Document:

exhibit_4-6.htm

EXHIBIT 4.6

 

SUBSIDIARY GUARANTY

 

THIS SUBSIDIARY GUARANTY (this "Subsidiary Guaranty"), dated as of August 31, 2009, among Camelot
Entertainment Group, Inc., a Delaware corporation (the "Company"), and Camelot Production Services Group, Inc. and its divisions attached hereto as Schedule A excluding any third party acquisitions' made by the Company subsequent to the date of this Subsidiary Guaranty (individually a "Subsidiary
Guarantor" and collectively, the "Subsidiary Guarantors"), for the benefit of the secured parties signatory hereto and their respective endorsees, transferees and assigns (individually a "Secured Party" and
collectively, the "Secured Parties").

 

WITNESSETH:

 

WHEREAS, pursuant to a Securities Purchase Agreement, dated the date hereof, between Company and the Secured Parties (the "Purchase Agreement"), Company has agreed to issue to the Secured Parties and the Secured Parties have agreed to purchase from Company
certain of Company's 10% Callable Secured Convertible Notes, due three years from the date of issue (the "Notes"), which are convertible into shares of Company's Common Stock, par value 5.001 per share (the "Common Stock"); and

 

WHEREAS, the Company and the Subsidiary Guarantors have been, and are now, engaged in the business of providing production services and related services to the Company and to third parties, including, but not limited to, entertainment financial, studio, technology, consulting, post production, event management, education, sales and
marketing, merchandising and web services. In the past, as now, the Company has provided financing for the Subsidiary Guarantors, and the Subsidiary Guarantors have relied upon the Company to provide such financing. In addition, it is anticipated that. if the Subsidiary Guarantors execute and deliver this Subsidiary Guaranty, the Company will continue to provide such financing to the Subsidiary Guarantors, and that the proceeds of the Purchase Agreement and Notes will be used, in part, for the general working
capital purposes of the Subsidiary Guarantors; and

 

WHEREAS, it is in the best interest of the Subsidiary Guarantors as subsidiaries of the Company and the indirect beneficiaries of the Purchase Agreement and Notes, that the Secured Parties enter into the Purchase Agreement and purchase the Notes to the Company; and

 

WHEREAS, as a material inducement to the Secured Parties to enter into the Purchase Agreement and Notes, the Secured Parties have required and the Subsidiary Guarantors have agreed to unconditionally guarantee the timely and lull satisfaction of all
obligations of the Company, whether matured or unmatured, now or hereafter existing or created and becoming due and payable (the "Obligations") to the Secured Parties, their successors, endorsees, transferees or assigns under the Transaction Documents (as defined in the Purchase Agreement); and

 

WHEREAS, in light of the foregoing, each Subsidiary Guarantor expects to derive substantial benefit from the Purchase Agreement and sale of the Notes and the transactions contemplated thereby and, in furtherance thereof, has agreed to execute and deliver
this Subsidiary Guaranty.

 

 

 

1

 

 

 

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

 

1.            Guaranty. The Subsidiary Guarantors, jointly and severally, hereby absolutely, unconditionally and
irrevocably guarantee to the Secured Parties, their successors, endorsees, transferees and assigns the due and punctual performance and payment of the Obligations owing to the Secured Parties, their successors, endorsees, transferees or assigns when due, all at the time and place and in the amount and manner prescribed in, and otherwise in accordance with. the Transaction Documents, regardless of any defense or set-off counterclaim which the Company or any other person may have or assert, and regardless of whether
or not the Secured Parties or anyone on behalf of the Secured Parties shall have instituted any suit, action or proceeding or exhausted its remedies or taken any steps to enforce any rights against the Company or any other person to compel any such performance or observance or to collect all or part of any such amount, either
pursuant to the provisions of the Transaction Documents or at law or in equity, and regardless of any other condition or contingency.

 

2.            Waiver of Demand. The Subsidiary Guarantors hereby unconditionally: (i) waives any requirement that the Secured Parties, in the event
of a breach in any material respect by the Company of any of its representations or warranties in the Transaction Documents, first make demand upon, or seek to enforce remedies against, the Company or any other person before demanding payment of enforcement hereunder; (ii) covenants that this Subsidiary Guaranty will not be discharged except by complete performance of all the Obligations; (iii) agrees that this Subsidiary Guaranty
shall remain in full force and effect without regard to, and shall not be affected or impaired, without limitation, by, any invalidity, irregularity or unenforceability in whole or in part of the Transaction Documents or any limitation on the liability of the Company thereunder, or any limitation on the method or terms of payment thereunder which may now or hereafter be caused or imposed in any manner whatsoever, and (iv) waives
diligence, presentment and protest with respect to, and notice of default in the performance or payment of any Obligation by the Company under or in connection with the Transaction Documents.

