Document:

EX-10.1

  1

  Exhibit 10.1

  			
	 
	 
	EMPLOYMENT AGREEMENT

	 
	 
	(hereinafter the "Agreement")

	 
 
	 
	 

	between
	 
	Humabs BioMed SA

	 
	 
	Via dei Gaggini 3

	 
	 
	6500 Bellinzona
Switzerland

	 
	 
	(hereinafter the "Employer")

	 
	 
	 

	 
	 
	 

	and
	 
	Johanna Friedl-Naderer

	 
	 
	(hereinafter the "Employee")

	 
	 
	 

	 
	 
	(the Employer and the Employee together the "Parties", each a "Party")

	 
	 
	 

	 
	 
	 

	 
	 
	 

  1.Preamble

  A.Whereas, the Employer, with registered seat in Bellinzona and registered under the company number CHE-308.820.942 in the commercial register of the Canton of Ticino, Switzerland, is a direct wholly owned subsidiary of Vir Biotechnology, Inc., A Delaware corporation (US).   

  B.Whereas, the Employer and the Employee desire to enter into this Agreement to establish an employment relationship on the terms and subject to the conditions hereinafter set forth.

  Now thereof, the Parties hereto hereby agree as follows:

   

  

   

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  2.Contractual Provisions

  1.Definitions 

  In this Agreement the following definitions shall apply: 

  Art.	Article in the Swiss Code of Obligations.

  Agreement	This employment agreement.

  Section	A section in this Agreement.

  CEO	The Group’s chief executive officer.

  Change in Control	The term Change in Control shall have the meaning ascribed to such term in the Vir Biotechnology Change in Control and Severance Benefits Plan.  For the avoidance of doubt, references in such definition to the “Company” are references to Vir Biotechnology. 

  Change of Job Duties	The Change of Job Duties shall mean that the Employee suffers

  i.a substantial change or diminution in the job duties and responsibilities as set forth in this Agreement during the Employment Term, or

  ii.a reduction in the Employee’s then-current Base Salary in excess of 15% (“Salary Reduction”), provided that (a) an across-the–board reduction in the salary level of all other employees or executives of the Employer and/or the Group in positions similar to the Employee’s by the same percentage amount as part of a general salary level reduction shall not constitute a Salary Reduction, and (b) requesting that the Employee perform duties to assist for up to six months after a Change in Control shall not constitute a Change in Job Duties under clause (i) above, notwithstanding that the Employee may not retain her job title and/or perform the same job duties and responsibilities during such six-month period as she had and did immediately prior to such period. 

  CPC	Swiss Civil Procedural Code.

  CO	Swiss Code of Obligations.

   

  

   

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  Employer’s Board	The board of directors of the Employer. 

  Financial Year	The financial year of the Employer lasts from 1st January until 31st December. 

  General Meeting	The annual general meeting.

  Good Cause	Good Cause shall have the meaning as stipulated in Section 20.2.

  Group	Vir Biotechnology, Inc., Delaware corporation and a Nasdaq listed company in the US (the ultimate parent company of the Employer), including any of its subsidiaries. 

  Group Board	The board of directors of the Group.

  Retirement	Termination of this Agreement (i) by the Employer without Good Cause provided that the Employee has already reached the age of 55, (ii) by the Employee provided that the Employee has already reached the age of 55 (iii) upon a mutual agreement between the Employee and the Employer provided that the Employee has reached the age of 55, or (iv) upon ordinary retirement of the Employee as per the applicable Swiss law.

  Vir Biotechnology	Vir Biotechnology, Inc., a Delaware corporation and Nasdaq listed company.

   

  2.Commencement Date

  The Employment shall commence on March 2, 2022 (the "Commencement Date") and is concluded for an indefinite period of time (hereinafter the “Employment Term”). The Agreement shall come into effect upon being signed by both Parties. 

  There is no probation period.

  3.Function and Duties

  The Employee is employed as Executive Vice President, Chief Business Officer (CBO).

  The Employee’s duties and responsibilities shall encompass the usual and customary duties, responsibilities and authority of a CBO and such other duties and responsibilities as are assigned 

   

  

   

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  to the Employee hereunder by the Employer’s Board, the CEO and/or the Group’s Board, from time to time.  

  Furthermore, the Employee’s duties and responsibilities are additionally governed by the organizational regulations of the Employer and/or the Group.

  The Employee reports to the Employer’s Board as well as to the CEO and/or the Group’s Board. 

  The Employee shall perform her tasks with due care and preserve the best interests of the Employer and the Group. The Employee shall use her entire work effort and working time for the benefit of the Employer and the Group. 

  During the Employment Term, the Employee shall not engage in any other business activity, whether or not such activity is pursued for gain, profit or other pecuniary advantage, unless prior written approval by the Employer and/or the Group is obtained; provided, however, that Employee shall be permitted to serve on the Employer’s Board and/or advisory committees of the Employer and/or the Group with the prior approval of the Employer and/or the Group, such approval not to be unreasonably withheld.

  Notwithstanding the above and with the consent of the Employer and/or the Group, which shall not be unreasonably withheld, the Employee shall be permitted to assume up to two external board positions which may not be with competing companies of the Employer and/or any other Group company.

  Furthermore, it is anticipated that the Employee will need to represent the Employer’s and/or the Group’s interests in various industry bodies in the relevant sector (such as e.g. IFPMA, EFPIA, Swiss-American Chamber and the like). 

  4.Working Time / Vacation and Public Holidays

  a.Working Time

  The ordinary weekly working time is 42 hours (100% employment).

  The Employee acknowledges that being employed as CBO she is expected to perform additional hours (overtime/excess time). As the Employee qualifies as high-level executive in the sense of art. 3 lit. d of the Labor Act (“ArG”) the Employee will not be entitled to any supplementary payments, especially as regards overtime/excess time payments (ArG is not applicable to the present employment relationship). Compensation for such additional hours is included in the Employee’s remuneration.

  b.Vacation

  The Employee is entitled to 30 vacation days per calendar year. If the Employee joined or departed during the course of a year, then the entitlement shall apply pro rata temporis. 

