Document:

curr_ex104.htm

EXHIBIT 10.4
 PARENT GUARANTY
  
                 THIS GUARANTY (“Guaranty”), effective as of July 22, 2022, is made by CURE Pharmaceutical Holding Corp., a Delaware corporation (“Guarantor”), to and for the benefit of TF Tech Ventures, Inc., a Delaware corporation (“Buyer”) and other Buyer Indemnitees (together with Buyer, “Beneficiaries”, and each of them, a “Beneficiary”) (each of Guarantor and Beneficiaries, a “Party” and collectively, the “Parties”). Capitalized terms not otherwise defined herein shall have the meaning given such terms in the Purchase Agreement (as such term is defined below).
  
 W I T N E S S E T H:
  
                 WHEREAS, Buyer and CURE Pharmaceutical Corporation, a California corporation (“Seller”), entered into that certain Asset Purchase Agreement on July 22, 2022 (as such agreement may be amended, modified or supplemented from time to time, the “Purchase Agreement”) pursuant to which Buyer is purchasing certain assets of Seller;
  
                 WHEREAS, Seller is a wholly owned subsidiary of Guarantor.
  
                 NOW THEREFORE, for valuable consideration and as an inducement to Buyer to enter into the Purchase Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Guarantor covenants with Buyer Indemnitees as follows:
  
 1. Guaranty. Subject to the provisions hereof, Guarantor hereby irrevocably and unconditionally guarantees to each of the Beneficiaries the full and timely payment (and not merely collection) when due of all amounts payable by Seller under the Purchase Agreement (such obligations of Seller, collectively, the “Obligations”).
  
 2. Covenant of Guarantor. This is a continuing guarantee of payment and not of collection. Guarantor covenants with Beneficiaries that if at any time Seller should default in the payment when due, or should commit a breach of any of the Obligations, Guarantor shall, promptly upon written notice by any Beneficiary, pay in Seller’s stead, or cause the payment of, such Obligations.
  
 3. Payments. Any payments owed by Guarantor to any Beneficiary shall be made in United States Dollars via wire transfer to an account designated in writing by such Beneficiary in immediately available funds, and shall be paid within five (5) Business Days after receipt by Guarantor from such Beneficiary of written demand for such payment. A single written demand shall be effective as to any default of Seller under the Purchase Agreement during the continuance of such default.
  
  
 
 
 	 
	
	

	 

 
 
  
 
 
 
 
 
 4. Guaranty Absolute. The obligations of Guarantor under this Guaranty shall be irrevocable, absolute and unconditional, and shall remain in full force and effect until such time as set forth in Section 10 hereof, and until such time, the obligations of Guarantor shall not be affected, modified or impaired or prejudiced (x) by any other security now or hereafter held by any Beneficiary as security for the Obligations; or (y) upon the happening from time to time of any one or more of the following whether or not with notice to or consent of Seller (except to the extent that Seller’s consent may be required to effectuate a modification of the Purchase Agreement) or Guarantor:
  
 (a) the compromise, settlement, release, change, modification, or termination of any of the Obligations;
  
 (b) the waiver by any Beneficiary of the payment of any of the Obligations;
  
 (c) the extension of time for payment of any amounts due or of the time for payment of any of the Obligations;
  
 (d) the modification or amendment (whether material or otherwise) of any of the Obligations;
  
 (e) the failure, omission, delay or lack on the part of any Beneficiary to enforce, ascertain or exercise any right, power or remedy under or pursuant to the terms of the Purchase Agreement or this Guaranty;
  
 (f) the fact that Guarantor may at any time in the future dispose of all or any part of its interest in Seller, or otherwise alter its investment in Seller in any manner;
  
 (g) the voluntary or involuntary bankruptcy, insolvency, winding up, dissolution, liquidation, administration, reorganization or other similar or dissimilar failure or financial disability of Seller or Guarantor or any legal limitation, disability, incapacity or other circumstances relating to Seller or Guarantor;
  
 (h) the addition, substitution or partial or entire release of any guarantor, maker or other party (including Seller) primarily or secondarily liable or responsible for the payment of any of the Obligations or by any extension, waiver, amendment or thing whatsoever which may release a guarantor (other than payment of Obligations in accordance with the terms and conditions hereunder);
  
 (i) the invalidity, nonbinding effect or unenforceability (other than as a result of any breach by any Beneficiary of any of its obligations under the Purchase Agreement) of (x) any of the Obligations or (y) the Purchase Agreement in its entirety; or
  
 (j) the taking, variation, renewal, addition, substitution, subordination, or partial or entire release of any security for the payment of any of the Obligations or the enforcement or neglect to perfect or enforce any such security.
  
 5. Waiver of Subrogation. Guarantor irrevocably and absolutely waives any and all right of subrogation, contribution, indemnification, reimbursement or similar rights against Seller with respect to this Guaranty until the payment or satisfaction of the Obligations indefeasibly in full, it being the intention of the Parties that Guarantor shall not be deemed to be a “creditor” (as defined in Section 101 of the U.S. Bankruptcy Code (the “Bankruptcy Code”) or any other applicable law) of Seller by reason of the existence of this Guaranty in the event that Seller becomes a debtor in any proceeding under the U.S. Bankruptcy Code or any other applicable law. In addition, Guarantor will not exercise any rights which it may acquire by way of subrogation under this Guaranty by any payment made hereunder or otherwise.
  
  
 
 
 	 
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 6. Continuing Guaranty. This Guaranty is a continuing guarantee, and shall apply to all Obligations whenever arising. Each and every default or failure by Seller in making a payment set forth in the Purchase Agreement shall give rise to a separate liability of Seller to Beneficiaries and a separate cause of action hereunder and a separate suit may be brought hereunder as each liability or cause of action arises. Each Beneficiary shall have the right, in its sole judgment and discretion, from time to time, to make demand for payment and to proceed against Guarantor for the recovery of the total of any and all amounts then due to such Beneficiary pursuant to this Guaranty as and when the same are due under the terms hereof, or to proceed from time to time against Guarantor for such portion of any and all such amounts as such Beneficiary may determine. 
  