 

 

 

 

 

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3.            Absolute Obligation. Each Subsidiary Guarantor acknowledges and agrees
that (i) no Secured Party has made any representation or warranty to such Subsidiary Guarantor with respect to the Company, any of its subsidiaries, any Transaction Documents or any agreement, instrument or document executed or delivered in connection therewith, or any other matter whatsoever, and (ii) such Subsidiary Guarantor shall be liable hereunder, and such liability shall not be affected or impaired, irrespective of (A) the validity or enforceability of any Transaction Documents, or any agreement, instrument
or document executed or delivered in connection therewith, or the collectability of any of the Obligations, (B) the preference or priority ranking with respect to any of the Obligations, (C) the existence, validity, enforceability or perfection of any security interest
or collateral security under any Transaction Documents, or the release, exchange, substitution or loss or impairment of any such security interest or collateral security, (D) any failure, delay, neglect or omission by any Secured Party to realize upon or protect any direct or indirect collateral security, indebtedness, liability or obligation, any Transaction Documents, or any agreement, instrument or document executed or delivered
in connection therewith, or any of the Obligations, (E) the existence or exercise of any right of set-off by any Secured Party, (F) the existence, validity or enforceability of any other guaranty with respect to any of the Obligations, the liability of any other person in respect of any of the Obligations, or the release of any such person or any other guarantor of any of the Obligations, (G) any act or omission of any Secured Party in connection with the administration of any Transaction Documents or any of
the Obligations, (H) the bankruptcy, insolvency, reorganization or receivership of, or any other proceeding for the relief of debtors commenced by or against, any person, (I) the disaffirmance or rejection, or the purported disaffirmance or purported rejection, of any of the Obligations, any Transaction Documents, or any agreement, instrument or document executed or delivered in connection therewith, in any bankruptcy, insolvency, reorganization or receivership, or any other proceeding for the relief of debtor.
relating to any person, (J) any law, regulation or decree now or hereafter in effect which might in any manner affect any of the terms or provisions of any Transaction Documents, or any agreement, instrument or document executed or delivered in connection therewith or any of the Obligations, or which might cause or permit to be invoked any alteration in the time. amount, manner or payment or performance of any of the Company's obligations and liabilities (including the Obligations), (K) the merger or consolidation
of the Company into or with any person, (L) the sale by the Company of all or any part of its assets, (M) the fact that at any time and from time to time none of the Obligations may be outstanding or owing to any Secured Party, (N) any amendment or modification of, or supplement to, any Transaction Documents, or (0) any other reason or circumstance which might otherwise constitute a defense available to or a discharge of the Company in respect of its obligations or liabilities (including the Obligations) or of
such Subsidiary Guarantor in respect of any of the Obligations (other than by the performance in fill thereof).

 

4.            Release. The obligations, covenants, agreements and duties of the Subsidiary Guarantors hereunder shall not be released, affected or impaired by any assignment or transfer, in whole or in
part of the Transaction Documents or any Obligation, although made without notice to or the consent of the Subsidiary Guarantors, or any waiver by the Secured Parties, or by any other person, of the performance or observance by the Company or the Subsidiary Guarantors of any of the agreements. covenants, terms or conditions contained in the Transaction Documents, or any indulgence in or the extension of the
time or renewal thereof, or the modification or amendment (whether material or otherwise), or the voluntary or involuntary liquidation, sale or other disposition of all or any portion of the stock or assets of the Company or the Subsidiary Guarantors, or any receivership, insolvency, bankruptcy, reorganization, or other similar proceedings, affecting the Company or the Subsidiary Guarantors or any assets of the Company or the Subsidiary Guarantors, or the release of any proper from any security for any Obligation,
or the impairment of any such property or security, or the release or discharge of the Company or the Subsidiary Guarantors from the performance or observance of any agreement, covenant, term or condition contained in or arisint2, out or the Transaction Documents by operation of law, or the merger or consolidation of the Company, or any other cause, whether similar or dissimilar to the foregoing.

 

 

 

  

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5.             Subrogation.

 

(a)           Unless and until complete performance of all the Obligations, the Subsidiary Guarantors shall not be entitled to exercise any right of subrogation to any of the rights of the Secured Parties against the Company or any collateral security or guaranty held by the Secured
Parties for the payment or performance of the Obligations, nor shall the Subsidiary Guarantors seek any reimbursement from the Company in respect of payments made by the Subsidiary Guarantors hereunder.

 

(b)           in the extent that the Subsidiary Guarantors shall become obligated to perform or pay any sums hereunder, or in the event that for any reason the Company is now or shall hereafter become indebted to the Subsidiary Guarantors, the amount of such sum shall at all times
be subordinate as to lien, time of payment and in all other respects, to the amounts owing to the Secured Parties under the Transaction Documents and the Subsidiary Guarantors shall not enforce or receive payment thereof until all Obligations due to the Secured Parties under the Transaction have been performed or paid. Nothing herein contained is intended or shall be construed to give to the Subsidiary Guarantors any right of subrogation in or under the Transaction Documents, or any right to participate in any
way therein, or in any right, title or interest in the assets of the Secured Parties.