   

  

   

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  The vacation days granted last will be taken first. At least two weeks of vacation per calendar year must be taken consecutively. 

  In addition to vacations, the Employee is entitled to paid days off in accordance with the Employer's rules and regulations for employment (as applicable from time to time).

  c.Public Holidays

  Furthermore, the official public holidays of the Canton of Ticino respectively Zug apply.

  5.Place of Work

  The Employee's ordinary place of work is Bellinzona respectively Zug, Switzerland and with frequent travel to HQ in San Francisco, California, U.S.A. 

  6.Remuneration

  a.Signing Bonus

  The Employee shall receive a signing bonus payment (the “Signing Bonus”) in the aggregate amount of USD 1'000'000, of which USD 700’000 gross will be paid in the first payroll date following the commencement of Employee’s employment and USD 300’000 gross will be paid in the first payroll date following the one-year anniversary of the commencement of Employee’s employment, provided that she remains employed by the Employer on such date. The above-mentioned amounts shall be converted into CHF before payout based on the best average of 30 respectively 60 respectively 90 days prior to the Commencement Date. Should the Employer terminate the Employee’s employment for Good Cause or should the Employee resign in the two-year period following the date of commencement of her employment with the Employer, the Employee shall repay to Employer the gross amount of the Signing Bonus within 30 days of her last day of employment, provided, however, that if the Employee resigns for Good Cause or as a result of the occurrence of a Change of Job Duties, then the amount the Employee must repay to Employer shall be equal to USD 1'000'000 converted according to the rate applicable according to the formula above, i.e. the best average of 30 respectively 60 respectively 90 days prior to the Commencement Date, multiplied by a fraction, the numerator of which is the number of days between the Employee’s commencement of employment with Employer and the date of notice by the Employee of resignation and the denominator of which is 730.  

  b.Base Salary

  The Employee shall receive a fixed base salary (the “Base Salary”) of USD  535'000 gross per year to be converted into CHF and fixed in the converted amount based on the best average of 30 respectively 60 respectively 90 days prior to the Commencement Date. The Base Salary is payable in CHF in twelve monthly equal installments, less all applicable deductions (Section 10). The Base Salary payments shall be made in accordance with the ordinary payment practices of the Employer, 

   

  

   

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  however, shall not be paid later than the last day of each month to a bank account designated by the Employee.  

  c.Variable Salary

  The Employee shall receive a variable salary (the “Variable Salary”) in the form of an annual bonus. The Variable Salary depends on the degree of target achievement, which the Employer’s Board and/or the CEO and/or the Group’s Board agree in advance for each Financial Year. 	

  If the targets are fully achieved (100%), the bonus amount is equal to 45% of the Base Salary (the “Target Amount”). The final Variable Salary depends on the degree of target achievement. The Variable Salary, if any, is due no later than the end of the month following the Employer’s General Meeting in the next Financial Year. 

  If, during a Financial Year, this Agreement is terminated due to a termination by the Employer for other reasons than Good Cause, including a termination by the Employer within six months following the occurrence of a Change in Control, the Employee shall be entitled to the Variable Salary on a pro rata temporis basis. Likewise, if this Agreement is terminated by the Employee after the occurrence of a Change in Control or a Change of Job Duties (Section 20.3), the Employee shall be entitled to the Variable Salary on a pro rata temporis basis. 

  The same applies if this Agreement has been terminated by the Employee for Good Cause or upon Retirement of the Employee.

  d.Long-Term Incentive

  The Employee is eligible to receive, in the discretion of the Board of Vir Biotechnology, equity awards pursuant to the Vir Biotechnology 2019 Equity Incentive Plan, which awards shall have such terms and conditions as are determined by the Board of Vir Biotechnology.  In addition, the Employee is eligible to participate in the Vir Biotechnology 2019 Employee Stock Purchase Plan (hereinafter “ESPP”), subject to the terms and conditions of the ESPP, including the Supplement to the ESPP appliable to Non-U.S. employees.

  7.Benefits

  The Employee is eligible to the additional benefits as stipulated in Annex 1 to this Agreement, which constitutes an integral part hereof. 

  8.Expenses

  The Employer shall reimburse the Employee for expenses incurred in the due fulfillment of the Employee's duties, as evidenced by respective receipts. Reimbursements are paid monthly in arrears.

   

  

   

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  9.Severance Pay

  Upon the termination of this Agreement by the Employer, except for a termination by the Employer for Good Cause, or upon a termination by the Employee for Good Cause, the Employee shall be entitled (i) to the extent that such termination does not occur within the twelve months following a Change in Control, to a lump sum severance payment equal to the amount of three months of the last earned annual gross Base Salary (Section 6.1) or (ii) to the extent that the termination occurs within the twelve months following a Change in Control, to a lump sum severance payment equal to the amount of six months of the last earned annual gross Base Salary (Section 6.1), a lump sum payment equal to 100% of the Target Amount of Variable Salary for the year of the termination, and any equity awards granted to the Employee by Vir Biotechnology that vest solely based on continued service shall become vested.   

  10.Deductions and Contributions

  All payments and benefits in kind rendered under this Agreement shall be understood as gross amounts, from which the Employee contributions to the Swiss social security institutions, pension schemes and insurances, as prescribed by law, regulations or agreements (for instance daily benefits insurances, if applicable), will be deducted before payout. 

  Moreover, Swiss withholding taxes to be borne by the Employee will be deducted, if applicable. 

  The premiums for occupational accident insurance as well as the premiums for non-occupational accident insurance will be borne by the Employer. 

