Document:

exh_103.htm

EXHIBIT 10.3

EXECUTION

 

FIRST AMENDMENT AND CONSENT TO ASSIGNMENT OF

EXCLUSIVE LICENSE AGREEMENT

This First Amendment and Consent to Assignment of Exclusive License Agreement between The UAB Research Foundation and LipimetiX, LLC ("Amendment") is made and entered as of August 3, 2012 by and between The UAB Research Foundation ("UABRF"), LipimetiX, LLC ("LipimetiX") and LipimetiX Development, LLC ("Company").

RECITALS

WHEREAS, UABRF and LipimetiX entered into the Exclusive License Agreement between The UAB Research Foundation and LipimetiX, LLC (the "Agreement") governing the license and exploitation by LipimetiX of certain Licensed Patents as defined in the Agreement;

WHEREAS, the parties desire to assign the Agreement from LipimetiX to the Company as part of a corporate transaction and change of structure involving the parties of even date with this Amendment ("Transaction") and the parties desire to amend the Agreement as set forth below;

NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties, covenants and agreements set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby further agree as follows:

1. Definitions.  Any capitalized terms used in this Amendment, unless otherwise defined herein, have the meanings given those terms in the Agreement.

 

2. Consents.  UABRF consents and agrees to the assignment of the Agreement from LipimetiX to Company.  As a result of such assignment, the parties agree that all references to "Licensee" in the Agreement, as amended below, are deemed to refer to Company as of the date set forth above. LipimetiX retains any obligations and liabilities under the Agreement incurred prior to the date set forth above, including without limitation any obligations and liabilities under Section 6.2 and 6.3 of the Agreement.  UABRF further represents and agrees that each of the Transaction and the assignment of the Agreement from LipimetiX to Company, together and separately, do not constitute a "Qualified Funding Event" or "Non-Royalty Income", as those terms are defined in the Agreement, generating any obligations or liabilities under the Agreement, including without limitation any amounts due or payable to UABRF.  In addition, and for the purpose of clarity, the parties understand and agree that the term "Non-Royalty Income" does not and shall not include anything received For Value as a result of any sale or other disposition of Company or its business whether by merger, consolidation, sale of assets, sale of equity interest, or otherwise.

 

3. Representations.  UABRF reaffirms all representations and warranties of Section 10.1 and 10.3 of the Agreement.  UABRF and LipimetiX represent that (i) the Agreement is a valid and binding agreement in accordance with its terms and is in full force and effect, (ii) neither UABRF nor LipimetiX is in default under the Agreement and no event has occurred or condition exists which, with the giving of notice or passage of time or both, would constitute a default under the Agreement, excepting only with respect to Sections 5.1 and 5.2 of the Agreement that LipimetiX owes $305,953.69 as of the date hereof to UABRF for unpaid patent expenses, of which $161,274.77 is in arrears, which condition shall be remedied in full upon receipt by UABRF of the payment set forth in the last sentence of this paragraph, and (iii) there are no Disclaimed Licensed Patents and all rights provided and granted to LipimetiX under the Agreement are valid and subsisting. LipimetiX affirms that as of the effective date of this Amendment, LipimetiX shall transfer $314,651.30 to UABRF composed of $305,953.69 for unpaid patent expenses under Sections 5.1 and 5.2 of the Agreement and $8,697.61 for the 1.0% per month late payment penalty pursuant to Section 5.13 of the Agreement.

 

  

  

  

4. Amendments.  The Agreement is amended as follows:

 

4.1 Section 1.9.  Section 1.9 of the Agreement is deleted in its entirety and replaced with the following:

 

'"Improvements' means any modification, improvement, replacement, alternative, or enhancement to a device, method, composition, invention, discovery or product that (a) is conceived or reduced to practice after the Effective Date and before the third anniversary of the execution of the First Amendment and (b) is a modification, improvement, enhancement, alternative or replacement in which Dr. G. M. Anantharamaiah (or any UAB employee working directly under Dr. Anantharamaiah's supervision) or any Inventor(s) makes an inventive contribution under applicable laws and (c) (i) is related to any of the descriptions, specifications, or claims in any Licensed Patent, or (ii) is covered by a Valid Patent Claim, or (iii) is a modification, improvement, or enhancement the development, manufacture, use, import, export, offer for sale or sale of which is covered by (or which cannot be undertaken or completed without infringing) a Valid Patent Claim set forth in one or more of the Licensed Patents and (d) in which right, title and interest is owned by UAB, in whole or in part, pursuant to the criteria set forth in Board Rule 509 as promulgated by the Board of Trustees of the University of Alabama or is contractually required to be assigned to UAB or its designee."