 

6.             Application of Proceeds: Release. The proceeds of any sale or enforcement of or against all or any part of the cash or collateral at the time held by the Secured Parties hereunder,
shall be applied by the Secured Parties first to the payment of the reasonable costs of any such sale or enforcement, then to the payment of the principal amount or stated valued (as applicable) of, and interest or dividends (as applicable) and any other payments due in respect of, the Obligations. The remainder, if' any, shall be paid to the Subsidiary Guarantors. As used in this Subsidiary Guaranty, "proceeds" shall mean cash,
securities and other property realized in respect of the sale of any collateral.

 

7.             Representations and Warranties.

 

(a)            The Subsidiary Guarantors hereby represent and warrant to the Secured Parties that:

 

(i)            this Subsidiary Guaranty constitutes a legal, valid and binding obligation of the Subsidiary Guarantors, enforceable in accordance with its terms.

 

(ii)           the execution, delivery and performance of this Subsidiary Guaranty and other instruments contemplated herein will not violate any provision of any order or decree of any court or governmental instrumentality or of any mortgage, indenture, contract or other agreement
to which the Subsidiary Guarantors are a party or by which the Subsidiary Guarantors may be bound, and will not result in the creation or imposition of any lien, charge or encumbrance on, or security interest in, any of the Subsidiary Guarantors' properties pursuant to the provisions of such mortgage, indenture, contract or other agreement.

 

  

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(iii)           all representations and warranties relating to it contained in the Purchase Agreement are true and correct.

 

(b)           The Company represents and warrants to the Secured Parties that it has no knowledge that any of the representations or warranties of the Subsidiary Guarantors herein are incorrect or false
in any material respect.

 

8.             No Waiver., No Election of Remedies. No failure on the part of the Secured Parties to exercise, and no delay in exercising, any right, power or remedy
hereunder shall operate as a waiver thereof; nor shall any single or partial exercise by the Secured Parties of any right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. The remedies herein provided are cumulative and are not exclusive of any remedies provided by law. In addition, the exercise of any right or remedy of the Secured Parties at law or equity or under this Subsidiary Guaranty or any of the documents shall not be deemed to be an
election of Pledgee's rights or remedies under such documents or at law or equity.

 

9.              Termination. This Subsidiary Guaranty shall terminate on the date on which all Obligations have been performed, satisfied, paid or discharged
in full.

 

10.           Further Assurances. The parties hereto agree that, from time to time upon the written request of any party hereto, they will execute and deliver such further
documents and do such other acts and things as such party may reasonably request in order fully to effect the purposes of this Subsidiary Guaranty.

 

11.            Miscellaneous.

 

(a)           Payment of Fees. The Subsidiary Guarantors and the Company jointly and severally agree to pay all costs including all reasonable attorneys' fees and disbursements
incurred by the Secured Parties in enforcing this Subsidiary Guaranty in accordance with its terms.

 

(b)           Modification. This Subsidiary Guaranty contains the entire understanding between the parties with respect to the subject matter hereof and specifically
incorporates all prior oral and written agreements relating to the subject matter hereof. No portion or provision of this Subsidiary Guaranty may be changed, modified, amended, waived, supplemented, discharged, canceled or terminated orally or by any course of dealing, or in any manner other than by an agreement in writing, signed by the party to be charged.

 

(c)           Notice. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed
given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified in this Section prior to 6:30 p.m. (New York City time) on a Business Day (as defined in the Purchase Agreement), (ii) the Business Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified in this Subsidiary Guaranty later than 6:30 p.m. (New York City time) on
any date and earlier than 11:59 p.m. (New York City time) on such date, (iii) the Business Day following the date of mailing, if sent by nationally recognized overnight courier services, or (iv) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as follows:

 

 

 

 

5

 

 

 

	If to the Company:	
Camelot Entertainment Group, Inc.

$001 Irvine Center Drive, Suite 400

Irvine, CA 92618

Attention: Robert P. Atwell

Telephone: (949) 754-3030

Facsimile: (949) 754-4309

 

	With copies to:	
Christopher P. Flannery, Esq. 

555 City Avenue

Suite 430

Bala Cynwyd, PA 19004

215-264-8593

 

	If to the Subsidiary Guarantors:	
Camelot Production Services Group, Inc.

8001 Irvine Center Drive, Suite 400

Irvine, CA 92618

Attention: Robert P. Atwell

Telephone: (949) 754-3030

Facsimile: (949) 754-4309

 

	If to the Secured Parties:	
New Millennium Capital Partners III, LLC

1044 Northern Boulevard 

Suite 302

Roslyn, New York 11576 

Attention: Corey Ribotsky 

Facsimile: 516-739-7115

 

	With copies to	
Ballard Spahr Andrews & Ingersoll, LLP 

1735 Market Street, 51'1 Floor

Philadelphia, Pennsylvania 19103 

Attention: Gerald J. Guarcini, Esquire 

Facsimile: 215-864-8999

 

(d)            Invalidity. If any part of this Subsidiary Guaranty is contrary to, prohibited by, or deemed invalid under applicable laws or regulations, such provision shall he inapplicable
and deemed omitted to the extent so contrary, prohibited or invalid, but the remainder hereof shall not be invalidated thereby and shall be given effect so far as possible.