 7. Bankruptcy.
  
 (a) The obligations of Guarantor under this Guaranty shall not be altered, limited or affected by any proceeding, voluntary or involuntary, involving the winding up, dissolution, administration, bankruptcy, reorganization, insolvency, receivership, liquidation or arrangement or similar proceeding of Seller, or by any defense which Seller may have by reason of any order, decree or decision of any court or administrative body resulting from any such proceeding.
  
 (b) Should the Purchase Agreement be disaffirmed by a trustee in bankruptcy for Seller, Guarantor shall, at the option of Beneficiaries, make and enter into a new agreement pursuant to which Guarantor shall pay or cause to be paid the balance of the Obligations.
  
 8. Certain Waivers. Guarantor agrees not to assert or take advantage of:
  
 (a) any right to require any Beneficiary to institute suit against Seller or exhaust any security held by such Beneficiary before proceeding against Guarantor;
  
 (b) any defense that may arise by reason of the incapacity, lack of authority, death or disability of any other person or the failure of any Beneficiary to file or enforce a claim against the estate (in administration, bankruptcy or any other similar proceeding) of any other person;
  
 (c) demand, presentment, protest and notice of any kind, including without limitation notice of the existence, creation or incurring of any new or additional obligation or of any action or non-action on the part of Seller or any Beneficiary (other than a breach by such Beneficiary of any of its obligations under the Purchase Agreement);
  
 (d) any defense based upon an election of remedies by any Beneficiary which destroys or otherwise impairs the subrogation rights of Guarantor, the right of Guarantor to proceed against Seller for reimbursement, or both;
  
  
 
 
 	 
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 (e) any duty on the part of any Beneficiary to disclose to Guarantor any facts such Beneficiary may now or hereafter know about Seller, regardless of whether such Beneficiary has reason to believe that any such facts materially increase the risk beyond that which Guarantor intends to assume, or has reason to believe that such facts are unknown to Guarantor, or has a reasonable opportunity to communicate such facts to Guarantor, since Guarantor acknowledges that Guarantor is fully responsible for being and keeping informed of the financial condition of Seller and of all circumstances bearing on the risk of non-payment of any Obligations hereby guaranteed;
  
 (f) any defense arising because of any Beneficiary’s election, in any proceeding instituted under the Bankruptcy Code, of the application of Section 1111(b)(2) of the Bankruptcy Code; and
  
 (g) any defense based upon any borrowing or grant of a security interest under Section 364 of the Bankruptcy Code.
  
 Guarantor hereby unconditionally and irrevocably further waives (i) any right to require any Beneficiary to proceed against Guarantor or any other person or any security now or later held by any Beneficiary or to pursue any other remedy whatsoever, including any such right or any other right set forth in California Civil Code Section 2845 or Section 2850; (ii) all rights of subrogation, reimbursement, indemnity, contribution, any other rights that may become available to Guarantor under California Civil Code Sections 2787–2856, inclusive, all rights to enforce any remedy that any Beneficiary may have against Guarantor or any other person, and all rights to participate in any security held by any Beneficiary for the indebtedness secured hereby, including any such right or any other right set forth in California Civil Code Section 1845, Section 2848, or Section 2849, until the indebtedness secured hereby has been performed in full, and any defense based on the impairment of any subrogation rights that Guarantor may have; (iii) any defense to recovery by any Beneficiary of a deficiency after a nonjudicial sale of real or personal property, any defense based on the unavailability to any Beneficiary of recovery of a deficiency judgment after nonjudicial sale of real or personal property, and any defense based on or arising from California Code of Civil Procedure Section 580a, Section 580b, Section 580d, or Section 726 (including any fair value limitations under Section 726 of that Code) or based on or arising from Division 9 or any other applicable division of the California Commercial Code; (iv) any defense based on California Civil Code Section 2809;
  
 Guarantor hereby unconditionally and irrevocably further waives all rights and defenses that Guarantor may have because Guarantor’s obligations and debt are secured by real property. This means, among other things, that (i) any Beneficiary may collect from Guarantor without first foreclosing on any real or personal property collateral pledged by any person; and (ii) if any Beneficiary forecloses on any real property collateral, then (1) the amount of the debt may be reduced only by the price for which that collateral is sold at the foreclosure sale, even if the collateral is worth more than the sale price, and (2) any Beneficiary may collect from Guarantor even if such Beneficiary, by foreclosing on the real property collateral, has destroyed any right Guarantor may have to collect from any other person. This is an unconditional and irrevocable waiver of any rights and defenses Guarantor may have because the Guaranteed Obligations are secured by real property. These rights and defenses include any rights or defenses based on California Code of Civil Procedure Sections 580a, 580b, 580d, or 726. 
  
  
 
 
 	 
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 Without limiting the foregoing, (i) Guarantor waives all rights and defenses arising out of an election of remedies by any Beneficiary, even though that election of remedies, such as a nonjudicial foreclosure with respect to security for a guaranteed obligation, has destroyed Guarantor’s rights of subrogation and reimbursement against the principal by the operation of Section 580d of the California Code of Civil Procedure or otherwise; and (ii) Guarantor hereby unconditionally and irrevocably further waives and relinquishes, and agrees not to assert or take advantage of, all rights, defenses or benefits arising directly or indirectly under 2899 and 3433 of the California Civil Code, and all other rights and remedies of sureties or guarantors under California law.
  
 9. Representations and Warranties. Guarantor represents and warrants to Beneficiaries that, as of the date of this Guaranty:
  
 (a) the execution and delivery of this Guaranty and its performance have been duly authorized by all necessary corporate action on the part of Guarantor;
  
 (b) this Guaranty is the legal, valid and binding obligation of Guarantor, enforceable against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally and by general equitable principles;
  
 (c) the execution, delivery and performance of this Guaranty will not violate any material law or any material provision of any security issued by the Guarantor or of any material agreement to which the Guarantor is a party or by which it or any of its property is bound, and do not require any license, consent or approval of any governmental authority; and 
  
 (d) no litigation, investigation or proceeding of or before any arbitrator or governmental authority is pending or, to Guarantor’s knowledge, threatened against the Guarantor which, if adversely determined, would be reasonably likely to affect, impair or diminish the validity or enforceability of this Guaranty.
  