 

4.2 Section 1.31.  Section 1.31 is amended to read, "'Term' is defined in Section 9.1."

 

4.3 Section 1.35.  Section 1.35 is deleted in its entirety and replaced with the following:

 

"'Valid Patent Claim' means (i) a pending patent claim included within the Licensed Patents, (ii) an issued and unexpired patent claim included within the Licensed Patents which has not been held permanently revoked, unenforceable or invalid by a decision of a court or other governmental agency of competent jurisdiction, to which an appeal has not or cannot be taken within the time allowed for appeal, and which has not been disclaimed, denied or admitted to be invalid or unenforceable through reissue, disclaimer or otherwise."

 

4.4 Section 1.36.  A new Section 1.36 is added to read as follows, "'Licensed Cases' means those UABRF internal case numbers (UXXXX-XXXX) identified on Exhibit A."

 

4.5 Section 1.37.  A new Section 1.37 is added to read as follows:

 

"'Subsequent Improvements' means any Improvements that are conceived or reduced to practice after the third anniversary of the execution of the First Amendment."

 

4.6 Section 1.38.  A new Section 1.38 is added to read as follows:

 

"'First Amendment' means that certain First Amendment and Consent to Assignment of Exclusive License Agreement, dated August 3, 2012, by and between The UAB Research Foundation, LipimetiX, LLC and LipimetiX Development, LLC."

 

4.7 Section 2.6.  The following is added as a new subsection (a) to Section 2.6, "In the event of any Subsequent Improvements, upon receipt from the relevant Inventor(s) of the applicable intellectual property disclosure, UABRF shall promptly provide reasonably detailed written notice of the existence and substance of the Subsequent Improvement to the Licensee ("Subsequent Improvement Notice") and Licensee shall have an exclusive first option to  license such 

 

  

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Subsequent Improvement in the Licensed Field of Use in the Licensed Territory during the Term under terms and conditions to be negotiated by the parties in good faith.  The Licensee may exercise its option by providing written notice to UABRF of its exercise of the option within ninety (90) days after receipt of a Subsequent Improvement Notice.  In the event the Licensee timely exercises its option but the Parties fail to reach agreeable terms within ninety (90) days after the Licensee exercises its option, UABRF shall be free to negotiate with and enter into license agreements with Third Parties with respect to the applicable Subsequent Improvement (but not any of the Licensed Patents).  In the event the Licensee does not exercise its option or fails to exercise it timely, UABRF shall be free to negotiate with and enter into license agreements with Third Parties with respect to the applicable Subsequent Improvement (but not any of the Licensed Patents).

 

4.8 Section 3.1.  The first reference to "Licensed Patents" in the first sentence of Section 3.1 is revised to read "Licensed Products."

 

4.9 Section 5.4.  Section 5.4(a) and 5.4(b) are deleted in their entirety and replaced with the following:

 

"The parties understand and agree that UABRF is a partial owner of LipimetiX and as a result of the Transaction of even date is a partial owner of the Company.  As a result, UABRF hereby agrees that all amounts in excess of One Hundred Thousand and No/100 Dollars ($100,000) paid under this Agreement, as amended by the First Amendment, pursuant to Sections 5.8, 5.9 and 5.11 (the "UABRF Payments") shall be taken in account for, and shall reduce on a dollar for dollar basis, the amount of any distributions that would otherwise be payable by the Licensee to UABRF in accordance with the Amended and Restated Limited Liability Company Agreement of LipimetiX Development, LLC ("LLC Agreement") of even date with the First Amendment, and shall accordingly reduce on a dollar for dollar basis the amount of Net Income (as defined in the LLC Agreement) that would otherwise be allocated to UABRF under the LLC Agreement.  For the avoidance of doubt, this Section 5.4 is intended to amend UABRF's economic interest in Licensee so as to reduce UABRF's rights to proceeds and distributions with respect to such economic interest by the amount of the UABRF Payments."

 

4.10 Section 5.8.  The reference to "Last Patent Claim" in the first sentence, seventh line of Section 5.8 is revised to read "last Valid Patent Claim."

 

4.11 Section 8.4.  Section 8.4(c)(vi) is revised to read as follows, "...may not transfer or assign it to any Third Party except as otherwise permitted by this Agreement pursuant to Section 12.5."

 

4.12 Section 9.2.  The following is added at the end of Section 9.2 as a new sentence, "In the event of any termination by Licensee under this Section 9.2, Licensee shall have no additional obligations or liabilities to UABRF, other than complying with any obligations that have accrued prior to the date of termination."