  The Employee shall have full responsibility for any costs, taxes, penalties, interest, fines, damages, expense or other liabilities arising in connection with any applicable withholding or other taxes imposed by any territory (whether inside or outside of Switzerland) for all compensations paid to Employee under this Agreement.  Notwithstanding the foregoing, solely to the extent that Vir Biotechnology or the Employer require that the Employee must perform services in the United States for a term or duration of time such that the Employee becomes subject to taxation and social security contributions in the United States solely on account of her performance of services for the Group in the United States, then the Employer shall reimburse the Employee for the additional cost of taxation in the United States solely related to performance of services for the Group such that the Employee is made-whole on an after-tax basis.  

  11.Pension Fund

  With regard to pension funds (BVG), the pension fund regulations applicable to the Employer apply in their respective version as amended from time to time.

  Insurance benefits, premium rates and detailed arrangements are governed by applicable pension fund regulations. At the start of the employment and in the event of any amendments, the Employee shall receive a list of benefits and, upon request, the set of rules.

   

  

   

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  12.Prevention from Performing Duties without Fault

  In the event of any inability without fault of the Employee to perform her duties, the Employer shall be obliged to continue to pay the Employee’s salary as required by the applicable Swiss law.

  The Employer has taken out a daily sickness allowance insurance in favor of its employees. Details can be found in the Employer's rules and regulations for employment (as applicable from time to time). 

  The Employee must be insured against occupational and non-occupational accidents as set forth in Switzerland’s Accident Prevention Act (“UVG”). In case of any incapacity for work due to accidents, the continued salary payments or the Employer's salary payment obligations shall be replaced by the benefits payable under any accident insurance.

  In the event of illness or accident, the Employee undertakes to inform the Employer as soon as possible on the first day of her absence, of her disablement having caused the absence from work. At the latest on the third day of absence from work due to illness, the Employer has to submit a medical certificate attesting the Employee’s illness and stating the beginning and the expected duration of the Employee’s absence. The Employer reserves the right to request a medical certificate from the first day of the Employee's inability to work.

  The scope and duration of any insurance benefits, the level of the insured salary, the premium rates, the length of the waiting period and any other terms and conditions of the insurance depend on the various insurance policies and on the General Insurance Conditions, and shall be communicated to Employee in the event of any amendments thereto.

  13.Intellectual Property Rights

  All inventions, designs and any other work results the Employee develops, accomplishes or contributes to in the course of her work (regardless whether in fulfillment of her contractual duties or not), belong exclusively to the Employer and/or the Group, regardless of their protectability. To the extent that the rights in such work results do not already belong to the Employer and/or the Group by virtue of statutory provisions, the Employee undertakes to assign and hereby assigns and transfers any and all such rights to the Employer and/or the Group as from inception. The Employer is free to change, amend or otherwise process such work results.

  14.Return of Items and Documents

  Upon the Employer's first request, but at the latest at the end of the employment or the start of the garden leave, the Employee shall return to the Employer all (physical and electronic) items, documents, correspondence, drafts and notes concerning the Employer and/or the Group. There is no right of retention. The Employee is not entitled to keep copies. Where copies cannot be returned for technical reasons (for instance digital copies, data carriers or similar), they must be permanently deleted and the permanent deletion shall be confirmed by the Employee in writing.

   

  

   

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  15.Confidentiality

  During the employment as well as thereafter, the Employee shall keep this Agreement and its content as well as all business affairs, documents and information of (and about) the Employer and/or the Group, in particular trade and business secrets, strictly confidential. The Employee shall (a) not use for its personal benefit and shall keep secret and non-public any and all proprietary information and knowledge concerning the Employer and/or the Group, including, without limitation, the know-how, trade secrets and any information relating to the trading systems, processes, services and clients and other business and financial affairs of the Employer and/or the Group (collectively, the "Confidential Information") to which the Employee has had or may have access, and (b) shall not disclose such Confidential Information to any person other than (i) the Employer and/or the Group and such other persons to whom the Employee has been instructed to make disclosure by the Employer’s Board and/or the CEO and/or the Group’s Board, in each case only to the extent required in the course of the Employee's service to the Employer and/or the Group or as otherwise expressly required in connection with court process, (ii) as may be required by law, or (iii) to the Employee's personal advisers or to a court for the purpose of enforcing or interpreting this Agreement, and who in each case have been informed as to the confidential nature of such Confidential Information and, as to advisers, their obligation to keep such information confidential. The Employee is not permitted to use such information for any purpose other than the proper fulfilment of this Agreement (prohibition to exploit).  

  16.Processing Personal Data

  The Employee hereby authorizes the Employer to process personal data, such as name, date of birth, address, position, performance assessment, salary, bank account, etc., to the extent that they relate to the employment relationship, for the administration of the employment relationship or the execution of this Agreement, payroll and management, including management development, training, career planning, performance evaluation, and compliance with Employer’s and/or Group’s policies.

  The Employee further agrees that personal data will be passed on to third parties, if necessary for the fulfillment of the afore mentioned purposes, including the Group, government agencies, service providers and IT system supervisors, pension funds, remuneration and Payroll Specialists as well as supervisory authorities, or to the extent that such transfer is required by law.

  Employer will ensure that the third parties mentioned above are processing the personal data received, while respecting the purpose and observance of the barriers under which the data were originally obtained, and that third parties provide at least the same protection as Employer with respect to the data. Employer is obliged to inform the Employee the purpose of third parties requesting personal data.

   

  

   

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  17.Non-Compete and Non-Solicit Obligation

  The Employee hereby undertakes not to, during the Employment Term as well as for a period of 12 months following the end date of the employment, in Switzerland, directly or indirectly, be it as principal, employee, consultant or otherwise

  i.compete with the Employer and/or the Group in any way or conduct any preparatory activities for a later competition or solicitation;

  ii.invest in, or lend money to, any company directly or indirectly competing with the Employer and/or the Group (other than investments in a listed company not exceeding 5% of its economic participation or voting rights);

  iii.solicit or entice away any employee, customer, supplier or other business partner of the Employer or discourage any person from doing business with the Employer and/or the Group; or

  iv.conduct any preparatory activities regarding, assist any person or entity in doing, or facilitate, any of the above.