 10. Termination; Reinstatement of Guaranty.
  
 (a) Subject to the provisions of Section 10(b) and to the proviso set forth in this Section 10(a), this Guaranty shall terminate upon the indefeasible payment in full of the Obligations.
  
 (b) Notwithstanding the provisions of Section 10(a), this Guaranty shall be reinstated if at any time following the termination of this Guaranty under Section 10(a), any payment prior to such termination by Guarantor or Seller under this Guaranty or the Purchase Agreement or pursuant hereto or thereto is rescinded or must otherwise be returned by any Beneficiary upon the insolvency, bankruptcy, reorganization, dissolution, liquidation, or similar occurrence of Seller or Guarantor all as though such payment had not been made. Such period of reinstatement shall continue until satisfaction of the conditions contained in, and shall continue to be subject to, the provisions of this Section10.
  
 11. Benefit of Guaranty. This Guaranty shall inure to the benefit of and be binding upon the Parties and their respective successors and permitted assigns; provided, that neither Party may make any assignment of this Guaranty unless it has obtained the prior written consent of the other Party (which consent shall not be unreasonably conditioned, withheld or delayed), except that Buyer may assign this Guaranty, without consent of Guarantor, to any person to whom Buyer has rightfully assigned the Purchase Agreement pursuant to the terms thereof. Any attempted assignment in violation of this Section 11 shall be null and void ab initio.
  
  
 
 
 	 
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 12. Notices. All notices or other communications under or respecting this Guaranty shall be in writing and shall be served by (i) personal delivery, (ii) mailing copies thereof by registered or certified United States mail, postage prepaid, (iii) nationally recognized courier service, or (iv) electronic mail, followed by confirmation in one of the other accepted methods in parts (i), (ii), or (iii) of this sentence, and shall be addressed as follows:
  
  
 
 
 	 If to Guarantor:
	 CURE Pharmaceutical Holding Corp.
 5805 Sepulveda Blvd., #801
 Van Nuys, CA 91411
  

	 with a copy to:
  
	 Stradling Yocca Carlson & Rauth
 3075 Townsgate Road, Suite 330
 Westlake Village, CA 91361
 Email: breinke@stradlinglaw.com
 Facsimile: (805) 730-6825
 Attention: Brent Reinke
  

	 If to Buyer:
	 TF Tech Ventures, Inc.
 4000 N. Federal Highway, Suite 216
 Boca Raton, FL 33431 
 E-mail: capreston92@gmail.com
 Attention: CA Preston, CEO
  

	 with a copy to:
	 K&L Gates LLP
 4 Embarcadero Center, Suite 1200
 San Francisco, CA 94111
 E-mail: alidad.vakili@klgates.com
 Facsimile: 415-882-8220
 Attention: Alidad Vakili

 
 
  
 
 
 
 
 
 or at such other address such Party may from time to time designate in writing. All notices shall be effective upon actual receipt. 
  
 13. Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.
  
 (a) This Guaranty shall in all respects be interpreted, and construed and governed by and in accordance with, the internal, substantive laws of the State of California without regard to the principles of conflicts of laws thereof that would direct the application of the law of another jurisdiction.
  
  
 
 
 	 
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 (b) Any action, suit or proceeding by or between the Parties under or relating to this Guaranty shall be brought exclusively in whichever of the state or federal courts located in the County of Ventura, State of California that has subject matter jurisdiction over the dispute (or, if such courts do not accept jurisdiction, then in any federal or state court in the United States of competent jurisdiction). Each of the Parties hereby (i) waives any objection which Guarantor may now or hereafter have regarding the choice of forum whether on personal jurisdiction, venue, forum non conveniens or on any other ground, (ii) irrevocably consents that it is subject to the personal jurisdiction of the state or federal courts located in the County of Ventura, State of California, and (iii) irrevocably consents to the service of process outside of the territorial jurisdiction of such courts by nationally recognized courier service or by mailing copies thereof by registered or certified United States mail, postage prepaid, to Guarantor’s last designated address pursuant to Section 12 with the same effect as if Guarantor were a resident of the State of California and had been lawfully served in such state. Nothing in this Guaranty shall affect the right to service of process in any other manner permitted by law. 
  
 (c) EACH OF THE PARTIES TO THIS GUARANTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY.
  
 14. Severability. Any invalid or unenforceable provisions in this Guaranty shall be deemed severed herefrom, and such whole or partial invalidity shall not affect the enforceability or validity of the balance of this Guaranty.
  
 15. Waiver; Amendment. No failure on the part of either Party to exercise, and no delay in exercising, any right, remedy or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by either Party of any right, remedy or power hereunder preclude any other or future exercise of any right, remedy or power. This Guaranty may not be amended, supplemented, waived, or modified except by an instrument in writing signed by each Party.
  
 16. Entire Agreement. This Guaranty constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, between the Parties with respect to the subject matter hereof.
  
 17. Headings. The headings of this Guaranty are for convenience only, and shall be deemed not to be a part of this Guaranty not to affect the interpretation hereof.
  
 18. Counterparts. This Guaranty may be executed and delivered in counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. This Guaranty may be delivered by electronic transmission, including as a .pdf file.
  
 [signature page follows]
  
  
 
 
 	 
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 IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be executed as of the date first above written.
  
  
 
 
 	 	 CURE Pharmaceutical Holding Corp.
	
	 	 	 	 
		By:	/s/ Robert Davidson	
	  
	  
	 Name: Robert Davidson
	 
	 	 	 Title: CEO
	 

 
 
  
 
 
 
  
 ACCEPTED BY BUYER: Buyer acknowledges and accepts the above Guaranty as of the date first above written.
  
