Document:

taug_ex101.htm

Exhibit 10.1

 

Licensing Agreement

Tauriga Sciences, Inc. and Green Hygienics, Inc.

This AGREEMENT is made as of May 31, 2013, between Tauriga Sciences, Inc., a corporation organized and existing under the laws of the State of Florida having offices at 39 Old Ridgebury Road, Danbury, Connecticut 06180 ("Licensee") and Green Hygienics, Inc., a corporation organized and existing under the laws of the State of Florida having offices at 316 Del Prado Blvd. S., Suite 204, Cape Coral, Florida 33990 ("Licensor"), and wholly-owned subsidiary of Green Innovations Ltd. (“GNIN”).

WITNESSETH:

 

WHEREAS, Licensor has certain products related to hospital grade wipes, including paper, green and 100% tree-free bamboo-based and biodegradable (the “Products,” see Exhibit A), and

WHEREAS, Licensee desires to acquire the marketing rights for the Products of the Licensor through a licensing agreement, and

WHEREAS, Licensor desires to grant to Licensee, a North American exclusive license to market and sell the Products of the Licensor to commercial users of these Products (“Marketplace”), and

WHEREAS, Licensee desires to acquire the aforesaid license, and

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, the parties hereby agree as follows:

1.           License.

(a)           Licensor hereby grants to Licensee, subject to the terms and conditions hereof, the exclusive license to use Licensor's Products, Know-how and commercial and technical information to market and sell the Products to commercial users.

(b)           Licensor shall provide information on all Know-how, technical information, techniques, and other technical information, as requested, within a reasonable period of time.

2.           Definitions.

(a)           Know-how:  All patent applications, inventions, discoveries, data, improvements, techniques, technology, formulae, processes, plans or programs, useful, related to, or necessary to  formulate, handle, or utilize the Products, now or hereafter owned or controlled by Licensor prior to the termination of this Agreement to the extent to which Licensor has the right to grant licenses of the scope herein granted.

(b)           Products:  All hospital grade wipes for commercial applications, employing or derived from Licensor Know-how, as well as improvements, modifications, additions, adaptations, or new models designed or developed by, for or in association with Tauriga Sciences, Inc., its agents or sublicensees, to any of the foregoing, together with subassemblies, components, parts and supplies therefore (other than commercially available parts and supplies not provided as part of the original order).

(c)           Licensing Fee:  Fee to be paid by Licensee to Licensor for the marketing rights of the Products.

(d)           Licensor Component:  That part of the technical information developed by Licensor that consists of patents, copyrights, trade secrets, trademarks or service marks as well as all parts and components based upon or derived from Licensor Know-how pertaining to the Licensor Component.

(e)           Term of the Agreement:  Five years from the date of this Agreement.  The Agreement will auto renew for an additional five years if agreed to by both parties of this Agreement.

3.           Licensing Fees.

(a)           Fees:  In consideration for the license and as a condition of the license remaining in force, Licensee shall pay Licensor $65,000 upon the execution of this Agreement.  Upon receipt by Licensee of samples of the Products, along with the appropriate marketing material, Licensee shall pay Licensor an additional $185,000 within ninety (90) days of receipt.

(b)           Stock Consideration:  The Licensee and Licensor agree to a stock swap of each of their respective restricted common stock traded under the symbols TAUG and GNIN, respectively.  The value of the stock for TAUG and GNIN will be assigned at $0.0575 and $0.40, respectively.  The shares to be issued by Licensee to the Licensor will be 4,347,826 shares of common stock and shares to be issued by Licensor to the Licensee will be 625,000 shares of common stock.  The shares to the Licensee will be issued pro rata with the payments listed in Item 3.a.  Licensee may defer and have one stock certificate issued at the completion even though the pro rata amount would be deemed as earned and issuable.  Upon the receipt of the initial $65,000 from GNIN by TAUG, the first tranche of shares have already been paid for and or earned.

  

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4.           Cost of Products.  The Licensee and Licensor agree that the profit to be recognized by each party shall be equal to fifty percent (50%) of the profit (defined under GAAP and, in this case, as the final selling price by the Licensee to a third party less the actual cost of the Product paid for by the Licensor to have the Product ready for resale).  Therefore, the Product will be maintained in a facility controlled by the Licensor until the time for shipment to a customer of the Licensee.  The Licensee shall bill the third party and provide a copy of the invoice to the Licensor.  The Licensor shall invoice the Licensee for the actual cost of the Product as incurred by the Licensor, inclusive of product cost, freight for delivery to the Licensor, applicable taxes, and any additional costs related to the delivery of the Product to the buyer of the Product, plus fifty percent (50%) of the difference between the final selling price and the delivered cost.  Therefore, the Licensee and the Licensor shall recognize an identical profit on the sale.  The payment by the Licensee to the Licensor shall be within fifteen (15) days of receipt of payment from the buyer to the Licensee.

