Document:

ex_103575.htm

EXHIBIT 4.1

 

 

THIS SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. 

 

 

PROMISSORY NOTE

 

	Principal Amount:  $500,000.00     	Issuance Date: January 23, 2018
	Maturity Date:     April 23, 2018	 

 

FOR VALUE RECEIVED, Authentidate Holding Corp., a Delaware corporation (the “Borrower”), with its principal offices located at 2225 Centennial Drive, Gainesville, GA 30504 hereby promises to pay to HANIF A. ROSHAN (the “Holder”) at such address as the Holder designates in writing to the Borrower, the principal sum of FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) (the “Principal Amount”), on the Maturity Date stated above. This Note is a direct obligation of the Borrower and ranks subordinate to the outstanding debt securities previously issued by Borrower. 

 

1.      Interest on this Note shall be computed at the rate of 5% per annum, payable in arrears on the Maturity Date, at which time all accrued and unpaid interest shall be immediately due and payable. All computations of interest payable hereunder shall be on the basis of a 360-day year and actual days elapsed in the period for which such interest is payable. Accrued interest on the outstanding principal amount shall be due and payable on the Maturity Date in cash. Payments of all amounts due hereunder shall be made in lawful money of the United States. 

 

2.     Payment of the Principal Amount of this Note, and interest thereon, shall be made upon the surrender of this Note to the Borrower, at its chief executive office (or such other office within the United States as shall be designated by the Borrower to the Holder hereof) (the “Designated Office”), in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts. If the Maturity Date shall be a Saturday or a Sunday or shall be a legal holiday in the State of Georgia, then such action may be taken or such right may be exercised on the next succeeding day on which banking institutions in the State of Georgia are open to conduct business. 

 

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3.     Exchange Right.   

 

(a)     For as long the Note remains outstanding, the Holder shall have the right, in accordance with the terms hereof, to exchange the principal amount of the Note (and unpaid interest thereon) into the securities of the Borrower (the “New Securities”) sold in the Next Financing (defined below). The Holder may exchange all, but not less than all, of the principal amount of the Note, and any accrued and unpaid interest thereon, for the New Securities in the Next Financing upon the same price and other terms and conditions as pertains to the Next Financing and shall be required to execute such agreements pertaining to the Next Financing as the Borrower and the other investors participating in the Next Financing shall execute. In calculating the number of New Securities to be issued to the Holder, such number shall be rounded down to the nearest whole number. The Borrower shall not issue any fractional New Securities under any circumstances, but shall pay to the Holder any cash amounts in respect of the value of any fractional New Securities that may have been issuable in the absence of the aforementioned prohibition. As used herein, the term “Next Financing” shall mean the closing of a sale of equity or debt securities by the Borrower, or series of closings, as part of the same transaction, of equity or debt securities within a period of three months, wherein the Borrower receives cash proceeds in the gross amount of at least $1,000,000, excluding any transaction that is an Exempt Issuance, as defined below (the “Next Financing”). The Holder may exercise this right at any time and from time to time prior to repayment of this Note in accordance with the provisions of paragraph 3(b) of this Note. 

 

(b)     Mechanics. To exchange the Note into the Next Financing, upon no less than two (2) business days’ written notice by the Holder to the Borrower, the Holder shall send by facsimile (or otherwise deliver) a notification of its intent to exercise the exchange right herein. The Holder shall surrender or cause to be surrendered the Note as soon as practicable thereafter to the Borrower, and pay any transfer taxes or other applicable taxes or duties, if required.  The Borrower shall not be obligated to issue New Securities unless either the Note is delivered to the Borrower as provided above, or the Holder notifies the Borrower that the Note has been lost, stolen or destroyed and delivers to the Borrower an affidavit of loss in a form reasonably acceptable to the Borrower. As promptly as practicable on or after the closing of the Next Financing, the Borrower shall issue and deliver to the Holder such number of securities of the Borrower issuable to it in the Next Financing. The Holder is not entitled to any rights of a holder of New Securities until the Note has been surrendered and exchanged (or an appropriate affidavit of loss has been accepted) for such New Securities in the Next Financing and the closing of such Next Financing has occurred. Upon such event, the rights of the Holder of the Note as the Holder hereof shall cease, and the person or persons entitled to receive the New Securities shall be deemed to be a holder of record of such New Securities. 

 

(c)     As used herein, the term “Exempt Issuance” means the issuance of (i) any securities of the Borrower to employees, officers, or directors of the Borrower or other eligible person pursuant to any stock or option plan duly adopted for such purpose, by a majority of the non-employee members of the Board of Directors or a majority of the members of a committee of non-employee directors established for such purpose (for purposes of clarity, the issuance of shares of Common Stock upon exercise of options or vesting of restricted stock units granted pursuant to such an equity compensation plan subsequent to the date hereof shall also be an Exempt Issuance), (ii) securities upon the exercise, exchange or conversion of any equity securities of the Borrower issued and outstanding as of the Issuance Date of this Note (including shares of common stock that the Borrower may issue pursuant to the presently outstanding shares of preferred stock in lieu of cash dividends thereon), (iii) securities issued pursuant to mergers, acquisitions or strategic transactions approved by a majority of the disinterested directors of the Borrower, provided that any such issuance shall only be to a person (or to the equityholders of a person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic with the business of the Borrower and shall provide to the Borrower additional benefits in addition to the investment of funds (for purposes of clarity, an Exempt Issuance shall not include a transaction in which the Borrower is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities), (iv) shares of Common Stock (or securities convertible into or exercisable or exchangeable for shares of Common Stock) which may be issued to consultants, vendors, lessors, distributors or similar persons, to the Borrower as consideration for services or assets provided to the Borrower (and the shares of Common Stock which may be issued upon exercise or conversion of convertible securities issued to the class persons specified in this clause), and (v) shares of Common Stock or other securities issued in connection with any stock split, stock dividend or recapitalization of the Borrower.

 

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4.        Events of Default. 

 

(a)       For purposes of this Note, an “Event of Default” shall consist of any of the following events: 

 

(1)      The Borrower shall fail to pay any portion of the Principal Amount of this Note, or any interest due thereon, when the same becomes due and payable, whether at the Maturity Date or at any accelerated date of maturity or at any other date fixed for payment, and such default continues for 10 days or more.

 

(2)     the occurrence of any default under, redemption of or acceleration prior to maturity of any indebtedness of the Company or any of its subsidiaries, other than in any amount not in excess of an aggregate of $150,000;

 

(3)      bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be instituted by or against the Company or any Subsidiary and, if instituted against the Company or any Subsidiary by a third party, shall not be dismissed within sixty (60) days of their initiation; 

 

(4)      the commencement by the Company or any Subsidiary of a voluntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the filing by it of a petition seeking reorganization or relief under any applicable federal, state or foreign law, or the making by it of an assignment for the benefit of creditors, or the execution of a composition of debts, or the occurrence of any other similar federal, state or foreign proceeding, or the admission by it in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by the Company or any Subsidiary in furtherance of any such action; 

 

(5)      the entry by a court of (i) a decree, order, judgment or other similar document in respect of the Company or any Subsidiary of a voluntary or involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other similar law or (ii) a decree, order, judgment or other similar document adjudging the Company or any Subsidiary as bankrupt or insolvent, or approving as properly filed a petition seeking liquidation, reorganization, arrangement, adjustment or composition of or in respect of the Company or any Subsidiary under any applicable federal, state or foreign law or (iii) a decree, order, judgment or other similar document appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or any Subsidiary or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree, order, judgment or other similar document or any such other decree, order, judgment or other similar document unstayed and in effect for a period of sixty (60) consecutive days; 

 

(6)      a final judgment or judgments for the payment of money aggregating in excess of $150,000 are rendered against the Company and/or any of its Subsidiaries and which judgments are not, within forty-five (45) days after the entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within thirty (30) days after the expiration of such stay; provided, however, any judgment which is covered by insurance or an indemnity from a credit worthy party shall not be included in calculating the $150,000 amount set forth above so long as the Company provides the Holder a written statement from such insurer or indemnity provider (which written statement shall be reasonably satisfactory to the Holder) to the effect that such judgment is covered by insurance or an indemnity and the Company or such Subsidiary (as the case may be) will receive the proceeds of such insurance or indemnity within forty-five (45) days of the issuance of such judgment; 

 