  
 
 
 	 	 TF TECH VENTURES, INC.
	
	 	 	 	 
		By:	/s/ C.A. Preston	
	  
	  
	 Name: C.A. Preston
	 
	 	 	 Title: CEO & President
	 
	 	 	 	 

 
 
  
 
 
 
 
 [Parent Guaranty]
  
  
 
 
 	 
	8curr_ex105.htm

EXHIBIT 10.5
 TRANSITION SERVICES AGREEMENT
  
 This TRANSITION SERVICES AGREEMENT (this “Agreement”) is made this 22nd day of July, 2022, by and between CURE Pharmaceutical Corporation, a California corporation (“Seller”) and TF Tech Ventures, Inc., a Delaware corporation (“Buyer”). 
  
 W I T N E S S E T H:
  
 WHEREAS, Seller and Buyer are parties to that certain Asset Purchase Agreement, dated as of the date hereof, by and between Buyer and Seller (as amended or otherwise modified from time to time in accordance with its terms, the “Purchase Agreement”). Capitalized terms used but not defined herein shall have the respective meanings given to them in the Purchase Agreement; and
  
 WHEREAS, in connection with the transactions contemplated by the Purchase Agreement, Seller has agreed to provide to Buyer certain transitional services for the periods and on the terms and conditions set forth herein.
  
         NOW, THEREFORE, in consideration of the mutual agreements and covenants set forth herein and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be legally bound hereby, the parties agree:
  
 1. SERVICES
  
 1.1 Services. During the term of this Agreement and subject to the terms and conditions set forth herein, Seller shall provide to Buyer, or cause an Affiliate or Affiliates of Seller designated by Seller for this purpose (each, a “Service Provider”) to provide to Buyer, and Buyer agrees to purchase from the Service Providers, the services set forth in Schedule A attached hereto (each, a “Service”, and collectively, the “Services”). 
  
 1.2 Level of Services. Except as set forth specifically in Schedule A or otherwise specifically agreed to in writing by the parties, Seller shall provide, or cause its Affiliate or third parties to provide, each Service with a degree of care with the same standard of care it exercised in the twelve (12) month period prior to the date hereof in the conduct of similar activities for itself. In providing the Services, Seller shall use the Business Employees so long as they are personnel of Seller, and following the Termination Date, Buyer shall make the Business Employees available to Seller for purposes of providing the Services, in accordance with Section 1.7 .
  
 1.3 Additional Services. Notwithstanding the contents of Schedule A, Seller agrees to consider in good faith any reasonable request by Buyer for access to any additional services that was historically provided by Seller to or in connection with the Business and are necessary for the operation of the Business and which are not currently contemplated in Schedule A, at a price and for a term to be agreed upon after good faith negotiations between the parties. Any such additional services so provided by Seller shall constitute Services under this Agreement and be reflected in an amendment to Schedule A and subject in all respect to the provisions of this Agreement as if fully set forth on Schedule A as of the date hereof.
  
 1.4 Third Parties. At its option, Seller may cause any Service it is required to provide hereunder to be provided by any third party (a “Third Party Service”) so long as such third party provider (each, a “Third Party Provider”) is (i) a provider that has historically been used by Seller and its Affiliates for provision of similar services, (ii) is a provider historically used by Buyer and its Affiliates for provision of similar services or (iii) is a provider able to provide such Services in all material respects in a manner consistent in scope, quality and nature with those provided by Seller and its Affiliates (or on their respective behalf) to Buyer. In the event of a Third Party Service, Seller shall obtain prior written consent of Buyer; provided that the foregoing shall not relieve Seller from its responsibility for its obligations hereunder. The provision of any Third Party Services or any other Services provided by a third party shall be subject to the terms and provisions of the underlying contract with such third party for such Services, including restrictions on use and confidentiality obligations. Buyer agrees that it shall sign any confidentiality agreement reasonably required by a third party providing, or enabling the provision of, any Services.
  
  
 
 
 	 
	
	

	 

 
 
  
 
 
 
 
 
 1.5 Employees Matters.
  
 (a) Seller is providing the employees of Seller set forth on Schedule B (the “Business Employees”) merely as an accommodation to Buyer and shall have no liability to Buyer in the event that any Business Employee terminates his or her work status with the Seller during the term of this Agreement and Seller shall be under no obligation to replace such Business Employee. Buyer acknowledges and agrees that, as an accommodation to Buyer, the Business Employees shall remain employees of Seller and on the payroll of Seller for a transition period in order to facilitate Buyer establishing its own payroll services and operational readiness to employ such employees directly. It is the intention of the Seller and Buyer that (i) such employees who remain employed by Seller will become Buyer’s employees as soon as possible following the Closing, and (ii) for so long as such employees remain employees of and on the payroll of Seller, absent gross negligence, willful misconduct or fraud by Seller, Buyer will be responsible for and shall pay to Seller all wages and salaries and other documented out-of-pocket costs actually paid by Seller for such employees pursuant to this Agreement and will indemnify and hold harmless Seller and the other Seller Indemnitees from and against any Damages (as defined in Section 4(a)) resulting from or arising out of the retention of such employees during the term of this Agreement. During the term of this Agreement, Seller shall not increase the wages, bonus opportunities, vacation pay or other benefits afforded to any Business Employee from levels paid and/or provided to such Business Employee immediately prior to the Closing.
  
 (b) Seller shall terminate the employment of each Business Employee who has accepted Buyer’s offer of employment and whose employment with Seller has not terminated (the “Continuing Employees”) effective as of the Termination Date. On the Termination Date or on any date that a Business Employee otherwise terminates employment with Seller prior to the Termination Date (each such employee, a “Terminated Employee” and each such date, a “Separation Date”), Seller shall make payment to each Continuing Employee and each Terminated Employee of all accrued wages, salaries and earned but unused vacation time or personal time off and any other amounts due under applicable law for all periods from the date hereof through the Termination Date or Separation Date (as applicable). Seller shall provide Buyer with a Payroll Notice (as defined below) with respect to the amounts due to the Business Employees on the Termination Date, and Buyer shall make payment in accordance with the terms of Section 1.6(a) of the amounts set forth in such Payroll Notice. Following any Separation Date, Seller shall promptly provide to Buyer the amounts paid by Seller to such Terminated Employee on such date, including all related employment Taxes paid with respect thereto, and Buyer shall pay such amount to Seller within five (5) Business Days of receipt of an invoice for such amount from Seller.
  
