Document:

ex_120512.htm

Exhibit 10.1

 

SHARE PURCHASE AGREEMENT

 

THIS SHARE PURCHASE AGREEMENT made the 31 day of July, 2018, among:

 

CEN BIOTECH INC., a corporation incorporated under the laws of Ontario, Canada

 

(the “Purchaser”)

 

- and -

 

AstralENERGY Solar Manufacturing Corporation, LTD aka AstralENERGY, a corporation incorporated under the laws of Ontario, Canada

 

(the “Vendor”)

 

WHEREAS:

 

	
			A.

				
			AstralENERGY Solar Manufacturing Corporation, LTD (the “Corporation”) is a corporation incorporated pursuant to the laws of Canada;

			

 

	
			B.

				
			The Corporation has synergistic assets to those of the Purchaser and other assets but requires additional management expertise to advance its business operations and plans to achieve future profitability;

			

 

	
			C.

				
			The Purchaser has the ability to combine these assess to advance the strategies of both companies and has significant management expertise;

			

 

	
			D.

				
			The Purchaser wishes to acquire 70% control of the Corporation in order to deploy the assets of the Corporation efficiently and effectively so that the Corporation will advance;

			

 

	
			E.

				
			The Purchaser wishes to purchase, and the Vendor wish to sell sufficient Common Shares in the capital of the Corporation equal to 70% on the terms and conditions herein contained.

			

 

 

 

 

NOW THEREFORE the parties hereto covenant and agree as follows:

 

Article 1      

Interpretation

 

	
			1.1

				
			Defined Terms. In this Agreement and in the Schedules hereto, unless there is something in the subject matter or context inconsistent therewith, the following terms and expressions will have the following respective meanings:

			

 

	 	
			(a)

				
			“Act” means the Business Corporations Act (Ontario);

			

 

	 	
			(b)

				
			“Agreement” means this agreement, including all schedules, and all instruments supplementing or amending or confirming this agreement and references to “Article” or “Section” are to the specified article or section of this agreement;

			

 

	 	
			(c)

				
			“Business” means the business carried on by the Corporation;

			

 

	 	
			(d)

				
			“Business Day” means any day other than a day which is a Saturday, a Sunday or a statutory holiday in the Province of Ontario;

			

 

	 	
			(e)

				
			“Closing” means the closing of the purchase and sale of the Purchased Shares after:

			

 

	 	
			(i)

				
			the execution and delivery of the Share Purchase Agreement and such other agreements as may be required to effect the transaction contemplated herein; and

			

 

	 	
			(ii)

				
			satisfaction of the conditions of closing more particularly set out in this Agreement;

			

 

	 	
			(f)

				
			“Closing Date” means the day on which the Vendor and Purchaser agree to complete the transactions contemplated by this Agreement;

			

 

	 	
			(g)

				
			“Closing Documents” means any document delivered at or subsequent to the Closing Time as provided in or pursuant to this Agreement;

			

 

	 	
			(h)

				
			“Closing Time” mutually agreed time and location on the Closing Date or such other time on the Closing Date as the parties hereto may agree upon;

			

 

	 	
			(i)

				
			“Common Shares” means the common shares in the capital of the Corporation;

			

 

	 	
			(j)

				
			“Corporation” means AstralENERGY Solar Manufacturing Corporation LTD;

			

 

	 	
			(k)

				
			“Encumbrance” means any pledge, lien, restriction, charge, security agreement, lease, title retention agreement, mortgage, encumbrance, option or adverse claim, of any kind or character whatsoever;

			

 

	 	
			(l)

				
			“Financial Records” means the audited financial statements of the Corporation for the fiscal years ended December 31, 2016 and December 31, 2017;

			

 

- 2 -

 

 

	 	
			(m)

				
			“Person” means and includes any individual, corporation, partnership, firm, joint venture, syndicate, association, trust, government, governmental agency or board or commission or authority, and any other form of entity or organization;

			

 

	 	
			(n)

				
			“Purchased Shares” means an aggregate of 70% of the common shares in the capital of the Corporation being sold by the Vendor and purchased by the Purchaser hereunder; and

			

 

	 	
			(o)

				
			“Purchaser’s Counsel” means Blaney McMurtry LLP.

			

 

	
			1.2

				
			Best of Knowledge. Any reference herein to “the best of the knowledge” of a party or parties will be deemed to mean the actual knowledge of a party or parties and the knowledge which they would have had if they had conducted a diligent inquiry into the relevant subject-matter.