 

4.13 Section 12.7.  UABRF’s and Company's addresses for notices under the Agreement as contemplated by Section 12.7 are as set forth on the signature page of this Amendment.

 

4.14 Exhibit C.  Exhibit C, along with Exhibit I and Exhibit II to Exhibit C, are deleted in their entirety.

 

  

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5. Counterparts.  This Amendment may be executed by facsimile signatures or electronic signature in several counterparts, each of which shall be deemed an original, but such counterparts shall together constitute one document.

 

6. Entire Agreement.  The parties expressly intend to modify and amend the terms of the Agreement as set forth above.  This Amendment, together with the Agreement it modifies and the Exhibits attached to the Agreement constitutes the entire agreement of the parties and supersedes all previous communications either written or oral between the parties with respect to the subject matter herein.  In the event of a conflict between the terms of this Amendment and the terms of the Agreement, the terms of the Amendment shall govern.  Except as otherwise expressly set forth above, all terms and conditions of the Agreement remain in full force and effect.

 

[Signature Page to Follow]

 

 

  

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IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment as of the day and year first above written.

	
The UAB Research Foundation

	 	
LipimetiX, LLC

	  	 	
 

	
Signature: __________________________

	 	

Signature: __________________________

	
 

	 	
 

	
 

	 	
 

	
Printed Name: David Winwood

	 	
Printed Name: Dennis I. Goldbeerg

	
 

	 	
 

	
Title: Chief Executive Officer

	 	
Title: President and Chief Executive Officer

	
 

	 	
 

	  	 	
LipimetiX Development, LLC

	  	 	  
	  	 	

Signature: __________________________

	  	 	  
	  	 	
Printed Name: Dennis I. Goldberg

	 	 	 
	 	 	

Title: Manager

 

	
Address For Notices:

	 	
Address For Notices:

	
The UAB Research Foundation

	 	
LipimetiX Development, LLC

	
Attention: The Chief Executive Officer

	 	
c/o Benu BioPharma, Inc.

	
1720 Second Ave. South

	 	
50 Lands End Ln

	
Birmingham, Alabama 35294

	 	
Sudbury, MA 01760

	  	 	  
	
By Courier:

	 	
with a copy to:

	
770 Administration Building

	 	
LipimetiX Development, LLC

	
701 20th Street South

	 	
Attn: John M. Holliman, III

	
Birmingham, AL 35233

	 	
1275 W Washington St # 101

	  	 	
Tempe, AZ 85281

	  	 	  
	  	 	
with a copy to:

	  	 	
Peter Schoch

	  	 	
Gunderson Dettmer Stough Villeneuve

	  	 	
Franklin & Hachigian, LLP

	  	 	
850 Winter Street

	  	 	
Waltham, MA 02451

 

Signature Page - First Amendment and Consent To

Assignment of Exclusive License Agreementexh_104.htm

Exhibit 10.4

 

MANAGEMENT AGREEMENT

THIS MANAGEMENT AGREEMENT ("Agreement"), effective as of August 3, 2012 (the "Effective Date"), is made by and among LipimetiX Development, LLC, a Delaware limited liability company (the "Company"), Benu BioPharma, Inc., a Massachusetts corporation (the "Management Company"), and Dennis I. Goldberg, Ph.D., Phillip M. Friden, Ph.D, and Eric M. Morrel, Ph.D., all affiliates of the Management Company (collectively, the "Principals").

 

RECITALS:

 

WHEREAS, the Company desires to retain the Management Company to provide certain services for the Company as provided herein;

 

WHEREAS, the Management Company desires to provide such services to the Company as provided herein; and

 

WHEREAS, as inducement to the Company to enter into this Agreement, the Principals have agreed to be bound by the terms of certain restrictive covenant, confidentiality and intellectual property ownership provisions set forth herein;

 

NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

AGREEMENT:

 

	
1.  

	
Engagement.  The Company hereby engages the Management Company to provide the services set forth in Section 2 hereof to the Company, and the Management Company hereby accepts such engagement, on the terms and conditions set forth in this Agreement.

 

	
2.  