  The Employee undertakes to immediately notify the Employer in case the Employee is contacted by a third party with respect to a potential employment or other activity that may be competing with the Employer or another Group Company. Upon request of the Employer, the Employee shall provide the Employer with all information and documents that may reasonably be of assistance to the Employer to protect its rights.

  18.Contractual Penalty

  The Employee hereby undertakes to pay a contractual penalty corresponding to six instalments of the last earned annual gross Base Salary (Section 6.1) to the Employer in case of each breach of the confidentiality obligation (Section 15) or the non-compete/non-solicit obligation (Section 17). Payment of a contractual penalty does not release the Employee from adhering to the confidentiality obligation or the non-compete/non-solicit obligation. Further, the Employer has the right to claim compensation for any damage caused by the Employee to the Employer or any other Group company and to request specific performance (Realexekution).

  The Employee hereby expressly acknowledges that it is permitted and proportion-ate for the Employer and/or any other Group company to request an injunction ((super)provisorische Massnahme) to enforce the confidentiality obligation and/or the non-compete/non-solicit obligation.

  19.Internal Regulations

  The Employer's and/or the Group’s internal regulations in their respective applicable version (as amended from time to time), in particular the Employer's rules and regulations for employment (as 

   

  

   

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  applicable from time to time) and the Insider Trading Policy, are directives within the meaning of article 321d CO and the Employee is obliged to comply with them.

  20.Termination

  a.Ordinary Termination

  This Agreement can be terminated by either Party subject to a notice period of six months as of the end of a calendar month.

  The Employer has the right to release the Employee from work for the whole or part of the notice period (“Garden Leave”). With the initiation of Garden Leave, all entitlements to potential annual bonus as well as any lump sum expense allowance will end. 

  b.Termination for Good Cause

  The Employer and the Employee may terminate this Agreement with immediate effect at any time for Good Cause pursuant to Art. 337 CO ("Good Cause"). In particular, Good Cause is any circumstance which renders the continuation of the employment relationship in good faith unconscionable for the Party giving notice. Such circumstances essentially include (i) willful misconduct, (ii) gross negligence in the performance of the Employees duties under this Agreement and (iii) act of fraud. 

  c.Termination in Connection with a Change in Control or a Change of Job Duties

  Notwithstanding Section 20.1, the Employee may terminate this Agreement after the occurrence  of a Change in Control unilaterally upon one month’s prior written notice, provided that the effective date of such termination is within six months following the occurrence of the Change in Control, except that

  i.If the Employer, the Group and/or the acquirer offers to retain the Employee in substantially the same position under substantially the same terms and conditions, then the effective date of such termination must occur not earlier than six months from the Change in Control and no later than one year after such Change in Control; or

   

  ii.If the Employer, the Group and/or the acquirer requests that the Employee remains with the Employer, the Group and/or the acquirer for a period of up to six months to assist with the transition, then the effective date of such termination must occur no earlier than the end of such requested period and no later than six months form the end of such requested period. 

   

  

   

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  The Employee may terminate this Agreement after the occurrence of a Change of Job Duties unilaterally upon one month’s prior written notice, provided that the effective date of such termination is within six months following the occurrence of the Change of Job Duties. 

  1.Miscellaneous

  This Agreement only becomes valid if signed by both Parties.

  Changes and amendments to this Agreement (including this Section 21) are only valid in writing.

  Should one of the provisions of this Agreement be or become invalid or if this Agreement contains a gap, the validity of the other provisions shall not be affected. In such case, however, a provision, which will come as close as possible to the intended economic effect of the invalid provision, will be agreed.

  21.Governing Law and Jurisdiction

  This Agreement shall be governed by the substantive laws of Switzerland (excluding its rules on conflict of laws). 

  Venue for any dispute arising from this Agreement shall be the courts according to article 34 CPC.

  Signatures on next page

   

   

  

   

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	The Employer:

	 
 
 
	 
  California, USA, 12/16/2021	
Place, Date

	 
	  /s/ George Scangos

	
 
	George Scangos
Director of Humabs

	 
 
	The Employee:

	
 
 
	  Switzerland, 11/30/2021  	
Place, Date

	 
	  /s/ Johanna Friedl-Naderer

	 
	Johanna Friedl-Naderer

   

  Annex 1

  Benefits

   

  Benefits Provided to all Humabs Employees

  Swiss Retirement Plan

  Health Care

  Additional Benefits Provided to Employee

  Additional Healthcare Care Standard Plan USD 15’000

  Car Allowance USD 25’000 

  Personal Expenses USD 10’000 

   

  

   

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  Tax Planning USD 3’000 

  Each of the foregoing amounts to be converted before payment into CHF and fixed in the converted amount based on the best average of 30 respectively 60 respectively 90 days prior to the Commencement DateExhibit
10.1

 

UNITED
STATES DEPARTMENT OF JUSTICE

DRUG
ENFORCEMENT ADMINISTRATION

MEMORANDUM
OF AGREEMENT

 

I.
Background and Purpose

 

This
Memorandum of Agreement (MOA) is between the Department of Justice, Drug Enforcement Administration (DEA), and Bright Green Corporation
(Grower) who has applied for a DEA registration as a bulk manufacturer to supply to researchers of any (or all) of the following schedule
I controlled substances: Marihuana Extract (7350) and Marihuana (7360) at 1033 George Hanosh Boulevard, Grants, New Mexico 87020, under
DEA Document Control Number W20078135E.