			

 

	
			1.3

				
			Schedules. The Schedules which will be attached to this Agreement are incorporated into this Agreement by reference and are deemed to be part hereof.

			

 

Schedule “A”     -     Financial Records

Schedule “B”     -     Assets

 

	
			1.4

				
			Currency. Unless otherwise indicated, all dollar amounts referred to in this Agreement are in lawful money of USD.

			

 

	
			1.5

				
			Choice of Law and Attornment. This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein.

			

 

	
			1.6

				
			Interpretation Not Affected by Headings or Party Drafting. The division of this Agreement into articles, sections, paragraphs, subsections and clauses and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement.

			

 

	
			1.7

				
			Time of Essence. Time shall be of the essence hereof.

			

 

Article 2      

Purchase and Sale

 

	
			2.1

				
			Purchased Shares. Subject to the terms and conditions of this Agreement, the Vendor hereby agrees to sell, assign and transfer to the Purchaser, and the Purchaser hereby agrees to purchase and accept from the Vendor, the Purchased Shares as follows.

			

 

 

	
			2.2

				
			Satisfaction of Purchase Price. Purchase shall be paid and satisfied in full on Closing by way of the issuance of 2,500,000 common shares of the Purchaser (the “CEN Biotech Inc.”) to the Vendor.

			

 

- 3 -

 

 

	
			2.3

				
			Time and Place of Closing. The Closing will take place at the Time of Closing at the office of or at such other place as may be agreed upon by the parties or their respective counsel prior to the Closing Date.

			

 

Article 3      

Representations and Warranties

 

	
			3.1

				
			Accuracy. Each of the Parties hereby represents and warrants to the other and confirms that the other is relying upon the accuracy of each of such representations and warranties in connection with the purchase of the Purchased Shares and the completion of the other transactions hereunder:

			

 

	
			3.2

				
			Representations and Warranties of the Vendor. Each of the Vendor hereby represents and warrants, jointly and severally, to the Purchaser as follows:

			

 

	 	
			(a)

				
			The Vendor have good right, full power and absolute authority to enter into this Agreement and to sell, assign and transfer the Purchased Shares to the Purchaser in the manner contemplated herein and to perform all of the Vendor obligations under this Agreement.

			

 

	 	
			(b)

				
			The Corporation is incorporated and validly subsisting in all respects under the laws of its jurisdiction of incorporation and has all necessary corporate power to own its properties and to carry on its business as it is now being conducted.

			

 

	 	
			(c)

				
			The authorized capital of the Corporation consists of an unlimited number of Common Shares, of which only (to be provided) Common Shares are issued and outstanding, all of which are owned by the Vendor and are outstanding as fully paid and non-assessable shares. The Vendor own all of the issued and outstanding shares of the Corporation as the shareholders of record and as the beneficial owners, with good and marketable title thereto, free and clear of any and all Encumbrances.

			

 

	 	
			(d)

				
			No Person, other than Purchaser, has any oral or written agreement, option, warrant, right, privilege or any other right capable of becoming any of the foregoing (whether legal, equitable, contractual or otherwise), with respect to the Common Shares and the Purchased Shares.

			

 

	 	
			(e)

				
			There are no shareholders’ agreements, pooling agreements, voting trusts or other similar agreements with respect to the ownership or voting of any of the Common Shares of the Corporation.

			

 

	 	
			(f)

				
			The financial records to be provided to the Purchaser prior to Closing will have been prepared in accordance with generally accepted accounting principles, are true, correct and complete in all material respects and present fairly the financial condition of the Corporation as at the actual time of closing. No information, records or systems pertaining to the operation or administration of the Business are in the possession of, recorded, stored, maintained by or otherwise dependent on any other person.

			

 

- 4 -

 

 

	 	
			(g)

				
			The Corporation has filed annual tax returns to year end 2016. The Corporation has not, as of the date of closing, incurred a tax liability at any level of government jurisdiction, which at the Closing Time will remain unsatisfied.

			

 

	 	
			(h)

				
			The Corporation is the owner of and has good and marketable title to all of its properties and assets free and clear of all Encumbrances whatsoever. No other person owns any assets which are being used in the Business. There are no agreements or commitments to purchase property or assets by the Corporation, other than in the ordinary course of the Business. As of the date of this Agreement the assets of the Corporation are as set out in Schedule “B” attached hereto.

			

 

	 	
			(i)

				
			To the best of the Vendor’ knowledge there is no litigation, known or threatened related to the Corporation.

