated or otherwise disabled in such a manner that, in the sole determination of the Board, the Executive cannot perform reasonably the duties specified in Section 1 above, then Executive shall not be entitled to receive payment of any severance benefits. Executive will receive payment for all salary and unpaid vacation accrued as of the date of Executive’s termination of employment and Executive’s benefits will be continued solely to the extent of the Company’s then existing benefit plans and policies in accordance with such plans and policies in effect on the date of termination and in accordance with applicable law.

 
	 
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4.2 Involuntary Termination Apart From a Change of Control. If Executive’s employment is terminated by the Company or a successor entity without Cause or by Executive’s Resignation for Good Reason prior to or more than twelve (12) months after, a Change of Control (as defined below), Executive will receive payment for all salary and unpaid vacation accrued as of the date of Executive’s termination of employment, and, in addition, Executive will be entitled to receive the following severance benefits:

 

(i) continued payment of his base salary for a period equal to: twenty four (24) months plus an additional month per completed year of service, to a maximum of thirty six (36) months (the “Salary Continuance Period”). Such payments shall be made in accordance with the Company’s normal payroll practices.

 

(ii) continued benefit coverage (including, if applicable reimbursement of his premium cost for continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, or the California Continuation of Benefits Replacement Act of 1997, as amended, whichever is applicable) for the lesser of the Salary Continuance Period or that number of months until Executive becomes eligible for reasonably comparable benefits under any future employer’s health insurance plan;

 

(iii) payment of 100% of Executive’s current year discretionary cash bonus at target regardless of the Company’s or the Executive’s achievement of the goals referred to in Section 3.2 of this Agreement, plus payment of bonus at target for the Salary Continuance Period;

 

(iv) accelerated vesting as to 50% of Executive’s then unvested option shares, if any; and

 

(v) reimbursement for up to $10,000 of expenses incurred in obtaining new employment, provided Executive submits evidence that is satisfactory to the Company that the amount involved was expended and related to obtaining new employment.

 

4.3 Change of control and Involuntary Termination Following a Change of Control. In the event of a Change of Control, i) all of the Executive’s unvested options, shares or other equity shall immediately vest and ii) the Executive shall be entitled to a one-time, lump sum payment equal to twelve (12) of his then current base salary.

 
	 
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In addition, if Executive’s employment is terminated by the Company or a successor entity without Cause or by Executive’s Resignation for Good Reason in either case within twelve (12) months following a Change of Control, Executive will receive payment for all salary and unpaid vacation accrued as of the date of Executive’s termination of employment, and, in addition, Executive will be entitled to receive the following severance benefits:

 

(i) continued payment of his base salary for a period equal to: eighteen (18) months plus an additional month per year of service to a maximum of thirty (30) months (the “Extended Salary Continuance Period”), in accordance with the Company’s normal payroll practices;

 

(ii) continued benefit coverage (including, if applicable reimbursement of his premium cost for continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, or the California Continuation of Benefits Replacement Act of 1997, as amended, whichever is applicable) for the lesser of the Extended Salary Continuance Period or that number of months until Executive becomes eligible for reasonably comparable benefits under any future employer’s health insurance plan;

 

(iii) payment of 150% of Executive’s current year discretionary cash bonus regardless of the Company’s or the Executive’s achievement of the goals referred to in Section 3.3 of this Agreement, plus payment of bonus at target for the Extended Salary Continuance Period;

 

(iv) accelerated vesting of 100% of all the unvested option shares, if any, pursuant to the terms of Section 3.2 of this Agreement; and

 

(v) reimbursement for up to $20,000 of expenses incurred in obtaining new employment, provided Executive submits evidence that is satisfactory to the Company that the amount involved was expended and related to obtaining new employment.

 

5. Definitions. For purposes of this Agreement, the following definitions shall apply:

 

5.1 “Change of Control” means a sale of all or substantially all of the Company’s assets, or any merger or consolidation of the Company with or into another corporation other than a merger or consolidation in which the holders of more than 50% of the shares of capital stock of the Company outstanding immediately prior to such transaction continue to hold (either by the voting securities remaining outstanding or by their being converted into voting securities of the surviving entity) more than 50% of the total voting power represented by the voting securities of the Company, or such surviving entity, outstanding immediately after such transaction.

 

5.2 “Cause” means any grounds entitling the Company’s Board to summarily dismiss the Executive.

 
	 
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5.3 “Resignation for Good Reason” means, subject to the right of either party to arbitrate a dispute with respect thereto in accordance with Section 12 below, Executive’s resignation as a result of, and within 30 days following: (i) a change in Executive’s position such that he is not a corporate officer of the Company (or a successor company, in the event of a Change of Control); (ii) a significant and substantial reduction in Executive’s job, duties, or responsibilities in a manner that is substantially and materially inconsistent with the position, duties, or responsibilities held by Executive immediately before such reduction; (iii) any reduction in Executive’s base salary other than in connection with and consistent with a general reduction of all officer base salaries; or (iv) a relocation of the Executive’s work location to a location more than 50 kilometers away from their current location provided such change increases Executive’s commute by 25 kilometers or 30 minutes.

 

6. Confidentiality Agreement. Executive has signed a Proprietary Information and Inventions Agreement (the “Proprietary Agreement”) that is incorporated by reference and made a part of this Agreement and the form of which is attached hereto as Exhibit C. Executive hereby represents and warrants to the Company that Executive has complied with all obligations under the Proprietary Agreement and agrees to continue to abide by the terms of the Proprietary Agreement and further agrees that the provisions of the Proprietary Agreement shall survive any termination of this Agreement or of Executive’s employment relationship with the Company in accordance with the terms of the Proprietary Agreement.

 

7. Confidentiality of Terms. Executive agrees to follow the Company’s strict policy that employees must not disclose, either directly or indirectly, any information, including any of the terms of this Agreement, regarding salary or stock purchase allocations to any person, including other employees of the Company (other than such employees who have a need to know such information); provided, however, that Executive may discuss such terms with members of his immediate family and any legal, tax or accounting specialists who provide Executive with individual legal, tax or accounting advice.