 

The
Single Convention on Narcotic Drugs, 1961, (Single Convention), 18 U.S.T. 1407, requires the United States to purchase and take physical
possession of marihuana crops and to control importation, exportation, and wholesale trading. DEA codified regulations at 21 C.F.R. Part
1318 to ensure DEA carries out these obligations. See 85 FR 82333-01 (Final Rule, Controls To Enhance the Cultivation of Marihuana
for Research in the United States (2020)). These regulations also contain provisions and obligations for Grower, which extend beyond
the Controlled Substance Act’s (CSA) general requirements that registrants maintain records, make certain reports, and maintain
effective controls against diversion (e.g., security).

 

This
MOA’s purpose is to outline the means by which DEA and Grower agree to carry out these necessary and important functions.

 

II.
Authority

 

	 	(a)	Single
    Convention on Narcotic Drugs, 1961, 18 U.S.T. 1407.
	 	 
	 	(b)	The
    Controlled Substances Act, 21 U.S.C. § 801 et seq.
	 	 
	 	(c)	DEA
    Regulations, 21 C.F.R. Chapter II.
	 	 
	 	(d)	DEA
    Final Rule, Controls To Enhance the Cultivation of Marihuana for Research in the United States, 85 FR 82333-01 (2020).

 

III.
Definition of Terms Used in This MOA

 

The
definitions contained in the CSA at 21 U.S.C. § 802 and DEA regulations at 21 C.F.R. § 1318.02 are incorporated into this MOA.
In addition, for purposes of this MOA, the term “manicured plant material” means the dried leaves, flowering tops, and seeds
of marihuana that are deliverable to DEA within four months of harvest. (See 65 FR 69574-01). A DEA-registered researcher or manufacturer
who has a bona fide supply agreement to purchase manicured plant material from Grower is identified herein as the “Buyer.”

 

IV.
Obtaining Bona Fide Supply Agreements and Requests for Quota

 

Individual
Manufacturing Quotas (IMQ): On or before May 1 of the year preceding the year in which marihuana is to be grown, Grower will furnish
an individual manufacturing quota (IMQ) application utilizing DEA Form 189. Initial applications as well as any adjustments in an IMQ
may be filed electronically utilizing DEA’s Quota Management System at https://apps.deadiversion.usdoj.gov/webforms/app189Login.jsp.
For an IMQ to grow marihuana, Grower should express all quantities in terms of “manicured plant material.”

 

    	Page 1 of 9

    	 

    

 

Grower
also will include the following information with its request on an attachment to DEA Form 189:

 

	 	(a)	The
    number of plants that are necessary to be grown in order to yield the requested amount of manicured plant material;
	 	(b)	The
    expected moisture content of manicured plant material;
	 	(c)	The
    anticipated yield of manicured plant material per plant;
	 	(d)	Details
    about whether the marihuana will be grown from seeds and/or from cuttings;
	 	(e)	Descriptions
    of all locations where marihuana will be grown, including whether those locations are indoor or outdoor; and
	 	(f)	The
    anticipated length of the growing cycle.

 

If
Grower does not anticipate commercial production but requires authority to grow marihuana to maintain a particular genetic strain or
variety in anticipation of future plantings, then Grower shall submit an IMQ for that purpose. In these circumstances, all cuttings and
biomass will be recorded, collected, and disposed of in accordance with Section XI.B of this MOA.

 

Grower
will include in their IMQ application copies of documents that constitute the bona fide supply agreement(s) that justifies their quota
application request. The bona fide supply agreement must include the name, address, and DEA registration number of the Buyer, along with
the negotiated purchase price that the Buyer will pay along with the administrative fee to be paid to DEA. For purposes of calculating
Grower’s IMQ, DEA will only consider bona fide supply agreements from existing DEA registrants.

 

If
Grower enters into additional bona fide supply agreements after receiving its initial IMQ, Grower may apply for an adjustment to its
IMQ for that calendar year, as provided in 21 U.S.C. § 826(e) and 21 C.F.R. §§ 1303.25(a) and 1303.27. DEA will calculate
Grower’s IMQ in accordance with the requirements of 21 U.S.C. § 826 and 21 C.F.R. §§ 1303.25(b) and 1303.11. Grower
shall communicate in writing (email preferred) any change in Buyers during the quota year, regardless of impact on Grower’s IMQ,
to the Section Chief for the UN Reporting and Quota Section of DEA’s Diversion Control Division (UN Reporting and Quota Section).

 

If
Grower produces marihuana in excess of its IMQ, Grower immediately will notify DEA of this event in writing (email preferred) to the
Section Chief for the UN Reporting and Quota Section and the local DEA Office. These amounts shall be destroyed in accordance with Section
XI.B of this MOA.

 

Grower
may at any time abandon its right to manufacture all or any part of such quota by filing with the UN Reporting and Quota Section a written
notice (email preferred) of such abandonment in accordance with the provisions of 21 CF.R. § 1303.27. Grower will identify which
Buyer’s bona fide supply agreement resulted in the request to abandon any portion of its IMQ. If DEA has collected payment and
an administrative fee from the Buyer, DEA will return the negotiated rate payment back to the Buyer, but not the administrative fee paid
to DEA.

 

Individual
Procurement Quota (IPQ): On or before April 1 of the year preceding the year in which marihuana is to be grown, Grower will furnish
an individual procurement quota (IPQ) application utilizing DEA Form 250 identifying quantities of marihuana it intends to procure back
from DEA for the purpose of producing marihuana extracts, marihuana preparations, or isolated chemical constituents. DEA will consider
Grower’s IPQ requests in establishing its IMQ.

 

    	Page 2 of 9

    	 

    

 

V.
Pruning, Culling, and Sampling

 

Grower
may collect samples of marihuana and distribute them to DEA-registered analytical laboratories for chemical analysis during the pendency
of cultivation and prior to DEA’s taking possession of the marihuana grown. To limit the risk of diversion and keep the distribution
within the legitimate purposes permitted by the CSA, the quantity of samples collected and distributed must be small and fully consumed
during analytical testing. Grower will maintain records of the quantity sampled for testing purposes and the date of these transfers
to DEA-registered analytical laboratories utilizing DEA Form 222.

