Document:

Exhibit 10.1

 

EMMAUS LIFE SCIENCES, INC.

 

Promissory Note

(Cash Interest)

(On Demand Up To 2 Years)

 

	
Principal Amount: $613,614.60
    	
 
    	
Date: October 10, 2014
    

 

 

FOR VALUE RECEIVED, Emmaus Medical, Inc., a Delaware corporation, located at 20725 S. Western Ave., Suite 136, Torrance, CA  90501 (“Borrower”) agrees to pay to

 

The Shitabata Family Trust  (“Lender”), the sum of $613,614.60 U.S. Dollars (“Principal Amount”), together with accrued interest thereon at the rate of eleven percent (11%) per annum, under the following terms and conditions of this Promissory Note (“Note”).

 

1.             Terms of Repayment (Balloon Payment):  Simple interest at the rate of eleven percent (11%) per annum will accrue on the outstanding Principal Amount commencing on the date of this Note and continuing thereafter until Lender’s demand or until the two (2) year anniversary of the Loan Date. The entire unpaid Principal Amount and any accrued interest thereon shall become immediately due and payable on the two year anniversary of the Loan Date.

 

2.             Prepayment:  This Note may be prepaid in whole or in part at any time without premium or penalty.  All prepayments shall be in cash, and first be applied to accrued interest, and then to outstanding Principal Amount.

 

3.             Place of Payment:  All payments due under this Note shall be sent to the Lender’s address, set forth in Attachment 1 hereto, or at such other place as the holder of this Note may subsequently designate in writing to the Borrower.

 

4.             Additional Guarantor: Lender understands and acknowledges that Emmaus Life Sciences, Inc. is the borrower of this Note.  However, for added security to lender, this note is guaranteed by Yutaka Niihara, M.D., CEO, and Willis C. Lee, COO.

 

5.             Acceleration of Debt:  If the Borrower fails to make any payment due under the terms of this Note or seeks relief under the U.S. Bankruptcy Code, or suffers an involuntary petition in bankruptcy or receivership that is not vacated within thirty (30) days, the entire balance of this Note and any interest accrued thereon shall be immediately due and payable to the holder of this Note.

 

6.             Modification:  No modification or waiver of any of the terms of this Agreement shall be allowed unless by written agreement signed by the parties. No waiver of any breach or default hereunder shall be deemed a waiver of any subsequent breach or default of the same or similar nature.

 

7.             Assignment.  Neither this Note, nor any of the rights, interests or obligations hereunder may be assigned, by operation of law or otherwise, in whole or in part, by Borrower or by the Lender without the prior written consent of the other party, except in connection with an assignment in whole to a successor corporation to Borrower, provided that such successor

 

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corporation acquires all or substantially all of Borrower’s property and assets and Lender’s rights hereunder are not impaired.

 

8.             Complete Note. This Note is the complete and exclusive statement of agreement of the parties with respect to matters in this Note. This Note replaces and supersedes all prior written or oral agreements or statements by and among the parties with respect to the matters covered by it. No representation, statement, condition or warranty not contained in this Note is binding on the parties.

 

9.             Severability of Provisions:  If any portion of this Note is deemed unenforceable, all other provisions of this Note shall remain in full force and effect.

 

10.          Choice of Law:  All terms and conditions of this Note shall be interpreted under the laws of the State of California, United States of America.

 

IN WITNESS WHEREOF, the Borrower has caused this PROMISSORY NOTE to be executed by a duly authorized officer as of the date first written above.

 

Signed Under Penalty of Perjury, this 10th day of October, 2014

 

Emmaus Life Sciences, Inc.

 

 

	
 
    	
 
    
	
By: Yutaka Niihara, M.D., President and CEO
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: Willis C. Lee., COO
    	
 
    

 

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ATTACHMENT 1

 

 

	
Lender’s Name:
    	
 
    
	
 
    	
 
    
	
Lender’s Address:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Principal Amount:
    	
USD $
    
	
 
    	
 
    
	
Quarterly Interest   at 11% Per Annum on Principal Amount:
    	
$
    

 

3Certification

Exhibit 10.1 

 

INTELLECTUAL PROPERTY PURCHASE AGREEMENT 

 

This Intellectual Property Purchase Agreement, hereinafter referred to as the "Agreement", is made and executed on the following terms and conditions among: 

 

FracFlow Biotechnologies LP, a Canadian Limited Partnership, whose corporate office is located at 100 Midland Drive, Dieppe, New Brunswick, hereinafter referred to as "FracFlow". 

 

American Xanthan Corporation, a Wyoming Corporation, whose corporate office is located 1749 Cheyenne, Wyoming, USA  hereinafter referred to as "Company". 

 

"FracFlow and "Company" are sometimes hereinafter collectively referred to as the "Parties", and individually as a "Party". 

 

Recitals 

 

"FracFlow" legal owner of certain Intellectual Properties including pending patents for the synthesis of Xanthan from Potato Pulp, hereinafter referred to as "Intellectual Property/Properties". (Exhibit A) 

 

"Company", established in 2013, is an company focused on intellectual property research and development. "Company" operations include the acquisition, development, marketing and licensing of intellectual properties. Looking to the future, "Company" is seeking entry into the Xanthan manufacturing industry. 