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(7)      the Company and/or any Subsidiary, individually or in the aggregate, either (i) fails to pay, when due, or within any applicable grace period, any payment with respect to any indebtedness in excess of $150,000 due to any third party (other than, with respect to unsecured indebtedness only, payments contested by the Company and/or such Subsidiary (as the case may be) in good faith by proper proceedings and with respect to which adequate reserves have been set aside for the payment thereof in accordance with GAAP) or is otherwise in breach or violation of any agreement for monies owed or owing in an amount in excess of $150,000, which breach or violation permits the other party thereto to declare a default or otherwise accelerate amounts due thereunder, or (ii) suffer to exist any other circumstance or event that would, with or without the passage of time or the giving of notice, result in a default or event of default under any agreement binding the Company or any Subsidiary, which default or event of default would or is likely to have a material adverse effect on the business, assets, operations (including results thereof), liabilities, properties, condition (including financial condition) or prospects of the Company or any of its Subsidiaries, individually or in the aggregate; 

 

(8)      other than as specifically set forth in another clause of this Section 4(a), the Company or any Subsidiary breaches, in any material respect, any representation, warranty, covenant or other term or condition of this Note (except, in the case of a breach of a covenant or other term or condition that is curable, only if such breach remains uncured for a period of ten (10) consecutive business days after notice of breach from Holder or fifteen (15) consecutive business days from when the Company became aware of such breach (in each case, subject to any grace or cure period provided therein); or

 

(9)      Any material representation or warranty of the Borrower herein shall prove to have been false in any material respect upon the date when made.

 

(b)     Acceleration of Payment. If an Event of Default (other than an Event of Default arising from events described in clauses (3), (4) and/or (5) of Section 4(a)) occurs and is continuing with respect to the Note, the Holder may declare all of the then outstanding Principal Amount of this Note, including any interest to the date of payment immediately due and payable. Upon a declaration of acceleration, such principal and premium, if any, and accrued and unpaid interest, to the date of payment shall be immediately due and payable. Upon the occurrence of an Event of Default arising from events described in clauses (3), (4) and/or (5) of Section 4(a), this Note shall become due and payable automatically, without any declaration or other act on the part of the Holder. In the event of such acceleration, the amount due and owing to the Holder shall be 110% of the outstanding Principal Amount of this Note (plus all accrued and unpaid interest and late charges, if any). The Company hereby, to the fullest extent permitted by applicable law, waives presentment, demand, or any other notice of any other kind (except as otherwise specifically set forth herein), in connection with performance, default, acceleration or enforcement of or under this Note. Upon the payment in full of the amounts due under this Note, the Holder shall promptly surrender this Note to or as directed by the Borrower.

 

(c)       Collections. If an Event of Default with respect to this Note occurs and is continuing, the Holder may pursue any available remedy by proceeding at law or in equity to collect the defaulted payment or to enforce the performance of any provision of this Note. Notwithstanding any other provision in this Note, the Holder of this Note shall have the right, which is absolute and unconditional, to receive payment of the Principal Amount in respect of the Note held by the Holder, on or after the final Maturity Date, or to bring suit for the enforcement of any such payment on or after such date, and such rights shall not be impaired or affected adversely without the consent of the Holder.

 

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(d)       No Exclusive Right or Remedy. Except as otherwise provided herein, no right or remedy conferred in this Note upon the Holder is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. No delay or omission of the Holder of this Note to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or any acquiescence therein.  Every right and remedy given by this Section 4 or by law to the Holder may be exercised from time to time, and as often as may be deemed expedient, by the Holder.

 

5.        Transferability; Loss and Replacement.

 

(a)     This Note has not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state or other jurisdiction.  Neither this Note nor any interest or participation herein may be reoffered, sold, assigned, transferred, pledged, encumbered or otherwise disposed of (a “Transfer”) in the absence of registration under the Securities Act and any applicable state securities laws, or unless (i) such transaction is exempt from, or not subject to, registration under the Securities Act or the securities laws of any state or other jurisdiction and (ii) is made in compliance with applicable federal and state statutory resale restrictions, if any.  The Holder by its acceptance of this Note agrees that it shall not offer, sell, assign, transfer, pledge, encumber or otherwise dispose of this Note or any portion thereof or interest therein other than in a minimum denomination of $50,000 principal amount (or any integral multiple of $10,000 in excess thereof) and then (other than with respect to a Transfer pursuant to a registration statement that is effective at the time of such Transfer) only (a) to the Borrower, (b) to an affiliate of the Holder, (c) to a Person it reasonably believes to be an “accredited investor” within the meaning of Rule 501(a) under the Securities Act, or (d) pursuant to a transaction in compliance with Rule 144 or Rule 144A under the Securities Act, and in the case of (b), (c) and (d) above in which the transferor furnishes the Borrower with such certifications, legal opinions or other information as the Borrower may reasonably request to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act as applicable. 

 

(b)     By receipt and acceptance of this Note, Holder and any permitted transferee represents and warrants to the Borrower that (i) it is an “accredited investor” as defined in Rule 501(a) under the Securities Act; (ii) either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Note, and has so evaluated the merits and risks of such investment; (iii) is able to bear the economic risk of an investment in the Note and, at the present time, is able to afford a complete loss of such investment; (iv) understands that the Note will be characterized as “restricted securities” under U.S. federal securities laws and have not been and are not being registered under the Securities Act or any state securities laws, must be held indefinitely and may not be offered for sale, sold, assigned or transferred except in accordance therewith and (vii) it has reviewed the Borrower’s filings with the Securities and Exchange Commission and has been afforded (A) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Borrower concerning the terms and conditions of this Note and the merits and risks of the prospective investment in the Note and the Borrower generally and, (B) it has access to information about the Borrower and its subsidiaries and their respective financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate the terms and conditions of this Note and the merits and risks of the prospective investment in the Borrower.

 

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(c)     The Transfer of this Note is registrable on the books of the Borrower upon surrender of this Note for registration of Transfer at the Borrower’s designated office, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Borrower duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Notes, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.  Prior to due presentation of this Note for registration of Transfer, the Borrower and any agent of the Borrower may treat the Person in whose name this Note is registered as the owner thereof for all purposes, whether or not this Note be overdue, and neither the Borrower nor any such agent shall be affected by notice to the contrary. Upon presentation of this Note for registration of Transfer at the Borrower’s designated office accompanied by (i) certification by the transferor that such Transfer is in compliance with the terms hereof and (ii) by a written instrument of Transfer in a form approved by the Borrower executed by the Holder, in person or by the Holder’s attorney thereunto duly authorized in writing, and including the name, address and telephone and fax numbers of the transferee and name of the contact person of the transferee, such Note shall be transferred on the note register maintained by the Company, and a new Note of like tenor and bearing the same legends shall be issued in the name of the transferee and sent to the transferee at the address and care of the contact person so indicated.  Transfers and exchanges of Notes shall be subject to such additional restrictions as are set forth in the legends on the Notes and to such additional reasonable regulations as may be prescribed by the Borrower as specified herein.  Successive registrations of Transfers as aforesaid may be made from time to time as desired, and each such registration shall be noted on the Note register. No Transfer shall be allowed except to an “accredited investor” as defined under the rules and regulations of the Securities and Exchange Commission.

 

(d)     Upon receipt by the Borrower of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Note, and in the case of loss, theft or destruction, receipt of indemnity reasonably satisfactory to the Borrower and upon surrender and cancellation of this Note, if mutilated, the Borrower will deliver a new Note of like tenor and dated as of such cancellation, in lieu of such Note.

 

6.        Miscellaneous.

 

(a)     This Note constitutes the entire agreement between the parties relating to the subject matter hereof and supersedes any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Neither this Note nor any term hereof may be amended or waived orally or in writing, except that any term of this Note may be amended and the observance of any term of this Note may be waived (either generally or in a particular instance and either retroactively or prospectively), and such amendment or waiver shall be applicable upon the written approval of the Borrower and the Holder. Section headings used herein are for convenience of reference only and shall not affect the construction of, or be taken into consideration in interpreting, this Note.

 

(b)     All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws of the State of Georgia, without regard to the principles of conflict of laws thereof.

 

(c)     Upon the occurrence and during the continuance of an Event of Default under this Note, the Borrower shall, upon demand, pay to the Holder the amount of any and all reasonable costs and expenses (including reasonable attorneys’ fees) that Holder may incur in connection with the enforcement or collection of this Note. 

 

(d)     No failure or delay on the part of the Holders hereof in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies.