5.           Term.  The initial term of this Agreement shall be for five (5) years from the date hereof unless earlier terminated pursuant to the terms hereof.  Thereafter, so long as Licensee is not in default, this Agreement may be extended by Licensee for five (5) additional years under terms and conditions, to be re-negotiated by the Licensor.  If this Agreement is terminated before the end of the initial term then the Licensee, its agents or sublicensees shall not engage, directly or indirectly, in any part of the business of manufacturing, marketing or servicing of Products based upon or derived from Licensor Know-how for a period of five (5) years.

6.           Confidentiality.

(a)           Licensee recognizes that trade secrets and other proprietary information of Licensor will be conveyed to Licensee pursuant to this Agreement, and Licensee agrees to keep such information in confidence and not to disclose it during or within five (5) years after the term of this Agreement to third parties other than Licensee Affiliates that are bound by confidentiality restrictions as set forth herein and as required by Licensor’s Intellectual Property Protection Program. This confidentiality provision shall survive the early termination or cancellation of this Agreement, and remain in full force.

(b)           The restrictions set forth in subparagraph (a) of this paragraph shall not apply to any information (i) well-known and in the public domain at the time of disclosure; (ii) known to Licensee at the time it was disclosed to it by Licensor as shown by documentation establishing such prior knowledge; (iii) disclosed with the prior written approval of Licensor; and (iv) rightfully disclosed to Licensee by a third party other than a Licensee Affiliate.

7.           Technical Data.  Within ten (10) days after the execution of this Agreement, Licensor shall provide Licensee with a complete description of all Licensor patent applications, plans, specifications, and instructions and drawings, for the manufacture and use of Products, provided, however, that all such materials shall remain the property of Licensor.

8.           Sufficient Information.  Licensee may terminate this license within ninety (90) days hereof if the data and information delivered to it by Licensor is not, in Licensee's opinion, sufficient to market and sell Products, and in such event, Licensee shall have no further financial obligation hereunder and any payments made under paragraphs 3 and 4 shall be refunded

9.           Relationship.  Licensee and Licensor shall act as principals in all respects hereunder, and nothing herein shall be construed to constitute either as the agent, partner, or joint venturer of the other.

10.           Litigation.  Licensee may at its own expense prosecute any suits or other proceedings against third parties for infringement of Licensor patents or for theft or misuse of the industrial property of Licensor licensed hereunder, and shall be entitled to retain all judgments or other recoveries.  In the event that a third party alleges that Licensee infringes any United States patents owned or controlled by such third party by virtue of the manufacture, sale or use of products, except for improvements thereto by Licensee, Licensor shall indemnify Licensee for all such claims, demands, damages and cost, including reasonable attorneys' fees; provided, however, that this indemnity is conditioned upon Licensee notifying Licensor in writing promptly of the receipt of any claim or the filing of any action, suit or litigation for which Licensor would be liable under the above indemnity and Licensee tendering to Licensor the full defense and direction thereof; and provided, further, that this indemnity shall be deemed waived by Licensee in the event of a compromise or settlement of any such alleged infringement by Licensee without first obtaining the consent in writing of Licensor, which consent shall not be unreasonably withheld.  In addition, Licensee shall not incur any expenses covered by this indemnity over one thousand dollars ($1,000) without approval of Licensor, which shall not be unreasonably withheld, Licensee shall be solely responsible for ensuring the compliance of Products with all safety or other standards under any applicable law, rule or order, of any competent governmental authority.

11.           Termination.

(a)           In the event of the failure of Licensee to pay royalties in full in a prompt manner, or make the required minimum purchases hereunder, or in the event of Licensee's failure to observe or comply with any of the other terms and conditions of this Agreement and such failure is not corrected within thirty days after written notice thereof is given to Licensee, if within such period due diligence is not exercised by Licensee to correct such failure, the entire unpaid balance of the minimum royalties will be due to the date of termination pursuant to paragraph 3 hereof shall become immediately due and payable, and the licenses granted to Licensee may be terminated forthwith by Licensor upon furnishing a written notice to that effect to Licensee.