			

 

	 	
			(j)

				
			There are no changes to current employees of the Corporation and there are no new employee claims or obligations outstanding as accrued as of the date of this Agreement.

			

 

	
			3.3

				
			Representations and Warranties of the Purchaser. The Purchaser represent and warrants to the Vendor as follows:

			

 

	 	
			(a)

				
			Neither the execution nor the delivery of this Agreement nor the fulfillment or compliance with any of the terms contained in this Agreement will conflict with, or result in a breach of the terms, conditions or provisions of, or constitute default under any agreement or instrument to which the Purchaser may be subject.

			

 

	 	
			(b)

				
			The Purchaser has good right and absolute authority to enter into this Agreement and to purchase the Purchased Shares from the Vendor in the manner contemplated herein and to perform all of the Purchaser’s obligations under this Agreement.

			

 

	 	
			(c)

				
			The Purchaser is not a “non-Canadian” for purposes of and within the meaning of the Investment Canada Act, R.S.C. 1985, c. 28 (1st Supp.).

			

 

	 	
			(d)

				
			When issued in accordance with the terms of this Agreement, the CEN Biotech Inc. Shares issued hereunder will be duly issued and outstanding as fully paid and non-assessable shares of the Purchaser.

			

 

	 	
			(e)

				
			The entering into this Agreement by the Purchaser and the consummation of the transactions contemplated hereby does not and will not conflict with and does not and will not result in a breach of any of the terms, conditions or provisions of the constating documents or by-laws of the Purchaser or any statute, law or regulation applicable to the Purchaser or any agreement or instrument to which the Purchaser is a party.

			

 

- 5 -

 

 

	 	
			(f)

				
			The issuance of the CEN Biotech Inc. Shares to the Vendor is exempt from or otherwise not subject to prospectus and registration requirements of applicable securities laws and all proceedings required to be taken by the Purchaser have been taken, or approvals, permits, consents or authorizations of regulatory authorities required to be obtained by the Purchaser have been obtained under the applicable securities laws to permit the purchase of Purchased Shares.

			

 

	 	
			(g)

				
			It is knowledgeable of, or has been independently advised as to, the application of the securities laws of the jurisdiction which would apply to the purchase of Purchased Shares by it, and it is purchasing the Purchased Shares pursuant to exemptions from the prospectus and registration requirements (or their equivalent) under the applicable securities laws of that jurisdiction or, if such is not applicable, it is permitted to purchase the Purchased Shares under the applicable securities laws of the jurisdiction without the need to rely on an exemption and it will make all filings and otherwise comply with all applicable securities laws.

			

 

	 	
			(h)

				
			The sale and delivery of the Purchased Shares which it has agreed to purchase pursuant to this Agreement complies with all laws applicable to it, including the laws of its jurisdiction of residence, and all other applicable laws, and will not cause the Vendor to become subject to, or require it to comply with, any disclosure, prospectus, filing or reporting requirements under any applicable laws of such jurisdiction.

			

 

	 	
			(i)

				
			It acknowledges and agrees that the completion of the transaction contemplated by this Agreement may trigger the requirement for it, the Vendor or the Corporation, as the case may be, to disclose to applicable regulatory authorities the transactions contemplated by this Agreement.

			

 

	
			3.4

				
			Survival of Warranties. The representations and warranties made by the Purchaser and the Vendor in this Agreement or contained in any document or certificate given in order to carry out the transactions contemplated hereby, will survive the Closing of the purchase of the Purchased Shares provided for herein.

			

 

Article 4

Covenants

 

	
			4.1

				
			Covenants of the Vendor. The Vendor covenants to the Purchaser that, until Closing, he will do or cause to be done the following:

			

 

	 	
			(a)

				
			Except as contemplated by this Agreement or with the prior written consent of the Purchaser until Closing, the Vendor will cause the Corporation to:

			

 

	 	
			(i)

				
			operate the Business only in the ordinary course thereof, consistent with past practices;

			

 

- 6 -

 

 

	 	
			(ii)

				
			promptly advise the Purchaser of any facts that come to the Vendor attention which would cause any of the Vendor representations and warranties herein contained to be untrue in any respect;

			

 

	 	
			(iii)

				
			maintain all of the Corporation’s tangible properties and assets in the same condition as they now exist, ordinary wear and tear excepted;

			

 

	 	
			(iv)

				
			ensure that the Corporation does not sell or otherwise dispose of any of its properties or assets except in the ordinary course of the Business; and

			

 

	 	
			(v)

				
			not take any action to amend the articles of incorporation or by-laws of the Corporation.