 

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(e)       The Borrower hereby, to the fullest extent permitted by applicable law, waives presentment, demand, notice (including without limitation notice of default (except as otherwise specifically set forth herein), notice of protest, notice of intention to accelerate maturity, notice of acceleration of maturity and notice of nonpayment or dishonor), protest and all other demands and notices in connection with delivery, acceptance, performance, default, acceleration or enforcement of or under this Note, and the bringing of suit and diligence in taking any action to collect amounts owing hereunder or in proceeding against any of the rights and properties securing payment hereof, and is directly and primarily liable for the amount of all sums owing or to be owing hereon. No extension of the time for the payment of this Note made by agreement with any person now or hereafter liable for the payment of this Note shall operate to release, discharge, modify, change or affect the original liability of the Borrower under this Note.

 

(f)     To the extent that Holder receives any payment on account of any of Borrower’s obligations under this Note, and any such payment(s) or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, subordinate and/or required to be repaid to a trustee, receiver or any other person or entity under any bankruptcy act, state or federal law, common law or equitable cause, then, to the extent of such payment(s) received, the Borrower’s obligations or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment(s) had not been received by the Holder and applied on account of Borrower’s obligations. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of the Borrower, which is absolute and unconditional, to pay the Principal Amount of, and accrued interest, on this Note at the time, place, and rate, and in the coin or currency, herein prescribed. 

 

(g)     If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances. If the Borrower is at any time required or obligated to pay interest hereunder at a rate that would be in excess of a statutory or legally permitted rate, then the rate of interest shall be deemed to be immediately reduced to such maximum rate and the interest payable shall be computed at such maximum rate and any prior interest payments in excess of such maximum rate shall be applied and shall be deemed to have been payments in reduction of the principal balance of this Note.  

 

(h)     Any and all notices or other communications or deliveries to be provided by the Holder shall be in writing and delivered personally, by facsimile, or sent by a nationally recognized overnight courier service (e.g., FedEx), addressed to the Borrower, at the address set forth above, or such other facsimile number or address as the Borrower may specify for such purposes by notice to the Holder delivered in accordance with this Section 6(h). Any and all notices or other communications or deliveries to be provided by the Borrower shall be in writing and delivered personally, by facsimile, or sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile number or address of the Holder appearing on the books of the Borrower, or if no such facsimile number or address appears on the books of the Borrower, at the principal place of business of such Holder. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on any date, (ii) the next business day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a business day or later than 5:30 p.m. (New York City time) on any business day, (iii) the second business day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (iv) upon actual receipt by the party to whom such notice is required to be given.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the Borrower has caused this Note to be executed as of the Issuance Date.

 

	
			 

				
			BORROWER: 

			 

			AUTHENTIDATE HOLDING CORP.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Michael J. Poelking

				
			 

			
	
			 

				
			Name:

				
			Michael J. Poelking

				
			 

			
	
			 

				
			Title:

				
			Chief Financial Officer

				
			 

			

 

8ex_103576.htm

EXHIBIT 10.1

 

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT (the “Agreement”) is made, entered and effective as of January 4th, 2018 (the “Effective Date”), by and between Authentidate Holding Corp. d/b/a Aeon Global Health, a Delaware corporation (“AEON”), and Dr. Armando Moncada, MD, a Georgia resident (“MONCADA” and/or “Consultant”).

 

RECITALS:

 

	 	
			A.

				
			AEON owns and operates Peachstate Health Management, LLC a/k/a AEON Clinical Laboratories, and desires to engage MONCADA, as an independent contractor, to provide certain Consulting Services (as defined herein) to AEON on the terms and conditions as provided herein;

			

 

	 	
			B.

				
			MONCADA is a physician who is duly licensed to practice medicine in the State of Georgia, and is board certified in pathology, and has agreed to provide Consulting Services to AEON on the terms and conditions as provided herein; and,

			

 

	 	
			C.

				
			The parties desire to memorialize their understanding with respect to the terms and conditions upon which MONCADA will provide such Consulting Services to AEON.

			

 

NOW, THEREFORE, in consideration of the foregoing and the mutual promises and covenants hereinafter set forth, and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.         Engagement. AEON hereby engages MONCADA as its Chief Medical Officer -- Pathology Division, and in such capacity MONCADA agrees to provide the services described herein upon the terms and conditions herein specified. MONCADA hereby accepts such engagement and agrees to provide such services to AEON upon the terms and conditions herein specified. It is understood and agreed that in the performance of the Consulting Services, duties, and obligations set forth in this Agreement, that MONCADA shall at all times be acting and performing as an independent contractor, and nothing contained herein is intended to create, nor shall this Agreement be construed as creating, a relationship of employer-employee, principal-agent, or partnership between the parties.

 

2.         Reporting and Scope of Services. MONCADA shall report to either the Chief Executive Officer or President of AEON and shall consult with, and provide counsel and advice to, AEON on such matters relating to the operation and management of, and the resulting testing stemming from, the pathology laboratory of AEON (See Exhibit “A” attached hereto; collectively, the “Consulting Services”). The Consulting Services shall be performed at such times as AEON and MONCADA agree upon; provided, however, MONCADA acknowledges and agrees that during the scheduled times during that MONCADA is providing professional services hereunder, MONCADA shall provide such services solely and exclusively pursuant to the terms hereof, and shall devote his full-time and attention during such times to the provision of such services hereunder. 

 

 Consulting Agreement by and between Authentidate Holding Corp.

 d/b/a Aeon Global Health and Dr. Armando Moncada, MD

 

 

 

All Consulting Services to be performed by MONCADA hereunder shall be performed in a professional manner and within any deadlines or time frames which are agreed to between AEON and MONCADA. MONCADA understands that in performing any Consulting Services for AEON, MONCADA will assume full responsibility for such Consulting Services. In addition, MONCADA acknowledges and agrees that MONCADA shall be obligated to use his best efforts to perform the Consulting Services hereunder.

 

The “Primary Business of AEON”, as used herein, shall mean the medical laboratory testing services (including, but not limited to, toxicology, pharmacogenomics, molecular biology, cancer genetics/genomics, blood wellness panels, and any other testing service which AEON may choose to offer at any time in its sole discretion. 

 

3.       Term. The term of this Agreement shall begin on the Effective Date and, subject to earlier termination pursuant to the terms of this Agreement, shall terminate on December 31, 2020 (the “Term”). 

 

4.        Compensation. 

 

(a)     In consideration of the Consulting Services to be performed by MONCADA pursuant to this Agreement, AEON shall pay the following fees to MONCADA (collectively, the “Consulting Fees”): 

 

(1)     The sum of $40,000 upon the Parties’ execution of this Agreement; and,

(2)     The monthly sum of $25,000 commencing on February 1, 2018, and continuing thereafter through December 31, 2020; and,

(3)     The sum of $40,000 on or before the dates of January 15, 2019, and January 15, 2020. 

 

In addition to the above, and subject to approval of AEON’s Board of Directors, provided that this Agreement has not been sooner terminated or no event has occurred which would constitute a Default (including an event that with notice or lapse of time or both would become a Default), and MONCADA is not currently in breach of any of his obligations hereunder, upon MONCADA completing his third (3rd) year of service to AEON on or about December 31, 2020, then AEON will grant MONCADA an equity award consisting of two hundred eighty thousand (280,000) restricted shares of restricted common stock or restricted stock units (the “Stock”), with such vesting and other terms as shall be determined by the Board of Directors, with the Stock being transferred on or about January 15, 2021.

 

(b)     Unless AEON and MONCADA agree, in writing, otherwise with respect to any expenses incurred by MONCADA, the Consulting Fees payable to MONCADA under Section 4(a) hereof represent the entire obligation of AEON, and MONCADA shall be responsible for the payment of all costs and expenses incurred in connection with the performance of any Consulting Services hereunder. Furthermore, MONCADA shall be responsible and pay for all applicable taxes and fees on the Consulting Fees paid by AEON, including any self-employment taxes and/or payroll taxes, if applicable.

 

 Consulting Agreement by and between Authentidate Holding Corp.

 d/b/a Aeon Global Health and Dr. Armando Moncada, MD

- 2 -

 

 

5.           Termination.

 

(a)         Termination by AEON.  