 

8. Covenants. In addition to the obligations to which the Executive agreed by executing the Proprietary Agreement, Executive understands and agrees that during the term of Executive’s employment with the Company, and for the greater of (i) the duration of any payments to Executive of severance benefits pursuant to Section 4 of this Agreement or (ii) one (1) year after the termination of Executive’s employment with the Company, Executive will not do any of the following:

 

8.1 Compete. Without the Company’s prior written consent, Executive will not directly or indirectly be employed or involved with any business developing or exploiting any products or services that are competitive with products or services (i) being commercially developed or exploited by the Company during Executive’s employment and (ii) on which Executive worked or about which Executive learned proprietary information or trade secrets of the Company during Executive’s employment with the Company.

 

8.2 Solicit Business. Solicit or influence or attempt to influence any client, customer or other person either directly or indirectly, to direct his, her or its purchase of the Company’s products and/or services to any person, firm, corporation, institution or other entity in competition with the business of the Company.

 
	 
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8.3 Solicit Personnel. Solicit or influence or attempt to influence any of the Company’s employees, consultants or other service providers to terminate or otherwise cease his, her or its employment, consulting or service relationships with the Company or to become an employee, consultant or service provider of any competitor of the Company.

 

9. Breach of the Agreement. Executive acknowledges that upon his breach of this Agreement or the Proprietary Agreement, the Company would sustain irreparable harm from such breach, and, therefore, Executive agrees that in addition to any other remedies which the Company may have under this Agreement or otherwise, the Company shall be entitled to obtain equitable relief, including specific performance and injunctions, restraining Executive from committing or continuing any such violation of the Agreement or the Proprietary Agreement. Executive acknowledges and agrees that upon Executive’s material or intentional breach of any of the provisions of the Agreement (including Section 8) or the Proprietary Agreement, in addition to any other remedies the Company may have under this Agreement or otherwise, the Company’s obligations to provide benefits to Executive as described in this Agreement, including without limitation those benefits provided in Section 4, shall immediately terminate, except as required by applicable law.

 

10. Entire Agreement. This Agreement, including the Proprietary Agreement that the Executive has signed, sets forth the entire agreement and understanding of the parties relating to the subject matter herein, supersedes any prior agreement, and merges all prior discussions between them.

 

11. Conflicts. Executive represents and warrants that his performance of all the terms of this Agreement will not breach any other agreement or understanding to which Executive is a party. Executive has not, and will not during the term of this Agreement, enter into any oral or written agreement in conflict with any of the provisions of this Agreement.

 

12. Dispute Resolution. In the event of any dispute, controversy or claim arising under or in connection with this Agreement, or the breach hereof (including a dispute as to whether Cause or Resignation for Good Reason exists), the parties hereto shall first submit their dispute to formal mediation. The Company shall select a mediator reasonably acceptable to both parties. In the event that the parties cannot reach resolution through formal mediation, the dispute shall be settled by arbitration in Los Angeles, California, in accordance with the Rules of the American Arbitration Association then in effect. Each party shall pay his, her or its own costs (including attorneys’ fees) in connection with such mediation or arbitration. To the extent such mediation or arbitration requires the submission of any information that either party claims is confidential information, the parties agree that such mediation or arbitration shall be confidential proceeding. Judgment upon the award rendered by the mediator or arbitrator may be entered in any court of competent jurisdiction. If any proceeding is necessary to enforce the mediation or arbitration award, the prevailing party shall be entitled to reasonable attorneys’ fees and costs and disbursements, in addition to any other relief to which such party may be entitled. Notwithstanding the foregoing, the Company shall be entitled to seek equitable relief directly from a court of competent jurisdiction (without prior arbitration) with respect to any alleged breach of the Proprietary Agreement or Section 8, including specific performance and injunctions, restraining Executive from committing or continuing to commit such alleged breach.

 
	 
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13. Successors. Any successor to the Company (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the obligations under this Agreement and agrees expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. The terms of this Agreement and all of Executive’s rights hereunder shall inure to the benefit of, and be enforceable by, Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

 

14. Miscellaneous Provisions.

 

14.1 Amendments and Waivers. Any term of this Agreement may be amended or waived only with the written consent of the parties. The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of any rights of such party.

 

14.2 Notices. Any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient upon receipt, when delivered personally or by a nationally-recognized delivery service (such as Federal Express or UPS), or 48 hours after being deposited in the U.S. or Canadian mail as certified or registered mail with postage prepaid, if such notice is addressed to the party to be notified at such party’s address as set forth below or as subsequently modified by written notice.

 

14.3 Choice of Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of Quebec, without giving effect to its or any other jurisdiction’s principles of conflict of laws.

 

14.4 Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law then (i) such provision shall be excluded from this Agreement, (ii) the balance of the Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of the Agreement shall be enforceable in accordance with its terms.

 

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

 

14.6 Advice of Counsel. Each party to this agreement acknowledges that, in executing this Agreement, such party has had the opportunity to seek the advice of independent legal counsel, and has read and understood all of the terms and provisions of this Agreement. This Agreement shall not be construed against any party by reason of the drafting of preparation hereof.

 
	 
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The parties have executed this Employment Agreement as of the date first written above.

 

 

	 	
The Company:

 

FIRST AMERICAN GROUP, INC.
	
	 	 	 	 
	 	By:	/s/ Daniel Solomita	
	
 
	
 
	Daniel Solomita	 
	 	 	President and Chief Executive Officer	 
	 	 	 	 
	
 
	
Executive:
	
 

	
 
	
 
	
 
	
 

	
 
	By:	
/s/ Daniel Solomita
	
 

	
 
		
Name (Print): Daniel Solomita
	
 

	
 
	
 
	
 
	
 

	
 
	
Address:
	
 
	
 

	
 
	
  
	
 
	
 

	
 
	
Tel:
	
 
	
 

  
	 
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EXHIBIT A

 

Pursuant to Section 3.2 of the Employment Agreement, dated June 29, 2015, by and between First American Group, Inc., a Nevada corporation (the “Company”), and Daniel Solomita, the Company shall grant a bonus to Mr. Solomita as follows:

 

(i) 1,000,000 shares of common stock shall be issued to Mr. Solomita when the Company’s securities are listed an exchange or the OTCQX tier of the OTCMarkets;

 

(ii) 1,000,000 shares of common stock shall be issued to Mr. Solomita when the Company executes a contract for a minimum quantity of 25,000 M/T of PTA/EG or a PET;

 

(iii) 1,000,000 shares of common stock shall be issued to Mr. Solomita when the Company’s first fill-scale production facility is in commercial operation; and

 

(iv) 1,000,000 shares of common stock shall be issued to Mr. Solomita when the Company’s second full-scale production facility is in commercial operation.

