Document:

rc_Ex10_9

		
			Exhibit 10.9
		

		
			Form of Indemnification Agreement
		

		
			 
		

		
			INDEMNIFICATION AGREEMENT
		

		
			 
		

		
			THIS INDEMNIFICATION AGREEMENT (“Agreement”) is made and entered into as of the         day of         , 20       .
		

		
			 
		

		
			WHEREAS, Sutherland Asset Management Corporation will be renamed “Ready Capital Corporation”, and pursuant to Section 18(c) hereof, the Company desires to enter into this Agreement with the Indemnitee.
		

		
			 
		

		
			WHEREAS, at the request of the Company, Indemnitee currently serves as a director and/or officer of the Company and may, therefore, be subjected to claims, suits or proceedings arising as a result of [his][her] service; and
		

		
			 
		

		
			WHEREAS, as an inducement to Indemnitee to continue to serve as such director and/or officer, the Company has agreed to indemnify and to advance expenses and costs incurred by Indemnitee in connection with any such claims, suits or proceedings, to the maximum extent permitted by law; and
		

		
			 
		

		
			WHEREAS, the parties by this Agreement desire to set forth their agreement regarding indemnification and advance of expenses; and
		

		
			 
		

		
			NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:
		

		
			 
		

		
			Section 1.Definitions. For purposes of this Agreement:
		

		
			 
		

		
			(a)  “Change in Control” means a change in control of the Company occurring after the Effective Date of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), whether or not the Company is then subject to such reporting requirement; provided, however, that, without limitation, such a Change in Control shall be deemed to have occurred if, after the Effective Date (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 15% or more of the combined voting power of all of the Company’s then-outstanding securities entitled to vote generally in the election of directors without the prior approval of at least two-thirds of the members of the Board of Directors in office immediately prior to such person’s attaining such percentage interest; (ii) the Company is a party to a merger, consolidation, sale of assets, plan of liquidation or other reorganization not approved by at least two-thirds of the members of the Board of Directors then in office, as a consequence of which members of the Board of Directors in office immediately prior to such transaction or event constitute less than a majority of the Board of Directors thereafter; or (iii) at any time, a majority of the members of the Board of Directors are not individuals (A) who were directors as of the Effective Date or (B) whose election by the Board of Directors or nomination for election by the Company’s stockholders was approved by the affirmative vote of at least two-thirds of the directors then in office who were directors as of the Effective Date or whose election or nomination for election was previously so approved.
		

		
			 
		

		
			(b)   “Corporate Status” means the status of a person as a present or former director, officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company. As a clarification and without limiting the circumstances in which Indemnitee may be serving at the request of the Company, service by Indemnitee shall be deemed to be at the request of the Company if Indemnitee serves or served as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise (i) of which a majority of the voting power or equity interest is owned directly or indirectly by the Company or (ii) the management of which is controlled directly or indirectly by the Company.
		

		
			 
		

		
			(c)   “Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification and/or advance of Expenses is sought by Indemnitee.
		

		
			
		

		
			

		 

		

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			(d)   “Effective Date” means the date set forth in the first paragraph of this Agreement.
		

		
			 
		

		
			(e)   “Expenses” means any and all reasonable and out-of-pocket attorneys’ fees and costs, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties and any other disbursements or expenses incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in or otherwise participating in a Proceeding. Expenses shall also include Expenses incurred in connection with any appeal resulting from any Proceeding including, without limitation, the premium, security for and other costs relating to any cost bond, supersedes bond or other appeal bond or its equivalent.
		

		
			 
		

		
			(f)   “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement or of other indemnitees under similar indemnification agreements), or (ii) any other party to or participant or witness in the Proceeding giving rise to a claim for indemnification or advance of Expenses hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.
		

		
			 
		

		
			(g)   “Proceeding” means any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other proceeding, whether brought by or in the right of the Company or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative or investigative (formal or informal) nature, including any appeal therefrom, except one pending or completed on or before the Effective Date, unless otherwise specifically agreed in writing by the Company and Indemnitee. If Indemnitee reasonably believes that a given situation may lead to or culminate in the institution of a Proceeding, such situation shall also be considered a Proceeding.
		

		
			 
		

		
			Section 2.Services by Indemnitee.  Indemnitee will serve as a director and/or officer of the Company. However, this Agreement shall not impose any independent obligation on Indemnitee or the Company to continue Indemnitee’s service to the Company. This Agreement shall not be deemed an employment contract between the Company (or any other entity) and Indemnitee.
		

		
			 
		

		
			Section 3.General.  The Company shall indemnify, and advance Expenses to, Indemnitee (a) as provided in this Agreement and (b) otherwise to the maximum extent permitted by the laws of the State of Maryland in effect on the Effective Date and as amended from time to time; provided, however, that no change in the laws of the State of Maryland shall have the effect of reducing the benefits available to Indemnitee hereunder based on the laws of the State of Maryland as in effect on the Effective Date. The rights of Indemnitee provided in this Section 3 shall include, without limitation, the rights set forth in the other sections of this Agreement, including any additional indemnification permitted by Section 2-418(g) of the Maryland General Corporation Law (the “MGCL”).
		

		
			 
		

		
			Section 4.Standard for Indemnification.  If, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be, made a party to any Proceeding, Indemnitee shall be indemnified against all judgments, penalties, fines and amounts paid in settlement and all Expenses actually and reasonably incurred by [him][her] or on [his][her] behalf in connection with any such Proceeding unless it is established that (a) the act or omission of Indemnitee was material to the matter giving rise to the Proceeding and (i) was committed in bad faith or (ii) was the result of active and deliberate dishonesty, (b) Indemnitee actually received an improper personal benefit in money, property or services or (c) in the case of any criminal Proceeding, Indemnitee had reasonable cause to believe that [his][her] conduct was unlawful.
		

		
			
		

		
			

		 

		

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			Section 5.Certain Limits on Indemnification.  Notwithstanding any other provision of this Agreement (other than Section 6), Indemnitee shall not be entitled to:
		

		
			 
		

		
			(a)   indemnification hereunder if the Proceeding was one by or in the right of the Company and Indemnitee is adjudged to be liable to the Company;
		

		
			 
		

		
			(b)   indemnification hereunder if Indemnitee is adjudged to be liable on the basis that personal benefit was improperly received in any Proceeding charging improper personal benefit to Indemnitee, whether or not involving action in the Indemnitee’s Corporate Status; or
		

		
			 
		

		
			(c)   indemnification or advance of Expenses hereunder if the Proceeding was brought by Indemnitee unless: (i) the Proceeding was brought to enforce indemnification under this Agreement, and then only to the extent in accordance with and as authorized by Section 12 of this Agreement, or (ii) the Company’s charter or Bylaws, a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of Directors or an agreement approved by the Board of Directors to which the Company is a party expressly provide otherwise.
		