 

(1)     Termination for Default by MONCADA.  Notwithstanding any other provisions of this Agreement, AEON may, at any time, upon notice to MONCADA, terminate this Agreement as a result of a Default by MONCADA. For purposes of this Agreement, “Default” shall mean any of the following:      

 

(A)     MONCADA’s breach of any of the enumerated terms of this Agreement, together with the failure to cure such breach within thirty (30) days following written notice thereof, which such notice specifying with particularity the nature of any such breach; 

 

(B)     MONCADA’s neglect of or failure to perform the Consulting Services assigned to MONCADA by AEON (or failure to perform the Consulting Services in accordance with the standards set forth in Section 2 hereof), together with the failure to cure such neglect or non-performance within ten (10) days written following notice thereof, which such notice specifying with particularity the nature of any such neglect or non-performance;

 

(C)     MONCADA’s medical license, in the state where AEON is located and in any other state where MONCADA has obtained a medical license, is surrendered (voluntarily or involuntarily), revoked, suspended, limited or conditioned in any way;

 

(D)     MONCADA is excluded from participation in the Medicare, Medicaid, Tricare or any other federal or state healthcare insurance program, or MONCADA’s status as a participating provider in any such program is otherwise terminated, suspended or conditioned in any way;

 

(E)     AEON reasonably suspects that MONCADA is using or is under the influence of illegal drugs, alcohol or over-the-counter or prescription medication while rendering his services to AEON hereunder and that the use of such substances, in AEON reasonable determination, has impaired MONCADA’s medical judgment and performance or otherwise put AEON at risk;

 

(F)     MONCADA is indicted for, and subsequently pleads guilty or nolo contendere to, or is convicted of any criminal offense; or, 

 

(G)     MONCADA’s theft, embezzlement, misappropriation, confiscation of, or infliction of material damage to AEON’s property or business opportunities.

 

Termination pursuant to this Section 5(a) shall result in MONCADA’s immediate forfeiture of all rights and privileges under this Agreement, excluding, however, accrued Consulting Fees which shall be payable as provided in Section 4 above after allowing for the deduction or set-off of any amounts owed to AEON by MONCADA. MONCADA affirmatively acknowledges and agrees that set-off is permissible.

 

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(2)      Termination without Default by MONCADA. AEON may terminate this Agreement, without Default by MONCADA and for any reason, by delivering to MONCADA thirty (30) days’ written notice of termination. In the event that this Agreement is terminated pursuant to this Section 5(a)(2), AEON shall pay to MONCADA the Consulting Fees earned through the date of such termination and shall also continue to pay the then applicable Consulting Fee for a period of one (1) month following the termination of the Agreement (collectively, the “Company Termination Payment”) only if MONCADA executes a general release containing obligations and covenants that are no more restrictive than those contained in this Agreement in favor of AEON and its Affiliates in the form and substance that is reasonably satisfactory to AEON. 

 

(b)     Termination as a Result of the Death or Incapacity of Consultant. This Agreement and MONCADA’s engagement hereunder shall be automatically terminated upon the death or legal incapacity (as determined by a licensed physician selected by AEON) of MONCADA. Termination pursuant to this Section 5(b) shall result in MONCADA’s immediate forfeiture of all rights and privileges under this Agreement, excluding, however, accrued Consulting Fees, which shall be payable as provided in Section 4 above, allowing for deduction or set-off of any amounts owed to AEON by MONCADA. Consultant affirmatively acknowledges and agrees that set-off is permissible.

 

(c)      Termination by Consultant. 

 

(1)     Termination as a Result of a Default by AEON. MONCADA may terminate this Agreement at any time, upon notice to AEON, if AEON fails to cure any breach or default on the part of AEON within thirty (30) days following written notice thereof, which such notice shall specify with particularity the nature of any such breach or default. In the event of a termination under this Section 5(c)(1), AEON shall pay to MONCADA the Consulting Fees earned through the date of such termination and shall continue to pay the then applicable Consulting Fee for a period of one (1) month following termination of the Agreement (collectively, the “Consultant Termination Default Payment”) only if MONCADA executes a general release containing obligations and covenants that are no more restrictive than the ones contained in this Agreement in favor of AEON and its Affiliates in the form and substance that is reasonably satisfactory to AEON.

 

(2)     Termination without Default by AEON. MONCADA may terminate this Agreement at any time by giving AEON thirty (30) days’ written notice of its intent to terminate this Agreement. Termination pursuant to this Section 5(c)(2) shall result in MONCADA’s immediate forfeiture of all rights and privileges under this Agreement, excluding, however, accrued Consulting Fees, which shall be payable as provided in Section 4 above, allowing for deduction or set-off of any amounts owed to AEON by MONCADA. Consultant affirmatively acknowledges and agrees that set-off is permissible.

 

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 d/b/a Aeon Global Health and Dr. Armando Moncada, MD

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(d)     Return of Materials. Upon the request of AEON and, in any event, upon the termination of this Agreement for any reason, MONCADA shall: (i) return to AEON and leave at its disposal all memoranda, notes, records, drawings, manuals, computer programs, documentation, diskettes, computer tapes, and other documents or media pertaining to the business of AEON (including all copies of such materials). MONCADA shall also return to AEON and leave at its disposal all materials involving any Trade Secrets or Confidential Information of AEON and (ii) cooperate in good faith with AEON in winding-down the provision of Consulting Services. This Section 5(e) applies to all materials made or compiled by MONCADA, as well as to all materials furnished to MONCADA by AEON or anyone else in connection with MONCADA’s relationship with AEON. 

 

6.           Ownership Acknowledgement and Assignment. 

 

(a)     For purposes of this Agreement, the following definitions shall apply: (1) the “Company” means Authentidate Holding Corp., and any division, Affiliate, subsidiary (including, but not limited to, Peachstate Health Management, LLC d/b/a Aeon Clinical Laboratories), associated company or successor in business to any of the foregoing, and (2) “Work Product” means all conceptual, technological, operating, training, marketing or other ideas, processes, designs, developments, and materials, specifically including all customer lists, customer contracts, inventions, discoveries, improvements, enhancements, computer programs, written or other materials in any way pertaining to the existing or contemplated business, products or services of AEON, that MONCADA may develop or conceive of during MONCADA’s relationship with AEON (including, but not limited to, any dental or medical testing protocols with respect to patient cancer screening through saliva or other collection methodologies), alone or with others, during or after working hours, and with or without the use of the resources of AEON. The determination of whether a Work Product exists should be made according to whether the development has any possible significance to AEON in AEON's existing or contemplated business, regardless of whether it is technically eligible for protection under patent, copyright, trade secret, or other proprietary rights or intellectual property laws.

 

(b)     MONCADA acknowledges and agrees that all Work Product shall be considered “made for hire” by MONCADA for AEON and prepared within the scope of MONCADA's relationship with AEON for the ownership and benefit of AEON. During the Term, MONCADA agrees to make and maintain adequate and current tangible records of such Work Product. MONCADA will, upon AEON’s request, promptly disclose all such Work Product to AEON and make available to AEON any work papers, models, diskettes, computer tapes, or other tangible incidents of such Work Product, it being expressly understood and agreed that such Work Product is solely and exclusively the property of the Company. MONCADA specifically agrees that all copyrightable materials generated or developed under this Agreement shall be considered works made for hire under U.S. copyright law and that all such materials shall, upon creation, be likewise owned exclusively by AEON. To the extent that any such material, under applicable law, may not be considered works made for hire, MONCADA hereby assigns to AEON the ownership of copyright in such materials, without the necessity of any further consideration, and AEON shall be entitled to register and hold in its own name all copyrights in respect of such materials. MONCADA agrees to assign to AEON, in full, any right that MONCADA may acquire now or in the future with respect to any such Work Product. MONCADA irrevocably waives and relinquishes any moral rights recognized by any applicable law in any Work Product. MONCADA agrees to perform, upon the request of AEON, any acts that may be necessary or desirable to transfer ownership of all such Work Product to AEON or to establish original ownership of all such Work Product on the part of AEON, to the fullest extent possible. Such obligations shall continue for a period of no more than seven (7) years beyond the termination of MONCADA’s relationship with AEON with respect to any Work Product that is authored, conceived, produced or made by MONCADA during the period of such relationship, and shall be binding upon MONCADA’s heirs, executors, administrators and other legal representatives.