 

(e)            Benefit of Agreement. This Subsidiary Guaranty shall be binding upon and inure
to the parties hereto and their respective successors and assigns.

 

  

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(f)            Mutual Agreement. This Subsidiary Guaranty embodies the arm's length negotiation and mutual agreement
between the parties hereto and shall not he construed against either party as having been drafted by it.

 

(g)           New York Law to Govern. This
Subsidiary Guaranty shall be governed by and construed and enforced in accordance with the internal laws of the State of New York without regard to the principals of conflicts of law thereof. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and Federal courts sitting in the city of New York, borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of- any such court or that such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process
being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall he deemed to limit in any way any right to serve process in any manner permitted by law.

 

 

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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IN WITNESS WHEREOF, the parties hereto have caused this Guaranty and Pledge Agreement to be duly executed by their respective authorized persons as of the date first indicated
above.

 

	 	COMPANY	 
	 	 	 
	 	CAMELOT ENTERTAINMENT GROUP, INC.	 
	 	 	 	 
	
 
	
By: 
	/s/  Robert P. Atwell	 
	 	 	Robert P. Atwell 	 
	 	 	Chief Executive Officer	 
	 	 	 	 

 

	 	SUBSIDIARY GUARANTORS:	 
	 	 	 
	 	
CAMELOT PRODUCTION SERVICES GROUP, INC.

CAMELOT TECHNOLOGIES, INC.

DSTAGE.COM, INC.
	 
	 	 	 	 
	
 
	
By: 
	/s/  Robert P. Atwell	 
	 	 	Robert P. Atwell 	 
	 	 	Chief Executive Officer	 
	 	 	 	 

 

 

 

  

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	 	SECURED PARTIES:	 
	 	 	 
	 	
NEW MILLENNIUM CAPITAL PARTNERS III, LLC 

By: First Street Manager II, LLC
	 
	 	 	 	 
	
 
	
By: 
	 	 
	 	 	Corey S. Ribotsky	 
	 	 	Manager	 
	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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SCHEDULE A

 

	
List of Divisions of the Subsidiary:
	  
	  	  
	
Camelot Production Services Group, Inc.
	
NV

	
Camelot Technologies, Inc.
	
NV

	
Dstage.com, Inc.
	
DE

	
Camelot Entertainment Financial Group
	  
	
Camelot Studio Services
	  
	
Camelot Technology Group
	  
	
Camelot Entertainment Consulting Group
	  
	
Camelot Post Production
	  
	
Camelot Event Management
	  
	
Camelot University
	  
	
Camelot Sales and Marketing
	  
	
Camelot Merchandising
	  
	
Camelot Web
	  

 

 

 

 

 

 

 

10f8k08260910i_bioneut.htm

ADVISORY AGREEMENT

 

 

    This Advisory Agreement (this “Agreement”), dated this ___ day of August 2009 (the “Effective Date”), by and between Chertoff Group, L.L.C. (“Advisor”), a Delaware limited liability
company, and BIONEUTRAL GROUP, INC. (the “Company”), a Nevada corporation.

 

    WHEREAS, Advisor wishes to provide certain professional services (the “Services”) to Company as set forth in Appendix A, which is attached hereto and made a part hereof; and

 

    WHEREAS, Company wishes to engage Advisor to perform the Services, for good and valuable consideration, as more fully described in Appendix A.

 

    NOW, THEREFORE, in consideration of the mutual promises and covenants hereinafter set forth, the parties hereto agree as set forth below.

 

	
                                 1.       SCOPE OF WORK.

	
                                               

                                                 (a)     
	
 

Advisor agrees to provide the Services described in Appendix A. In the event that additional assignments are agreed upon between Advisor and Company, the parties shall execute addenda to this Agreement describing the additional assignments, including the fees and schedule for each specific assignment.

	
                                                

                      (b)
	
 

Company acknowledges and agrees that in providing the Services (as defined on Exhibit A), (i) none of Advisors, its Managing Principals (Michael Chertoff and Chad C. Sweet), Principals, Directors or other employees is engaging in the practice of law under this Agreement, and no attorney-client relationship exists, or will arise, as a result
of providing the Services hereunder; and (ii) Company understands that it is Company’s responsibility to seek the advice of its own legal counsel with respect to any legal issues that may arise from time to time related to the subject matter of the Services.

	
                                                

             (c)    
	
 

Company acknowledges and agrees that, in providing the Services, none of Advisor’s Managing Principals, Principals, Directors or other employees or affiliates, including Drs. J. Bennet Waters and Jeffrey W. Runge, is engaging in the practice of medicine under this Agreement, and Advisor assumes no liability for strategic healthcare or
medical marketing advice provided to Company as a result of providing the Services hereunder. Further, Company acknowledges that Advisor is not expected to, and will not, offer professional assessments regarding the safety, efficacy or potential toxicity of Company’s products, provided, however, that this shall not prevent Advisor from assisting Company in arranging for independent testing and evaluation of Company’s products.