		
			 
		

		
			Section 6.Court-Ordered Indemnification.  Notwithstanding any other provision of this Agreement, a court of appropriate jurisdiction, upon application of Indemnitee and such notice as the court shall require, may order indemnification in the following circumstances:
		

		
			 
		

		
			(a)   if it determines Indemnitee is entitled to reimbursement under Section 2-418(d)(1) of the MGCL, the court shall order indemnification, in which case Indemnitee shall be entitled to recover the Expenses of securing such reimbursement; or
		

		
			 
		

		
			(b)   if it determines that Indemnitee is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, whether or not Indemnitee (i) has met the standards of conduct set forth in Section 2-418(b) of the MGCL or (ii) has been adjudged liable for receipt of an improper personal benefit under Section 2-418(c) of the MGCL, the court may order such indemnification as the court shall deem proper. However, indemnification with respect to any Proceeding by or in the right of the Company or in which liability shall have been adjudged in the circumstances described in Section 2-418(c) of the MGCL shall be limited to Expenses.
		

		
			 
		

		
			Section 7.Indemnification for Expenses of a Party Who is Wholly or Partly Successful.  Notwithstanding any other provision of this Agreement, and without limiting any such provision, to the extent that Indemnitee was or is, by reason of [his][her] Corporate Status, made a party to (or otherwise becomes a participant in) any Proceeding and is successful, on the merits or otherwise, in the defense of such Proceeding, Indemnitee shall be indemnified for all Expenses actually and reasonably incurred by [him][her] or on [his][her] behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee under this Section 7 for all Expenses actually and reasonably incurred by [him][her] or on [his][her] behalf in connection with each such claim, issue or matter, allocated on a reasonable and proportionate basis. For purposes of this Section 7 and, without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.
		

		
			 
		

		
			Section 8.Advance of Expenses for a Party.  If, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be, made a party to any Proceeding, the Company shall, without requiring a preliminary determination of Indemnitee’s ultimate entitlement to indemnification hereunder, advance all reasonable Expenses incurred by or on behalf of Indemnitee in connection with such Proceeding within ten days after the receipt by the Company of a statement or statements requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by a written affirmation by Indemnitee of Indemnitee’s good faith belief that the standard of conduct necessary for indemnification by the Company as authorized by law and by this Agreement has been met and a written undertaking by or on behalf of Indemnitee, in substantially the form attached hereto as Exhibit A or in such form as may be required under applicable law as in effect at the time of the execution thereof, to reimburse the portion of any Expenses advanced to Indemnitee relating to claims, issues or matters in the Proceeding as to which it shall ultimately be established that the standard of conduct has not been met by Indemnitee and which have not been successfully resolved as described in Section 7 of this Agreement. To
		

		
			
		

		
			

		 

		

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			the extent that Expenses advanced to Indemnitee do not relate to a specific claim, issue or matter in the Proceeding, such Expenses shall be allocated on a reasonable and proportionate basis. The undertaking required by this Section 8 shall be an unlimited general obligation by or on behalf of Indemnitee and shall be accepted without reference to Indemnitee’s financial ability to repay such advanced Expenses and without any requirement to post security therefor.
		

		
			 
		

		
			Section 9.Indemnification and Advance of Expenses of a Witness.  Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is or may be, by reason of [his][her] Corporate Status, made a witness or otherwise asked to participate in any Proceeding, whether instituted by the Company or any other party, and to which Indemnitee is not a party, [he][she] shall be advanced all reasonable Expenses and indemnified against all Expenses actually and reasonably incurred by [him][her] or on [his][her] behalf in connection therewith within ten days after the receipt by the Company of a statement or statements requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee.
		

		
			 
		

		
			Section 10.Procedure for Determination of Entitlement to Indemnification.
		

		
			 
		

		
			(a)   To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. Indemnitee may submit one or more such requests from time to time and at such time(s) as Indemnitee deems appropriate in [his][her] sole discretion. The officer of the Company receiving any such request from Indemnitee shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has requested indemnification.
		

		
			 
		

		
			(b)   Upon written request by Indemnitee for indemnification pursuant to Section 10(a) above, a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall promptly be made in the specific case: (i) if a Change in Control shall have occurred, by Independent Counsel, in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee, which Independent Counsel shall be selected by the Indemnitee and approved by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the MGCL, which approval will not be unreasonably withheld; or (ii) if a Change in Control shall not have occurred, (A) by the Board of Directors by a majority vote of a quorum consisting of Disinterested Directors or, if such a quorum cannot be obtained, then by a majority vote of a duly authorized committee of the Board of Directors consisting solely of one or more Disinterested Directors, (B) if Independent Counsel has been selected by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the MGCL and approved by the Indemnitee, which approval shall not be unreasonably withheld, by Independent Counsel, in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee or (C) if so directed by a majority of the members of the Board of Directors, by the stockholders of the Company. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination in the discretion of the Board of Directors or Independent Counsel if retained pursuant to clause (ii)(B) of this Section 10(b). Any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company shall indemnify and hold Indemnitee harmless therefrom.
		

		
			 
		

		
			(c)   The Company shall pay the reasonable fees and expenses of Independent Counsel, if one is appointed.
		

		
			 
		

		
			Section 11.Presumptions and Effect of Certain Proceedings.
		

		
			 
		

		
			(a)   In making any determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 10(a) of
		

		
			
		

		
			

		 

		

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			this Agreement, and the Company shall have the burden of proof to overcome that presumption in connection with the making of any determination contrary to that presumption.
		

		
			 
		

		
			(b)   The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, upon a plea of nolo contendere or its equivalent, or entry of an order of probation prior to judgment, does not create a presumption that Indemnitee did not meet the requisite standard of conduct described herein for indemnification.
		

		
			 
		

		
			(c)   The knowledge and/or actions, or failure to act, of any other director, officer, employee or agent of the Company or any other director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise shall not be imputed to Indemnitee for purposes of determining any other right to indemnification under this Agreement.
		

		
			 
		

		
			Section 12.Remedies of Indemnitee.
		

		
			 
		

		
			(a)   If (i) a determination is made pursuant to Section 10(b) of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advance of Expenses is not timely made pursuant to Section 8 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 10(b) of this Agreement within 60 days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 7 of this Agreement within ten days after receipt by the Company of a written request therefor, or (v) payment of indemnification pursuant to any other section of this Agreement or the charter or Bylaws of the Company is not made within ten days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication in an appropriate court located in the State of Maryland, or in any other court of competent jurisdiction, of [his][her] entitlement to such indemnification or advance of Expenses. Alternatively, Indemnitee, at [his][her] option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Indemnitee shall commence a proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 12(a); provided, however, that the foregoing clause shall not apply to a proceeding brought by Indemnitee to enforce [his][her] rights under Section 7 of this Agreement. Except as set forth herein, the provisions of the laws of the State of Maryland (without regard to its conflicts of laws rules) shall apply to any such arbitration. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.
		