 

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(c)     When requested by AEON, MONCADA shall: (1) execute, acknowledge and deliver any requisite affidavits and documents of assignment and conveyance; (2) aid in the obtaining and enforcement of patents or copyrights with respect to any patentable or copyrightable Work Product in any countries; (3) provide testimony in connection with any proceeding affecting the right, title, or interest of AEON in any trade secret, patent, patent application, copyright, mask work or any other type of proprietary right covering any such development by MONCADA using any products or materials of AEON; and (4) perform any other acts deemed reasonably necessary or desirable by AEON to carry out the purposes of this Agreement. AEON shall reimburse MONCADA for any reasonable out-of-pocket expenses incurred at the request of AEON in the process of perfecting ownership by AEON of any Work Product or transferring ownership thereof to AEON or in taking any of the actions requested by AEON under this Section 6(c). To effectuate the terms of this Section, MONCADA hereby irrevocably constitutes and appoints AEON, with full power of substitution therein, as MONCADA's true and lawful attorney-in-fact to exercise the rights assigned hereby. This power of attorney is irrevocable and coupled with an interest and shall survive the termination of MONCADA's relationship with AEON.

 

(d)      As a condition precedent of this Agreement, upon this Agreement’s execution MONCADA, in both his individual capacity and as the controlling member, shareholder, manager, officer, or director of those entities known as Pathology Consultants of Georgia, Inc. and PCG Molecular, LLC (and any other entity with whom MONCADA may have associated himself with), agrees to assign and otherwise transfer to AEON, in toto, any and all of the rights and interests to any and all intellectual property of whatever nature or country of origin, whether such be trademarks, patents, patent applications, service marks, etc. (including, but not limited to, the testing protocols associated with MOP®, BELLA TRIPLE PAP®, MOP-IDTM, and others). MONCADA further represents and warranties to AEON that he is either the sole owner of said intellectual property, or possesses the corporate authority necessary to facilitate the assignment and transfer of ownership therein, and will indemnify AEON and its affiliates from any third-party action(s) related to AEON’s assertions of said assigned rights to same.   MONCADA recognizes and acknowledges that the assignment and transfer of such described intellectual property to AEON (including all standard operating procedures, scope of work, and other documentation related to same) is of primary importance and the foundation upon which this Agreement is predicated upon. 

 

 Consulting Agreement by and between Authentidate Holding Corp.

 d/b/a Aeon Global Health and Dr. Armando Moncada, MD

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7.        Confidentiality, Non-Disclosure, Non-Competition and Non-Solicitation. 

 

(a)     For purposes of this Agreement, the following definitions shall apply: (1) “Trade Secret” means the whole or any portion or phase of any scientific, engineering or technical information, computer code, systems configurations, design, process, procedure, formula, coding or improvement that is valuable and secret (in the sense that it is not generally known to competitors and/or customers of AEON) relating to the Primary Business of AEON, including, but not limited to (A) customer lists, the special demands of particular customers, and the current and anticipated requirements of customers generally for the products and services of AEON; (B) the specifications of any existing or new products under development; and (C) special or unique arrangements with any suppliers or other contractors; and (2) “Confidential Information” means any data or information, other than Trade Secrets, relating to the Primary Business of AEON which is disclosed to MONCADA or known by MONCADA as a consequence of, or through, MONCADA’s relationship with AEON (including information conceived, discovered, originated or developed in whole or in part by MONCADA) and not generally known by the public. Without limiting the generality of the foregoing, Confidential Information includes (without limitation): (A) the sales records, profits and performance reports, pricing manuals, sales manuals, training manuals, selling and pricing procedures and financing methods of AEON; (B) the business plans and internal financial statements and projections of AEON; and (C) any information identified as secret or confidential, or which, from the circumstances in good faith and good conscience, ought to be treated as confidential, relating to the business or affairs of AEON.

 

(b)     MONCADA acknowledges that because of his relationship with AEON, and during the course of such relationship with AEON, AEON will disclose to MONCADA, MONCADA will have access to, and MONCADA and its employees and/or agents/contractors will create, certain Confidential Information and Trade Secrets of AEON. MONCADA acknowledges that all such Trade Secrets and Confidential Information are, and at all times shall remain, the property of AEON. Nothing contained herein shall be construed so as to grant MONCADA any ownership or other rights in and to the intellectual property of AEON except as expressly stated otherwise herein. No license is granted by AEON to the Confidential Information or Trade Secrets or to any intellectual property right therein except for the limited purpose of enabling MONCADA to perform the Consulting Services pursuant to this Agreement. During MONCADA's relationship with AEON and for so long afterwards as the information or data remain Trade Secrets or Confidential Information, MONCADA agrees to hold such Trade Secrets and Confidential Information in confidence and further agrees not, except to the extent specifically required by MONCADA’s assigned duties for AEON, directly or indirectly, to use, disseminate, disclose, or permit any person to obtain any Trade Secrets or Confidential Information (whether or not in written or tangible form), except as specifically authorized in advance and in writing by AEON. MONCADA further agrees to safeguard and maintain on Company premises, to the extent possible, in the performance of MONCADA’s assigned duties for AEON, all information, documents or other items that contain or embody Trade Secrets or Confidential Information.

 

(c)     MONCADA acknowledges that because of his relationship with AEON, and during the course of such relationship, AEON and MONCADA will have access to data and financial information furnished to AEON by clients, customers, suppliers and other third parties (collectively, the “Data”). MONCADA further acknowledges that AEON may alter, recast, transform, adapt, supplement or otherwise manipulate the Data (the Data, as manipulated, being hereinafter referred to collectively as the “Altered Data”). During MONCADA’s relationship with AEON and for so long afterwards as the Data or Altered Data remain confidential, MONCADA agrees to hold the Data and Altered Data in confidence and further agrees not, except to the extent specifically required by MONCADA’s assigned duties for AEON, directly or indirectly, to use, disseminate, disclose or permit any person to obtain any Data or Altered Data, except as specifically authorized in advance and in writing by AEON. 

 

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 d/b/a Aeon Global Health and Dr. Armando Moncada, MD

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(d)     In addition, and without any intention of limiting MONCADA's other obligations under this Agreement in any way, MONCADA will not reveal any nonpublic information concerning the business, services or the proprietary products and processes of AEON (particularly those under current development or improvement), unless MONCADA has obtained written approval from AEON in advance. In that connection, MONCADA will submit to AEON for review any proposed article, paper or other discussion, explanation or description relating to the work done by MONCADA for AEON before such article, paper and/or other discussion are released or delivered to the public. AEON has the right to disapprove and prohibit, or delete any parts of, such articles, papers, discussions, explanations or descriptions that might disclose AEON’s Trade Secrets or Confidential Information or otherwise be contrary to AEON's business interests.

 

(e)      In consideration of the payment of the Consulting Fees as set forth herein, except as otherwise provided in this Section 7(e), during the Term and for a period of two (2) years following the termination of Consultant’s relationship with AEON for any reason (the “Non-Compete Period”), MONCADA covenants and agrees that MONCADA will not, without the express written approval of AEON (1) solicit any employees of AEON or any of its Affiliates located within a one hundred (100) mile radius of AEON’s principal place of business, or (2) engage in any business, directly or indirectly, as an individual, partner, shareholder, officer, director, principal, agent, employee, trustee, consultant or in any other relationship or capacity, or solicit any customer of AEON or any of its Affiliates, that offers the same products or services as the Primary Business of AEON as of the date of termination of MONCADA’s relationship with AEON located within that general geographic area described in Section 2 above; provided, however, that MONCADA may own, directly or indirectly, solely as an investment, securities or stock of any entity if MONCADA (A) is not a controlling person with respect to such entity, and (B) does not, directly or indirectly, own five percent (5%) or more of any class of the securities or stock of such entity. Notwithstanding anything to the contrary contained herein, if AEON elects to terminate this Agreement pursuant to Section 5(a)(2), then the Non-Compete Period shall continue until the earlier of: (1) the expiration of the Term, or (2) two (2) years following the date of written notice to MONCADA of the termination of this Agreement pursuant to Section 5(a)(2). 

 

8.       Independent Contractor. MONCADA is an independent contractor of AEON, and no fiduciary duty exists between the parties. MONCADA will have sole control over the manner and means of providing his services under this Agreement. Nothing in this Agreement shall be construed as creating a partnership, joint venture, employer-employee or other relationship other than that of independent parties. MONCADA is not an agent of AEON and is not authorized to make, or enter into, any contract, commitment or agreement on behalf of, or binding upon, AEON except as may be pre-approved in writing by AEON. MONCADA is prohibited from acting as, or holding himself out as, an officer, employee or agent of AEON. MONCADA further understands and agrees that he is not covered under AEON’s workers’ compensation insurance (if required by law) or state unemployment insurance coverages and that he shall be solely responsible for providing his own health insurance coverage, disability insurance coverage, worker’s compensation insurance, general liability insurance, life insurance coverage, and retirement plan benefits, if any. 