 

The term “commercial operation” means a full-scale production facility of the Company produces 10 M/T per hour of PTA and EG combined, for a term of not less than six (6) months.

 

In lieu of an issuance of the shares common stock referenced in this Exhibit A, Daniel Solomita may, in his sole discretion, elect to receive such shares of common stock, in whole or in part, in the form of a restricted stock grant with a future vesting date, or a warrant or an option with no or a nominal exercise price.

 
	 
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AMENDMENT NO. 1

TO EMPLOYMENT AGREEMENT

 

This Amendment No. 1 (this “Amendment”) to the Employment Agreement (the “Agreement”) dated June 29, 2015, by and between Loop Industries, Inc., a Nevada corporation (“Employer”), and Daniel Solomita (“Executive”), is entered into February 15, 2016. Employer and Executive may be collectively referred to herein as the “Parties”.

 

WHEREAS, the Parties have entered into the Agreement and wish to further amend the Agreement, as set forth herein.

 

NOW THEREFORE, in consideration of covenants and agreements contained hereinand such other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each of the Parties hereto, the Parties agree as follows:

 

16. Definitions. All defined terms used herein shall have the meaning assigned to them in the Agreement unless otherwise defined herein, and all of the terms of the Agreement shall continue to apply unless as amended hereby.

 

17. Amendment and to the Agreement. Notwithstanding Section 2 of the Agreement, the Agreement is amended, so that Employer shall, immediately upon creation of the Series A Preferred Stock of the Employer, issue Executive one share of Employer’s Series A Preferred Stock for consideration of Executive agreeing not to terminate his employment with Employer for a period of five (5) years from the date of this Amendment.

 

18. Continuing Effect of the Agreement. Except as specifically set forth herein, the Agreement shall remain in full force and effect and shall not be waived, modified, superseded or otherwise affected by this Amendment. This Amendment is not to be construed as a release, waiver or modification of any of the terms, representations, warranties, covenants, rights or remedies set forth in the Agreement, except as specifically set forth herein.

 

19. Governing Law. This Amendment shall be governed by and construed in accordance with the laws of Nevada.

 

20. Entire Agreement. The Agreement and this Amendment, and the exhibits and schedules delivered pursuant to the Agreement contain all of the terms and conditions agreed upon by the Parties relating to the subject matter of the Agreement and supersede all prior agreements, negotiations, correspondence, undertakings, and communications of the Parties, whether oral or written, respecting that subject matter.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 
	 
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IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first written above.

 

	
Employer: 

  

LOOP INDUSTRIES, INC., 

a Nevada corporation
	 	
EXECUTIVE
	 
	
 
	
 
	
 
	
 
	
 
	
 

	
By:
	/s/ Daniel Solomita	 	By: 	
/s/ Daniel Solomita
	 
	
 
	Daniel Solomita	 	 	Daniel Solomita	 
	
 
	President and Chief Executive Officer	 	 		 

 

 

	
11llpp_ex105.htm

EXHIBIT 10.5

 

MASTER SERVICES AGREEMENT

 

This Master Services Agreement (the “Agreement”) is dated September 1st, 2015 (the “Effective Date”).

 

	
BETWEEN:
	
LOOP HOLDINGS, INC., a corporation duly incorporated under the laws of Nevada;

	
 
	
 

	
 
	
(Hereinafter called “LOOP”)

	
 
	
 

	
AND:
	
8198381 CANADA INC., a corporation duly incorporated under the laws of Canada;

	
 
	
 

	
 
	
(Hereinafter called “8198381”).

 

WHEREAS LOOP is the owner of a polyethylene terephthalate (PET) depolymerization technology (the “Technology”);

 

WHEREAS 8198281 is in the business of, inter alia, providing research and development services, herein as Schedules A;

 

WHEREAS LOOP desires to engage 8198381 to provide certain services related to the Technology, including, without limitation, the design and engineering of production facilities, equipment testing, cost reduction assessment of chemical processes, product purity testing and research and development; and

 

WHEREAS the Parties wish to establish in this Master Services Agreement, the general terms and conditions governing the performance of services by 8198381.

 

NOW THEREFORE in consideration of the foregoing premises and the mutual covenants and agreements set forth herein, the Parties agree as follows:

 

1. DEFINITIONS

 

“Affiliates” means, with respect to either Party, any Person owned or controlled directly or indirectly by such Party or any Person controlled by, controlling, or under common control with such Party. The term “control” means with respect to any company or other Person, the ownership, beneficially or legally, of voting securities or interests in the capital of such company or other Person, to which are attached more than 50% of the votes that may be cast to elect the directors or directing managers of such company or other Person and such votes are sufficient to elect a majority of the directors or directing managers thereof, and “Controlled” has a corresponding meaning.

 

“Applicable Laws” means all applicable federal, state, provincial, territorial, municipal, foreign or other laws, statutes, rules, regulations, by-laws, orders, judgements, decisions, policies, directives, standards, guidelines, requirements, injunctions, awards or decrees which are applicable to 8198381 as the case may be, their respective property, activities or operations with respect to this agreement.

 

	 
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“LOOP Data” means any data, information and materials that is submitted, directly or indirectly, to 8198381 by LOOP or obtained or learned by 8198381 in connection with the Services provided by 8198381 wider this Agreement and any SOW.

 

“LOOP Representative” means the LOOP employee designated in an applicable SOW to direct, coordinate and approve the Services and Deliverables.

 

“Claim” means any claim, demand, investigation, action, suit, proceeding or cause of action.