 

Grower
may prune plants or cull unwanted plants as it deems appropriate. All cuttings and biomass resulting from pruning and culling operations
will be recorded using DEA Form 41, collected, and disposed of in accordance with Section XI.B of this MOA.

 

The
amounts sampled and the amounts pruned will be excluded from Grower’s total crop that DEA is required to purchase and possess.
These quantities also will be excluded from Grower’s IMQ.

 

VI.
Harvest – Advance Notification, Harvest, Packaging, and Transfer of Ownership

 

Grower
will provide DEA with 15-day advance written notification, via email to the Chief of the Regulatory Section of DEA’s Diversion
Control Division (Regulatory Section), of its intent to harvest marihuana. Grower will provide the date/time in which harvesting will
begin. The quantity authorized to be harvested will not exceed Grower’s IMQ.

 

DEA
will only accept an appropriately packaged and labeled product. Grower will package and label the crop at Grower’s expense in accordance
with 21 C.F.R. Part 1302. Additionally, Grower will package the crop in containers consistent with the needs of Grower’s Buyers,
but each unit will not exceed 22.7 kilograms (50 pounds) in overall weight. The container will protect the product from contamination.
Additionally, packaging will not impart a toxic or deleterious substance into the product. Each package will bear a label containing
the following information:

 

	 	(a)	the
    common or usual name of the product;
	 	(b)	Grower’s
    name, DEA registration number, address, and phone number;
	 	(c)	Net
    quantity of contents (in grams or kilograms);
	 	(d)	Batch
    and/or lot number; and
	 	(e)	Percentage
    concentration of all marketed cannabinoids and terpenes.

 

Two
DEA personnel will arrive at Grower’s registered location to take physical possession of the crop. While DEA will make every effort
to arrive on the day of harvest, DEA will take possession within four months of the harvest. DEA will take ownership of the crop by executing
a DEA Form 222, expressing all quantities in kilograms. DEA will prepare DEA Form 222 and present it to an individual who is authorized
to obtain and execute a DEA Form 222 on behalf of Grower. Grower will retain the original DEA Form 222 (as the supplier); DEA will retain
a copy of the executed DEA Form 222 (as the purchaser). Execution of DEA Form 222 constitutes the transfer of ownership from Grower to
DEA.

 

    	Page 3 of 9

    	 

    

 

If
Grower has grown marihuana for its own research and product development efforts, which may include the bulk manufacturing of marihuana
extracts and highly purified cannabinoids and derivatives, and has obtained a procurement quota from DEA for that purpose, following
execution of DEA Form 222 transferring ownership to DEA, Grower will execute a DEA Form 222. In this case, DEA will be the supplier,
and Grower will be the purchaser. DEA will retain the original DEA Form 222 (as the supplier); Grower will retain a copy of the executed
DEA Form 222 (as the purchaser).

 

If
a Buyer(s) has not paid the negotiated purchase price and administrative fee to DEA at the time in which DEA and Grower are prepared
to transfer ownership, then DEA will not accept title to that corresponding quantity of marihuana. If payment from the Buyer has not
been received within four months of harvest, and if Grower fails to provide a substitute bona fide supply agreement from a new Buyer,
DEA will direct Grower to destroy that corresponding quantity of marihuana.

 

VII.
Storage of Marihuana on Behalf of DEA and Sampling for Analytical Testing

 

Grower
will identify a secure location in the Grower’s approved schedule I vault or safe where Grower will store marihuana owned by DEA
on behalf of DEA. This schedule I vault or safe will be in a location where Grower has a DEA registration permitting Grower to store
marihuana. DEA will have the right to access any schedule I vault or safe where any marihuana that it owns is stored by the Grower. Grower
must demonstrate to DEA’s satisfaction its ability to prevent the commingling of marihuana stocks maintained on behalf of DEA with
stocks of marihuana that DEA subsequently distributed back to Grower pursuant to a DEA-issued procurement quota. Grower will employ safeguards
to prevent diversion of marihuana owned by DEA.

 

DEA’s
Regulatory Section may authorize Grower in writing (to include email) to retrieve samples of marihuana in DEA’s possession for
the purpose of conducting chemical analysis.

 

VIII.
Distributions of Marihuana from DEA’s Stocks

 

DEA’s
Regulatory Section will authorize Grower in writing (to include email) to make distributions from DEA’s stocks of marihuana to
those Buyers who entered into bona fide supply agreements with Grower once DEA has confirmed that the Buyer has made payment to DEA for
both the negotiated rate and the administrative fee. DEA will identify that particular batch or lot number, and the quantity, of the
marihuana that will be removed.

 

Two
of Grower’s employees who have undergone criminal background checks as a condition of their employment will enter the secure storage
area and remove the amount identified by DEA. Grower will record the amount removed and provide confirmation to DEA in writing (email
preferred) to DEA’s Regulatory Section. Grower shall bear the cost of shipping marihuana to the Buyer.

 

IX.
Distributions of Marihuana, Marihuana Extracts, and Marihuana Resin from Grower’s Existing Stocks

 

Grower
will provide DEA with 15-day advance written notification (via email) of its intent to distribute marihuana, marihuana extracts (which
do not meet the definition of a marihuana preparations), or marihuana resins from its existing inventory. Grower will provide this written
email notification on company letterhead and include the name of the Buyer(s), their DEA registration number, and the quantity to be
distributed.

 

    	Page 4 of 9

    	 

    

 

DEA’s
Regulatory Section will provide a written authorization or objection to Grower’s proposed distribution. Any DEA objection will
be based on its conclusion that a proposed distribution is likely to be diverted or otherwise be in conflict with the CSA, or on the
basis that a researcher, who is the intended recipient of the marihuana, has been issued an Immediate Suspension Order (ISO) or a final
order revoking their DEA registration. In the event of written objection from DEA to the proposed distribution, Grower agrees not to
make the proposed distribution.