	
Services.  The Management Company agrees to provide all management and operational personnel to perform the day-to-day management of the Company, including business development, research and development, regulatory affairs, product development, technical operations, assisting the Company's Joint Development Committee in intellectual property strategy and management, and developing and managing clinical trials undertaken by the Company from time to time relating to or involving the research, development, manufacturing, distribution, licensing or sale of technology, products or services relating to the development of Apo E mimetics for the treatment of hypercholesterolemia and other diseases (collectively, the "Management Services"); provided, that the Management Services shall not include those accounting and finance services to be performed by Capstone Therapeutics Corp. (“Capstone”) pursuant to the Accounting Services Agreement dated August 3, 2012 between the Company and Capstone.  During the Term of this Agreement, the Management Company will diligently and faithfully perform, to the best of its ability, the duties and activities assigned to it by the Company pursuant to this Agreement.  The Management Company shall cause the Principals to devote their full business time and effort, as needed, to the performance of this Agreement in the roles specified on Exhibit A attached hereto.  The Management Company and the Principals shall report to the Joint Development Committee of the Company and shall render the Management Services in a manner that is consistent with the operating budgets for the Company approved from time to time by the Joint Development Committee.  All Management Services rendered by the Management Company hereunder shall be rendered by or under the direction of Dennis I. Goldberg, Ph.D.

 

  

 

  

	
3.  

	
Term; Subsequent Agreement.

 

	
a.  

	
Term.  Subject to earlier termination pursuant to Section 5 hereof, the term of the Management Company’s engagement hereunder shall commence on the Effective Date and shall continue until the completion and public presentation of the final, statistically validated results of a Phase 1b/2a clinical trial, as outlined in the budget and development program approved by the Joint Development Committee (the "Term").

 

	
b.  

	
Subsequent Agreement.  If, after expiration of the Term, the Company wishes the Management Company to continue to provide any or all of the services contemplated in this Agreement, the Company and the Management Company shall negotiate in good faith a new agreement regarding the duration of and compensation for the services that the Company wishes the Management Company to provide.

 

	
4.  

	
Compensation.

 

	
a.  

	
Management Fee.  In consideration of the Management Services, the Management Company shall be paid a management fee during the Term at the rates listed on Exhibit B hereto, payable monthly in advance (the "Management Fee"), beginning with the payment for the month of August 2012, due on August 1, 2012, and ending with the payment for the month of October 2014, due on October 1, 2014.  It is understood and agreed that the Term, and therefore the Management Company's obligations hereunder, may extend beyond October 31, 2014, notwithstanding that the Management Fees are payable only through October 1, 2014.

 

	
b.  

	
Reimbursement for Expenses.  The Management Company shall be reimbursed for out-of-pocket travel expenses and meeting registration costs and for other out-of-pocket expenses approved in advance by the Company’s Joint Development Committee and consistent with the approved development budget.  All such expenses shall be documented and submitted in accordance with the reimbursement policies of the Company in effect from time to time.

 

	
5.  

	
Termination.

 

	
a.  

	
Termination by Company.  The Company may terminate this Agreement immediately upon written notice for any of the following reasons:

 

  

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i.  

	
the Management Company refuses or fails to perform the Management Services in accordance with this Agreement, or otherwise violates or fails to perform any term, covenant or provision of this Agreement; or

 

	
ii.  

	
a breach of Sections 6, 7, or 8 of this Agreement by any of the Principals; or

 

	
iii.  

	
the Management Company shall voluntarily or involuntarily be dissolved; apply for or consent to the appointment of a receiver, trustee or liquidator of all or a substantial part of its assets; file a voluntary petition in bankruptcy or otherwise voluntarily avail itself of any federal or state laws for the relief of debtors; admit in writing its inability to pay its debts as they become due; make a general assignment for the benefit of creditors; file a petition or an answer seeking reorganization or arrangement with creditors or to take advantage of any insolvency law or file an answer admitting the material allegations of any petition filed against it in any bankruptcy, reorganization or insolvency proceeding; suffer the filing of an involuntary petition in bankruptcy or similar proceeding under state law which is not dismissed within ninety (90) days of such filing; if an order, judgment or decree shall be entered by any court of competent jurisdiction on the application of any one or more creditors of such defaulting party adjudicating it a bankrupt or insolvent or approving a petition seeking reorganization or appointing a receiver, trustee or liquidator of all or a substantial part of its assets, and such order, judgment or decree shall become final; or

 

	
iv.  

	
The Company makes a decision to cease development activities prior to October 31, 2014.

 

	
b.  

	
Termination upon Change of Control.  This agreement shall terminate immediately upon a Change of Control of the Company.  As used herein, a "Change of Control" shall mean a change in the power to direct or cause the direction of the management and policies of the Company, other than due to the occurrence of the Delay Trigger Event as defined in the Company's Limited Liability Company Agreement dated August 3, 2012, as it may be amended from time to time (the "LLC Agreement"), which change arises from (i) any "person" (including a "person" as defined by Section 13(d)(3) and 14(d) of the Exchange Act) becoming the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding equity securities or (ii) more than fifty percent (50%) of the assets of the Company being disposed of by the Company pursuant to a partial or complete liquidation of the Company, a sale of assets (including securities of a subsidiary or subsidiaries) of the Company or otherwise; provided, however that no Change of Control shall be deemed to occur by reason of the acquisition of additional securities of the Company by any current holder of the Company’s securities or any affiliate thereof.