 

“Confidential Information” means any information or materials disclosed (either in writing or orally) by any Party (the “Disclosing Party”) to the other Party (the “Recipient Party”) whether before or after the date of this Agreement that is either designated as confidential or by its nature, should reasonably be considered as confidential, including without limitation, information relating to any Party’s or any of its Affiliates’ processes, plans or intentions, product information, know-how, design rights, trade secrets, technologies, discoveries, inventions, engineering, manufacturing and product specifications, operating procedures, analytical methods, instrumentation, marketing analysis and, financial data and registers, pricing information, feasibility studies and any other technical or commercial data or information relating to their products, business, affairs or activities and, without limiting the generality of the foregoing, with respect to LOOP, includes the LOOP Data. “Confidential Information” also includes all information received from third parties that either Party is obligated to treat as confidential. “Confidential Information” does not include information which the Recipient Party is able to demonstrate (i) is or becomes generally available to the public other than as a result of a disclosure by the Recipient Party, (ii) was within the Recipient Party’s possession on a non-confidential basis prior to its being provided to the Recipient Party by or on behalf of the Disclosing Party, (iii) is or becomes available to the Recipient Party on a non-confidential basis from a source other than the Disclosing Party, which source, to the knowledge of the Recipient Party, is not prohibited from disclosing such information by a legal, contractual or fiduciary obligation, or (iv) is independently developed by the Recipient Party without the use of the Disclosing Party’s information.

 

“Deliverables” means all data, materials, work product and deliverables to be developed or delivered in connection with the Services hereunder as set forth in this Agreement or in an applicable SOW.

 

“Developments” means any technology (including patents, inventions, improvements on know-how based on Intellectual Property Rights and Technical Information) which was conceived, created, made, generated, developed, acquired, produced, commissioned or reduced to practice in the course of the Agreement, whether contributed by LOOP, 8198381 or both and whether related to the Technology or otherwise.

 

“Effective Date” has the meaning set out in the preamble.

 

“Governmental Authority” means any government, regulatory authority, governmental department, agency, commission, board, tribunal, dispute settlement panel or body, bureau, official, minister, Crown, Corporation, court or other law, rule or regulation-making entity having or purporting to have jurisdiction on behalf of any nation, or province or state or other geographic or political subdivision thereof.

 
	 
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“Intellectual Property Rights” means, in any jurisdiction: (i) patents and patent rights, and the subject matter thereof; (ii) trademarks, trade names, service marks, brand names, certification marks, trade dress and other indications of origin, whether registered or not and the goodwill associated therewith; (iii) copyrights, whether registered or not, and the subject matter thereof, including research and clinical data, Research Records, Deliverables and any other results or data arising in or developed in the course of a SOW and all associated moral rights (including without limitation the rights of paternity, integrity and association); (iv) trade secrets and other confidential or non-public information including inventions, discoveries, formulae, compositions, inventor’s notes, innovations, improvements, technical development, know-how, manufacturing and production processes and techniques (including for scale-up), products specifications, research and development information, drawings, schematics, specifications, plans, proposals and technical data; (v) internet protocol addresses and domain names, whether or not used or currently in service; (vii) any similar intellectual or industrial property or proprietary rights including industrial designs; and (viii) registrations of, and applications to register any of the foregoing, and any renewal, extension, reissue, division, continuation, continuation in part, patent of addition, re-examination, derivation or modification thereof

 

“Loss” means any and all loss, liability, damage, cost, including reasonable attorney’s fees, expense, charge, fine, penalty, lien, encumbrance, hypothec or assessment, resulting from or arising out of any Claim, including the reasonable costs and expenses of any investigation, action, suit, proceeding, demand, assessment, judgment, settlement or compromise relating thereto and all interest, fines and penalties and reasonable legal fees and expenses incurred in connection therewith.

 

“Parties” means LOOP and 8198381, collectively, and “Party” means either LOOP or 8198381.

 

“Person” means any individual, sole proprietorship, partnership, unincorporated organization, syndicate, trust, corporation, company, an individual person in his capacity as trustee, executor, administrator or other legal representative, Governmental Authority, and any other entity howsoever designated or constituted.

 

“Research Records” means all records (whether verbal, written or electronic) relating to the Services or the SOWs.

 

“Services” means the tasks and services to be performed by 8198381, as described in this Agreement and applicable Statements of Work.

 

“Specifications” means the specifications and requirements for the Services and Deliverables as described in this Agreement and applicable Statements of Work.

 

“Statement of Work” or “SOW” means the mutually agreed plan and delineation of activities, events and Services to be performed, and Deliverables to be provided, by 8198381 under this Agreement. Each SOW shall include a detailed schedule for performance of the Services, delivery of the Deliverables and the cost of such Services and Deliverables. Each executed SOW shall be attached hereto and incorporated herein as Schedules A, A-1, A-2 et seq. No SOW will be effective until signed by authorized representatives from both Parties.

 

“Technical Information” means all know-how and related technical knowledge including: all Confidential Information, non-public information; non-proprietary know-how and invention disclosures; any information of a scientific, technical or business nature regardless of its form; all documented research, developmental, demonstration or engineering work; all other blueprints, patterns, flow charts, equipment, parts lists, and all procedures, formulas, descriptions, related instructions, manuals, records and procedures; all ideas, innovations, discoveries, inventions, processes, machines, manufactures, compositions of matter, improvements, enhancements, modifications, technological developments, methods, techniques, systems, designs, artwork, drawings, plans, specifications, mark works, software, documentation, data and information (whether written or electronic).

 
	 
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2. ENGAGEMENT 

 

2.1. 8198381 shall perform the Services according to the terms and conditions set forth in this Agreement and the applicable SOW.

 

2.2. Upon written request by LOOP, 8198381 shall submit to LOOP written progress reports describing the status of 8198381’s performance of the Services. LOOP may request that 8198381 include, without limitation, the following items in such reports: (i) Services performed; (ii) total dollars charged; (iii) milestones or deadlines met and/or missed; and (iv) if applicable, 8198381’s plan to remedy delays and previously missed milestones or deadlines. The Parties shall work in good faith to remedy any delay and/or missed milestones or deadlines.