			

 

	 	
			(b)

				
			At or before the Closing Time, the Vendor will cause all necessary steps and corporate proceedings to be taken in order to permit the Purchased Shares to be duly and regularly transferred to the Purchaser.

			

 

	 	
			(c)

				
			At or before the Closing Time, the Vendor will cause the Corporation to appoint one (1) person designated in writing by the Purchaser, as directors and officers of the Corporation which will be effective at the Closing Time.

			

 

	 	
			(d)

				
			Indemnify the Purchaser, in full in respect of:

			

 

	 	
			(i)

				
			any current and future employee claims;

			

 

	 	
			(ii)

				
			any current or future claims in respect of any permits, HST and payroll accounts; and

			

 

	 	
			(iii)

				
			any warranty claims on work completed by the Corporation.

			

 

	
			4.2

				
			Covenants of the Purchaser

			

 

The Purchaser covenants to the Vendor that it will do or cause to be done on or prior to Closing the following:

 

	 	
			(a)

				
			Prior to the Closing Time and, if the transaction contemplated hereby is not completed, at all times after the Closing Time, the Purchaser will keep confidential all information obtained by them relating to the Corporation and the Business, except such information which:

			

 

	 	
			(i)

				
			prior to the date hereof was already in the possession of the Purchaser as demonstrated by written records;

			

 

	 	
			(ii)

				
			is generally available to the public, other than as a result of a disclosure by the Purchaser; or

			

 

- 7 -

 

 

	 	
			(iii)

				
			is made available to the Purchaser on a non-confidential basis from a source other than the Vendor or his representatives.

			

 

	 	
			(b)

				
			The Purchaser further agrees that such information will be disclosed only to those of its employees and representatives of its advisors who need to know such information for the purposes of evaluating and implementing the transaction contemplated hereby.

			

 

Article 5

Conditions 

 

	
			5.1

				
			Conditions to the Obligations of the Purchaser. Notwithstanding anything herein contained, the obligation of the Purchaser to complete the transactions provided for herein will be subject to the fulfillment of the following conditions at or prior to the Closing Time, and each of the Vendor covenants to use his best efforts to ensure that such conditions are fulfilled.

			

 

	 	
			(a)

				
			No Employees. The Corporation shall not have any employees as of the Closing Date.

			

 

	 	
			(b)

				
			No Liabilities. The Corporation shall not have any liabilities related to any permits, licences, sales tax and payroll accounts as of the Closing Date and the Vendor shall have provided the Purchaser with proof of payment any such accounts.

			

 

	 	
			(c)

				
			Accuracy of Representations and Warranties and Performance of Covenants. The representations and warranties of the Vendor contained in this Agreement or in any documents delivered in order to carry out the transactions contemplated hereby shall be true and accurate on the date hereof and at the Closing Time with the same force and effect as though such representations and warranties had been made as of the Closing Time (regardless of the date as of which the information in this Agreement is given).

			

 

	 	
			(d)

				
			Consents. All consents required to be obtained in order to carry out the transactions contemplated hereby in compliance with all laws and agreements binding on the parties hereto shall have been obtained.

			

 

	 	
			(e)

				
			Directors’ Approval.  The Board of Directors of the Purchaser has approved the purchase of the Purchased Shares pursuant to this Agreement.

			

 

	 	
			(f)

				
			Financial Statements. The Vendor shall have provided the Purchaser with audited financial statements of the Corporation for the fiscal years ended December 31, 2015 and December 31, 2016.

			

 

	 	
			(g)

				
			Intellectual Property. All claims related to the intellectual property held by the Company or any of its officers must be validated and confirmed to Purchaser’s sole satisfaction. All necessary documentation to transfer intellectual property must be prepared and executed at the time of closing.

			

 

- 8 -

 

 

	 	
			(h)

				
			Knowhow. As part of the transfer of intellectual property Company or the related officers, directors or employees must agree in writing to transfer all knowhow related the intellectual property included in this transaction.

			

 

	 	
			(i)

				
			Receivables or Funding. The Company agrees to make best efforts to collect any and all receivables due to the Company. The Company further agrees any money collected or raised, from the execution date of this agreement until closing, can only be used, spent, committed or invested with written review and approval from Purchaser.