 

  

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c.  

	
Severance.  In the event of a termination of this Agreement upon a Change of Control or pursuant to Section 5(a)(iv) above, the Company shall provide the Management Company with either:  (i) an offer for a Management Agreement by the Company on terms and conditions reasonably equivalent to this Agreement (a "Management Offer") or (ii) a severance payment equal to three (3) months of Management Fees, or, if the Company shall experience the Change of Control within one (1) year of the Effective Date of this Agreement, a severance payment equal to six (6) months of Management Fees (the "Severance Payment").  The Company shall pay the entire balance of the Severance Payment owed to the Management Company in cash within 30 days after the effective date of the Change of Control.  If the Management Company receives and fails to accept a Management Offer from the Company provided in accordance with the terms of this Section 5(c), it shall not be entitled to receive the Severance Payment or any other payment or benefit of any kind from the Company.

 

	
6.  

	
Non-Disclosure and Non-Competition.

 

	
a.  

	
Non-Disclosure.  The Management Company  and the Principals acknowledge that, in the course of performing services for the Company, they may obtain knowledge of the Company’s business plans, products, research, results, processes, software, know-how, trade secrets, formulas, methods, models, prototypes, discoveries, inventions, materials, improvements, disclosures, customer, contractor and supplier lists, names and positions of employees and/or other proprietary or confidential information or any copies or modifications or derivative works thereof or other works based thereon (collectively, the "Confidential Information").  The Management Company and the Principals shall maintain the confidentiality of the Confidential Information and shall not publish, disclose or divulge any Confidential Information to any other person, or use any Confidential Information for the benefit of the Management Company or any third party, to the detriment of the Company or for any purpose other than in connection with the performance of the Management Services, whether or not such Confidential Information is or was discovered or developed by the Management Company or any of its agents or employees.  The Management Company and the Principals  shall not divulge, publish or use any proprietary or confidential information of any third parties that the Company maintains, or is obligated to maintain, in confidence.

 

	
b.  

	
Employee Non-Disclosure Agreements.  The Management Company shall take all actions necessary to ensure that each of its affiliates, employees and agents who may perform services for or on behalf of the Company or may have any access to the Company’s Confidential Information sign a Non-Disclosure and Invention Assignment Agreement in a form acceptable to the Company containing agreements and undertakings substantially identical to those set forth in Sections  6(a) and 7 hereof.

 

  

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c.  

	
Non-Competition.  The Management Company and the Principals agree that during the Term of the Management Company’s engagement by the Company hereunder and for a period of one (1) year from and after the termination of this Agreement, that neither they nor any corporation or other entity in which the Management Company or the Principals may be interested as a member, partner, trustee, director, officer, employee, agent, shareholder or other equity participant, lender of money or guarantor, or for which the Management Company or the Principals  perform services in any capacity (including as a consultant or independent contractor) shall, at any time:  (i) be engaged, directly or indirectly, in any Competitive Business (as herein defined) or (ii) solicit, hire, contract for services or otherwise employ, directly or indirectly, any of the employees of the Company; provided, however, that nothing herein contained shall be deemed to prevent the Management Company or the Principals from investing in or acquiring, collectively, one percent (1%) or less of any class of securities of any company if such class of securities is listed on a national securities exchange.  For purposes of this Section 6(c) the term "Competitive Business" shall mean a business that engages in any respect in the research, development, manufacturing, distribution, licensing or sale of technology, products or services relating to Apoliprotein E mimetics for the treatment of hypercholesterolemia and other diseases, and/or any other product that the Company develops or is in the process of developing during the Term of this Agreement.

 

	
7.  

	
Inventions, Discoveries and Ownership.

 

	
a.  

	
Disclosure.  The Management Company and the Principals shall promptly and fully disclose to the Company, with all necessary detail, all developments, know-how, discoveries, (whether registered or unregistered, copyrightable, patentable or otherwise and including any applications for copyright registration or patent rights) made, received, conceived, acquired or written by the Management Company (whether or not at the request or upon the suggestion of the Company), solely or jointly with others, during the Term hereof that (i) specifically relate to Apoliprotein E mimetics for the treatment of hypercholesterolemia and other diseases and/or any other technology with respect to which the Management Company renders research and development services or oversight to the Company, or (ii) are otherwise made through the use of the Company’s time, facilities or materials (collectively, the "Inventions.")

 

	
b.  