		
			 
		

		
			(b)   In any judicial proceeding or arbitration commenced pursuant to this Section 12, Indemnitee shall be presumed to be entitled to indemnification or advance of Expenses, as the case may be, under this Agreement and the Company shall have the burden of proving that Indemnitee is not entitled to indemnification or advance of Expenses, as the case may be. If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 12, Indemnitee shall not be required to reimburse the Company for any advances pursuant to Section 8 of this Agreement until a final determination is made with respect to Indemnitee’s entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed). The Company shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all of the provisions of this Agreement.
		

		
			 
		

		
			(c)   If a determination shall have been made pursuant to Section 10(b) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, absent a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification.
		

		
			 
		

		
			(d)   In the event that Indemnitee, pursuant to this Section 12, seeks a judicial adjudication of or an award in arbitration to enforce [his][her] rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company for, any and all Expenses actually and reasonably incurred by [him][her] in such judicial adjudication or arbitration. If it
		

		
			
		

		
			

		 

		

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			shall be determined in such judicial adjudication or arbitration that Indemnitee is entitled to receive part but not all of the indemnification or advance of Expenses sought, the Expenses incurred by Indemnitee in connection with such judicial adjudication or arbitration shall be appropriately prorated.
		

		
			 
		

		
			(e)   Interest shall be paid by the Company to Indemnitee at the maximum rate allowed to be charged for judgments under the Courts and Judicial Proceedings Article of the Annotated Code of Maryland for amounts which the Company pays or is obligated to pay for the period commencing with the date on which the Company was requested to advance expenses in accordance with Section 8 of this Agreement or to make the determination of entitlement to indemnification under Section 12(a) above. Indemnitee requests indemnification, reimbursement or advance of any Expenses and ending on the date such payment is made to Indemnitee by the Company.
		

		
			 
		

		
			Section 13.Defense of the Underlying Proceeding.
		

		
			 
		

		
			(a)   Indemnitee shall notify the Company promptly in writing upon being served with any summons, citation, subpoena, complaint, indictment, request or other document relating to any Proceeding which may result in the right to indemnification or the advance of Expenses hereunder and shall include with such notice a description of the nature of the Proceeding and a summary of the facts underlying the Proceeding. The failure to give any such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee, to indemnification or the advance of Expenses under this Agreement unless the Company’s ability to defend in such Proceeding or to obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and then only to the extent the Company is thereby actually so prejudiced.
		

		
			 
		

		
			(b)   Subject to the provisions of the last sentence of this Section 13(b) and of Section 13(c) below, the Company shall have the right to defend Indemnitee in any Proceeding which may give rise to indemnification hereunder; provided, however, that the Company shall notify Indemnitee of any such decision to defend within 15 calendar days following receipt of notice of any such Proceeding under Section 13(a) above. The Company shall not, without the prior written consent of Indemnitee, which shall not be unreasonably withheld or delayed, consent to the entry of any judgment against Indemnitee or enter into any settlement or compromise which (i) includes an admission of fault of Indemnitee, (ii) does not include, as an unconditional term thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee or (iii) would impose any Expense, judgment, fine, penalty or limitation on Indemnitee. This Section 13(b) shall not apply to a Proceeding brought by Indemnitee under Section 12 of this Agreement.
		

		
			 
		

		
			(c)   Notwithstanding the provisions of Section 13(b) above, if in a Proceeding to which Indemnitee is a party by reason of Indemnitee’s Corporate Status, (i) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld, that [he][she] may have separate defenses or counterclaims to assert with respect to any issue which may not be consistent with other defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld, that an actual or apparent conflict of interest or potential conflict of interest exists between Indemnitee and the Company, or (iii) if the Company fails to assume the defense of such Proceeding in a timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee’s choice, subject to the prior approval of the Company, which shall not be unreasonably withheld, at the expense of the Company. In addition, if the Company fails to  comply with any of its obligations under this Agreement or in the event that the Company or any other person takes any action to declare this Agreement void or unenforceable, or institutes any Proceeding to deny or to recover from Indemnitee the benefits intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel of Indemnitee’s choice, subject to the prior approval of the Company, which shall not be unreasonably withheld, at the expense of the Company (subject to Section 12(d) of this Agreement), to represent Indemnitee in connection with any such matter.
		

		
			 
		

		
			Section 14.Non-Exclusivity; Survival of Rights; Subrogation.
		

		
			 
		

		
			(a)   The rights of indemnification and advance of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the charter or Bylaws of the Company, any agreement or a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of Directors, or otherwise. Unless consented to in writing by Indemnitee,
		

		
			
		

		
			

		 

		

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			no amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in [his][her] Corporate Status prior to such amendment, alteration or repeal, regardless of whether a claim with respect to such action or inaction is raised prior or subsequent to such amendment, alteration or repeal. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right or remedy shall be cumulative and in addition to every other right or remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion of any right or remedy hereunder, or otherwise, shall not prohibit the concurrent assertion or employment of any other right or remedy.
		

		
			 
		

		
			(b)   In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.
		

		
			 
		

		
			Section 15.Insurance.  The Company will use its reasonable best efforts to acquire directors and officers liability insurance, on terms and conditions deemed appropriate by the Board of Directors, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee by reason of [his][her] Corporate Status and covering the Company for any indemnification or advance of Expenses made by the Company to Indemnitee for any claims made against Indemnitee by reason of [his][her] Corporate Status. Without in any way limiting any other obligation under this Agreement, the Company shall indemnify Indemnitee for any payment by Indemnitee arising out of the amount of any deductible or retention and the amount of any excess of the aggregate of all judgments, penalties, fines, settlements and Expenses incurred by Indemnitee in connection with a Proceeding over the coverage of any insurance referred to in the previous sentence. The purchase, establishment and maintenance of any such insurance shall not in any way limit or affect the rights or obligations of the Company or Indemnitee under this Agreement except as expressly provided herein, and the execution and delivery of this Agreement by the Company and the Indemnitee shall not in any way limit or affect the rights or obligations of the Company under any such insurance policies. If, at the time the Company receives notice from any source of a Proceeding to which Indemnitee is a party or a participant (as a witness or otherwise) the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies.
		

		
			 
		

		
			Section 16.Coordination of Payments.  The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable or payable or reimbursable as Expenses hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.
		