(b)           In the event that Licensee shall become insolvent, or admit in writing its inability to pay its debts as they mature, or make a general assignment for the benefit of creditors, or file a petition for bankruptcy or permit a petition for bankruptcy against it to remain undismissed for a period of sixty (60) days, or go into liquidation or receivership, or become a party to dissolution proceeding or be admitted as a party to any statutory procedure for the settlement of its debts, Licensor shall have the right and option upon written notice to Licensee to terminate forthwith the licenses granted herein to Licensee.

(c)           In the event of termination, however occasioned, the entire unpaid balance as of the date of termination under paragraph 3 shall become immediately due and payable.

(d)           In the event of termination, however occasioned, Licensee, its agents or sublicensees shall return to Licensor all printed or written materials containing, based upon, or derived from Licensor Know-how, and shall make no further use of such Know-how, or of Licensor patents, if any.  Licensee shall have the option to purchase from Licensor or its Affiliates any or all of Licensor's inventory at cost, and the assignability of the licensing agreement between American Hygienics Corporation and Green Hygienics, Inc.  Licensee will undertake to examine favorably such inventory and acquire on the aforesaid basis from Licensor such items as may be commercially reasonable for it to acquire.

(e)           In the event of termination, however occasioned, Licensor shall not have any liability or responsibility for compensation, reimbursement, indemnification or damages on account of the loss of prospective business by Licensee or on account of expenditures, investments, leases or commitments made by Licensee.

(f)           In the event of termination, under subparagraph (a) and (b) above, Licensor at its option shall have the exclusive worldwide right to, use and sell, lease, loan, rent or otherwise dispose of, with full right to assign or sublicense, any improvements, to Licensor Know-how developed or owned by Licensee subject for 90 days. Inventory containing the Products shall be disposed of thereafter, unless approved in writing by the Licensor.

  

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12.           Representations and Warranties of Licensor.  Licensor represents and warrants to Licensee that,

(a)           To the best of the knowledge of Licensor, Licensor is the exclusive owner of all Know-how licensed hereunder and shall use its best efforts to prosecute its pending patent application to completion, and to protect all trade secrets and other intellectual property.

(b)           All proceeds received from Licensee under this license will be applied by Licensor first to satisfy all legal obligations to employees and government instrumentalities, and next to trade creditors, prior to any payments to shareholders for interest on debt, repayment of debt principal, or dividends or other distribution in respect of Licensor stock.

(c)           Licensor has good title to the inventory and equipment to be sold to Licensee hereunder, and such inventory and equipment is, and at the time of conveyance to Licensee shall be, free and clear of all liens or encumbrances.

13.           Miscellaneous.

(a)           Nothing contained in this Agreement shall be construed as (i) a warranty or representation as to the validity or scope of any patent; (ii) an agreement to bring or prosecute actions or suits against third parties for infringement, or conferring any rights to bring or prosecute actions against third parties for infringement except as provided in paragraph 13; (iii) conferring any rights to use in advertising, publicity, or otherwise, any trademark, trade name or names, or any contraction, abbreviation, or simulation thereof, of Licensor except as provided in paragraph 15; (iv) conferring by implication, estoppel, or otherwise, upon Licensee any license or other right in or to any patent, trademark, copyright or Know-how.

(b)           No delay or failure of either party in exercising any right hereunder shall affect such right, nor shall any single or partial exercise of any right preclude any further exercise thereof.  No modification, amendment, addition, or waiver, of any provision of this Agreement shall be effective unless set forth in a writing signed by Licensor and Licensee which specifically states that such writing is to be a modification, amendment, addition, or waiver, and then only in that specific instance and for the specific purpose for which given.

(c)           This Agreement contains the entire and complete understanding of the parties with respect to the subject matter and merges all prior and contemporaneous understandings.

(d)           This Agreement may not be assigned or sublicensed by Licensee without the prior written consent of Licensor, which shall not be unreasonably withheld.  Where Licensee is permitted to assign or sublicense, this Agreement it shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns and sublicensees.

(e)           No remedy conferred herein is intended to be exclusive of any other remedy and each and every such remedy shall be cumulative and in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise.

(f)           Each of the parties hereto shall make, do or cause to be done, such further acts and things, and execute, acknowledge, and deliver, such instruments and documents as may be necessary to effectuate the purposes and intent of this Agreement.

(g)           The invalidity, partial failure of consideration, or unenforceability, of any particular provision of this Agreement shall not affect the validity or enforceability hereof.

(h)           This Agreement may be executed in counterparts, all of which taken together shall be deemed one original agreement.

(i)           This Agreement shall be governed by the laws of the State of Florida.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their representatives, thereunto duly authorized, as of the date first above written.

 

	

Green Hygienics, Inc.