 

 

 

1110 VERMONT AVENUE NW, SUITE 1200

WASHINGTON, DC 20005

T. 202.649.4260 | F. 202.330.5505

www.chertoffgroup.com                         Advisor
_____ Company ______

 

 

 

 

 

 

	
             (d)  

 
	
The parties acknowledge that Michael Chertoff and Chad C. Sweet are, and other employees of Advisor may be, subject to legal and/or ethical restrictions that may relate to the performance of this Agreement including ,but not limited to, 18 U.S.C. § 207,
limiting certain activities and contacts with the U.S. government including but not limited to the U.S. Department of Homeland Security, and agree that this Agreement extends only to those activities permitted by law.

 

 

2.    PAYMENT FOR SERVICES.

 

    During the term of this Agreement, Company agrees to pay Advisor in accordance with the fees set forth in Appendix A (the “Fees”). Advisor shall submit to Company, either electronically or via mail, an invoice for Fees due as set forth in Appendix A
for the purposes of recordkeeping. Invoices shall be addressed to Company, attention Steve Browand, at 211 Warren Street, 4th floor, Newark New Jersey or steve@bioneutralgroup.com, with carbon copy to raj@bioneutral.com, if delivered electronically; or to
such other person and address as shall have been specified in writing by Company to Advisor. Fees shall be payable by electronic fund transfer (“EFT”) as set forth in Appendix A.

 

3.   EXPENSES.

 

    Company will be responsible for Advisor’s out-of-pocket business expenses incurred in connection with the Services, including travel, accommodations, meals and incidental expenses. Expenses shall be reimbursed as further described in the Fees section of Appendix
A.

 

4.   TERM/TERMINATION.

 

	
(a)  
	
The term of this Agreement (the “Term”) shall extend from the Effective Date to the earlier to occur of (i) the third anniversary of the Effective Date and the Date this Agreement is terminated
in accordance with this Paragraph 4

 

	
     (b)  
	
The Term may be terminated by Company for “Cause” or by Advisor for “Good Reason”, in each case, without liability to the other party;  provided that upon
any such termination Company shall be required to pay Advisor all Advisory Fees (pro rated for any partial month of service) earned until the date of such termination and all expenses incurred by Advisor prior to such termination that are eligible for reimbursement hereunder (collectively, the “Accrued
Payments”). “Cause” means Advisor’s continued failure to provide the Services contemplated hereby that  continues after written notice from Company. “Good Reason” means (i) a material breach of this Agreement by Company that is not cured within 15 days of written notice from Advisor; (ii) failures
in the testing and evaluation of Company’s antimicrobial and sporicidal products; (iii) misrepresentation of any material facts related to Company or Company’s products, services or business matters; (iv) any violation of any material local, state or federal law by Company or its subsidiaries or their directors, officers or employees
(in their capacity as such); or (v) any business activities undertaken by Company or its subsidiaries or their directors, officers or employees (in their capacity as such) that Advisor determines in good faith might, by virtue of Advisor’s relationship with Company, bring Advisor into public disrepute, contempt, scandal or ridicule, or whichmight
tend to reflect unfavorably on Advisor or Advisor’s personnel.

 

 

 

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(c)
	
On or after the six month anniversary of the Effective Date, either party may terminate the Term by giving the other party sixty (60) days prior written notice of termination. If Company terminates the Term pursuant to this Paragraph 4(c), (i) Company shall pay Advisor all Accrued Payments, (ii) Company shall pay Advisor in a cash lump sum
the aggregate Advisory Fees that would otherwise have been paid through the end of the Term and (iii) the Equity Award will immediately vest in full. If Advisor terminates the Term pursuant to this Paragraph 4(c), Advisor will deliver to Company the after- tax value of any portion of the Equity Award that vested during the three month period preceding such termination (provided that such payment shall not be required if Advisor terminates the Term within three months of a Change in Control (as defined for purposes
of Appendix A)) and Advisor will not be entitled to any other payment from Company other than the Accrued Payments. Advisor will have no liability to Company as a result thereof or the failure to complete the Services.

 

 

5. INDEPENDENT CONTRACTOR.

 

Advisor shall perform all Services hereunder as an independent contractor, and nothing contained herein shall be deemed to create any association, partnership, joint venture, or relationship of principal and agent or master and servant, or employer and employee between the parties hereto or any affiliates or subsidiaries thereof, or to provide
either party with the right, power or authority, whether express or implied, to create any such duty or obligation on behalf of the other party. Advisor will perform the Services in the manner it determines appropriate and Company will have no right to control Advisor, subject to Advisor's obligation to complete the Services.