 

Whereas, the "Parties" are desirous of entering into this "Agreement", wherein "Company" will purchase the Intellectual Property/Properties of "FracFlow". 

 

Now Therefore, the "Parties" hereby agree as follows: 

 

Offer and Acceptance 

 

The "Parties" specifically offer, accept and agree to all of the terms, conditions, and provisions of this "Agreement". 

 

Consideration 

 

The consideration of the stock conveyance, acts, mutual promises, covenants and conditions contained herein, and in further consideration of the mutual performance thereof, together with other good and valuable consideration, the receipt thereof, is agreed upon by the "Parties" as legal, adequate, and sufficient. 

 

 

 

The "Agreement" 

 

1. Parties : The "Parties" to this "Agreement" are: FracFlow Biotechnologies LP and American Xanthan Corporation. 

 

2. Sale of Intellectual Property/Properties & Prototype : "Company" agrees to purchase all the rights title and interest of the "Intellectual Property/Properties" of "FracFlow" for 500,000 shares of "Company" restricted common stock at the deemed price of $5.00 a share. 

 

3. Non Compete Provision : The undersigned "FracFlow" and each of its signing Members agree not to compete with "Company", or commence, either as an individual or through a new entity, any operation that would be in direct competition with "Company" in the United States and the licensed  "Intellectual Properties" for a period of five (5) years from the date of execution of this "Agreement". 

 

4. Acts, Procedures, and Duties of "Company": 

 

4.01 Conduct and perform the terms and conditions as set-forth in this "Agreement" with the utmost professionalism, honesty, and forthrightness as is mandated by industry standards pertaining to this undertaking. 

 

4.02 Continually oversee, maintain protect, preserve and safeguard the "FracFlow" "Intellectual Properties". 

 

4.03 Be responsible for complying with all laws, in particular with those laws applicable to the activities described under this "Agreement". 

 

4.04 Use its best efforts to effectuate and comply with all of the terms and conditions of this "Agreement", and with all laws of the respective countries involved. 

 

5. Time of Essence: The "Parties" agree that time is of the essence in executing this "Agreement" 

 

6. Waiver. No delay or omission on the part of "Parties" in exercising any right hereunder shall operate as a waiver of such right or any other right. A waiver by the "Parties" of a provision of this "Agreement" shall not prejudice or constitute a waiver of the "Party's" right otherwise to demand strict compliance with that provision or any other provision of this "Agreement". 

 

7. Execution Venue and Choice of Law. This "Agreement" is executed and entered into and governed by the laws of the State of Wyoming as to any dispute or unresolved issue. 

 

8. Severability. If a court of competent jurisdiction finds any provision of this "Agreement" to be invalid or unenforceable as to any circumstance, such finding shall not render that provision invalid or unenforceable as to any other circumstances. If feasible, any such offending provision shall be deemed modified to be within the limits of enforceability or validity; however, if the 

offending provision cannot be so modified, it shall be stricken and all other provisions of this Agreement in all other respects shall remain valid and enforceable. 

 

9. Commissions and Fees. The "Parties" represent and acknowledge that there are no fees or commissions to be paid to any person or entity resulting from the execution and entry of the "Parties" into this" Agreement". 

 

10. Taxes. The "Parties" agree that each "Party" shall be individually and respectively responsible for any and all taxes from Federal, State or local that otherwise that might be owed accessed to a "Party", and each "Party" agrees to hold the other "Parties" harmless from any collection process of any said tax. 

 

11. Litigation. Each "Party" states that there are no lawsuits, proceedings, or governmental investigations pending or threatened against them. 

 

12. Agreement Not Unconscionable. It is agreed by "Parties" that the terms and conditions of the "Agreement" are not unconscionable to any "Party". 

 

13. Entire Agreement. This instrument embodies the whole agreement of the "Parties". There are no promises, terms, conditions, or obligations other than those contained herein. This "Agreement" supersedes all previous communications, representations, or agreements, either verbal or written between the "Parties" hereto. Any agreement entered into between "Parties" after the date of this "Agreement", must be in writing, signed by the "Parties" hereto, and added to this "Agreement" as an addendum. 

 

14. Authority and Binding Effect. The execution, delivery, and performance of this "Agreement" by the "Parties" have been duly authorized by all necessary action of the respective entities/companies all are enforceable in accordance with their terms. Such execution, delivery, and performance do not require the consent or approval of any other person or governmental agency or authority. Each signing Party has the capacity and authority to execute this "Agreement". This "Agreement" is binding upon the "Parties" hereto, and is legally enforceable in accordance with the respective terms hereof. 

 

IN WITNESS WHEREOF, the "Parties" have caused this "Agreement" to be duly authorized and executed on the day, month and year hereinafter set-forth. 

 

 

FracFlow Biotechnologies LP

 

By: CHASE BANCROFT 

Dated: November 13, 2014 

 

Title: General Partner

 

American Xanthan Corporation

 

By: HENRY LUCE 

Dated: November 13, 2014 

 

Title: Chief Executive Officer

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