 (c) Notwithstanding anything to the contrary, Buyer shall not be responsible for any wages, salaries, vacations, expenses, costs, fees, severances, or benefits arising out of or relating to the employment of Business Employees by Seller prior to the date hereof other than the Rollover Vacation liability expressly assumed by Buyer pursuant to the Purchase Agreement in accordance with the terms thereof.
  
 1.6 Funding of Payroll and Benefits. Not less than four (4) Business Days prior to any payroll date (the “Applicable Payroll Date”), Seller shall provide the Buyer with written notice (the “Payroll Notice”) of all amounts required to be paid by the Buyer to Seller with respect to the Applicable Payroll Date, and not less than two (2) Business Days prior to such Applicable Payroll Date, Buyer shall fund by wire transfer of immediately available funds all amounts set forth in such Payroll Notice from Seller. Each Payroll Notice shall be accompanied by supporting documentation of the gross wages, employer paid taxes, employer paid employee benefits and any other Business Employee payroll related fees and charges due on such Applicable Payroll Date. All such wire transfers by Buyer to Seller shall be to the account of Seller set forth on Appendix I to Schedule A. For the avoidance of doubt, Seller shall pay all necessary employment Taxes as required by Law with respect to the Business Employees for the period from the date of this Agreement until the Termination Date and Buyer shall reimburse Seller in full for the employer portion of such employment Taxes paid or payable by Seller with respect thereto.
  
  
 
 
 	 
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 1.7 Cooperation and Access. The Parties acknowledge and agree that, effective as of the Closing, among other things, (a) substantially all of the Seller’s assets related to the Business will transfer to Buyer, (b) all of the Continuing Employees will transfer employment to the Buyer following the Termination Date, and (c) such assets, and after the Termination Date, employees, are contemplated to be used in the provision of the Services. Accordingly, subject to the limitations set forth in this Agreement, (i) Buyer shall cause its employees to reasonably cooperate with employees of the Service Provider in providing a Service to Buyer, to the extent required for effective delivery of the Services and to minimize the disruption to, or additional recordkeeping required by, the Service Provider and (ii) Buyer shall give the Service Provider full access to the properties, assets and networks environments of Buyer (the “Facilities”) as is reasonably necessary for the Service Provider to provide the Services. From the date hereof until the Termination Date, Seller shall direct the Business Employees to follow and comply with the instructions and policies provided by Buyer and Buyer or its designee will supervise and direct the Business Employees with respect to day-to-day responsibilities. For the avoidance of doubt, Seller shall not be required to hire any employees or purchase or otherwise obtain any assets in connection with the performance of the Services, it being expressly acknowledged and agreed that Seller’s obligation to provide the Services shall be wholly dependent on Buyer’s making available (at Buyer’s sole cost and expense) any such assets or, after the Termination Date, employees, as Seller deems necessary to perform the Services.
  
 1.8 Limitation of Liability; Disclaimer.
  
 (a) The parties hereto acknowledge and agree that the Services are being provided by Seller: (i) at the request of the Buyer in order to accommodate it following the Closing, (ii) at the costs set forth in Section 1.5, Section 1.6, Section 2.1 and Schedule A hereto and with no expectation of profit being made by Seller thereon, and (iii) with the expectation that Seller is not assuming any financial or operational risks, including those usually assumed by a service provider, except for those risks explicitly set forth herein. Accordingly, subject to Section 4 of this Agreement, each party agrees that, absent gross negligence or willful misconduct, Seller, its Affiliates, and their directors, officers, employees, representatives, consultants and agents shall not be liable for any direct, indirect, special, incidental or consequential damages, including lost profits or savings, whether or not such damages are foreseeable, or for any third party claims relating to the Services or Seller’s performance under this Agreement. Notwithstanding anything to the contrary contained herein, in the event that Seller commits an error with respect to or incorrectly performs or fails to perform any Service in any material respect, at the Buyer’s request, Seller shall use reasonable efforts and in good faith attempt to correct such error, re-perform or perform such Service at no additional cost to Buyer; provided, that, absent gross negligence or willful misconduct, Seller shall have no obligation to recreate any lost or destroyed data to the extent the same connect be cured by re-performance of the Service in question.
  
 (b) EXCEPT AS EXPRESSLY SET FORTH HEREIN, SELLER MAKES NO REPRESENTATIONS OR WARRANTIES IN RESPECT OF THE SERVICES, EXPRESS OR IMPLIED.
  
 2. PAYMENTS
  
 2.1 Services Pricing.
  
 (a) Buyer shall pay Seller, or its applicable Affiliate, (i) the fees for the Services on the basis and in the manner described in Section 1.5, Section 1.6 and in Schedule A, and (ii) any reasonably out-of-pocket costs and expenses that Seller incurs in providing the Services, provided, that with respect to clause (ii) hereof, that Buyer has approved in writing any such costs and expenses in excess of $2,500 in advance (collectively, the “Fees”). Seller or its agents shall keep and maintain such books and records as may be reasonably necessary to make any applicable allocations. Seller shall make copies of the relevant portion of such books and records available to Buyer for inspection upon request and with reasonable notice. The Fees shall not be increased during the term of this Agreement except as contemplated by this Section 2.1.
  