	 
	 	 
	/s/ Philip Rundle	 
	By: Philip Rundle, Chief Executive Officer	 
	 	 
	 	 
	

Tauriga Sciences, Inc.

	 
	 	 
	/s/ Seth M. Shaw	 
	By: Seth M. Shaw, Chief Executive Officer	 

 

  

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Exhibit A

The Products

The Products are as follows:

●           Disinfectant wipe (Bamboo/Tree free pulp)

●           TBD

The Licensor may have additional products to be sold that would appropriately be included as part of the Products.  Both parties agree to add such products to this Agreement through an addendum to this Agreement.

 

 

 

 

 

 

 

 

4wmtn_ex102.htm

Exhibit 10.2

PROMISSORY NOTE

 

	$500,000.00	May 7, 2013
	 	Fort Collins, Colorado

For value received, WestMountain Gold, Inc., a Colorado corporation formerly known as WestMountain Index Advisor, Inc. (“Payor”), promises to pay to BOCO Investments, LLC, a Colorado limited liability company, or its assigns (“Holder”) the principal sum of Five Hundred Thousand Dollars ($500,000.00), with interest on the outstanding principal amount at the rate of fifteen percent (15%) per annum.  Interest shall commence with the date hereof and shall continue to accrue on the outstanding principal until paid in full.  Interest shall be computed on the basis of a year of three hundred sixty five (365) days for the actual number of days elapsed.  All principal and accrued interest on this note (the “Note”) shall be due and payable on October 31, 2013 (the “Maturity Date”).

 

1. All payments of interest and principal shall be in lawful money of the United States of America in cash, by certified check, or wire transfer.  All payments shall be applied first to accrued expenses due under this Note, next to interest and thereafter to principal.

 

2. If action is instituted to collect this Note, Payor promises to pay all costs and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred in connection with such action.

 

3. Payor may not prepay this Note prior to the Maturity Date unless Holder has consented in writing to the prepayment of this Note prior to the Maturity Date.

 

4. The outstanding balance of any amount owing under this Note that is not paid when due under the terms of this Note shall bear interest at the highest rate permitted under Colorado law.

 

5. All payments of principal and interest shall be made in cash, certified check or by wire transfer to Holder at 262 E. Mountain Avenue, Fort Collins, CO 80524 or at such other place as Holder may designate in writing.

 

6. Payor shall make all payments under this Note without defense, set-off or counterclaim on its part.

 

7. The occurrence of any one or more of the following shall constitute an “Event of Default” hereunder:

 

(a) Payor fails to pay timely any of the principal amount due under this Note on the date the same becomes due and payable or any accrued interest or other amounts due under this Note on the date the same becomes due and payable.

 

(b) Payor breaches any material obligation, covenant or other material representation, warranty, term or condition contained in the Loan Agreement by and between Payor and Holder entered into in connection with this Note or the Warrant issued in connection therewith, this Note or any other note or agreement between Payor and Holder, including but not limited to the Security Agreement (as defined below), that certain Amended and Restated Revolving Credit Loan and Security Agreement dated September 17, 2012, as may be amended, and the Amended and Restated Secured Convertible Promissory Note dated September 17, 2012, as may be amended.

 

(c) Any representation or warranty of Payor made herein, or in the Security Agreement or any other agreement, statement, certificate, or communication given to Holder be false or misleading in any material respect when made or become false or misleading in any material respect after the date of this Note.

 

(d) Payor shall (i) fail to make any payment when due under the terms of any bond, debenture, note or other evidence of indebtedness for money borrowed to be paid by Payor and such failure shall continue beyond any period of grace provided with respect thereto, or (ii) default in the observance or performance of any other agreement, term or condition contained in any bond, debenture, note or other evidence of indebtedness for borrowed money.

 

(e) Payor (i) files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or any other law for the relief of, or relating to, debtors, now or hereafter in effect; (ii) makes any assignment for the benefit of creditors or takes any corporate action in furtherance of any of the foregoing; (iii) applies for or consents to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property; (iv) is unable, or admits in writing its inability, to pay its debts generally as they mature, (v) is dissolved or liquidated; (vi) becomes insolvent (as such term may be defined or interpreted under any applicable statute); or (vii) takes any action for the purpose of effecting any of the foregoing.