			

 

	
			5.2

				
			Waiver or termination by Purchaser. The conditions contained in Section 5.1 hereof are inserted for the exclusive benefit of the Purchaser and may be waived in whole or in part by the Purchaser at any time. The Vendor acknowledge that the waiver by the Purchaser of any condition or any part of any condition shall constitute a waiver only of such condition or such part of such condition, as the case may be, and shall not constitute a waiver of any covenant, agreement, representation or warranty made by the Vendor herein that corresponds or is related to such condition or such pat of such condition, as the case may be. If any of the conditions contained in Section 5.1 hereof are not fulfilled or complied with as herein provided, the Purchaser may, at or prior to the Closing Time at its option, rescind this Agreement by notice in writing to the Vendor and in such event the Purchaser shall be released from all obligations hereunder and, unless the condition or conditions which have not been fulfilled are reasonably capable of being fulfilled or caused to be fulfilled by the Vendor or the Corporation, then the Vendor shall also be released from all obligations hereunder.

			

 

	
			5.3

				
			Conditions to the Obligations of the Vendor. Notwithstanding anything herein contained, the obligations of the Vendor to complete the transactions provided for herein will be subject to the fulfillment of the following conditions at or prior to the Closing Time, and the Purchaser will use its best efforts to ensure that such conditions are fulfilled.

			

 

	 	
			(a)

				
			Accuracy of Representations and Warranties and Performance of Covenants. The representations and warranties of the Purchaser contained in this Agreement or in any documents delivered in order to carry out the transactions contemplated hereby will be true and accurate on the date hereof and at the Closing Time with the same force and effect as though such representations and warranties had been made as of the Closing Time (regardless of the date as of which the information in this Agreement is given). In addition, the Purchaser shall have complied with all conditions precedent herein agreed to be performed or caused to be performed by it at or prior to the Closing Time.

			

 

	 	
			(b)

				
			Consents. All consents required to be obtained in order to carry out the transactions contemplated hereby in compliance with all laws and agreements binding on the parties hereto shall have been obtained.

			

 

- 9 -

 

 

	
			5.4

				
			Waiver or Termination by Vendor. The conditions contained in Section 5.3 hereof are inserted for the exclusive benefit of the Vendor and may be waived in whole or in part by the Vendor at any time. The Purchaser acknowledges that the waiver by the Vendor of any condition or any part of any condition shall constitute a waiver only of such condition or such part of such condition, as the case may be, and shall not constitute a waiver of any covenant, agreement, representation or warranty made by the Purchaser herein that corresponds or is related to such condition or such pat of such condition, as the case may be. If any of the conditions contained in Section 5.3 hereof are not fulfilled or complied with as herein provided, the Vendor may, at or prior to the Closing Time at their option, rescind this Agreement by notice in writing to the Purchaser and in such event the Vendor shall each be released from all obligations hereunder and, unless the condition or conditions which have not been fulfilled are reasonably capable of being fulfilled or caused to be fulfilled by the Purchaser, then the Purchaser shall also be released from all obligations hereunder.

			

 

Article 6

Closing

 

	
			6.1

				
			Closing Arrangements. Subject to the terms and conditions hereof, the transaction contemplated herein shall be closed at the Closing Time at the offices of the Purchaser or at such other place or places as may be mutually agreed on by the Vendor and the Purchaser.

			

 

	
			6.2

				
			Documents to be Delivered. At or before the Closing Time, the Vendor shall execute, or cause to be executed, and shall deliver, or cause to be delivered, to the Purchaser all documents, instruments and things which are to be delivered by the Vendor pursuant to the provisions of this Agreement, and the Purchaser shall execute, or cause to be executed, and shall deliver, or cause to be delivered, to the Vendor all cheques or bank drafts and all documents, instruments and things which the Purchaser is to deliver or to cause to be delivered pursuant to the provisions of this Agreement.

			

 

Article 7

Indemnification

 

	
			7.1

				
			Indemnity by the Vendor. The Vendor hereby agrees, jointly and severally, to indemnify and save the Purchaser, harmless from and against any claims, demands, actions, causes of action, damage, loss, deficiency, cost, liability and expense which may be made or brought against the Purchaser or which the Purchaser may suffer or incur as a result of, in respect of or arising out of any non-performance or non-fulfillment of any covenant or agreement on the part of the Vendor contained in this Agreement or any misrepresentation, inaccuracy, incorrectness or breach of any representation or warranty made by the Vendor contained in this Agreement.