 

This
15-day advance notification process does not apply to distributions of marihuana preparations (including marihuana extracts that contain
alcohol or other non-cannabis-derived solvents) in Grower’s possession.

 

X.
Invoicing and Payment for Harvested Marihuana Transferred to DEA

 

When
Grower provides its 15-day advance notification of its intent to harvest marihuana (see Section VI above), it will invoice DEA for the
harvested marihuana it intends to sell to DEA. The invoice will state the quantity and negotiated price for each Buyer and the DEA Registration
number of the Buyer with which Grower has a bona fide supply agreement. The quantity of marihuana on the invoice will not exceed Grower’s
IMQ. The Grower will send the invoice to the Registration and Program Support Section of DEA’s Diversion Control Division (Registration
and Program Support Section).

 

DEA
will pay Grower within 30 days of taking ownership of the crop. DEA and Grower will arrange for payment via Electronic Fund Transfer.

 

XI.
Other General Terms

 

	 	A.	Security:
  Grower will ensure compliance with the security requirements set forth in 21 C.F.R. §§ 1301.71, 1301.72, 1301.73, and 1301.74.
	 	 	 
	 	B.	Destruction
  of Controlled Substances: Grower will dispose of controlled substances in accordance with 21 C.F.R. § 1317.05(a)(4)(ii)(C)
  or 21 C.F.R. § 1317.05(b) and in compliance with applicable federal and state environmental laws. If Grower has an appropriate
  secure space on its premises, and if permissible under state and local law, Grower may also set fire to marihuana plants and plant
  parts piled in the secured field (burning) or may create a trench deep enough to cover marihuana plants and plant parts with 12 inches
  of soil (deep burial). These additional disposal methods may only occur in the presence of an agent of the DEA or other authorized
  DEA personnel.
	 	 	 
	 	C.	Reporting
  and Recordkeeping: Grower will establish and maintain controls consistent with the inventory, recordkeeping, and reporting requirements
  found under the CSA and DEA’s implementing regulations. Grower will maintain inventories, records, and/or any other reports,
  as specified under 21 U.S.C. § 827 and 21 C.F.R. § 1304, for a period of at least two years. These records will be readily
  retrievable (as defined in 21 C.F.R. § 1300.01) upon request for inspection by DEA. Grower agrees to cooperate and permit DEA
  to inspect and copy such inventories, records, and reports requested without the need of an Administrative Inspection Warrant and to
  make employees available for interviews by DEA.
	 	 	 
	 	 	Within
  30 days after the harvest, Grower will report the total amount of material manufactured, expressed as manicured plant material to the
  Section Chief for the UN Reporting and Quota Section. DEA may require additional quarterly or annual reports to fulfill quota obligations
  and/or reporting obligations to the United Nations International Narcotics Control Board.

 

    	Page 5 of 9

    	 

    

 

	 	 	By
  January 31, Grower will submit inventory, acquisition, and disposition data to DEA for the preceding calendar year utilizing DEA’s
  Year End Reports Online system at https://apps.deadiversion.usdoj.gov/webforms/app189Login.jsp. This system is also the supporting
  platform for the Quota Management System through which Grower will submit new and revised quota applications for marihuana, marihuana
  extract, and THC.
	 	 	 
	 	D.	Inventory
  Records: Each inventory will be a physical count of all controlled substances on hand on the date the inventory is taken,
  and Grower will maintain the inventory in written, typewritten, or printed form at the registered location. Each inventory will include
  all information listed in 21 C.F.R. § 1304.11.
	 	 	 
	 	E.	Automation
  of Reports and Consolidated Orders System (ARCOS): Grower will adhere to the reporting requirement of 21 U.S.C. § 827(d)(1)
  and 21 C.F.R. § 1304.33, any newly implemented ARCOS requirements, and the requirements of 21 C.F.R. Part 1305.
	 	 	 
	 	F.	Theft
  and Loss Reporting: Grower will notify the Local Diversion Field Office and DEA’s Regulatory Section, in writing (email preferred),
  of any theft or loss of marihuana, including a theft or loss of marihuana owned by DEA, within 24 hours of discovery of the theft or
  loss. Grower also will report all in-transit losses of marihuana by their agent, or the common or contract carrier selected for distribution
  activities, within one business day of discovery of such theft or loss. Grower also will complete and submit to the Local Diversion
  Field Office in his or her area a DEA Form 106 regarding the theft or loss.

 

XII.
Correspondence with DEA Headquarters Personnel

 

Direct
written communications to DEA’s headquarters elements who are referred to in this MOA should be directed to the email (preferred)
and postal addresses below:

 

	DEA

    Headquarters
    Element
	 	Email
    Address	 	Postal
    Address
	Regulatory

        Section
	 	DRG@usdoj.gov	 	Drug
    Enforcement Administration

    Regulatory
    Section/DRG

    Attention:
    Marihuana Growers Program

    8701
    Morrissette Drive

    Springfield,
    VA 22152

	 	 	 	 	 
	Registration

        and
        Program

        Support
        Section
	 	DRRO@usdoj.gov	 	Drug
    Enforcement Administration

    Registration
    Section/DRRO

    Attention:
    Marihuana Growers Program

    P.O.
    Box 2639

    Springfield,
    VA 22152-2639

	 	 	 	 	 
	UN
                                            Reporting

                           and
                           Quota

                           Section
	 	DEAQuotas@usdoj.gov	 	Drug
    Enforcement Administration

    UN
    Reporting and Quota Section/DRQ

    Attention:
    Marihuana Growers Program

    8701
    Morrissette Drive

    Springfield,
    VA 22152

 

    	Page 6 of 9

    	 

    

 

XIII.
Non-Liability of Drug Enforcement Administration

 

The
United States assumes no liability with respect to the performance of any contractual terms agreed to by Grower and a Buyer of bulk marihuana,
including but not limited to the quantity or quality of any marihuana delivered to a Buyer. If a Buyer deems the delivered marihuana
to be defective, the Buyer’s sole remedy for damages will be against Grower and not the United States.