 

2.3. 8198381 may not subcontract any Services without the prior written consent of LOOP. If LOOP authorizes 8198381 to subcontract the Services, 8198381 shall remain responsible and liable for a subcontractor’s compliance with this Agreement and performance hereunder. LOOP may require 8198381 to remove/replace any subcontractors whose performance is deemed unacceptable to LOOP, acting in its sole discretion. Unless otherwise approved, LOOP shall not pay more for subcontracted Services than 8198381 pays for 8198381’s Services hereunder (i.e., time and materials rates for subcontractors shall be the same or less than time and materials rates for 8198381). In the event that LOOP allows 8198381 to subcontract any of the Services, it shall ensure that such authorized subcontractor executes an agreement with 8198381 providing for inter alia:

 

2.3.1. the assignment of all of the right, title and interest in and to the Developments and the Deliverables to LOOP;

 

2.3.2. the assignment of, and waivers with respect to moral rights and rights of inventorship on such Developments and Deliverables from any such subcontractor or its employees to LOOP;

 

2.3.3. the delivery to LOOP of Research Records upon request of LOOP; and

 

2.3.4. the maintenance in confidence and non-use of proprietary information and other Confidential Information in connection with the Services, Developments or Deliverables, in a manner that is no less restrictive than those related restrictions contained in this Agreement and in any related Statement of Work.

 

2.4. LOOP acknowledges and agrees that 8198381 may perform any tasks and services to any third party. Notwithstanding the foregoing, 8198381 shall not perform any tasks or services related to the depolymerization of plastic to any third party without the prior written consent of LOOP.

 
	 
	4
	

 
	 

 

3. COMPENSATION

 

3.1. Subject to the satisfactory review by LOOP of the Deliverables, Developments and Services performed hereunder, LOOP shall compensate 8198381 on a cost-plus basis, as set forth in the applicable SOW. 8198381 shall not proceed with or be reimbursed for any Services that (i) have not been authorized in advance by a LOOP Representative in connection with an applicable SOW or (ii) exceed any budget or expenditure limit set forth in an applicable SOW.

 

3.2. 8198381 shall invoice LOOP on a monthly basis for work rendered during the prior month. 8198381 shall submit invoices to the address of the LOOP representative set forth in the applicable SOW. LOOP shall pay 8198381 within 30 days after receipt of the invoice in accordance with Section 3.1 above.

 

3.3. During the term of this Agreement, 8198381 shall maintain complete and accurate books and records of the fees and expenses, including original documentation supporting all expenses, charged to LOOP in connection with the Services and Deliverables. 8198381 shall retain such records for three years after termination of this Agreement and shall make such records, and any additional records to ensure 8198381’s compliance with pricing and fee requirements hereunder, available to LOOP or its third party auditor, during normal business hours upon reasonable advance written notice; provided that 8198381 shall not be required to make such records available for inspection more than once per year unless LOOP’s request is triggered by a third party, including but not limited to, a Governmental authority. If any audit under this Section 3.3 determines that 8198381 has overcharged LOOP, LOOP shall notify 8198381 of the amount of such overcharge and 8198381 shall promptly pay such amount to LOOP. If any such overcharge exceeds 5% of the total amount charged to LOOP by 8198381 for the Services and Deliverables subject to the audit, then 8198381 shall reimburse LOOP for the reasonable cost of such audit.

 

4. OWNERSHIP

 

4.1. The Parties hereby acknowledge and agree that LOOP will own all right, title and interest in and to the Technology, the Developments and the Deliverables and any Intellectual Property Rights that arise therefrom. 8198381 hereby assigns and undertakes to assign to LOOP all of its right, title and interest in and to the Developments and the Deliverables and any Intellectual Property Rights that arise therefrom. 8198381 shall execute all necessary documents and provide assistance during and subsequent to the Term to enable LOOP to perfect and maintain its right, title and interest in and to the Developments and the Deliverables and any Intellectual Property Rights that arise therefrom.

 

4.2. 8198381 has no right to or interest in the work or product resulting from the Services (including, but not limited to, those arising out of or resulting from the use of all or any portion of the LOOP Data or either Party’s existing Intellectual Property Rights), or any of the documents, reports or other materials created by 8198381 in connection with such Services, nor any right to or interest in any title, ownership or Intellectual Property Rights. 8198381 agrees that the Services, the Deliverables, and the Developments have been specially commissioned or ordered by LOOP and, to the extent applicable, are “works made-for-hire” as that term is used in the copyright law of the United States and/or “works made in the course of employment” as defined by Section 13(3) of the Copyright Act (Canada), and that LOOP (or LOOP’s licensor, if so designated by LOOP) is, therefore, to be deemed the author, creator or inventor of and is the owner of all title, ownership and rights (including without limitation, all Intellectual Property Rights) in and to such Deliverables and Developments.

 
	 
	5
	

 
	 

 

4.3. In the event that such Services, the Deliverables, and the Developments, or any portion thereof, are for any reason deemed not to have been works made-for-hire and/or works made in the course of employment or are for whatever reason vested in 8198381, 8198381 hereby assigns, transfers and sells to LOOP (or LOOP’s licensor, if so designated by LOOP) any and all right, title, and interest 8198381 may have in and to such Deliverables and Developments, including, but not limited to all Intellectual Property Rights, all moral rights, all publishing rights, all rights to use, reproduce and otherwise exploit the Services, the Deliverables, and the Developments in any and all formats or media and all channels, whether now known of hereafter created. 8198381 shall execute such instruments as LOOP may from time to time deem necessary or desirable to evidence, establish, maintain, and protect LOOP’s (or LOOP’s licensor’s, if so designated by LOOP) ownership of such Services, the Deliverables, and the Developments and all right, title, and interest therein (including Intellectual Property Rights).

 

4.4. 8198381 shall, and shall ensure that its officers, employees, consultants, subcontractors or agents engaged by 8198381 for a SOW, promptly disclose to LOOP any and all Intellectual Property Rights created, developed, generated, produced or discovered in connection with the performance of the Services.