		
			 
		

		
			Section 17.Reports to Stockholders.  To the extent required by the MGCL, the Company shall report in writing to its stockholders the payment of any amounts for indemnification of, or advance of Expenses to, Indemnitee under this Agreement arising out of a Proceeding by or in the right of the Company with the notice of the meeting of stockholders of the Company next following the date of the payment of any such indemnification or advance of Expenses or prior to such meeting.
		

		
			 
		

		
			Section 18.Duration of Agreement; Binding Effect.
		

		
			 
		

		
			(a)   This Agreement shall continue until and terminate on the later of (i) ten years after the date that Indemnitee shall have ceased to serve as a director, officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company and (ii) the date that Indemnitee is no longer subject to any actual or possible Proceeding due to the lapse of all applicable statutes of limitations or otherwise (including any rights of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement).
		

		
			 
		

		
			(b)   The indemnification and advance of Expenses provided by, or granted pursuant to, this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns
		

		
			
		

		
			

		 

		

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			(including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company, and shall inure to the benefit of Indemnitee and [his][her] spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.
		

		
			 
		

		
			(c)   The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.
		

		
			 
		

		
			(d)   The Company and Indemnitee agree herein that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which [he][she] may be entitled. Indemnitee shall further be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertakings in connection therewith. The Company acknowledges that, in the absence of a waiver, a bond or undertaking may be required of Indemnitee by a court, and the Company hereby waives any such requirement of such a bond or undertaking.
		

		
			 
		

		
			Section 19.Severability.  If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.
		

		
			 
		

		
			Section 20.Identical Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. One such counterpart signed by the party against whom enforceability is sought shall be sufficient to evidence the existence of this Agreement.
		

		
			 
		

		
			Section 21.Headings.  The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.
		

		
			 
		

		
			Section 22.Modification and Waiver.  No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.
		

		
			 
		

		
			Section 23.Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:
		

		
			 
		

		
			(a)  If to Indemnitee, to the address set forth on the signature page hereto.
		

		
			
		

		
			

		 

		

			-8-

		

 

		

		
			(b)  If to the Company, to:
		

		
			 
		

			
					
						 

					
					
						General Counsel

					
					
						 

				
	
					
						 

					
					
						Two Bridge Avenue, Suite 322

					
					
						 

				
	
					
						 

					
					
						Red Bank, New Jersey 07701-1106

					
					
						 

				
	
					
						 

					
					
						Facsimile: (732) 978-7507

					
					
						 

				

		
			 
		

		
			or to such other address as may have been furnished in writing to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.
		

		
			 
		

		
			Section 24.Governing Law.  The parties agree that this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Maryland, without regard to its conflicts of laws rules.
		

		
			 
		

		
			Section 25.Miscellaneous.  Use of the [masculine][feminine] pronoun shall be deemed to include usage of the [feminine][masculine] pronoun where appropriate.
		

		
			 
		

		
			[SIGNATURE PAGE FOLLOWS]
		

		
			 
		

		
			
		

		
			

		 

		

			-9-

		

 

		

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

		
			 
		

			
					
						 

					
					
						READY CAPITAL CORPORATION

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						Name:

				
	
					
						 

					
					
						Title:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						INDEMNITEE

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Name: []

				
	
					
						 

					
					
						Address:

				

		
			 
		

		
			
		

		
			

		 

		

			-10-

		

 

		

		
			EXHIBIT A
		

		
			 
		

		
			FORM OF UNDERTAKING TO REPAY EXPENSES ADVANCED
		

		
			 
		

		
			The Board of Directors of Ready Capital Corporation.
		

		
			 
		

		
			Re: Undertaking to Repay Expenses Advanced
		

		
			 
		

		
			Ladies and Gentlemen:
		

		
			 
		

		
			This undertaking is being provided pursuant to that certain Indemnification Agreement dated the     day of        , by and between Ready Capital Corporation, a Maryland corporation (the “Company”), and the undersigned Indemnitee (the “Indemnification Agreement”), pursuant to which I am entitled to advance of Expenses in connection with [Description of Proceeding] (the “Proceeding”).
		

		
			 
		

		
			Terms used herein and not otherwise defined shall have the meanings specified in the Indemnification Agreement.
		

		
			 
		

		
			I am subject to the Proceeding by reason of my Corporate Status or by reason of alleged actions or omissions by me in such capacity. I hereby affirm my good belief that at all times, insofar as I was involved as [a director] [an officer] of the Company, in any of the facts or events giving rise to the Proceeding, I (1) did not act with bad faith or active or deliberate dishonesty, (2) did not receive any improper personal benefit in money, property or services and (3) in the case of any criminal proceeding, had no reasonable cause to believe that any act or omission by me was unlawful.
		

		
			 
		

		
			In consideration of the advance of Expenses by the Company for reasonable attorneys’ fees and related Expenses incurred by me in connection with the Proceeding (the “Advanced Expenses”), I hereby agree that if, in connection with the Proceeding, it is established that (1) an act or omission by me was material to the matter giving rise to the Proceeding and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty or (2) I actually received an improper personal benefit in money, property or services or (3) in the case of any criminal proceeding, I had reasonable cause to believe that the act or omission was unlawful, then I shall promptly reimburse the portion of the Advanced Expenses relating to the claims, issues or matters in the Proceeding as to which the foregoing findings have been established.
		

		
			 
		

		
			IN WITNESS WHEREOF, I have executed this Affirmation and Undertaking on this      day of                     , 20    .
		

		
			 
		

		 

		

			-11-nlbs_ex1025.htm

EXHIBIT 10.25
  
 AGREEMENT
  
 This Agreement effective as of the date on the signature page hereto (the “Effective Date”) by and between NutraLife BioSciences, Inc., Inc. (“NLBS”) organized and existing under the laws of the State of Florida, and Orlando Pharmacy Inc, a Florida Corporation, (the “Pharmacy”). NLBS and the Pharmacy are individually referred to herein as a “Party” or collectively as the “Parties”.
  
 WITNESSETH:
  
 WHEREAS, NLBS is engaged in research, development, manufacture and design of a delivery system consisting of an oral spray product an oral spray product processed by an Ultra Sonic device that utilizes a unique oral spray delivery system (the “Delivery System”), which the Pharmacy seeks to use in an oral spray product (the “Product”) to deliver testosterone into the human body (the “Purpose”);
  
 WHEREAS, the Pharmacy acknowledges the Delivery System is not readily ascertainable to it through proper means except as otherwise set forth herein;
  
 WHEREAS, NLBS is in possession of confidential information and expects in the future to come into possession of further knowledge, trade secrets, technical and marketing information pertaining to the Delivery System (collectively the “Information”);
  
 WHEREAS, NLBS is the owner of valuable and confidential trade secret rights for the Delivery System which the Pharmacy seeks to license for the Purpose;
  
 WHEREAS, the Pharmacy acknowledges that NLBS has taken reasonable steps to keep the Delivery System confidential; and
  
 WHEREAS, the Pharmacy seeks to manufacture a product using the Delivery System for the Purpose, and desires to use NLBS’s confidential knowledge, trade secrets and technical information upon the terms and conditions as set forth in this Agreement.
  
 NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, the Parties hereto agree as follows:
  
 SECTION 1. RECITALS
  
 The above recitals are true and correct and form a part of this Agreement.
  
 SECTION 2. GRANT
  
 NLBS hereby grants to the Pharmacy the right and license subject to the terms, conditions, and royalty payments set forth in this Agreement to make, have made, use the Delivery System in connection with the Product for the Purpose made in accordance with its technical information, trade secrets, knowledge and know-how.
  
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 SECTION 3. TECHNICAL INFORMATION AND KNOW-HOW
  
 SECTION 3.1 NLBS agrees to furnish and provide the Pharmacy with a unique device (the “Equipment”) to be used by the Pharmacy in connection with the Delivery System and technical information in the form of drawings, plans, specifications, engineering data, quality and performance standards, trade secrets and other data relating to the specifications and functioning of the Delivery System. The Equipment will remain the sole and absolute property of NLBS, and nothing contained in this Agreement, shall grant an interest in or ownership of the Equipment in the Pharmacy. Within forty-eight (48) hours of termination of this Agreement, the Equipment will be returned to NLBS.
  
 SECTION 3.2 The Pharmacy may request NLBS and NLBS agrees to send a chemist (the “NLBS Representative”) to the Pharmacy and NLBS and/or the NLBS Representative will communicate trade secrets and technical information and data to the Pharmacy; subject, however, to the availability of the NLBS Representative. Such chemist shall remain an employee of NLBS at all times, and further, NLBS reserves the right in its sole discretion to terminate such services of the NLBS Representative at any time with or without notice to the Pharmacy.
  
 SECTION 3.3 The Pharmacy shall not contract with any other party for furnishing any other work or services in connection with the Delivery System without the prior consent of NLBS.
  
 SECTION 3.4 The Pharmacy agrees to indemnify, protect and save NLBS harmless for any loss, damage, cost and expense which NLBS may sustain, or for which NLBS shall become liable, resulting from death or of injury to persons or loss of, destruction of or damage to property, which may be caused or contributed by any act or omission, negligent or otherwise of the Pharmacy, its agents, servants or employees or NLBS’s agents, servants or in connection with the Pharmacy’s use of the Delivery System.
  
 SECTION 3.5 The Pharmacy therefore agrees to release, protect and save NLBS, its agents, servants and employees, harmless from and against all loss, damage, cost and expense resulting from death or injury to, or loss of, destruction of or damage to property of the Pharmacy, its agents, servants or employees which may be caused in any manner in connection with the Delivery System.
  
 SECTION 4. DUTIES OF THE PHARMACY
  
 SECTION 4.1 The Pharmacy will use its best effort to manufacture the Product in sufficient quantity to meet the demand for the same.
  
 SECTION 4.2 The Pharmacy represents and warrants to NLBS that the Delivery System will only be used in compliance with all federal, state and local rules, regulations and laws. In the event that it is necessary that this Agreement be approved by any Government or any Department thereof, the Pharmacy will notify NLBS prior to execution hereof and immediately seek such approval on behalf of the Parties, individually or collectively as required. The Pharmacy will conduct its operations and use the Delivery System in strict compliance with all standards, criteria and rules established by the United States Pharmacopeial Convention and the National Formulary applicable to its business and/or operations.
  
SECTION 4.3 The Pharmacy assumes full responsibility for all loss or damage to property or injury to persons including death arising out of the manufacture or use of the Product manufactured by the Pharmacy and shall save and hold NLBS harmless against any claim for such loss, damage or injury.  
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 SECTION 4.4 The Pharmacy will adhere to all designs, drawings, specifications and technical data furnished to the Pharmacy by NLBS with respect to the quality and performance standards of the Delivery System used in the manufacturing of the Product by the Pharmacy and will make no change in the manufacture or design of the Delivery System which would tend to reduce the effectiveness and quality and performance standards of the Delivery System without the prior approval of NLBS in writing.
  
 SECTION 4.5 The Pharmacy will permit NLBS or its authorized agent to inspect and test its use of the Delivery System at any time during regular business hours at the Pharmacy’s facility for the sole purpose of determining the Pharmacy’s compliance with the quality and performance standards for the Delivery System specified by NLBS.
  
 SECTION 4.6 The Pharmacy will immediately communicate and disclose to NLBS any improvement, modification, further invention or new design that the Pharmacy may discover or develop with respect to the Delivery System or the manufacture thereof and will fully disclose to NLBS the manner of performing or utilizing the same.
  
 SECTION 4.7 The Pharmacy agrees that during the Term of this Agreement and thereafter it will hold secret and confidential and will not disclose, make known, divulge or communicate to any person except to such of its employees as are required to use the information and only then under a written obligation of secrecy binding upon such employee and will not use except under and pursuant to this Agreement any of the trade secrets, technical information, drawings, plans, specifications, engineering data and knowledge pertaining to the use of the Delivery System and/or manufacture of the Product which it or any of its directors, officers, representatives or employees may acquire from NLBS under and pursuant to this Agreement.
  
 SECTION 4.8 All drawings, designs, specifications, technical and manufacturing data, processes, and other material, rights, and authority furnished to the Pharmacy by NLBS under this Agreement shall remain the property of NLBS and shall be surrendered by the Pharmacy immediately upon termination of this Agreement and shall not thereafter be used in whole or in part by the Pharmacy or a successor thereof for any purpose whatsoever.
  
 SECTION 4.9 The Pharmacy agrees that if any taxes other than income taxes are payable to any Government on the payments under this Agreement it shall make such tax payments on behalf of NLBS in accordance with the requirements of law and shall include reports and evidence of such payments of taxes with the reports to NLBS required by this Agreement in Section 6.
  