	
Assignment and Transfer.  The Management Company and the Principals shall assign and transfer to the Company all of the Management Company’s and each Principal's rights, title and interest in and to each of the Inventions, and the Management Company and the Principals shall further deliver to the Company any and all drawings, notes, specifications and data relating to each of the Inventions, and to sign, acknowledge and deliver all such further papers, including applications for and assignments of copyrights and parents, and all renewals thereof, as may be necessary to obtain copyrights and patents for any and all of the Inventions in any and all countries and to vest title thereto in the Company and its successors and assigns and to otherwise protect the Company’s right, title and interests therein.

 

  

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c.  

	
Ownership.  The Company shall own all right, title and interest in all Confidential Information, Inventions and Company Documentation (as defined in Section 8(a)) and all other intellectual property, or tangible property or equipment, developed or purchased by or on behalf of the Company (collectively, the "Company Property").  Nothing in this Agreement or in the course of the performance of the Management Services hereunder, including, but not limited to the delivery or maintenance of such Company Property at premises owned or controlled by the Management Company or any third party, shall be construed to grant any right, title or interest in any Company Property unless expressly granted in writing by the Company.  The Management Company shall clearly label or otherwise designate all Company Property as such, and, upon request by the Company, shall permit the Company to enter onto any premises owned or controlled by the Management Company and to access or remove any Company Property present thereon.  Management Company shall maintain all Company Property in accordance with at least the same level of care and security as the Management Company applies to its own property.

 

	
d.  

	
Records.  The Management Company agrees that, in connection with any research, development or other services performed for the Company, it will maintain careful, adequate and contemporaneous written records of all Inventions, which records shall be the property of the Company and shall be returned to the Company promptly upon any termination of this Agreement.

 

	
8.  

	
Company Documentation.

 

	
a.  

	
Company Documentation.  The Management Company and the Principals shall hold in a fiduciary capacity for the benefit of the Company all documentation, programs, data, records, research materials, drawings, manuals, disks, reports, sketches, blueprints, letters, notes, notebooks and all other writings, electronic data, graphics and tangible information and materials of a secret, confidential or proprietary information nature relating to the Company or the Company’s business (the "Company Documentation") that are, at any time, in the possession or under the control of the Management Company or any of its agents or employees.

 

	
9.  

	
Injunctive Relief.  The Management Company and the Principals acknowledge that their compliance with the agreements in Sections 6, 7, and 8 hereof is necessary to protect the good will and other proprietary interests of the Company and that they have been and will be entrusted with highly confidential information regarding the Company and its technology and are conversant with the Company’s affairs, its trade secrets and other proprietary information.  The Management Company and the Principals acknowledge that a breach of their agreements in Sections 6, 7, and 8 hereof will result in irreparable and continuing damage to the Company for which there will be no adequate remedy at law; and the Management Company  and the Principals agree that, in the event of any breach of the aforesaid agreements, the Company and its successors and assigns shall be entitled to injunctive relief, to recover all costs and attorneys fees and to such other and further relief as may be proper.

 

  

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10.  

	
Compliance with the Laws.  The Management Company shall at all times in performance of the Management Services and any other obligations of the Management Company in connection with this Agreement comply with all applicable federal, state or local laws, rules, regulations and orders of any court, tribunal or administrative agency having jurisdiction over the Management Company, the Company or the Management Services (collectively, the "Laws").  The Management Company shall, in connection with the Management Services, make all commercially reasonable efforts to remain aware of all existing Laws and any new developments under the Laws, and the requirements for compliance with such Laws, that are applicable to the Management Company, the Company or the Management Services.

 

	
11.  

	
Representations and Warranties.

 

	
a.  

	
Representations of the Company.  As an inducement to the Management Company to enter into this Agreement, the Company represents and warrants to the Management Company as follows:

 

	
i.  

	
The Company is a limited liability company duly organized and validly existing under the laws of the State of Delaware and has all requisite power to enter into this Agreement.

 

	
ii.  

	
Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated herein or therein nor compliance by the Company with any of the provisions hereof or thereof will (A) violate any order, writ, injunction, decree, law statute, rule or regulation applicable to it or (B) require the consent, approval, permission or other authorization of or qualification or filing without notice to, any court, arbitrator or other tribunal or any governmental, administrative, regulatory or self-regulatory agency or any other third party.

 

	
iii.  

	
This Agreement has been duly executed and delivered by the Company and constitutes a legal, valid and binding agreement of the Company enforceable in accordance with its terms.

 

	
b.  

	
Representations of the Management Company.  As an inducement to the Company to enter into this Agreement, the Management Company hereby represents and warrants to the Company as follows:

 

	
i.  