 

5. 8198381’S WARRANTIES

 

5.1. 8198381 warrants that:

 

5.1.1. in performing the Services, 8198381 shall comply with and procure compliance with all applicable Canadian federal, state, provincial, territorial and local laws, rules and regulations, including but not limited to those promulgated by any relevant Governmental Authority;

 

5.1.2. 8198381 shall perform the Services and provide the Deliverables in accordance with the Specifications;

 

5.1.3. 8198381 shall ensure that the Services will be of professional quality, consistent with the highest industry and professional standards as are current at the time of the performance of the Services and as are set out in the applicable SOW;

 

5.1.4. 8198381 shall comply and perform the Services described in the SOW in compliance with standards and the laws and regulations for the relevant jurisdictions, and 8198381 shall make all of its facilities, books and records available for audit for regulatory purposes and commercial purposes; and

 

5.1.5. 8198381 shall perform the Services described in a SOW in a timely manner, in accordance with the schedule and completion dates set out in that SOW, subject however, to delays in performance of the Services resulting from an act or omission of LOOP or caused by a cause beyond the reasonable control of 8198381. In the event of any of the foregoing, the dates set out in the SOW shall be extended for such reasonable time as may be mutually agreed upon between LOOP and 8198381 or, failing such agreement, by the period of time equal to the time lost as a result of the event causing the delay. 8198381 shall inform LOOP of such a delay as soon as 8198381 is aware that such a delay has occurred. 8198381 agrees to work diligently towards eliminating the conditions causing the delay. In the event the delay continues LOOP may terminate this Master Services Agreement or the applicable SOW in accordance with Section 8.

  

5.2. The warranties by 8198381 set forth above in Section 5 are in lieu of and annul all other representations or warranties, expressed, implied or statutory including, without limitation, any implied warranties of merchantability or fitness for a particular purpose or any non-infringement of any Intellectual Property Rights.

  

	 
	6
	

 
	 

  

6. INSPECTION

 

Upon reasonable advance notice, 8198381 will permit LOOP and/or its designated representative to visit the facilities where the Services are performed, to discuss the progress of the Services, to validate case reports against original data in their files, to make copies of the relevant records, to monitor the work performed hereunder, to determine whether the Services are being conducted in compliance with this Agreement.

 

7. REPRESENTATIONS AND WARRANTIES

 

7.1. Each Party represents and warrants to the other Party that:

 

7.1.1. it is duly incorporated and organized and validly existing under the laws of its jurisdiction;

 

7.1.2. it has full right, power and authority to enter into this Agreement and to perform its obligations under this Agreement;

 

7.1.3. it is duly qualified to carry on business in all jurisdictions in which it possesses assets or conducts and carries on business, and it complies and has complied with Applicable Laws and owns or has the right to use all governmental authorizations required to conduct its business as it is now being conducted or as contemplated by this Agreement and complies with said governmental authorizations;

 

7.1.4. it has taken all corporate action necessary to authorize its execution and delivery of, its performance of, its obligations under, and its consummation of the transactions contemplated by this Agreement and this Agreement has been executed and delivered by an officer of each Party in accordance with that authorization; and

 

7.1.5. this Agreement has been duly executed by such Party and constitutes a legal, valid and binding obligation of such Party, enforceable in accordance with its terms subject only to applicable bankruptcy, reorganization, insolvency, moratorium, and similar Applicable Laws affecting creditors’ rights generally and to general principles of equity.

 
	 
	7
	

 
	 

 

8. CONFIDENTIAL INFORMATION

 

8.1. As a result of the Services to be performed pursuant to this Agreement, each Party will have access to Confidential Information of the other Party, and such Party’s Affiliates. The Recipient Party agrees not to disclose the Confidential Information for any purpose other than in the performance of this Agreement. The Recipient Party agrees to: (i) take all reasonable steps to ensure that Confidential Information is not disclosed or distributed by its employees or agents in breach of this Agreement; and (ii) use no less than the due care it uses to protect its own Confidential Information. The Recipient Party agrees to notify the Disclosing Party of any misuse or misappropriation of Confidential Information, immediately after the Recipient Party learns of any such misuse or misappropriation. The Recipient Party agrees to hold the Disclosing Party’s Confidential Information in confidence until that information becomes part of the public domain through no act of the Recipient Party.

 

8.2. This Section 8 will not be construed to prohibit disclosure of Confidential Information to the extent that such disclosure is required by law or valid order of a court or other Governmental Authority; provided, however, that the Recipient Party shall first have given written notice of the required disclosure to the Disclosing Party as soon as practicable, and to the extent legally permissible, in order to afford the Disclosing Party an opportunity to obtain a protective order. Additionally, the Recipient Party shall, at the Disclosing Party’s request and cost, make a reasonable effort to obtain such a protective order and/or assist the Disclosing Party in opposing or limiting any such disclosure.

 

8.3. All Confidential Information shall remain the property of the Disclosing Party. Neither this Agreement nor the disclosure of Confidential Information hereunder shall grant or be construed as granting any right, title, license or other interest in the Confidential Information. Upon the Disclosing Party’s request, the Recipient Party will promptly return or destroy (at the Disclosing Party’s option) all Confidential Information and will confirm in writing that the Recipient Party, its employees and agents have returned or destroyed all Confidential Information of the Disclosing Party.

 

8.4. All obligations of the Parties under this Section 8 shall survive the expiry or termination of this Agreement.

 

9. TERM

 

9.1. The initial term of this Agreement shall begin on the Effective Date and shall continue for [five (5)] years from the Effective Date, unless earlier terminated pursuant to this Section 9. Thereafter, unless either Party provides the other Party with a written notice of termination within 90 days prior to the conclusion of the then-current term, this Agreement shall automatically be renewed and extended for successive one-year terms after expiration of the initial term or then current term, unless otherwise terminated pursuant to this Section 9.