 

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 d/b/a Aeon Global Health and Dr. Armando Moncada, MD

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MONCADA hereby agrees to indemnify and hold AEON harmless from and against any and all claims, damages, losses, taxes, interest, penalties, obligations, fees or expenses (including, but not limited to, reasonable attorneys’ fees) asserted or imposed against or incurred by AEON or its officers, directors, affiliates and agents which arise out of, or which are caused by (i) the re-classification by a state or federal agency, department, division or office of the relationship described herein as an employer/employee relationship, (ii) the breach by MONCADA of any term or provision of this Agreement, (iii) the claims of any third parties with respect to the intellectual property referenced in Section 6(d) above, or (iv) any of MONCADA’s professional services or activities arising outside of this Agreement.

 

9.        Covenants.

 

(a)      In the event MONCADA determines to engage any personnel (either as an employee, consultant or other business partner) for the purpose of performing Consulting Services hereunder (any such person being a “Representative”), MONCADA agrees to be (i) directly responsible for any compensation or benefits due to such Representatives and (ii) fully responsible for the services performed by such persons hereunder. MONCADA shall be solely responsible for and shall indemnify, defend and hold AEON harmless from and against all liability for the payment of compensation, vacation pay, sick leave, social security, employment taxes, worker’s compensation, disability or unemployment insurance, premiums or claims attributable to or assessed upon the services rendered by all such individuals, firms or entities. 

 

(b)      MONCADA shall procure and shall maintain throughout the Term a professional liability insurance policy covering MONCADA and its Representatives for acts of professional negligence with policy limits of not less than $1,000,000 per occurrence, $3,000,000 in the aggregate. MONCADA agrees to include AEON as an additional insured on such professional liability insurance policy and shall provide AEON with a certificate of insurance evidencing such coverage before any work is performed under this agreement and annually thereafter.

 

(c)     The parties agree to comply with the Health Insurance Portability and Accountability Act of 1996, P.L. 104-191, and the rules and regulations implemented thereunder (“HIPAA”) and shall execute a Business Associate Agreement, the form of which is attached hereto as Exhibit B, which shall be deemed to be incorporated by reference into this Agreement. The parties further agree that their compliance with the terms and conditions of the Business Associate Agreement shall be an integral part of the relationship established hereunder and a breach of the Business Associate Agreement shall be deemed a breach of this Agreement.

 

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 d/b/a Aeon Global Health and Dr. Armando Moncada, MD

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10.      Representations and Warranties. 

 

MONCADA represents and warrants that the following are true and correct as of the date hereof, and covenants that each of the following representations and warranties shall remain true and correct throughout the Term hereof:

 

(a)     MONCADA acknowledges that he is aware that the United States securities laws restrict persons with material non-public information about a company obtained directly or indirectly from that company from purchasing or selling securities of such company, or from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities. In performing its duties hereunder, MONCADA represents that all times he and his Representatives will be in compliance with applicable laws, rules and regulations, including those of the Securities Act of 1933, and the rules and regulations promulgated there under. 

 

(b)      MONCADA has full right, power, and authority to enter into this Agreement, to perform his obligations and duties under this Agreement, and his execution, delivery, and performance of this Agreement does not and will not conflict with, violate, or result in a breach of any other agreement, judgment, order, stipulation, or decree by which he is bound. MONCADA owns or has the right to provide any confidential information in connection with providing services hereunder and the use of any intellectual property, or any part thereof, furnished under this Agreement, to the best of his knowledge, will not infringe any patent, copyright, trade secret, trademark or other proprietary right of a third party. 

 

(c)     MONCADA is not currently bound by any other consulting, employment or services agreement, restriction, or obligation, and will not assume any such obligation or restriction, which does or would in any way interfere or be inconsistent with its provisions of the Consulting Services to be furnished hereunder. 

 

(d)      MONCADA shall perform services for AEON under this Agreement in a reasonable, professional manner at all times, and in accordance with all applicable federal and state laws and regulations, generally accepted medical, surgical and scientific practices, and in accordance with standards prevailing in the community in which the services are rendered at the time of testing.

 

(e)      MONCADA understands and agrees that any equity awards issuable under this Agreement shall bear a restrictive legend and be subject to such restrictions on their transfer as are set forth in Rule 144 of the Securities Act of 1933, as amended. MONCADA represents and warrants to AEON that (i) he is acquiring the common stock of AEON for his own account for investment purposes only and not with a view to or for distributing or reselling such shares or any part thereof; (ii) he is an “accredited investor” as defined in Rule 501(a) under the Securities Act; (iii) he has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of acquiring the common stock of AEON, has so evaluated the merits and risks of such investment and is able to bear the economic risk of holding the such shares; and (iv) is not acquiring the shares of common stock as a result of any advertisement, article, notice or other communication published in any media channel or by general solicitation by a person not previously known to MONCADA.

 

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 d/b/a Aeon Global Health and Dr. Armando Moncada, MD

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(f)      MONCADA holds an unrestricted license to practice medicine in the State of Georgia and is board certified in Pathology. Further, MONCADA has never been investigated or disciplined by any peer review organization, professional society, regulatory agency, governmental authority or hospital medical staff for any reason. MONCADA will immediately report to AEON any investigation or inquiry by any hospital, other health care organization or institution, regulatory agency, governmental authority, peer review organization or professional society with respect to any event or activity of MONCADA (whether material or not), and any actions, suits or proceedings instituted or threatened against Contractor that directly or indirectly affect AEON. 

 

(g)      MONCADA has never been convicted of, plead guilty or nolo contendere to charges of, or been excluded from the Medicare program as a result of an alleged violation of any federal or state health care statute, regulation, rule or policy. MONCADA is and shall remain eligible to participate in Medicare, Medicaid, Tricare and other federal health programs. MONCADA has not been sanctioned by the Health and Human Services Officer of Inspector General (“OIG”) or excluded by the General Services Administration as set forth on the List of Excluded Providers. MONCADA covenants that it shall, during the Term, remain eligible to participate in Medicare, Medicaid, Tricare and other federal health programs and not be sanctioned by the OIG or excluded by the General Services Administration as set forth on the List of Excluded Providers. MONCADA shall immediately notify AEON in writing of any change in the foregoing.

 

11.       General.

 

(a)     Benefits of Agreement. Except as otherwise expressly provided herein, the covenants, stipulations and agreements contained in this Agreement are and shall be for the sole and exclusive benefit of the parties hereto and their respective successors and assigns, and nothing contained in this Agreement, expressed or implied, shall be construed to confer upon, or give to, any other Person any right, remedy or claim under or by reason of this Agreement as a third party beneficiary or otherwise.

 

(b)     Notice

 

(1)     All notices, demands, requests and other communications required or permitted to be given by any provision of this Agreement shall be in writing and sent by (A) commercial delivery service; (B) air or other overnight delivery service (e.g., FedEx); ; or (C) hand delivery, to the party to be notified, addressed as follows:

 

	
			If to AEON:

				
			Authentidate Holding Corp. 

			d/b/a Aeon Global Health

			2225 Centennial Drive

			Gainesville, Georgia 30504

			Attention: General Counsel, Paul S. Suda, Esq.

			Telephone:   404.219.1775

			E-mail: psuda@aeonglobalhealth.com 

			

 

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 d/b/a Aeon Global Health and Dr. Armando Moncada, MD

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			If to MONCADA: 

				
			Armando Moncada, MD

			7150 Oxbo Circle

			Cumming, Georgia 30040

			Telephone: 404.416.4589

			E-mail: amoncada@pcgmolecular.com 

			

 

(2)     Any such notice, demand, request or communication shall be deemed to have been given and received for all purposes under this Agreement: (A) On the next Business Day after the same is deposited with a nationally recognized overnight delivery service that guarantees overnight delivery (e.g., FedEx); and, (B) On the date of actual delivery to such party by any other means; provided, however, if the day that such notice, demand, request or communication shall be deemed to have been given and received as aforesaid is not a Business Day, or if delivery is made after 5:00 p.m. (recipient’s local time) on any Business Day, such notice, demand, request or communication shall be deemed to have been given and received on the next Business Day.

 

(3)     Any party to this Agreement may change such party’s address for the purpose of notices, demands, requests and communications required or permitted under this Agreement by providing written notice of such change of address to all of the parties by written notice as provided herein.

 

(c)     Interpretation. The parties hereby agree that each party has reviewed and had the opportunity to review this Agreement, and each party has had the opportunity, whether exercised or not, to have each respective party’s attorney review this Agreement. Accordingly, the normal rule of construction to the effect that any ambiguities are resolved against the drafting party shall not be employed in the interpretation of this Agreement.