 SECTION 5. RELATED CREATIONS
  
 SECTION 5.1 The Pharmacy covenants and agrees for itself, its successors and assigns that NLBS its successors and assigns shall be entitled to any and all rights to any and all proprietary rights which may result directly and indirectly from the Pharmacy’s performance under this Agreement, notwithstanding any prior or subsequent oral or written agreement with NLBS of any third party, including all rights, title and interest in and to any and all creations which are and may become legally protectable or may be recognized as forms of property or which are capable of being maintained as secrets and/or specialized know how, which the Pharmacy, its directors or employees, either solely or jointly with others, has conceived, made or suggested, or may hereafter conceive, make or suggest, or come into possession of, during this Agreement and the five year period next following the termination of this Agreement, and shall in any way relate directly or indirectly to this Agreement or the business of manufacturing, designing, servicing, repairing, selling, leasing, hiring or renting of any products, sections, parts, supplies, accessories or services competitive with those of NLBS or which in any way relate directly or indirectly to its business, procedure, technical or commercial needs, problems, developments or projects or to its production, research or experimental developments and projects of every name and nature and/or being carried on by or for NLBS prior to the termination of this Agreement.
  
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 SECTION 5.2 The Pharmacy further agrees for itself and its directors and employees to execute, acknowledge, make and deliver to NLBS or its attorneys without additional compensation, but without expense to it or them, any and all instruments, including United States and foreign patents or applications, applications for securing protection or registration of property rights embraced within this Agreement, powers of attorney, assignments, oaths or affirmations, supplemental oaths and sworn statements and to any and all lawful acts which in the sole judgment of NLBS or its attorneys may be needful or desirable to vest in or for the benefit of NLBS any patent or proprietary right in the United States and all countries foreign to the United States with respect to any and all such designs, ideas, inventions, improvements and other creations encompassed within this Agreement, whether published or unpublished and whether or not the subject of statutory industrial property and copyright protection, including all of which are capable of being maintained as secrets and/or specialized know-how.
  
 SECTION 5.3 The Pharmacy further agrees in this connection with this section to disclose promptly to NLBS or its attorneys any and all designs, ideas, inventions, improvements and creations embraced within this agreement which have been conceived, made or come into possession during this Agreement relating to, and during the term of, this Agreement and the five (5) year period next following the termination of this Agreement.
  
 SECTION 5.4 The Pharmacy further agrees that during this Agreement and the five (5) year period next following termination of this Agreement, that all its directors, associates and employees engaged or to be engaged in the performance of this Agreement shall be under obligation to assign to NLBS all right, title and interest in any invention, improvement or discovery conceived or first actually reduced to practice in connection on with the Delivery System of the Product in the course of or pursuant to this Agreement.
  
 SECTION 5.5 The Pharmacy further agrees that in order that it may assist NLBS most effectively, it may be necessary for NLBS to disclose its confidential information pertaining to its activities. Therefore, the Pharmacy agrees that it will not disclose to any person not authorized by NLBS to receive any confidential information pertaining to NLBS’s affairs and particularly to its products, services, inventions and engineering developments and the other creations within this Section of this Agreement, and that during the term of this Agreement, it shall not carry on consulting or any other activity with any competitor of NLBS on matters to which this Agreement pertains and that it shall not make or permit to have made any unauthorized use or disclosure during or subsequent to this Agreement of any knowledge or information of a confidential nature or proprietary nature respecting NLBS’s products, services, designs, methods, systems, improvements trade secrets, know-how or other confidential matter of NLBS or generated by the Pharmacy and pertaining to this Agreement.
  
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 SECTION 6. ROYALTIES, REPORTS AND AUDITS
  
 SECTION 6.1 The Pharmacy agrees to pay and shall pay royalties to NLBS of sixty-six and two thirds percent (66 2/3%) of Pharmacy’s Net Sales of the Product. For purposes of this Agreement, Net Sales means, with respect to any Calendar Month, the total amount the Pharmacy receives from third parties from the commercialization of the Product less (i) the cost of the lease payments of the Equipment owned by NLBS and (ii) the direct out of pocket expenses incurred for the cost of ingredients packaging components, marketing, and shipping.
  
 SECTION 6.2 All revenue percentages due to NLBS under this Agreement will be paid within 15 days after the close of each Calendar Month beginning with the first sale of the Product that gives rise to Net Sales. Each payment will be accompanied by a report showing: the number and type of products sold under this Agreement and all costs deducted from gross sales in sufficient detail to enable NLBS to determine the sufficiency of the amounts paid hereunder.
  
 SECTION 6.3 The Pharmacy agrees that it will at all times keep complete, true, and correct books of account containing a current record of manufacture, sale, rental, or other disposition of the Product in sufficient detail to enable NLBS to ascertain the royalties accruing and due hereunder. The Pharmacy further agrees to permit NLBS or its authorized audit agent to have access to said books of account, and to make such copies thereof as NLBS may desire, at reasonable intervals during business hours.
  
 SECTION 6.4 All payments under this Agreement will be payable in full in U.S. dollars and made by wire transfer of immediately available funds to an account designated by NLBS in writing.
  
 SECTION 6.5 NLBS will have the right to have an independent certified public accounting firm, have access during normal business hours, to the Pharmacy’s records as may be necessary to verify the accuracy of Net Sales for any Calendar Month within the preceding twelve (12) months as it deems necessary. The accounting firm will disclose to NLBS only whether the reported Net Sales are correct and details of any discrepancies. NLBS will bear the cost of such audit unless the audit reveals an underreporting of more than 1% of amounts payable to NLBS over an applicable Calendar Month, in which case the Pharmacy will bear the cost of the audit. If, based on the results of such audit, additional payments are owed by the Pharmacy under this Agreement, the Pharmacy will make such additional payments within five (5) days plus interest thereon at the highest rate allowable under Florida law from the date such payment was required to be made pursuant to this Agreement.
  
 SECTION 7. DURATION OF AGREEMENT, DEFAULT, TERMINATION 
  
 SECTION 7.1 This Agreement shall continue in full force and effect for five (5) years from the effective date (the “Term”), as provided in Section 11, unless sooner terminated as set forth herein.
  
 SECTION 7.2 In the event of any breach of this Agreement by the Pharmacy, including any default or failure to fulfill any of the obligations or conditions hereof, not cured within ten (10) days such breach, in addition to all other rights and remedies which NLBS might have at law or in equity, NLBS may, at its option, terminate this Agreement. If such default or failure is remedied within such ten (10) day period, the Agreement and license shall continue in full force and effect, the same as if said notice had not been given. The waiver of any default under this Agreement shall not constitute a waiver of the right to terminate this Agreement for any subsequent default.
  
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 SECTION 7.3 NLBS may terminate this Agreement and the license herein granted forthwith should the Pharmacy commit an act of bankruptcy, become insolvent, make an assignment for the benefit of  creditors, or be named as a bankrupt, whether voluntary or involuntary. In the event of involuntary bankruptcy or the appointment of a receiver for the Pharmacy, the Pharmacy shall have sixty (60) days in which to become discharged from bankruptcy or to discharge the receiver and thereby reinstate this Agreement in full force and effect.
  