 

9.2. Either Party has the right to terminate this Agreement if the other Party becomes insolvent, or if proceedings are commenced in connection with its winding up, dissolution or liquidation, or a proceeding is instituted by or against it under any present or future law relative to bankruptcy, insolvency or other relief for debtors or for or against the benefit of creditors, otherwise acknowledges its insolvency or is unable, for any reason, to meet its liabilities generally as they become due, or if any interim receiver, receiver, receiver and manager, trustee in bankruptcy, custodian, sequestrator, administrator, monitor, or liquidator or any other officer or person with similar powers shall be appointed in respect of such Party or over its property or assets, or if the holder of any lien or charge or any other creditor takes possession of such Party’s property, or any part thereof, or any interest of such party in such property, or any part thereof, or if a distress, execution, garnishment or any similar process be levied or enforced upon or against the same.

 
	 
	8
	

 
	 

 

9.3. Either Party has the right to terminate this Agreement if the other is in material breach of this Agreement and has not cured such material breach within ten (10) days of receiving prior written notice to cure same.

 

9.4. Notwithstanding Section 9.1, unless the Parties mutually agree otherwise, if the work term specified in a particular SOW extends beyond the term of this Agreement (in circumstances where this Agreement has or will have expired), the provisions of this Agreement will be deemed to be extended for the remainder of the term of that particular SOW, but only to the extent necessary for each Party to discharge its duties and obligations thereunder. Otherwise, this Agreement may only be renewed or extended by written agreement of the Parties as provided in Section 9.1.

 

9.5. Expiration or termination of this Agreement will not relieve either Party of any obligation accruing prior to such expiration or termination. The Parties’ respective rights and obligations under Sections 1 and 4 to 12 will survive the expiration or termination of this Agreement.

 

9.6. Upon termination of this Agreement by its terms or by either Party, 8198381 shall immediately deliver to LOOP (i) all Deliverables and Developments, (ii) all work-in-process relating to any of the Services, (iii) all Intellectual Property Rights in the possession of 8198381, regardless of the media on which it is contained, (iv) any and all data, documentation, copies, compilations and other materials referencing or based upon any of the foregoing (as all of the foregoing then exist), and (v) any and all tangible items or documents LOOP provided to 8198381 in connection with this Agreement.

 

10. LIMITATION OF LIABILITY

 

10.1. Neither Party will be liable to the other for penalties or liquidated damages or for special, indirect, consequential or incidental damages of any type or kind or for lost profits, loss of revenues or loss of data regardless of whether any such losses or damages are characterized as arising from breach of contract, breach of warranty, negligence, strict liability or otherwise, even if the other Party is advised of the possibility of such losses or damages, or if such losses or damages are foreseeable.

 

10.2. 8198381’s liability under this Agreement, regardless of the form of action, shall not exceed the compensation received for Services provided under a SOW under which such liability arises or, except in the case where 8198381’s liability arises as a result of gross negligence or wilful misconduct, out of its obligations under Section 8 or 9 of this Agreement.

 
	 
	9
	

 
	 

 

11. INDEMNIFICATION

 

11.1. Each Party shall indemnify and hold harmless the other Party and its Affiliates and their respective directors, officers, employees, consultants, subcontractors, mandataries and agents from all Losses arising out of or related to any Claim by a third Person related to its failure to perform or comply with any obligation or covenant under this Agreement or its breach of any representation or warranty stipulated in this Agreement.

 

11.2. Without limiting the generality of the foregoing, LOOP shall defend, indemnify, save and hold 8198381, its Affiliates and their respective directors, officers, employees, consultants, subcontractors, mandataries and agents (together, the “8198381 Indemnitees”) harmless from and against any Losses arising out of or in connection with any Claim by a third Person (a) of infringement of its Intellectual Property Rights arising out of by 8198381 Indemnitees’ use of the LOOP’s Intellectual Property Rights in accordance with the terms and conditions of this Agreement and (b) with the manufacture, distribution, use, sales or other disposition by LOOP, or any distributor, customer, sublicensee or representative of LOOP, of any of LOOP’s products, services or processes and/or any other substances which are produced, purified or tested by 8198381 except to the extent that such Claims are attributable to the failure of 8198381 to fulfil its obligations hereunder, including without limitation, the failure by 8198381 to adhere to the terms of a SOW or gross negligence or wilful misconduct on the part of 8198381, and will pay any Losses which, by final judgment, after exhaustion of all reasonable appeals, may be assessed against them, provided that LOOP is given prompt written notice of the Claims and is given information, reasonable assistance and sole authority to defend the Claim.

 

12. NOTICES

 

12.1. All notices, requests, demands and other communications hereunder shall be in writing and will be deemed to have been duly given if (i) on the date of delivery, if delivered personally or by private courier to such Party; or (ii) on the third (3rd) business day following mailing, if mailed by registered or certified mail by U.S. or Canadian postal services (except in the course of a disruption of postal services); or (iii) on the date of delivery, if sent by email, confirmed by valid email “read” notification at the following addresses:

 

12.1.1. If to LOOP:

 

LOOP Holdings, Inc.

c/o l

l

l

  

	
 
	
Attention:
	
l

	
 
	
Telecopier:
	
l

	
 
	
Email:
	
l

 

	 
	10
	

 
	 

 

12.1.2. If to 8198381:

 

8198381 Canada Inc.

c/o l

l

l

   

	
 
	
Attention:
	
l

	
 
	
Telecopier:
	
l

	
 
	
Email:
	
l

  

Such addresses may be changed by notice given by one Party to the other pursuant to this Section 11 or by other form of notice agreed to by the Parties.

 

13. GENERAL PROVISIONS 

 

13.1. Independent Contractor

 

The Parties acknowledge and agree that 8198381 is an independent contractor of LOOP. This Agreement by itself shall not create the relationship of employer and employee, a partnership, joint venture or other relationship between LOOP and 8198381. 8198381 shall have no authority to bind, obligate or commit LOOP by any promise or representation without the prior written approval of LOOP. LOOP shall not be liable for taxes, unemployment insurance, employer’s liability insurance, worker’s compensation insurance, withholding tax, or other taxes or withholding for or on behalf of 8198381 or any other Person consulted or employed by 8198381 in performing the Services. All such costs shall be 8198381’s responsibility

 

13.2. No Publicity

 

Neither Party shall use the other Party’s name or mark in any advertising, written sales promotion, press releases and/or other publicity matters relating to this Agreement without the other Party’s written consent.