 2.2 Invoicing. Except for those charges with alternate invoicing and payment terms specifically set forth in Section 1.5, Section 1.6 or in Schedule A, within 10 Business Days following the end of each calendar month during the term hereof, Seller shall provide to Buyer a single invoice in form, format and media reasonably acceptable to Buyer totaling all charges during such month for the Services incurred by Buyer hereunder (each, an “Invoice”). Each Invoice shall contain a brief description of each Service giving rise to such charge in reasonable detail, with such supporting documentation as Buyer may reasonably request. Notwithstanding the foregoing, Seller shall be permitted to direct Buyer to make payment to third parties directly for Services hereunder (including, without limitation, making payment of the utilities costs for the Facilities) and Buyer shall make timely payment of such amounts in accordance with the applicable payment terms therefor. 
  
  
 
 
 	 
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 2.3 Payment. Buyer shall pay all amounts due under each Invoice no later than 5 days following receipt of such Invoice. Buyer shall pay all amounts due with respect to those charges with alternate invoicing and payment terms specifically set forth in Section 1.6 or in Schedule A hereto in accordance with the relevant payment terms set forth in Section 1.6 or Schedule A, as the case may be.
  
 3. TERM AND TERMINATION
  
 3.1 Term. Unless earlier terminated in accordance with Section 3.2 below, this Agreement shall be in effect from the date of this Agreement until the earlier of (i) January 20, 2023 and (ii) the date on which the terms for all of the Services have expired or been terminated, which term may be extended by mutual written agreement of the parties; provided that the term with respect to any specific Service may be shorter if such shorter term is set forth on Schedule A or this Agreement is otherwise terminated with respect to such Service hereunder.
  
 3.2 Termination.
  
 (a) If a party (the “Defaulting Party”) has materially breached its obligations under this Agreement (including a failure to make timely payment of any amount due under this Agreement) and has not cured such default within 30 days following the date on which the other party (the “Notifying Party”) has given written notice to the Defaulting Party specifying the facts constituting the default, the Notifying Party may, in its sole discretion, (i) suspend or terminate (or any combination thereof) providing or receiving any or all of the Services, in whole or in part, or (ii) terminate this Agreement. Notwithstanding the foregoing sentence, neither this Agreement nor any Service shall be terminated due to a default by the Defaulting Party if such default is directly attributable to a breach of this Agreement by the Notifying Party.
   
 (b) Buyer will have no obligation to continue to use any of the Services and shall be permitted to terminate this Agreement with respect to any particular or all of the Services to be provided by a Service Provider, by giving Seller written notice of its desire to terminate any particular Service, in whole or in part (a “Termination Notice”), which Termination Notice shall take effect on the date set forth therein, which date shall be not less than 30 days after delivery of such Termination Notice or such earlier date as may be mutually agreed upon by Seller and Buyer (the “Effective Date”). Upon such termination, Buyer’s obligation to pay any fees applicable to the provision of such terminated Services (or part thereof) following the Effective Date (if applicable), and the Service Provider’s obligation to provide such terminated Services (or part thereof) following the Effective Date, will terminate; provided that no termination shall relieve Buyer of its obligation to pay for Services provided prior to the Effective Date. Once Buyer has terminated any of the Services, Buyer may request any such Services to be resumed pursuant hereto, but Seller shall not be required to resume any such terminated Services.
  
 (c) Upon termination of this Agreement for any reason, all rights and obligations of the parties under this Agreement shall cease and be of no further force or effect, except that the provisions of Sections 1.5, 1.6, 1.8, 2.3, 3, 4 and 5 of this Agreement shall survive any such termination or expiration.
  
 4. INDEMNITY
  
 (a) Buyer agrees to indemnify, defend and hold Seller and its Affiliates and persons serving as officers, directors, partners or employees thereof (collectively “Seller Indemnitees”) harmless from and against any damages, liabilities, losses, taxes, fines, penalties, costs and expenses (each, a “Damage” and, collectively, the “Damages”) (including, without limitation, reasonable fees of counsel) of any kind or nature whatsoever (whether or not arising out of third-party claims and including all amounts paid in investigation, defense or settlement of the foregoing) which may be sustained or suffered by any of them arising out of or based on (i) the provision of the Services (other than as a result of the gross negligence or willful misconduct of Seller), (ii) any breach of this Agreement by Buyer, (iii) violation of law by Buyer, or (iv) willful misconduct on the part of Buyer. In addition, Buyer agrees to indemnify, defend and hold the Seller Indemnitees harmless from and against any Damages arising from or relating to (v) all employment-related claims arising with respect to any Business Employee under federal, state or local Law (including but not limited to discrimination and harassment claims and any claims alleging joint employer liability), (w) tortious conduct alleged by any Business Employee, including allegations of negligence, defamation and intentional or negligent infliction of emotional distress, (x) any matter relating to the Buyer’s use of any Business Employee or involving the use by Business Employee of the Buyer’s machinery, facilities, equipment and/or vehicles, (y) any employee-related fines, penalties or sanctions related to any Business Employee; and (z) any increase in Seller’s workers’ compensation rate as a result of claims or work classification of Business Employees, in each case to the extent arising from facts and circumstances occurring during the term of this Agreement. For clarification and without limiting the generality of the foregoing, Seller shall not be responsible for any act or omission of any Business Employee, and any such act or omission shall not constitute willful misconduct, willful omission or negligence of Seller.
  
  
 
 
 	 
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 (b) The Seller agrees to indemnify and hold Buyer and its Affiliates and persons serving as officers, directors, partners or employees thereof harmless from and against any Damages (including, without limitation, reasonable fees of counsel) of any kind or nature whatsoever (whether or not arising out of third-party claims and including all amounts paid in investigation, defense or settlement of the foregoing) which may be sustained or suffered by any of them arising out of or based upon any gross negligence, violation of Law, or willful misconduct in each case on the part of Seller.
  
 (c) No right of indemnification shall exist under this Agreement with respect to matters for which indemnification may reasonably be claimed under the Purchase Agreement, it being the intent of the parties that claims that are addressed under the Purchase Agreement shall be governed solely by the Purchase Agreement. No right of indemnification shall exist under the Purchase Agreement for claims arising out of the performance of this Agreement, it being the intent of the Parties that such claims shall be solely governed by the provisions of this Agreement. Notwithstanding the foregoing, no claim for indemnification made under this Agreement shall be denied solely based on the preceding two sentences if such claim was initially brought under the Purchase Agreement and denied because the subject matter of such claim was reasonably believed to be covered under the indemnification provisions of this Agreement.
  