 SECTION 7.4 The License and any rights granted hereunder shall automatically terminate:
  
 (a) Upon the Pharmacy’s failure to comply with Section 4.1 hereof;
  
 (b) Within three (3) months after execution hereof, if the Pharmacy fails to have net revenues of at least $10,000;
  
 (c) Within one year after execution hereof, if the Pharmacy fails to have net revenues of at least $500,000;
  
 (d) Within two years after execution hereof, if the Pharmacy fails to have net revenues of at least $2,000,000;
  
 (e) Within three years after execution hereof, if the Pharmacy fails to have net revenues of at least $3,000,000;
  
 (f) Within four years after execution hereof, if the Pharmacy fails to have net revenues of at least $4,000,000; or
  
 (g) Within five years after execution hereof, if the Pharmacy fails to have net revenues of at least $5,000,000.
  
 Section 7.5 The termination of this Agreement with or without cause shall not interfere with, affect or prevent the collection by NLBS of any and all sums of money due to its prior to the date such termination becomes effective. Additionally, termination of this Agreement for any reason shall not relieve the Pharmacy of its obligations under Sections 4, 5 or 9.6. 9.8, 9.10. 9.11, 9.13 and 9.17 hereto which shall survive the termination of this Agreement for a period of seven (7) years.
  
 SECTION 8. RECORDING AND NOTIFICATION
  
 SECTION 8.1 The Pharmacy agrees that if required by federal, state or local law it shall submit this Agreement to the proper officials or for approval and consent to make the payments herein specified. In the event the Pharmacy encounters delay beyond its control in obtaining the consent of such officials, or having obtained such consent is temporarily unable to obtain dollars to make such payments, such delay shall not terminate this Agreement, but the amounts payable by the Pharmacy to NLBS shall be held in an escrow account for the account of and be remitted to NLBS without set off or deduction when consent and/or approval is obtained.
  
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 SECTION 9. MISCELLANEOUS.
  
 SECTION 9.1 WAIVER; BINGING ON SUCCESSORS; INTERPRETATION; COUNTERPARTS. No right under this Agreement may be waived except by an instrument in writing executed on behalf of the Party alleged to have waived. This Agreement will be binding upon and will inure to the benefit of the Parties and their respective successors and assigns. This Agreement constitutes the entire understanding and agreement of the Parties with respect to the subject matter of this Agreement, and supersedes all prior and contemporaneous understandings and agreements, whether written or oral, with respect to such subject matter. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.
  
 SECTION 9.2 EQUITABLE RELIEF. Each Party agrees that it would be difficult to measure the damage resulting from any breach by the other Party of the covenants set forth in this Agreement, that injury resulting from any such breach would be irreparable, and that money damages alone would therefore be an inadequate remedy for any such breach. Accordingly, the Parties agree that if it should breach any term of this Agreement, the non-breaching Party shall be entitled, in addition to and without limitation of all other remedies the non-breaching Party may have, to injunctions or other appropriate orders to restrain any such breach, without showing or proving any actual damage.
  
 SECTION 9.3 TRADE SECRETS. NLBS will have all the rights provided under the Uniform Trade Secrets Act with respect to the Information provided to the Pharmacy pursuant to this Agreement and the Confidential Information. Confidential Information shall mean the Confidential Information as defined in the Confidentiality Agreement. Furthermore, nothing in this Agreement will be construed to limit or negate the common law of torts or trade secrets where such common law provides NLBS with broader protection than the protection provided by this Agreement.
  
 SECTION 9.4 ENTIRE AGREEMENT. This Agreement constitutes the sole and entire agreement of the Parties with respect to the subject matter contained herein and therein, and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter.
  
 SECTION 9.5 NOTICES. All notices, requests, consents, claims, demands, waivers and other communications under this Agreement (each, a “Notice”) must be in writing and addressed to the other Party at its address set forth in the signature page hereto or to such other address that the Parties may designate from time to time in writing to the other Party. All Notices must be delivered by personal delivery, nationally recognized overnight courier or certified or registered mail in each case, return receipt requested, postage prepaid. Notwithstanding the foregoing, solely for the purposes of Notice by facsimile or e-mail with confirmation of transmission will satisfy the requirements of this section. Except as otherwise provided in this Agreement, a Notice is effective only (a) on receipt by the recipient and (b) if the Party giving the Notice has complied with the requirements of this section
  
 SECTION 9.6 INSURANCE. The Pharmacy shall maintain in full force and effect during the term of this Agreement comprehensive general liability insurance coverage, including contractual liability and products/completed operations liability coverage, with a minimum of a Five Million Dollars ($5,000,000) combined single limit for bodily injury and property damage per occurrence, with a responsible insurance carrier and shall name NLBS as a covered party. Such insurance shall be on an occurrence basis; that is, it shall cover any claim made for injuries or damages arising out of an event occurring during the term of the policy regardless of whether the claim is made after the expiration of the term of the policy.
  
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 SECTION 9.7 INDEPENDENCE. At all times during the Term of this Agreement, each Party shall act as an independent contractor. Neither Party shall act as an agent for or of the other(s), nor shall any Party incur any liability, represent or make commitments on behalf of the other, and the employees of one shall not be deemed to be the employees of the other(s). Nothing in this Agreement shall be deemed to constitute, create, give effect to or otherwise recognize a joint venture, partnership or formal business entity of any kind, and the rights and obligations of the Parties shall be limited to those expressly set forth herein. None of the Parties shall have any liability or obligation to the other(s) except as expressly provided herein.
  
 SECTION 9.8 RELATIONSHIP. For a period of seven (7) years after the termination of this Agreement, the Pharmacy agrees that it and its representatives will not solicit, endeavor to entice away from NLBS or its parents, subsidiaries or affiliates, or otherwise interfere with the relationship of NLBS or its parents, subsidiaries or affiliates, with, any person who is employed by or otherwise engaged to perform services for or with NLBS or its parents, subsidiaries or affiliates, whether for the account of the Pharmacy or for the account of any other person or organization. The Pharmacy further agrees that during the Term and for a period of seven (7) thereafter, it (a) will not compete with NLBS, (b) be an employee, consultant or advisor to (c) assist or be connected with or (d) directly or indirectly own or have any interest in or right with respect to any enterprise which engages, at any location, directly or indirectly, in any business which is competitive with the business of NLBS. The Pharmacy further agrees that during the Term and for a period of seven (7) after the expiration or earlier termination of this Agreement, the Pharmacy and its representatives shall not directly or indirectly, on their own on behalf of another person or entity induce, influence, or encourage, any client, customer, supplier, or other similar third party of NLBS to alter, terminate or breach its contractual or other business relationship with NLBS, its parent, subsidiaries or affiliates or solicit business from any of NLBS’s customers, vendors, or suppliers. The Parties agree that the duration, scope and geographical area of the restrictions contained in this Section are reasonable. Upon a determination that any term or provision of this Section is invalid, illegal or unenforceable, the court may modify this Section to substitute the maximum duration, scope or geographical area legally permissible under such circumstances to the greatest extent possible to effect the restrictions originally contemplated by the Parties hereto. For purposes of this Agreement, “Representatives” shall mean affiliates, directors, officers, employees, consultants, managers, members, partners, principals, representatives, outside advisors, attorneys and accountants and agents. The Pharmacy has carefully considered the covenants herein and stipulated that the covenants are fair and reasonable in light of all the facts and circumstances of the relationship between the Parties; however, in the event a court should decline to enforce any covenants against competition, that covenant shall be deemed to be modified to restrict competition to the maximum extent, in both time and geography, which the court shall find enforceable. If any provision of this Agreement is found to be invalid by any court or tribunal, the invalidity of such provision shall not affect the validity of the remaining provisions hereof.
  