 

(d)     Reasonable Restriction; Review. MONCADA acknowledges that the scope of prohibited activities and time duration of the provisions of this Agreement are reasonable, and are no broader than are necessary to maintain the confidentiality of the Confidential Information and the goodwill associated with the business of AEON. MONCADA also acknowledges that the provisions of this Agreement are not oppressive and do not and will not impose any unreasonable burden on MONCADA.

 

(e)     Non-disparagement. During the Term and thereafter, the Parties agree not to publicly disparage one another or their officers, directors, employees, members and agents, in any manner which is likely to be harmful to them or their business, business reputation or personal reputation. The Parties shall take the necessary steps to inform their officers, directors and members of senior management of their obligations under this section.     

 

(f)     Indemnity. The Parties hereby indemnify and agrees to hold one another and any of its members, officers, directors, managers, employees and/or agents harmless from and against any and all claims, demands and actions, and any liabilities, damages, or expenses resulting therefrom, including court costs and reasonable attorney fees, arising out of or relating to their respective obligations to be performed by either hereunder or any breach of any of their obligations or duties hereunder.

 

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(g)     Damages and Equitable Relief. MONCADA agrees that if he breaches any warranty or any provision of this Agreement relating to confidentiality, ownership of property (including intellectual property), non-competition or non-solicitation, the injury to AEON from any such breach would be impossible to calculate, and that money damages would therefore be an inadequate remedy for any such breach. Accordingly, MONCADA agrees that if he breaches any warranty or any provision of this Agreement relating to confidentiality, ownership of property (including intellectual property), non-competition or non-solicitation, then AEON shall be entitled, in addition to any other remedies which AEON may have, to an injunction or other appropriate order to restrain any continuation of such breach by MONCADA, and that such injunction or other appropriate order be issued without the requirement that AEON post any bond. AEON shall also be entitled to recover its reasonable attorney fees and costs incurred to enforce the obligations of MONCADA hereunder. 

 

(h)     Attorneys’ Fees. If any legal action or other proceeding is brought for the enforcement of this Agreement, or because of any alleged dispute, breach, default or misrepresentation in connection with any provisions of this Agreement and such action is successful, the prevailing party shall be entitled to recover reasonable attorney’s fees, court costs and all reasonable expenses, even if not taxable or assessable as court costs, including, without limitation, all such fees, costs and expenses incident to appeal, that are incurred in that action or proceeding, in addition to any other relief to which such party may be entitled.

 

(i)     Incorporation. All exhibits and schedules attached hereto or to be attached hereto, and all other agreements and instruments referred to herein, are hereby incorporated by reference into this Agreement as fully as if copied herein verbatim.

 

(j)     No Waiver. Each and every waiver of any covenant, representation, warranty or other provision of this Agreement must be in writing and signed by each party whose interests are adversely affected by such waiver. No waiver that is granted in any one instance shall be construed as a continuing waiver that is applicable in any other instance. No consent or waiver that is expressed or implied by any party to this Agreement to or of any breach or default by any other party to this Agreement in the performance by such other party of its obligations hereunder, shall be deemed or construed to be a consent or waiver to, or of, any breach or default of any other party of the same or any subsequent obligations hereunder. Failure on the part of any party to this Agreement to complain of any act or failure to act of any party to this Agreement or to declare such party in default, irrespective of how long such failure continues, shall not constitute a waiver by the non-defaulting parties of their rights hereunder.

 

(k)     Section Headings. The Section headings contained in this Agreement are for reference purposes only and shall not affect the interpretation of this Agreement.

 

(l)     Governing Law Arbitration. This Agreement shall be governed in all respects, including validity, interpretation and effect, by, and shall be enforceable in accordance with, the internal laws of the State of Georgia without regard to conflicts of laws principles.

 

 Consulting Agreement by and between Authentidate Holding Corp.

 d/b/a Aeon Global Health and Dr. Armando Moncada, MD

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(m)     Dispute Resolution. 

 

(1)     Arbitration. Should any dispute, controversy, difference or claim arise among the parties concerning the interpretation, performance or enforcement of this Agreement, the parties shall use their best efforts to settle such disputes amicably between themselves. However, if such efforts fail to resolve the dispute within thirty (30) days from the date that written notice of the dispute was given by one party to the other party, the parties agree that such dispute shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association (the “Rules”). The arbitration will be held as promptly as possible at such time as the arbitrator may determine; provided, however, that such arbitration shall take place in Atlanta, Georgia. The arbitrator shall determine the matters in dispute in accordance with the laws of the State of Georgia, without regard to principles of conflicts of laws. 

 

(2)     The decision of the arbitrator shall be in writing and shall set forth in detail the facts of the dispute and the reasons for the decision. The decision of the arbitrator will be final and binding upon the parties hereto, who hereby waive any appeal of such award. The expenses of the arbitration will be shared equally between the parties. The parties agree that the award of the arbitrator shall be the sole and exclusive remedy between them regarding any claims, counter-claims, issues, disputes, controversies, differences or accountings presented or pled to the arbitrator. The award of the arbitrator shall be made and shall promptly be payable in U.S. Dollars, free of any tax, deductions or offsets, and any costs, fees or taxes that are incident to enforcing the award shall, to the maximum extent permitted by law, be charged against the party resisting such enforcement. Judgment upon the award of the arbitrator may be entered in any court of competent jurisdiction, or application may be made in such court for a judicial acceptance of the award and an order of enforcement, as the case may be.

 

(n)     Severability; Blue-Penciling. If any provision of this Agreement is held to be unlawful, invalid or unenforceable under present or future laws that are effective during the Term hereof, such provision shall be fully severable, and this Agreement shall be construed and enforced without giving effect to such unlawful, invalid or unenforceable provision. Furthermore, if any provision of this Agreement is capable of two (2) constructions, one of which would render the provision void and the other of which would render the provision valid, then the provision shall have the meaning which renders it valid. If any court determines that any provision of this Agreement is unenforceable because of the duration of such provision or the area covered thereby, such court shall have the power to reduce the duration or area of such provision and, in its reduced form, such provision shall then be enforceable and shall be enforced.

 

(o)     Counterpart Execution. This Agreement may be executed in multiple counterparts, each one of which shall be deemed an original, but all of which shall be considered together as one and the same instrument. Further, in making proof of this Agreement, it shall not be necessary to produce or account for more than one (1) such counterpart. Execution by a party of a signature page hereto shall constitute due execution and shall create a valid, binding obligation of the party so signing, and it shall not be necessary or required that the signatures of all parties appear on a single signature page hereto.

 

(p)     Electronic Transmission. Delivery of an executed counterpart of this Agreement may be made by facsimile or other electronic transmission. Any such counterpart or signature pages sent by facsimile or other electronic transmission shall be deemed to be written and signed originals for all purposes, and copies of this Agreement containing one or more signature pages that have been delivered by facsimile or other electronic transmission shall constitute enforceable original documents. As used in this Agreement, the term “electronic transmission” means and refers to any form of communication not directly involving the physical transmission of paper that creates a record that may be retained, retrieved and reviewed by a recipient of the communication, and that may be directly reproduced in paper form by such a recipient through an automated process.

 

 Consulting Agreement by and between Authentidate Holding Corp.

 d/b/a Aeon Global Health and Dr. Armando Moncada, MD

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(q)     Successors and Assigns. This Agreement is binding on the parties hereto and their respective heirs, representatives, successors and assigns. Subject to same, this Agreement may not be assigned by MONCADA. 

 

(r)     Amendments. This Agreement may be modified or amended as herein provided; however, each and every modification and amendment of this Agreement must be in writing and, except as otherwise provided herein, signed by all of the parties hereto. 

 

(s)     Calculation of Time Periods. Unless otherwise specified, in computing any period of time described herein, the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the designated period so computed is to be included, unless such last day is a Saturday, Sunday or legal holiday, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday, or legal holiday. The last day of any period of time described herein shall be deemed to end at 5:00 p.m. Central Standard Time or Central Daylight Time, as applicable.

 

(t)     Entire Agreement. This Agreement contains the entire agreement between the parties regarding the subject matter hereof. Any prior agreements, discussions or representations not expressly contained herein shall be deemed to be replaced by the provisions hereof, and no party has relied on any such prior agreements, discussions or representations as an inducement to the execution hereof.