 5. GENERAL
  
 5.1 Impracticability; Force Majeure.
  
 (a) Notwithstanding any other provision of this Agreement, no Service Provider shall be required to provide any Service to the extent the performance of such Service would require such Service Provider to violate any applicable Laws or any contracts to which the Service Provider is a party.
  
 (b) The obligations of Seller under this Agreement with respect to any Service shall be suspended during the period and to the extent that the applicable Service Provider is prevented or hindered from providing such Service, or Buyer is prevented or hindered from receiving such Service, due to any of the following causes beyond such party’s reasonable control (such causes, “Force Majeure Events”): (i) acts of God, (ii) flood, fire or explosion, (iii) war, invasion, riot or other civil unrest, (iv) governmental order or Law, (v) actions, embargoes or blockades in effect on or after the date of this Agreement, (vi) action by any Governmental Authority, (vii) national or regional emergency, (viii) strikes, labor stoppages or slowdowns or other industrial disturbances, (ix) shortage of adequate power or transportation facilities, or (x) any other event which is beyond the reasonable control of such party. The party suffering a Force Majeure Event shall give notice of suspension as soon as reasonably practicable to the other party stating the date and extent of such suspension and the cause thereof, and Seller shall resume the performance of its obligations as soon as reasonably practicable after the removal of the cause. If such suspension of Services has a negative impact on Buyer’s business operations, at Buyer’s request, Seller shall use commercially reasonable efforts, at Buyer’s sole cost and expense to assist Buyer in securing alternative services to minimize such negative impact on Buyer. Neither Buyer nor Seller shall be liable for the nonperformance or delay in performance of its respective obligations (other than payment obligations) under this Agreement when such failure is due to a Force Majeure Event. The applicable end date for any Service so suspended shall be automatically extended for a period of time equal to the time lost by reason of the suspension.
  
  
 
 
 	 
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 5.2 Relationship of the Parties. Seller (including, as applicable, its Affiliates) shall for all purposes be considered independent contractors with respect to Buyer, and Seller (including, as applicable, its Affiliates) shall not be considered an employee, employer, agent, principal, partner or joint venturer of Buyer. For purposes of this Agreement, neither Seller nor any employee, representative or agent of Seller shall have any claim, right, or entitlement under this Agreement or otherwise against the Buyer for workers’ compensation, unemployment compensation, sick leave, vacation pay, pension or retirement benefits, Social Security benefits, or any other employee benefits with respect to employees of Seller that provide Services to Buyer. Nothing contained in this Agreement shall be deemed or construed to create any liability whatsoever of any party with respect to the indebtedness, liabilities, obligations or actions of the other party or any of its respective representatives, or any other Person.
  
 5.3 Intellectual Property. To the extent Seller becomes aware, Seller shall disclose to the Buyer any improvements, inventions, formulas, ideas, works of authorship, processes, computer programs, know-how and trade secrets, whether or not patentable, made or conceived or reduced to practice or developed by Seller, either alone or jointly with others, during the term of this Agreement and related to the Seller’s provision of Services to the Buyer through any Business Employee hereunder (“Inventions”). The parties agree that all Inventions and Intellectual Property rights therein shall be the sole property of the Buyer and shall be “works made for hire.” Seller hereby assigns to the Buyer any rights Seller may have, had or acquire in all Inventions and agrees to perform, during and after the term of this Agreement, at the Buyer’s expense (including payment of the Seller’s fully burdened costs) all acts deemed reasonably necessary by the Buyer in obtaining and enforcing Intellectual Property rights with respect to such Inventions. Subject to the foregoing, nothing in this Agreement shall be interpreted to, or shall, assign, transfer or license any Intellectual Property rights between the parties hereto, and each party shall retain all right, title and interest in and to their respective Intellectual Property rights and any and all improvements, modifications and derivative works thereof or thereto.
  
 5.4 Insurance. Buyer shall maintain at its sole cost, with insurers reasonably satisfactory to Seller, insurance policies, including General Liability and Umbrella Coverage with coverages, limits and deductibles at least equal to those set forth in the insurance policies maintained by Seller for the Business as of the Closing Date; provided that immaterial differences shall be ignored. On or before the Effective Date, Buyer shall furnish to Seller evidence to Seller confirming to Seller the insurance at the time in force pursuant to this Section specifying the amount and character of coverage, identifying the insurers and certifying as to no default in the payment of current premiums thereon and will furnish Seller with copies of all such policies.
  
 5.5 Compliance with Laws. Each party hereto shall be responsible for its and its Affiliates’ own compliance with any and all applicable Laws in connection to their performance and receipt of Services under this Agreement. No party or its Affiliates will take any action in violation of any such applicable Law that would reasonably be likely to result in liability being imposed on the other party or its Affiliates, as the case may be, as a result of a violation of applicable Law. Each Service Provider shall notify the other parties of any material compliance problems in connection with the Services of which the Service Provider becomes aware.
  
 5.6 General Provisions. Section 8.02 (Notices), Section 8.04 (Severability), Section 8.05 (Entire Agreement), Section 8.06 (Successors and Assigns), Section 8.07 (No Third-Party Beneficiaries), Section 8.08 (Amendment and Modification), Section 8.09 (Waiver), Section 8.10 (Governing Law), Section 8.11 (Submission to Jurisdiction), Section 8.12 (Waiver of Jury Trial), Section 8.13 (Specific Performance), and Section 8.14 (Counterparts) of the Purchase Agreement are each hereby incorporated by reference mutatis mutandis.
  
 5.7 Conflict. This Agreement is being executed and delivered pursuant to the terms and conditions of the Purchase Agreement. In the event of any inconsistency between the terms of this Agreement and the Purchase Agreement, the terms of the Purchase Agreement shall control.
  