	
The Management Company is an S corporation duly organized, validly existing and in good standing under the laws of the State of Massachusetts, and the Management Company has all requisite power and authority to enter into this Agreement.

 

  

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ii.  

	
Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated herein nor compliance by the Management Company with any of the provisions hereof will:  (a) violate any order, writ injunction, decree, law, statute, rule or regulation applicable in any respect to the Management Company or with respect to the services to be rendered by the Management Company hereunder or the assignment of the Inventions contemplated hereby or (b) require the consent, approval, permission or other authorization of, or qualification or filing with or notice to, any court, arbitrator or other tribunal or any governmental, administrative, regulatory or self-regulatory agency or any other third party.

 

	
iii.  

	
This Agreement has been duly executed and delivered by the Management Company and constitutes a legal, valid and binding agreement of the Management Company enforceable in accordance with its terms.

 

	
iv.  

	
The Management Company is not a party to or otherwise subject to any agreements or restrictions that would prohibit the Management Company from entering into this Agreement and carrying out the transactions contemplated by this Agreement in accordance with the terms hereof, and this Agreement and the transactions contemplated hereby will not infringe or conflict with, and are not inconsistent with, the rights of any other person or entity.

 

	
c.  

	
Representations of the Principals.   As an inducement to the Company to enter into this Agreement, each Principal hereby represents and warrants to the Company as follows:

 

	
i.  

	
Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated herein nor compliance by the Principal with any of the provisions hereof will:  (a) violate any order, writ injunction, decree, law, statute, rule or regulation applicable in any respect to such Principal or with respect to the services to be rendered by such Principal hereunder or the assignment of the Inventions contemplated hereby or (b) require the consent, approval, permission or other authorization of, or qualification or filing with or notice to, any court, arbitrator or other tribunal or any governmental, administrative, regulatory or self-regulatory agency or any other third party.

 

	
ii.  

	
Such Principal is not a party to or otherwise subject to any agreements or restrictions that would prohibit such Principal from entering into this Agreement and carrying out the transactions contemplated by this Agreement in accordance with the terms hereof, and this Agreement and the transactions contemplated hereby will not infringe or conflict with, and are not inconsistent with, the rights of any other person or entity.

 

  

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12.  

	
Insurance.  The Management Company shall at all times maintain insurance policies in the name of the Management Company, in such amounts and having such terms as are reasonably required by the Company.

 

	
13.  

	
Survival of Representations, Warranties and Covenants.  The provisions of Sections 6, 7, 8, 9, 10, and 11 hereof shall survive the termination of this Agreement.

 

	
14.  

	
Independent Contractor.  The parties intend that the Management Company shall render services hereunder as an independent contractor, and nothing herein shall be construed to be inconsistent with this relationship or status.  The Management Company shall not be entitled to any benefits paid by the Company to its employees.  The Management Company shall be solely responsible for any tax consequences applicable to the Management Company by reason of this Agreement and the relationship established hereunder, and the Company shall not be responsible for the payment of any federal, state or local taxes or contributions imposed under any employment insurance, social security, income tax or other tax law or regulation with respect to the Management Company’s performance of services hereunder.  The Management Company shall promptly pay its employees all amounts owed to such employees.  The Management Company shall comply with all applicable state, federal and local laws, including laws and regulations covering wages and payroll withholding.

 

	
15.  

	
Amendments.  Any amendments to this Agreement shall be made in writing and signed by all parties hereto.

 

	
16.  

	
Enforceability; Remedies.  If any provision of this Agreement shall be invalid or unenforceable, in whole or in part, then such provision shall be deemed to be modified or restricted to the extent and in the manner necessary to render the same valid and enforceable, or shall be deemed excised from this Agreement, as the case may require, and this Agreement shall be construed and enforced to the maximum extent permitted by law as if such provision had been originally incorporated herein as so modified or restricted or as if such provision had not been originally incorporated herein, as the case may be. The Management Company shall reimburse the Company reasonable attorney's fees incurred by the Company in connection with the collection or attempt to collect, any damages arising from the Management Company's failure to fulfill any provisions or responsibility provided herein.  The remedies set forth in this Agreement shall be cumulative and no one shall be construed as exclusive of any other or of any remedy provided by law, and failure of any party to exercise any remedy at any time shall not operate as a waiver of the right of such party to exercise any remedy for the same or subsequent default at any time thereafter.

 

	
17.  

	
Governing Law, Venue and Jurisdiction.  This Agreement shall be construed and interpreted in accordance with the internal laws of the State of Massachusetts without giving effect to principles of conflicts of laws thereunder.