 

6. INDEMNIFICATION.

 

Company agrees that Advisor, its Managing Principals, other employees, affiliates, investors and controlling persons (collectively, the “Indemnified Parties”), will not have any liability to Company or any other person in connection with, related to or arising out
of, this Agreement, including the Services to be provided hereunder, except in connection with any willful breach by Advisor of its obligations under Sections 7, 8 or 10. To the fullest extent permitted by applicable law, Company shall indemnify and hold harmless Advisor and its Managing Principals, affiliates, and each of their respective members, managers, directors, officers, employees, counsel, agents, representatives, contractors and affiliates (each such individual or entity to be referred to hereinafter
as an "Indemnified Person"), from and against any loss, claim, damage or liability, joint or several, and any action in respect thereof, whether or not involving a third party, to which an Indemnified Person may be subject, insofar as such loss, claim, damage, liability or action relates to, arises out of or results from any Covered Event (as such term is defined below) or alleged Covered Event, and will reimburse such Indemnified Person upon request
for all expenses (including, without limitation, reasonable attorneys' fees and disbursements) incurred by such Indemnified Person in connection with investigating, defending or preparing to defend against any such loss, claim, damage, liability or action, as such

 

 

 

- 3 -

 

 

expenses are incurred or paid. The term "Covered Event" shall mean (a) any action taken, or services performed, by an Indemnified Person, related to or consistent with the Services or the terms of this Agreement, or (b) any action taken, or omitted to be taken, by Company or
any of its managers, directors, officers, employees, agents or affiliates, in connection with any matter in which an Indemnified Person has been involved pursuant to this Agreement; provided, that the term "Covered Event," with respect to an Indemnified Person, shall exclude any loss, claim, damage, liability or expense to the extent determined by the final judgment of a court of competent jurisdiction to have been caused from the gross negligence, fraud, bad faith or willful misfeasance of such Indemnified Person
or any affiliate thereof. Company shall cover the designees of Advisor under directors and officers liability insurance both during and, while potential liability exists, after the term of the Agreement in amounts reasonably requested by Advisor. The provisions of this Section 6 shall not be deemed exclusive of any other rights to which any Indemnified Party may be entitled under any provision of law, this or any other agreement or otherwise.

 

7. CONFIDENTIALITY.

 

	
(a)  
	
With respect to any information supplied in connection with this Agreement and designated by either party as confidential, the other party agrees to protect the confidential information in a reasonable and appropriate manner, and use confidential information only to perform its
obligations under this Agreement and for no other purpose. This will not apply to information which is: (i) publicly known, (ii) already known to the recipient, (iii) lawfully disclosed by a third party, (iv) independently developed or (v) disclosed pursuant to legal requirement or order.

 

	
(b)  
	
Within 30 days after the termination of this Agreement, Company may request that Advisor (i) return to Company all documents or copies of documents that Company provided to Advisor and, subject to Section 9, all work papers, reports or other documents Advisor prepared during the
term of this Agreement, or (ii) destroy such materials. If Company does not timely request one of these options for disposition of materials, Advisor may elect either option. Notwithstanding the forgoing, Advisor will have the right to retain a copy of Advisor's reports and work papers for internal use.

 

8. PUBLICITY.

 

Both parties agree not to use the name of the other party or any of its affiliated companies in any sales or marketing publication or advertisement or make any public disclosure except as may be legally required, relating to this Agreement or the other party or any of its affiliated companies, without obtaining the prior written consent of
the other party. Specifically, Company shall not release or publish any news release, advertising or other public announcement relating to this Agreement or to the transactions contemplated herein without Advisor’s prior review and written approval. In addition, Company shall not use Advisor’s corporate name, logos, trademarks or service marks without Advisor’s prior written authorization. Company agrees that it shall not, and shall cause its subsidiaries to not, engage in any conduct that could
reasonably be

 

 

 

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expected to bring Advisor into public disrepute, contempt, scandal or ridicule, or which might tend to reflect unfavorably on Advisor or Advisor’s personnel.

 

9. WORK PRODUCT.

 

Upon full payment of all amounts due to Advisor in connection with this Agreement, all right, title and interest in any deliverables Advisor provides to Company will become Company’s sole and exclusive property, except as set forth below. Advisor will retain sole and exclusive ownership of all right, title and interest in its work papers,
proprietary information, processes, methodologies and know how, including such information as existed prior to the delivery of the Services and, to the extent such information is of general application, anything which Advisor may discover, create or develop during the provision of the Services.

 

10. OTHER CONSULTING SERVICES; NON-SOLICITATION

 

	
(a)  
	
Other Consulting Services. Company acknowledges and agrees that Advisor may provide independent advisory services to other entities, including competitors of Company.

 

	
(b)  
	
Non-solicitation. During and for a period of two (2) year(s) following termination of this Agreement, each party will not, without prior written consent of the other party, hire or attempt to hire any current or former employee of the other party or its subsidiaries or affiliates, who is
or was involved in the performance of the Services hereunder.

 

11. GENERAL PROVISIONS.

 

	
(a)  
	
Paragraph Headings. Paragraph headings are for convenience only and shall not be a part of the terms and conditions of this Agreement.