 

XIV.
Duration, Amendment, and Effect

 

	 	A.	Execution:
  This MOA may be executed in counterparts, each of which constitutes an original, and all of which constitute one and the same agreement.
  Copies or facsimiles of signatures will constitute acceptable, binding signatures for purposes of this MOA. This MOA is effective and
  becomes binding upon the date of the last signature below. Each person who signs this MOA in a representative capacity warrants that
  he or she is fully authorized to do so. The government signatories represent that they are signing this MOA in their official capacities.
	 	 	 
	 	B.	Automatic
  Renewal: Unless terminated for cause by DEA, this MOA is effective for a one-year initial term from its effective date, subject
  to automatic renewal for up to four additional one- year terms.

 

	 	1.	If,
  at the time the initial term or a renewal is set to expire, the Grower has submitted a renewal application that is still being processed
  by the DEA at the end of a one-year term and is allowed to continue to operate on a day-by-day basis until the registration is renewed
  in accordance with 21 C.F.R. § 1301.36(i), the term set to expire will be automatically extended until the registration is renewed.
	 	 	 
	 	2.	This
  MOA will automatically renew for an additional one year term upon DEA’s approval of Grower’s application for renewal of
  its registration as a bulk manufacturer of marihuana, marihuana extract, and THC unless, on or before 60 days before the expiration
  of the current term, either party provides written email notice of its intention not to renew.
	 	 	 
	 	3.	This
  MOA will terminate at the end of the fourth renewal term or the end of a one-year term that is not renewed.

 

    	Page 7 of 9

    	 

    

 

	 	C.	Termination
  for Cause: DEA may unilaterally terminate this MOA at any time for cause without prior notice by issuing an ISO pursuant to 21
  U.S.C. § 824(d) against Grower’s registration as governed under this MOA, or by issuing an Order to Show Cause as to which
  a final decision is reached by DEA to suspend or revoke Grower’s registration as governed under this MOA.
	 	 	 
	 	D.	Severability:
  In the event that any one or more of the provisions contained herein shall, for any reason, be held to be invalid, illegal, or unenforceable
  in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this MOA, but this MOA shall
  be construed as if such invalid, illegal, or unenforceable provision had never been contained herein.
	 	 	 
	 	E.	Modification:
  This MOA constitutes the full and complete agreement between the Parties. No other promises or agreements will be binding unless placed
  in writing and signed by both Parties. All material representations, understandings, and promises of the Parties are contained in this
  MOA, and each of the Parties expressly agrees and acknowledges that, other than those statements expressly set forth in this MOA, it
  is not relying on any statement, whether oral or written, of any person or entity with respect to its entry into this MOA or to the
  consummation of the transactions contemplated by this MOA. This MOA may be revised at any time with, and only with, the mutual written
  consent of the Parties. Modifications to the MOA will become effective on the date of the last signature of the authorized representatives
  of each Party.

 

XIV.
Additional Terms and Conditions

 

	 	A.	Compliance
  with State and Local Laws: Any bulk manufacturing, growing, cultivation, harvesting, disposal, or distribution of marihuana must
  be lawful in the state and locality where such action takes place. Such action also must be in compliance with any and all applicable
  state and local laws, statutes, and regulations, and otherwise permitted by all applicable state and local regulatory and law enforcement
  agencies. Failure to be in such compliance can constitute grounds for administrative action.
	 	 	 
	 	 	Grower
  shall immediately notify DEA of any change in their authorization from the state or the U.S. Food and Drug Administration to engage
  in the manufacture of marihuana, and any violations of other federal, state, and/or local laws related to controlled substances. Failure
  to immediately notify DEA of any such event can constitute grounds for administrative action.
	 	 	 
	 	B.	Freedom
  of Information Act: In the event of potential Freedom of Information Act requests, Grower and DEA consent that each may disclose
  this MOA, and information about said MOA, to the public.
	 	 	 
	 	C.	Good
  Faith: The terms and provisions of this MOA shall be executed in good faith.
	 	 	 
	 	D.	Venue
  & Jurisdiction: The Parties agree that the jurisdiction and venue for any dispute arising between and among the Parties to
  this MOA shall be in any federal court of competent jurisdiction. This provision, however, shall not be construed as a waiver of the
  jurisdictional provisions of the Controlled Substances Act, as amended.
	 	 	 
	 	E.	Costs:
  Each Party to this MOA shall bear his or its own legal and other costs incurred in connection with this matter, including in the preparation
  and performance of this MOA.

 

    	Page 8 of 9

    	 

    

 

	FOR
  GROWER:	 	 	 	 
	 	 	 	 	 
	 	 	Date:	 	 
	 	 	 	 	 
	Terry
  Rafih	 	 	 	 
	Chairman,
  Bright Green Corporation	 	 	 	 
	 	 	 	 	 
	 	 	Date:	 	 
	 	 	 	 	 
	Edward
  A. Robinson	 	 	 	 
	CEO,
  Bright Green Corporation	 	 	 	 
	 	 	 	 	 
	 	 	Date:	 	 
	 	 	 	 	 
	Eric
  Berlin	 	 	 	 
	Denton’s	 	 	 	 
	Co-Head
  Cannabis Group, Partner	 	 	 	 
	 	 	 	 	 
	FOR
  DRUG ENFORCEMENT ADMINISTRATION:	 	 	 	 
	 	 	 	 	 
	 	 	Date:	 	 
	 	 	 	 	 
	Kyle
  W. Williamson, Special Agent in Charge	 	 	 	 
	DEA
  El Paso Division	 	 	 	 
	 	 	 	 	 
	 	 	Date:	 	 
	 	 	 	 	 
	Heather
  A McMurry, Diversion Program Manager	 	 	 	 
	DEA
  El Paso Division	 	 	 	 

 

    	Page 9 of 9

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