 SECTION 9.9 HEADINGS. The headings in this Agreement are for reference only and do not affect the interpretation of this Agreement.
  
 Section 9.10 ARRANGEMENTS. The Pharmacy agrees not to make, directly or indirectly, an agreement with any other company or individual involving technology similar to that of the Delivery System or with terms similar to those contained herein, and particularly shall not give any information to an outsider about NLBS, its business, operations, the Delivery System, or other of NLBS’s processes, trade secrets, know-how developed so far or to be developed in the future. This obligation remains in force for a period of seven years after the expiration of this Agreement. The Pharmacy further agrees not to give any information about the process, know-how and trade secrets of NLBS to any unauthorized person, firm or corporation outside of NLBS’s corporate officers. If this Agreement is terminated due to a breach by either party before the Term herein provided, then the Pharmacy shall not in any way or manner make known, disclose or communicate any information obtained through the terms of this Agreement to any person, firm or corporation, nor will that party commit any act detrimental to the interest of NLBS in the manufacture or sale of NLBS’s products, services, trade secrets or intellectual property. The Pharmacy further agrees that during the term of this Agreement, and for seven years after that time, that the Pharmacy shall not directly or indirectly in any way or manner make known, disclose or communicate any information which is the subject matter of this Agreement to any person, firm or corporation without the written consent of NLBS.
  
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 SECTION 9.11 INDEMNIFICATION. The Pharmacy shall indemnify and hold harmless NLBS and its Representatives from and against any and all losses, damages, costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) caused by or arising out of any direct breach of this Agreement or any direct breach for it is responsible hereunder, and any and all actions, suits, proceedings, claims, demands or judgments incident thereto. The Pharmacy agrees that a breach of this Agreement or its failure to perform any obligation or duty which it has agreed to perform under this Agreement may cause irreparable harm to NLBS, which harm cannot be adequately compensated for by money damages. It is further agreed by the Pharmacy that an order of specific performance or for injunctive relief against it in the event of its breach or default under the terms of this Agreement would be equitable and would not constitute a hardship on the Pharmacy. Accordingly, in the event of a breach or default by the Pharmacy, NLBS, without any bond or other security being required and in addition to whatever other remedies are or might be available at law or in equity, shall have the right either to compel specific performance by, or to obtain injunctive relief against, the Pharmacy, with respect to any obligation or duty herein or breach thereof.
  
 SECTION 9.12 There are no warranties by NLBS which extend beyond the description on the face hereof. NLBS disclaims any implied warranty of merchantability of the Equipment and the Delivery System or of the fitness of the Equipment or the Delivery System for any purpose, and the Pharmacy agrees that the Equipment and Delivery System is delivered “as is.”
  
 SECTION 9.13 REMEDIES. Nothing contained herein shall restrict NLBS’s rights to pursue any other remedy at law or in equity with respect to such breach.
  
 SECTION 9.14 SEVERABILITY. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render such term or provision unenforceable in any other jurisdiction. Upon a determination that any term or provision of this Agreement is invalid, illegal or unenforceable, the Parties shall negotiate in good faith to the court may modify this Agreement to effect the original intent of the Parties as closely as possible in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.
  
 SECTION 9.15 GOVERNING LAW, FORUM. This Agreement, including all exhibits, schedules, attachments and appendices attached hereto and thereto, and all matters arising out of or relating to this Agreement, are governed by, and construed in accordance with, the Laws of the State of Florida, United States of America, without regard to the conflict of laws provisions thereof. Each Party  irrevocably and unconditionally agrees that it shall not commence any action, litigation or proceeding of any kind whatsoever against the other Party in any way arising from or relating to this Agreement, including all exhibits, schedules, attachments and appendices attached hereto and thereto, and all contemplated transactions, including contract, equity, tort, fraud and statutory claims, in any forum other than in Broward County, Florida. Each Party irrevocably and unconditionally submits to the exclusive jurisdiction of such courts and agrees to bring any such action, litigation or proceeding only in Broward County, Florida. Each Party agrees that a final judgment in any such action, litigation or proceeding is conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law.
  
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 SECTION 9.16 NO PUBLIC ANNOUNCMENTS. Unless expressly permitted under this Agreement the Pharmacy shall not make any statement, whether oral or in writing, in any press release, external advertising, marketing or promotion materials regarding the subject matter of this Agreement, NLBS or its business unless it has received the express written consent of NLBS.
  
 SECTION 9.17 CONFIDENTIALITY. The Parties have executed a Confidentiality Agreement (the “Confidentiality Agreement”) which is incorporated herein and made a part hereof. In the event of a conflict in the terms of the Confidentiality Agreement and this Agreement, the terms of this Agreement shall prevail.
  
 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on March 10, 2019.
  
  	NUTRALIFE BIOSCIENCES, INC., INC.	 	 	ORLANDO PHARMACY, INC.	 
	By:       (signature) 	 	By:	 (signature) 	 
	  
	  
	  
	  
	  

	 Edgar Ward, Chief Executive Officer 
 Address for Notice:
 NutraLife BioSciences, Inc., Inc.
	 	 	 Craig Sicinski, Pharmacist & Corporate Officer
 Address for Notice:
 Orlando Pharmacy, Inc. 
	 
	 Attn: Edgar Ward, Chief Executive Officer
 6601 Lyons Rd. L-6
 Coconut Creek, Fl. 33073 
 edgar@nutrafuels.com
	 	 	 Craig Sicinski
 2909 N Orange Ave. Suite 112
 Orlando Fl 32804
 Facsimile: 407-895-1672
 Email: svetiksman@yahoo.com
	 

  
   
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