 

	
(b)  
	
Waiver. Failure by either party at any time to enforce any obligation by the other party, to claim a breach of any term of this Agreement or to exercise any power agreed to hereunder will not be construed as a waiver of any right, power or obligation under this Agreement, will not affect
any subsequent breach, and will not prejudice either party as regards any subsequent action.

 

	
(c)  
	
Severability. If any term or provision of this Agreement should be declared invalid by a court of competent jurisdiction, the remaining terms and provisions of this Agreement shall remain unimpaired and in full force and effect.

 

	
(d)  
	
Subcontractors. Advisor shall be fully responsible for its subcontractors. Nothing in this Agreement shall be construed to create any contractual relationship between Company and any subcontractor, nor any obligation on the part of Company to pay or to see to the payment of any money due
any subcontractor as may otherwise be required by law.

 

 

- 5 -

 

 

 

	
(e)  
	
Assignment. Neither party may assign any rights or obligations under this Agreement without the prior consent of the other.

 

	
(f)  
	
Modification. No modification, waiver or amendment of any term or conditions of this Agreement shall be effective unless and until it shall be reduced to writing and signed by both of the parties hereto or their legal representatives.

 

	
(g)  
	
Survival. The provisions of this Agreement that by their nature and content are intended to survive the performance hereof, shall so survive the completion and termination of this Agreement. Without limiting the generality of the foregoing, Articles 6, 7, 8, 9 and 10 of this Agreement shall
so survive.

 

	
(h)  
	
Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the substantive laws of the State of New York as if the Agreement were made in New York for performance entirely
within the State of New York.

 

	
(i)  
	
Notices. Any notice or other communication required or permitted hereunder shall be in writing and shall be deemed effective when delivered in person or, if mailed, on the date of deposit in the mail, postage prepaid,
addressed, in the case of Advisor, to it at 1110 Vermont Ave NW, Suite 1200; Washington, DC, 20005 and in the case of Company, to it at 211 Warren Street, 4th Floor, Newark, NJ; or such other address as shall have been specified in writing by either party to the other.

 

	
(j)  
	
Complete Agreement. This Agreement, together with Appendix A, constitutes the entire agreement of the parties with respect to its subject matter and may not be modified in any way except by written agreement signed
by both parties. This Agreement supersedes all prior oral communications and written agreements or understandings between the Parties, and there are no other agreements, either expressed or implied, with regard to this subject matter.

 

 

 

 

 

- 6 -

 

 

 

 

**********

 

 

 

IN WITNESS WHEREOF, the parties hereto, through their duly authorized officers, have executed this Agreement as of the day and year first set forth below.

 

 

	
Company
	 	
Advisor

 

 

	
By:
	 	
By:

	
Print Name:
	 	
Print Name:

	
Title:
	 	
Title:

	
Date:
	 	
Date:

 

 

 

 

 

- 7 -

 

 

 

APPENDIX A

 

Services

 

Advisor hereby agrees that during the Term of Services (as defined below) to consult with the board of directors of Company (the “Board”) and management of Company and its subsidiaries in such manner as may be reasonably requested by Company on the following matters:

 

 

	
·  
	
General business strategy and operations;

 

	
·  
	
Advise and assist Company in making arrangements for product testing and evaluation;

 

	
·  
	
Advise and assist Company in market research and product position;

 

	
·  
	
Advise and assist Company in product manufacturing, sales and distribution;

 

	
·  
	
Advise and assist Company in developing and executing strategic partnerships, joint ventures and other business-to-business relationships;

 

	
·  
	
Advise and assist Company in considering capital acquisition and other equity considerations;

 

	
·  
	
Provide strategic advisory services involving product testing and evaluation; acquisitions and procurement strategies across commercial and federal targets; and access to capital/deal structuring; and

 

	
·  
	
Other advisory services that may be mutually agreed upon. 

 

Personnel

 

During the Term of Services, Advisor shall provide and devote to the performance of the Services such employees, agents and representatives of Advisor, and for such time, as Advisor shall deem appropriate for furnishing the services required hereunder. Notwithstanding the foregoing, it is agreed that in the performance of its duties hereunder,
Advisor shall make available the following individuals to provide the described services during the Term of Services:

 

	
·  
	
The Honorable Jeffrey W. Runge, MD, Former Assistant Secretary for Health Affairs, Department of Homeland Security, shall be made available for an average of up
to 20 hours per week to provide advice and assistance regarding the clinical aspects of Company’s products; and

 

	
·  
	
Dr. J. Bennet Waters, Former Deputy Assistant Administrator, Transportation Security Administration and Former Chief of Staff, Office of Health Affairs, Department of Homeland Security, shall
be made available for an average of up to 20 hours per week to provide advice and assistance regarding Company’s operations.