			

 

	
			7.2

				
			Indemnity by the Purchaser. The Purchaser hereby agrees to indemnify and save the Vendor and the Corporation, jointly and severally, harmless from and against any claims, demands, actions, causes of action, damage, loss, deficiency, cost, liability and expense which may be made or brought against the Vendor or which the Vendor may suffer or incur as a result of, in respect of or arising out of any non-performance or non-fulfillment of any covenant or agreement on the part of the Purchaser contained in this Agreement or any misrepresentation, inaccuracy, incorrectness or breach of any representation or warranty made by the Purchaser contained in this Agreement.

			

 

- 10 -

 

 

	
			7.3

				
			Rights in Addition. The rights of indemnity set forth in this Article 7 are in addition and supplemental to any other rights, actions, claims or causes of action which may arise in respect of this Agreement, any Closing Document and the transactions contemplated hereby.

			

 

Article 8

General Provisions

 

	
			8.1

				
			Further Assurances. Each of the Vendor and the Purchaser hereby covenant and agree that at any time and from time to time after the Closing Date they will, on the request of the others, do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered all such further acts, deeds, assignments, transfers, conveyances and assurances as may be required for the better carrying out and performance of all the terms of this Agreement.

			

 

	
			8.2

				
			Independent Legal Advice. The Vendor have been advised and acknowledge that Purchaser’s Counsel is acting solely as counsel to the Purchaser and not as counsel to the Vendor or the Corporation. The Vendor have been further advised to obtain independent legal tax and accounting advice with respect to this Agreement and all other documents arising herefrom or received by them from the Purchaser, prior to executing or delivering this Agreement or any other such documents to the Purchaser. The Vendor acknowledge that they are solely responsible for obtaining such tax, legal and other professional advice as they consider appropriate in connection with the execution, delivery and performance by them of this Agreement and the transactions contemplated hereunder.

			

 

	
			8.3

				
			Notices.

			

 

	 	
			(a)

				
			Any notice, designation, communication, request, demand or other document, required or permitted to be given or sent or delivered hereunder to any party hereto shall be in writing and shall be sufficiently given or sent or delivered if it is delivered personally to an officer or director of such party, sent to the party entitled to receive it by registered mail, postage prepaid, mailed in Canada (deemed received on the third Business day after mailing) or sent by electronic transmission (deemed received by the time and date indicated on the transmission report).

			

 

	 	
			(b)

				
			Notices shall be sent to the following addresses or emails:

			

 

	
			in the case of the Purchaser:

				 	
			CEN Biotech Inc.

			richard@cenbiotechinc.com

			
	
			in the case of Vendor

				 	
			AstralENERGY@energysinc.com

			

 

or to such other address or fax number as the party entitled to or receiving such notice shall, by a notice given in accordance with this section, have communicated to the party giving or sending or delivering such notice.

 

- 11 -

 

 

	
			8.4

				
			Expenses of Parties. Each of the parties hereto shall bear all expenses incurred by it in connection with this Agreement including, without limitation, the charges of their respective counsel, accountants, financial advisors and finders.

			

 

	
			8.5

				
			Assignment. The rights of the Vendor hereunder shall not be assignable without the written consent of the Purchaser. The rights of the Purchaser hereunder shall not be assignable without the written consent of the Vendor.

			

 

	
			8.6

				
			Successors and Assigns. This Agreement shall be binding on and ensure to the benefit of the parties hereto and their respective successors and permitted assigns. Nothing herein, express or implied, is intended to confer on any person, other than the parties hereto and their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

			

 

	
			8.7

				
			Entire Agreement. This Agreement and the Schedules referred to herein constitute the entire agreement between the parties hereto and supersede all prior agreements, representations, warranties, statements, promises, information, arrangements and understandings, whether oral or written, express or implied, with respect to the subject matter hereof. None of the parties hereto shall be bound or charged with any oral or written agreements, representations, warranties, statements, promises, information, arrangements or understandings not specifically set forth in this Agreement or in the Schedules, documents and instruments to be delivered on or before the Closing Date pursuant to this Agreement. The parties hereto further acknowledge and agree that, in entering into this Agreement and in delivering the Schedules, documents and instruments to be delivered on or before the Closing Date, they have not in any way relied, and will not in any way rely, on any oral or written agreements, representations, warranties, statements, promises, information, arrangements or understandings, express or implied, not specifically set forth in this Agreement or in such Schedules, documents or instruments.

			

 

	
			8.8

				
			Waiver.  Any party hereto which is entitled to the benefits of this Agreement may, and has the right to, waive any term or condition hereof at any time on or prior to the Closing Time; provided, however, that such waiver shall be evidenced by written instrument duly executed on behalf of such party.