 

(f) An involuntary petition is filed against Payor (unless such petition is dismissed or discharged within thirty (30) days under any bankruptcy statute now or hereafter in effect) or a custodian, receiver, trustee, assignee for the benefit of creditors (or other similar official) is appointed to take possession, custody or control of any property of Payor;

 

  

  

  

(g) A final judgment or order for the payment of money in excess of  $100,000 shall be rendered against the Payor and the same shall remain undischarged for a period of ten (10) days during which execution shall not be effectively stayed, or any judgment, writ, assessment, warrant of attachment, or execution or similar process shall be issued or levied against the Collateral (as defined below) and such judgment, writ, or similar process shall not be released, stayed, vacated or otherwise dismissed within ten (10) days after issue or levy.

 

(h) Payor shall fail to maintain the listing of its common stock on at least one of the OTCBB or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.

 

(i) Payor shall fail to comply with the reporting requirements of the Exchange Act; and/or Payor shall cease to be subject to the reporting requirements of the Exchange Act.

 

(j) Any cessation of operations by Payor.

 

(k) Payor’s failure to maintain any material intellectual property rights, personal, real property or other assets which are necessary to conduct its business (whether now or in the future).

 

(l) The sale, conveyance, or disposition of all or substantially all of the assets of the Payor, the effectuation by the Payor of a transaction or series of related transactions in which more than 50% of the voting power of the Payor is disposed of, or the consolidation, merger or other business combination of the Payor with or into any other Person (as defined below) or Persons when, the Payor is not the survivor.  "Person" shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.

 

(m) Holder in good faith believes itself insecure.

 

8. Payor’s obligations under this Note are secured by that certain Security Agreement by and between Payor and Holder executed and delivered on or about the date of this Note (“Security Agreement”).

 

9. Upon the occurrence or existence of any Event of Default, immediately and without notice, all outstanding obligations payable by Borrower hereunder shall automatically become immediately due and payable.  In addition to and not in lieu of the foregoing remedies, upon the occurrence or existence of any Event of Default, Holder may exercise all other rights, powers or remedies granted to it under this Note, the Security Agreement or otherwise permitted to it by law (including but not limited to foreclosure of the security interest granted in the Security Agreement), either by suit in equity or by action at law, or both, all such remedies being cumulative.

 

10. So long as Payor shall have any obligation under this Note, Payor shall not, without the Holder's written consent, lend money, give credit or make advances to any person, firm, joint venture or corporation or other entity, including, without limitation, officers, directors, employees, subsidiaries and affiliates of Payor, except loans, credits or advances in existence or committed on the date hereof and which Payor has informed Holder in writing prior to the date hereof.

 

11. So long as Payor shall have any obligation under this Note, Payor shall not, without the Holder's prior written consent, assume, guarantee, endorse, contingently agree to purchase or otherwise become liable upon the obligation of any person, firm, partnership, joint venture or corporation, except by the endorsement of negotiable instruments for deposit or collection and except assumptions, guarantees, endorsement and contingencies in existence or committed on the date hereof and which Payor has informed Holder in writing prior to the date hereof.

 

12. Payor unconditionally waives notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor and all other notices or demands relative to this Note.

 

13. No failure by Holder to exercise, or delay by Holder in exercising, any right or remedy hereunder shall operate as a waiver thereof or of any other right or remedy and no single or partial exercise of any right or remedy shall preclude any other or further exercise thereof or of any other right or remedy.  Holder may not waive any of its rights under this Note except by an instrument in writing signed by it.

 

14. If any provision of this Note shall be judicially determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

15. This Note shall be governed by and construed under the laws of the State of Colorado, as applied to agreements among Colorado residents made and to be performed entirely within the State of Colorado, without giving effect to conflicts of laws principles that would result in the application of any law other than Colorado law. Exclusive venue for all actions arising out of this Note shall be in the district court in and for Larimer County, Colorado.

 

16. In addition to the obligations recited herein and contemplated to be performed, executed, and/or delivered by Payor, Payor agrees to perform, execute, and/or deliver or cause to be performed, executed, and/or delivered any and all such further acts, instruments, deeds, and assurances as may be reasonably required by Holder to consummate all transactions contemplated hereby.

 

17. Any term of this Note may only be amended or waived with the written consent of Payor and Holder.

 

 

[Signature Page Follows.]

 

  

  

  

IN WITNESS WHEREOF, Payor and Holder have caused this Note to be executed as of the date first written above.

 

	 	

WESTMOUNTAIN GOLD, INC.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Gregory Schifrin	 
	 	Name:	Gregory Schifrin	 
	 	Title: 	Chief Executive Officer	 
	 	 	 	 
	 	 	 	 
	 	

BOCO INVESTMENTS, LLC

	 
	 	 	 	 
	 	

By: 

	/s Joseph C. Zimlich	 
	 	Name:	Joseph C. Zimlich	 
	 	Title: 	President of Managing Member	 

 

 

 

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