 

  

9

  

	
18.  

	
Assignment.

 

	
a.  

	
By the Company.  The rights and obligations of the Company under this Agreement shall inure to the benefit of, and shall be binding upon, the successors and assigns of the Company.

 

	
b.  

	
By the Management Company.  This Agreement and the obligations created hereunder may not be assigned by the Management Company, and any such purported assignment shall be null and void ab initio.

 

	
19.  

	
Notices.  All notices, requests, consents and other communications hereunder to any party shall be deemed to be sufficient if contained in a written instrument delivered in person or duly sent by certified mail, postage prepaid, by an overnight delivery service, charges prepaid, or by confirmed telecopy, in each case addressed to such party at the address set forth below or such other address as may hereafter be designated in writing by the addressee to the addressor:

 

If to the Company:                                               LipimetiX Development, LLC

50 Lands End Lane

Sudbury, MA 01776

Attention: Dennis I. Goldberg, Ph.D.

Facsimile: 978-443-2364

with a copy to:                                                      Capstone Therapeutics Corp.

1275 West Washington Street

Tempe, Arizona 85281

Attention: John M. Holliman, III,

Executive Chairman

Facsimile: 480-907-1113

 

If to the Management Company:

Benu BioPharma, Inc

c/o Dr. Dennis I. Goldberg, President

50 Lands End Lane

Facsimile:   (978) 443-2364

Any party may from time to time change its address for the purpose of notices to that party by a similar notice specifying a new address, but no such change shall be deemed to have been given until it is actually received by the party sought to be charged with its contents.

 

	
20.  

	
Waivers.  No claim or right arising out of a breach or default under this Agreement shall be discharged in whole or in part by a waiver of that claim or right unless the waiver is supported by consideration and is in writing and executed by the aggrieved party hereto or its duly authorized agent.  A waiver by any party hereto of a breach or default by the other party hereto of any provision of this Agreement shall not be deemed a waiver of future compliance therewith, and such provisions shall remain in full force and effect.

 

[Signature Page Follows.]

 

  

10

  

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered effective as of the Effective Date.

 

"COMPANY"

LipimetiX Development, LLC.

By: __________________________

Name: Dennis I. Goldberg, Ph.D.

Title: Manager

"MANAGEMENT COMPANY"

Benu BioPharma, Inc.

By: __________________________

Name: Dennis I. Goldberg, Ph.D.

Title: President

The following parties are executing this Agreement with respect to, and intend to be bound by, Sections 6 (Non-Disclosure and Non-Competition), 7 (Inventions, Discoveries and Ownership), 8 (Company Documentation), 9 (Injunctive Relief) and 11 (Representations and Warranties) only.

 

__________________________

Dennis I. Goldberg, Ph.D.

 

__________________________

Philip M. Friden, Ph.D.

 

__________________________

Eric M. Morrel, Ph.D.

Signature Page - Management Agreement

  

  

  

EXHIBIT A

MANAGEMENT SERVICES

The following representatives of the Management Company shall be appointed and shall serve in the designated roles and perform all duties associated with these roles, as described below.

Dennis I. Goldberg, Ph.D. – President

Phillip M. Friden, Ph.D. – Vice President, Product Development

Eric M. Morrel, Ph.D. – Vice President, Clinical Research

 

  

A-1

  

EXHIBIT B

MANAGEMENT FEE PAYMENT SCHEDULE

	
Line Item

	 	
1-Aug-2012

	 	 	
Months 2-12

	 	 	
1-Aug-2013

	 	 	
Months 14-24

	 	 	
1-Aug-2014

	 	 	
Months 26-27

	 
	
Salaries, taxes and benefits

	 	 	58,599	 	 	 	58,599	 	 	 	58,599	 	 	 	58,599	 	 	 	58,599	 	 	 	58,599	 
	
Rent

	 	 	6,667	 	 	 	1,667	 	 	 	1,667	 	 	 	1,667	 	 	 	1,667	 	 	 	1,667	 
	
Office supplies

	 	 	7,667	 	 	 	667	 	 	 	667	 	 	 	667	 	 	 	667	 	 	 	667	 
	
MIS

	 	 	3,000	 	 	 	1,000	 	 	 	1,000	 	 	 	1,000	 	 	 	1,000	 	 	 	1,000	 
	
Liability Insurance

	 	 	5,000	 	 	 	 	 	 	 	5,000	 	 	 	 	 	 	 	5,000	 	 	 	 	 
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Monthly Total

	 	$	80,933	 	 	$	61,933	 	 	$	66,933	 	 	$	61,933	 	 	$	66,933	 	 	$	61,933	 

 

 

B-1

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