			

 

	
			8.9

				
			Amendments.  No modification or amendment to this Agreement may be made unless agreed to by the parties hereto in writing.

			

 

	
			8.10

				
			Counterparts. This Agreement may be executed in several counterparts, each of which so executed shall be deemed to be an original, and such counterparts together shall constitute but one and the same instrument.

			

 

- 12 -

 

 

IN WITNESS WHEREOF the parties hereto have duly executed this Agreement under sea as of the day and year first above written.

 

	 	 	
			CEN BIOTECH INC.

			 

			 

			Per:_/s/ Richard Boswell

			Richard Boswell

			Title: CFO & Director

			I have authority to bind the Corporation

			
	 	 	 
	
			WITNESS:

			 

			 

			____/s/ Christian Gallant________

			(Signature of Witness)

			 

			 

			___Christian Gallant______

			(Print Name) 

			 

			WITNESS:

			 

			 

			___/s/Dilimulat Yaermainmaiti____

			(Signature of Witness)

			 

			 

			___Dilimulat Yaermainmaiti______

			 

			 

			Director AstralENERGY

			(Print Name)

				
			)

			)

			)

			)

			)

			)

			)

				
			 

			 

			 

			_____/s/Michael Peter Levesque ______

			AstralENERGY Solar Manufacturing LTD

			 

			 

			Name: Michael Peter Levesque

			 

			 

			

			Title: Chief Technology Officer

			 

			 

			

			I have authority to bind the Corporation

			

 

- 13 -Document

*[ ] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Exhibit 10.1

AMENDMENT TO
LICENSE AND COLLABORATION AGREEMENT

This Amendment (this “Amendment”) is effective as of May 10, 2018 (the “Amendment Effective Date”), and is entered into by and between MERCK SHARP & DOHME CORP., a corporation organized and existing under the laws of New Jersey (“Merck”), and BIOPROTECTION SYSTEMS CORPORATION, a corporation organized and existing under the laws of Delaware (“NewLink”) and a wholly owned subsidiary of NEWLINK GENETICS CORPORATION, a corporation organized and existing under the laws of Delaware (“NL”).

RECITALS:

WHEREAS, Merck and NewLink are parties to that certain License and Collaboration Agreement dated November 21, 2014, and further amended on December 5, 2017 (the “Agreement”); and

WHEREAS, Merck and NewLink desire to further amend the Agreement as set forth herein.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants herein contained, the receipt and sufficiency of which are hereby acknowledged, Merck and NewLink hereby agree as follows:

1. The Parties acknowledge and agree that Merck has requested that NewLink transfer to Merck the NewLink Future Funding Agreements as set forth on Schedule 3.10, as amended by this Amendment, and that necessary consents for the assignments of these NewLink Funding Agreements have been obtained, in accordance with Section 3.10.4 of the Agreement. In order to effect this transfer, (i) Schedule 3.10 is deleted in its entirety and replaced with a revised Schedule 3.10 provided in this Amendment and (ii) Section 2.9.4 of the Agreement is hereby deleted in its entirety and replaced with the following:

2.9.4  Assignment of Certain Existing Agreements. At the written request of Merck, NewLink shall, to the extent legally permissible (and, to the extent consent is required from the relevant counterparty, NewLink shall use reasonable efforts to obtain such consent), (i) assign to Merck (or its Affiliate) certain NewLink Third Party Agreements (as designated in Schedule 2.9.4) and/or (ii) assist Merck (or its Affiliate) in entering into new agreements directly with the counterparties to the NewLink Third Party Agreements, as applicable, in each case of (i) and/or (ii), as and to the extent requested by Merck; provided that NewLink shall not be obligated to assign any such NewLink Third Party Agreement if such NewLink Third Party Agreement is necessary for NewLink to perform its obligations under a NewLink Funding Agreement.  In the event that any NewLink Third Party Agreement is assigned to Merck, NewLink shall be solely responsible for, and shall indemnify and hold harmless Merck and all other Merck Indemnities for and against any costs and other Liabilities arising from, or related to, any such NewLink Third Party Agreements as a result of, or in 

connection with, events or occurrences prior to the date of such assignment (including, for clarity, any payments that were committed to prior to the date of such assignment, but which do not become payable until after the date of such assignment).  The Parties understand that certain agreements set forth in Schedule 2.9.4 below authorize expenditures of funds that, in the absence of further instructions to the subcontractor, could result in the amount billed under such agreement exceeding the amounts authorized under the NewLink Future Funding Agreements.  Notwithstanding the indemnification set forth in the Agreement and this paragraph, NewLink shall not be liable for any costs any other Liabilities related to such agreements which result from the subcontractor exceeding the authorized amounts under the NewLink Future Funding Agreements.  In the event that a given NewLink Third Party Agreement is assigned to Merck in accordance with this Section 2.9.4, then such NewLink Third Party Manufacturing Agreement shall no longer be a “NewLink Third Party Agreement” for the purposes of this Agreement.