 

In addition to the individuals named above, and in order to complete the Services described above, Advisor contemplates engaging the following personnel for a total of approximately 10- 20 hours per month:

 

 

 

- 8 -

 

 

 

	
·  
	
The Honorable Michael Chertoff, Former Secretary, Department of Homeland Security

 

	
·  
	
The Honorable Jay M. Cohen, Former Under Secretary, Science & Technology, Department of Homeland Security; former Chief of Naval Research, Department of Defense

 

	
·  
	
Mr. Nathaniel T. G. Fogg, Former Deputy Chief Operating Officer, Federal Emergency Management Agency

 

	
·  
	
The Honorable Paul A. Schneider, Former Deputy Secretary, Department of Homeland Security; former Senior Acquisition Executive, National Security Agency

 

	
·  
	
Mr. Chad C. Sweet, Former Chief of Staff, Department of Homeland Security

 

In the event Dr. Runge or Dr. Waters is unable or unavailable to provide the services contemplated hereunder, Advisor shall provide a qualified individual to provide such services, who must be reasonably satisfactory to the Board. If Advisor does not provide a qualified replacement reasonably acceptable to the Board within a reasonable
period of time, Company may engage another person not affiliated with Advisor to provide such services and deduct the costs of such person’s compensation from Advisor’s compensation under the Agreement.

 

Company acknowledges and agrees that (i) each member or employee of Advisor providing any of the Services hereunder is doing so as, as applicable, as member and/or employee of Advisor and not as an employee or officer of Company or its affiliates; (ii) no member or employee of Advisor shall owe any fiduciary or other duty to Company or its
subsidiaries and Company hereby releases and agrees not to pursue any claim to the contrary and agrees to cause its subsidiaries to do likewise; and (iii) neither Company nor any of its subsidiaries or any of their stockholders, affiliates, directors, officers or employees will represent or imply that any member or employee of Advisor is providing services to Company and its subsidiaries in any capacity other than as a member or employee of Advisor; it being understood and agreed that Company may refer to Dr.
Runge as Senior Medical Advisor and Dr. Waters as Senior Operations Advisor.

 

Term of Services

 

The Term of Services will be the 12-month period commencing upon the execution of this Agreement. The parties agree that at or prior to the end of the Term of Services, they will review the terms of this Appendix A to determine whether changes or modifications are required. In the event neither party requests modifications to this Appendix
A, the Term of Services shall be extended an additional 12 months. If either party requests modifications to this Appendix A, the parties agree to engage in good faith negotiations regarding such changes.

 

 

Fees

 

Consulting Fee: On the first day of each month during the Term (each, a “Payment Date”) commencing September 1, 2009, Company shall pay to Advisor (regardless of whether an invoice has been prepared or
received) a monthly advisory fee of $75,000 in immediately available funds (the “Advisory Fee”).

 

 

 

- 9 -

 

 

Equity Award: In addition to the Advisory Fee, Company shall grant Advisor an equity award in the form of restricted stock or restricted stock units representing the right to receive, on a fully diluted basis, 10% of Company’s common stock (the “Equity
Award”). The parties shall mutually agree upon the terms and conditions of the Equity Award, which shall in any event be consistent with the following:

 

	
·  
	
The Equity Award shall be granted by the Company’s Compensation Committee in manner contemplated by Rule16b-3 of the Securities Exchange Act of 1934, as amended.

 

	
·  
	
The grant date of the Equity Award shall be no later than September 30, 2009.

 

	
·  
	
The Equity Award shall vest and become non-forfeitable on a schedule no less favorable to Advisor than as follows: (i) 25% on September 1, 2010; (ii) 25% on September 1, 2011 and (iii) 50% on September 1, 2012 if Advisor is providing Services to Company on each such date; provided that the Equity Award will vest in full upon a “Change in Control”
(to be defined consistently with customary definition in compensatory arrangements of public companies);

 

	
·  
	
After vesting, the shares underlying the Equity Award will be freely transferable and Company shall register for re-sale the shares underlying the Equity Award;

 

	
·  
	
The Equity Award will be transferable to affiliates of Advisor.

 

Expenses: Company shall promptly reimburse Advisor for all reasonable travel expenses and other reasonable out-of-pocket fees and expenses as have been or may be incurred by Advisor, its members, officers, employees, counsel, agents and representatives in connection with the
provision of Services; provided that Advisor will obtain the Company’s approval for any single expense in excess of $1,000.

 

**********

 

IN WITNESS WHEREOF, the parties hereto, through their duly authorized officers, have executed this Appendix as of the day and year first set forth below.

 

 

 

	
Company
	 	
Advisor

 

 

	
By:
	 	
By:

	
Print Name:
	 	
Print Name:

	
Title:
	 	
Title:

	
Date:
	 	
Date:

 

                            

 

 

 

- 10 -

 

 

 

APPENDIX B

 

<<Reserved for Shareholder’s Agreement between Company and Advisor>>

 

 

 

 

 

 

**********

 

 

 

 

IN WITNESS WHEREOF, the parties hereto, through their duly authorized officers, have executed this Appendix as of the day and year first set forth below.

 

 

 

 

	
Company
	 	
Advisor

 

 

	
By:
	 	
By:

	
Print Name:
	 	
Print Name:

	
Title:
	 	
Title:

	
Date:
	 	
Date:

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