 Signature Page Follows
  
  
 
 
 	 
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 IN WITNESS WHEREOF, Seller and Buyer have duly executed this Agreement as of the day, month and year first above written.
  
  
 
 
 	 	SELLER:  	
	  
	  
	  

	  
	 CURE PHARMACEUTICAL CORPORATION
 a California corporation 
	  

	 	 	 	 
		By:	/s/ Robert Davidson 	
	  
	 Name: 
	Robert Davidson 	 
	 	Title:	CEO	 
	 	 	 	 
	  
	 BUYER: 
	  

	  
	  
	  

	  
	 TF TECH VENTURES, INC. 
 a Delaware corporation
	  

	  
	  
	  
	  

	  
	 By: 
	 /s/ C.A. Preston
	  

	  
	 Name:  
	 C.A. Preston
	  

	  
	 Title: 
	 CEO & President 
	  

 
 
  
 
 
 
 
  
  
 
 
 	 
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 SCHEDULE A
  
 Services
  
  
 
 
 	 Service Item
	 Description of Service
	 Termination Dates
	 Fees

	 Operations
	 All actions and services necessary to operate the Business in the ordinary course of business consistent with the manner in which Seller conducted the Business prior to the Closing Date, as if the sale of the Purchased Assets pursuant to the Purchase Agreement had not occurred. 
  
 For the avoidance of doubt, during the Term, the Business Employees will continue to provide and perform all services and functions as they performed for the Business prior to Closing. 
  
	 The date on which Buyer has provided written notice to Seller that Buyer has obtained each of the Permits set forth on Exhibit 1, attached hereto, or has determined in its reasonable discretion that any Permits that it has not obtained are not required for the operation of the Business by the Buyer (such date, the “Notice Date”). 
	 Actual cost. 

	 Payroll & Benefits
	 Provide payroll processing, payment and tax filing services and employee benefits coverage (to the extent such benefits were provided as of the Closing Date) for the Business Employees (so long as they are employees of Seller) through the Seller’s PEO provider as of the Closing Date. 
	 The Termination Date, which shall be no later than 45 days following the Closing Date. 
	 Actual costs – paid in accordance with Section 1.5 and Section 1.6 of the Agreement. 

	 Accounting and Finance Transition 
	 At Buyer’s direction and cost, the appropriate Business Employees will, as part of their regular job duties, take such actions as reasonably required for Buyer’s operation of the Business as a stand-alone entity, including setting up Buyer’s accounting and finance systems.
	 The Notice Date. 
	 Actual costs – including the costs of any software licenses. 

	 IT
	 Provide Buyer access to IT services and software licenses to the extent needed for Buyer to operate the Business.
	 6 months after the Closing Date. 
	 Actual cost; provided, that Seller shall not be responsible for obtaining any additional software licenses or to renew any software licenses. 

	 Permits & Licenses
	 At Buyer’s direction, provide all applicable information, documents, cooperation and support to properly transition each of the Permits set forth on Exhibit 1, attached hereto (excluding those which Buyer determines are not necessary for the operation of the Business). 
	 The date on which Buyer has provided written notice to Seller that Buyer has obtained each of the Permits set forth on Exhibit 1, attached hereto, or has determined in its reasonable discretion that any Permits that it has not obtained are not required for the operation of the Business by the Buyer.
	 Actual cost. 

	 Facilities 
	 Seller shall make payment of the utilities for the Leased Real Property. 
	 On the date when Buyer has opened all necessary utilities accounts for the Leased Real Property in its own name, which shall occur no later than 60 days following the Closing Date. 
	 At cost; provided, that Seller shall not be required to include such charges on the monthly Invoice and shall instead invoice Buyer when payment is made and Buyer shall reimburse Seller in full no later than three (3) Business Days following receipt of the applicable invoice. 

 
 
  
 
 
 
 
 
  
 
 
 	 
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 EXHIBIT 1 TO SCHEDULE A
  
 PERMITS
  
  
 
 
 	 Description
	 License Number
	 Issuance Date
	 Expiration Date
	 Issuing Authority

	 Oxnard Business License 
	 23-00105063
	 8/16/2021
	 7/31/2022
	 City of Oxnard, License Services 

	 DEA: Schedule 1 & 3N Manufacturing License
	 RC0545701
	 8/24/2021
	 8/31/2022
	 United States Department of Justice, Drug Enforcement Administration 

	 CDPH Drug Manufacturing License
	 58961
	 10/11/2021
	 9/12/2022
	 State of California, Department of Public Health, Food and Drug Branch

	 CDPH Process Food Registration
	 58961
	  
	 9/12/2022
	 State of California, Department of Public Health, Food and Drug Branch

	 Storm Water Permit
	 NEC: 456NEC004719
	 11/14/2018
	 N/A
	 The State Water Resources Control Board

	 US FDA Facility Establishment Identifier (FEI)
	 3009940880
	  
	 N/A
	 State of California, Department of Public Health, Food and Drug Branch

	 US FDA Registration
	 19835250384
	  
	 12/31/2022
	 U.S. Food & Drug Administration

	 IND relating to Collaboration Agreement
	  
	  
	  
	  

	 Operation of Allopathic Pharmacy or Homeopathic Pharmacy (Without Preparation of Pharmaceutical Specialties) or Apothecary 
	 COFEPRIS-05-007-D
	 3/3/2022
	  
	 Comisión Federal para la Protección contra Riesgos Sanitarios

 
 
  
 
 
 
 
 
  
 
 
 	 
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 SCHEDULE B
  
 BUSINESS EMPLOYEES
  
 1. Robert Davidson
  
 2. Michael Redard
  
 3. Mark Udell
  
 4. Courtney Lasley
  
 5. Adrienne Grashaw
  
 6. Katherin Landas
  
 7. Tim Habeck
  
 8. Cheryl Baumgart
  
 9. Lina Galeano
  
 10. Sarahi Zuniga
  
 11. Karina Sierra
  
 12. Sandy Garate
  
 13. Jose Bernardo
  
  
 
 
 	 
	10

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