 

(u)     Rules of Construction. As used in this Agreement: (i) all defined terms in the singular and plural shall have comparable meanings when used in the plural and vice-versa, unless otherwise specified; (ii) any reference to a “Person” means any individual, partnership, firm, corporation, limited liability company, association, joint venture, trust or other entity, or any governmental or political subdivision or agency, department or instrumentality thereof; (iii) any reference to a “Business Day” shall mean and refer to any day other than a Saturday, a Sunday or a day on which national banks located in Memphis, Tennessee, are authorized or obligated to close their regular banking business; (iv) all pronouns and any variations thereof shall be deemed to refer to masculine, feminine or neuter, singular or plural, as the identity of the person or persons may require; (v) the words “hereof,” “herein,” “hereunder” and words of similar import shall refer to this Agreement as a whole and not any particular provision of this Agreement; (vi) the word “party” or “Parties” when used in this Agreement means only those persons or entities who are signatories to this Agreement; (vii) references to all documents, contracts, agreements or instruments shall include any and all supplements and amendments thereto; and (viii) the word “Affiliate” shall mean (1) any Person directly or indirectly controlling, controlled by, or under common control with, the referenced Person; (2) any Person which has a ten percent (10%) or more beneficial, or voting, interest in the referenced Person; and (3) any officer or director of or partner or member in either the referenced Person or any Person described in (1) or (2) above. For purposes of the above, the term “control” (including "controlling" and "controlled") means the possession, direct or indirect, of the power to direct or to cause the direction of the management and policies of a Person, whether through the ownership or voting interests, by contract, or otherwise.

 

 Consulting Agreement by and between Authentidate Holding Corp.

 d/b/a Aeon Global Health and Dr. Armando Moncada, MD

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(v)     Survival. Notwithstanding the termination of this Agreement by either party for any reason, the provisions and obligations of the parties under Sections 6, 7, 10 and 11 shall survive such termination as if this Agreement remained in full force and effect, and no such termination shall terminate the covenants and obligations stated in Section 6, 7 10 and 11 hereof.

 

(w)     Consultant Acknowledgement. This Agreement sets forth the terms and conditions whereby MONCADA and MONCADA’s employees, consultants, sub-contractors and agents shall provide and perform Consulting Services. Any of MONCADA’s employees, consultants, sub-contractors or agents selected by MONCADA to provide Consulting Services hereunder shall agree to be bound by the provisions of this Agreement, as evidenced by affixing their signature to an Acknowledgment in substantially the same format as Exhibit A attached hereto. 

 

 

 

 

 

 

 

 

[Remainder of Page Intentionally Left Blank]

 

 

 

 

 

 

 

 

 

 

[Signature Page Follows]

 

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 d/b/a Aeon Global Health and Dr. Armando Moncada, MD

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[Signature Page to Consulting Agreement]

 

 

EACH PARTY ACKNOWLEDGES AND AGREES THAT SUCH PARTY HAS READ AND UNDERSTOOD THE PROVISIONS OF THIS AGREEMENT, THAT SUCH PARTY HAS BEEN GIVEN AN OPPORTUNITY FOR SUCH PARTY’S LEGAL COUNSEL OR ADVISORS TO REVIEW THIS AGREEMENT AND THAT SUCH PARTY HAS RECEIVED A COPY OF THIS AGREEMENT.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement or caused this Agreement to be executed by their duly authorized representative, effective as of the Effective Date.

 

 

COMPANY:

 

Authentidate Holding Corp. 

d/b/a AEON Global Health

a Delaware corporation 

 

 

By: /s/ Hanif A. Roshan

Name: Hanif A. Roshan

Title: CEO

 

Date:  January 4, 2018

 

 

CONSULTANT: 

 

 

By: /s/ Dr. Armando Moncada, M.D.

Name: Dr. Armando Moncada, MD

Individually and as a representative of both 

Pathology Consultants of Georgia, Inc. and PCG Molecular, LLC

 

Date: January 4, 2018

 

 Consulting Agreement by and between Authentidate Holding Corp.

 d/b/a Aeon Global Health and Dr. Armando Moncada, MD

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EXHIBIT “A”

 

As Aeon’s Chief Medical Officer -- Pathology Division, MONCADA’s duties and responsibilities will include, but not be limited to, the following: 

 

	 	
			●

				
			On a quarterly basis (i.e., during those blocks of three (3) consecutive months commencing as of January 1, 2018), MONCADA will use his best efforts to generate gross revenues for AEON equal to or exceeding the sum of $200,000.00 for the first quarter, $300,000 for the second, $400,000 for the third, $500,000 for the fourth, $600,000 for the fifth, $800,000 for the sixth, and $1,000,000 during each quarterly period thereafter.

			

	 	
			●

				
			The overall operation and administration of Aeon’s pathology laboratory

			

	 	
			●

				
			Validate and roll-out of new molecular based infectious diseases tests

			

	 	
			●

				
			Record and report test results promptly, accurately, and proficiently

			

	 	
			●

				
			Ensure the laboratory’s physical plant and environment conditions are of appropriate size, contain required components, and are safe

			

	 	
			●

				
			Test methodologies to provide the quality of results required for patient care

			

	 	
			●

				
			Verify procedures are adequate to determine accuracy, precision, and other pertinent performance characteristics of the method

			

	 	
			●

				
			Establish, document and maintain Quality Control and Quality Assurance programs 

			

	 	
			●

				
			Establish and maintain acceptable levels of analytic performance for each test

			

	 	
			●

				
			Document all remedial actions

			

	 	
			●

				
			Generate test reports to include pertinent information required for interpretation

			

	 	
			●

				
			Specify in writing the responsibilities of each consultant, supervisor, and person engaged in the performance of the pre-analytic, analytic, and post analytic phases of testing

			

	 	
			●

				
			Identify which procedures lab personnel are authorized to perform, including competency assessment

			

	 	
			●

				
			Determine whether supervision is required for processing, test performance, or result reporting

			

	 	
			●

				
			Provide on-site supervision of high complexity test performance by qualified testing personnel as required by CLIA

			

	 	
			●

				
			Ensure reports are reviewed by appropriate staff to evaluate performance and to identify any problems that require corrective action

			

	 	
			●

				
			Design approved corrective action plan for when results are unacceptable or unsatisfactory

			

	 	
			●

				
			Keep abreast of emerging models in health care delivery, and to identify and define new and innovative strategies to achieve business goals and objectives

			

	 	
			●

				
			Identify opportunities to collaborate and develop clinical integration opportunities with other health delivery systems to achieve affordable outcomes.

			

	 	
			●

				
			Actively engage in business development opportunities to include your presenting clinical capabilities to legislative officials and other key constituents.

			

	 	
			●

				
			Provide clinical guidance, support and education to the organization.

			

	 	
			●

				
			Participate in senior management business and clinical strategy development and implementation.

			

 

 Consulting Agreement by and between Authentidate Holding Corp.

 d/b/a Aeon Global Health and Dr. Armando Moncada, MD

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			●

				
			Build and leverage cross functional collaborative relationships to achieve shared company goals.

			

	 	
			●

				
			Promote collaboration to both internal and external health care team members.

			

	 	
			●

				
			Develop and implement strategic goals related to the quality improvement, management programs and accreditation standards.

			

	 	
			●

				
			Assist with analytics and development of quality measures for new payment models (e.g., value based/risk based payment structures).

			

    

General Duties: MONCADA further acknowledges he is to:

 

	 	
			●

				
			Conduct himself at all times in an ethical manner. MONCADA will provide prospective clients and/or customers of AEON with accurate and complete information that is neither deceptive nor misleading. 

			

	 	
			●

				
			Immediately report to AEON any suspected violations of any federal laws, regulations, federal health care program requirements, or AEON’s internal policies and procedures in connection with the Services provided by MONCADA under the Agreement or otherwise in connection with the sale of clinical testing services marketed by MONCADA on behalf of AEON and its Clients. 

			

	 	
			●

				
			At all times when interacting with Customers, or potential Customers of AEON, to identify himself as AEON’s representative who has been engaged to serve in a medical officer capacity. 

			

	 	
			●

				
			Not make any payment or other transfer of value to any Customer or any other entity that orders testing through AEON or to any other health care practitioner in connection with the services provided by MONCADA under the Agreement or otherwise in connection with the provision of clinical laboratory testing.

			

 

 Consulting Agreement by and between Authentidate Holding Corp.

 d/b/a Aeon Global Health and Dr. Armando Moncada, MD

 

-19-

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