 

13.3. No Third Party Beneficiaries

 

This Agreement is not intended to benefit any third parties and shall not be construed as a third party beneficiary contract.

 

13.4. Governing Law

 

This Agreement will be governed by and construed in accordance with the laws of the Province of Quebec and the federal laws applicable therein without giving effect to the principles of conflict of laws.

 

13.5. Attorney’s Fees

 

If either Party incurs legal fees in connection with the enforcement of the terms of this Agreement or to recover damages or injunctive relief for breach of this Agreement, it is agreed that the successful or prevailing Party shall be entitled to reasonable attorney’s fees, expert witness fees and other costs in addition to any other relief to which it may be entitled.

 
	 
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13.6. Dispute Resolution

 

The Parties agree to use all reasonable efforts to resolve any dispute, whether arising during or at any time after the expiration or termination of this Agreement and which may affect or relate to the validity, construction, meaning, performance or effect of this Agreement (“Dispute”), promptly and in an amicable manner by negotiations between the Parties. If the Parties fail to resolve any such Dispute by negotiation within a reasonable time period, then the Dispute shall be settled by arbitration in accordance with Section 13.7.

 

13.7. Arbitration

 

Any controversy or dispute arising out of or relating to this Agreement, including its negotiation, validity, existence, breach, termination, construction or application, or the rights, duties or obligations of any Party, shall be referred to and determined by final, binding and non-appealable arbitration before a single arbitrator under the Civil Code of Quebec and the Code of Civil Procedure of the Province of Quebec and the procedures set out in Schedule 13.7 to this Agreement.

 

13.8. Assignment

 

8198381 shall not have the right or the power to assign any of its rights, or delegate or subcontract the performance of any of its obligations under this Agreement, without the prior written authorization of LOOP.

 

13.9. Entire Agreement/Amendment

 

This Agreement, including the Schedules, constitutes the entire agreement of the Parties regarding the subject matter described herein. The provisions of this Agreement may not be amended, except by an agreement in writing signed by authorized representatives of both Parties.

 

13.10. Force Majeure

 

No Party to the Agreement will be deemed in default or breach of this Agreement or liable for any loss or damages or for any delay or failure in performance due to a cause beyond its reasonable control. The Parties shall promptly resume performance hereunder after the force majeure event has passed.

 

13.11. Severability

 

If any provision of this Agreement is invalid or unenforceable in any jurisdiction, the other provisions herein will remain in full force and effect in such jurisdiction and shall be liberally construed in order to effectuate the purpose and intent of this Agreement, and the invalidity or unenforceability of any provision of this Agreement in any jurisdiction will not affect the validity or enforceability of any such provision in any other jurisdiction.

 
	 
	12
	

 
	 

 

13.12. Order of Precedence

 

To the extent the terms and conditions of this Agreement conflict with the terms and conditions of an applicable SOW, the terms and conditions of this Agreement will control.

 

13.13. Language

 

The Parties hereto confirm that they have agreed that this Agreement and all documents relating hereto be drafted in English. Les Parties aux présentès confirment qu’elles ont accepté que la présente convention de même que tons les documents s’y rattachant soient rédigés en anglais.

 

[Remainder left intentionally blank]

 
	 
	13
	

 
	 

 

The Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date.

 

 

	
LOOP HOLDINGS, INC.
	
 
	
8198381 CANADA, INC.
	
 

	
 
	 	 	 	 	 
	By:	/s/ Daniel Solomita	 	By:	/s/ Daniel Solomita	 
	
Name:
	Daniel Solomita	 	Name:	Daniel Solomita	 
	
Title:
	President	 	Title:	President	 

 

	
LOOP HOLDINGS, INC.
	
	 	 	 
	By:	/s/ Don Danks	
	
Name:
	Don Danks	 
	Title:	Director	 

 

Master Services Agreements

 

	 
	14
	

 
	 

 

SCHEDULE A

 

STATEMENTS OF WORK

 

Chemistry

 

Chemical process refinement 

Chemical process improvement 

Chemical engineering services 

Purity and quality testing 

Kinetics and thermodynamics of the chemical reaction

 

Engineering 

 

Pilot Plant design / engineering 

Pilot plant construction 

Equipment testing, design and evaluation 

Equipment Installation 

Process Engineering 

Process Refinement

 

Administrative

 

Costing 

Market Analysis 

Strategic Planning 

Health and Safety regulations 

Patent work

 

Dedicated Employees to Loop Holdings

 

2 x Senior Engineers 

2 x Senior Chemists 

2 x Junior Chemists 

1 x Administration 

Specialists and consultants

 
	 
	15
	

 
	 

 

SCHEDULE 13.7

 

ARBITRATION PROCEDURES

 

	1.	The arbitration tribunal shall consist of one arbitrator, appointed by mutual agreement of the Parties, who is qualified by education and training to pass upon the particular matter to be decided. If the parties fail to agree on a suitable arbitrator within 15 days, then the appointment will be made by the Superior Court of Quebec upon the request of a Party and the decision regarding such appointment shall be final and without appeal.
	
 
	
 

	2.	The arbitrator shall be instructed that time is of the essence in proceeding with his determination of any dispute, claim, question or difference and, in any event, the arbitration award must be rendered within 30 days of the appointment of the arbitrator.
	
 
	
 

	3.	The arbitration shall take place in Montreal, Quebec, and shall be conducted in English.
	
 
	
 

	4.	In its arbitration award, the arbitrator may award any remedy for any breach of this Agreement that might have been awarded by the Superior Court of Quebec, except where the remedy for such breach has been expressly limited by the Agreement.
	
 
	
 

	5.	The arbitration award shall be motivated, given in writing and shall deal with the question of costs of arbitration and all matters related thereto.
	
 
	
 

	6.	Judgment upon the award rendered may be entered in any court having jurisdiction, or, application may be made to such court for a judicial recognition of the award or an order of enforcement thereof, as the case may be.
	
 
	
 

	7.	The decision of the arbitrator shall be final and binding upon the parties thereto and without appeal.

 

 

	
16

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