2. The Parties acknowledge and agree that Merck has requested that, for a period of twelve (12) months following the execution of this Amendment (the “[*] Transition Period”), NewLink maintain that certain agreement between [*] and BioProtection Systems Corp. effective as [*] concerning [*] (the “[*]”).  NewLink agrees that it will use reasonable efforts to maintain the [*] for the duration of the [*] Transition Period.  Merck shall reimburse NewLink for NewLink’s reasonable expenses incurred in the course of maintaining the [*] including ongoing cost of [*] if reasonably required [*] and consultant fees, plus the greater of (i) [*] of the total of such expenses or (ii) [*] per quarter or any portion thereof.  NewLink shall bill Merck quarterly and Merck shall remit payment within 30 days of the date of each invoice.  

Throughout the [*] Transition Period, Merck shall provide quarterly updates to NewLink regarding (i) [*]  In the event it becomes apparent that [*] during the [*] Transition Period, for  
purposes of clarity, then commercially reasonable efforts shall include [*]. 

The [*] Transition Period will end upon the earlier of (a) written notice from Merck; (b) [*] or (c) the end of the twelve (12) month period, unless extended as set forth below.

Provided that, as evidenced by the quarterly reports provided set forth above, Merck has made commercially reasonable efforts to [*], Merck may request extension of the [*] Transition Period.  During any such extension then, in addition to the reimbursement obligations set forth above, Merck shall pay NewLink [*] for each month of extension or any part thereof. 

3. Merck shall indemnify, defend and hold the NewLink Indemnitees harmless from and against any Liabilities arising, directly or indirectly out of or in connection with or relating to performance by any NewLink Indemnitee and/or any Third Party of the obligations set forth in Section 2 above; except to the extent such Liabilities result from the gross negligence or willful misconduct of New Link or other New Link Indemnitees.  THE SERVICES TO BE PERFORMED BY NEW LINK UNDER THIS AMENDMENT ARE FURNISHED AS IS, WHERE IS, WITH ALL FAULTS AND WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. 

*[ ] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

4. Capitalized terms used and not defined herein shall have the meaning ascribed to such terms in the Agreement. All references herein to paragraph or section location shall relate to the corresponding paragraph or section in the Agreement.

5. Except as specifically set forth in this Amendment, the Agreement will continue in full force and effect without change. If there is any conflict between the terms of this Amendment and the Agreement, this Amendment will govern.

6. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. In addition, this Amendment may be executed by facsimile or “PDF” and such facsimile or “PDF” signature shall be deemed to be an original.

7. This Amendment shall be governed by and construed in accordance with the laws of the State of New York and the patent laws of the United States without reference to any rules of conflict of laws or renvoi.

[Signature Page Follows] 

*[ ] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

IN WITNESS WHEREOF, the Parties have executed this Amendment as of the Amendment Effective Date.

									
	MERCK SHARP & DOHME CORP.
		BIOPROTECTION SYSTEMS

			
	By: /s/ Benjamin Thorner
		By: /s/ Carl Langren

			
	Name:  Benjamin Thorner
		Name: Carl Langren

			
	Title: SVP and Head of BD&L
		Title: VP Finance

*[ ] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Schedule 3.10

NewLink Future Funding Agreements
•    [*] 
•    [*]
•    [*]

*[ ] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Schedule 2.9.4

NewLink Third Party Agreements to be Assigned to Merck
									
	[*] 	[*] 	[*] 
	[*] 	[*] 	[*] 
	[*] 	[*] 	[*] 
	[*] 	[*] 	[*] 
	[*] 	[*] 	[*] 
	[*] 	[*] 	[*] 
	[*] 	[*] 	[*] 
	[*] 	[*] 	[*] 
	[*] 	[*] 	[*] 
	[*] 	[*] 	[*] 
	[*] 	[*] 	[*] 

*[ ] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

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