Document:

unrv_ex105.htm

EXHIBIT 10.5
  
 INDEMNIFICATION AGREEMENT
  
 THIS INDEMNIFICATION AGREEMENT (the "Agreement") is made and entered into as of July 27, 2021 between Unrivaled Brands, Inc., a Nevada corporation (the "Company"), and Oren Schauble, an individual resident of the State of California ("Indemnitee"). 
  
 WITNESSETH THAT:
  
 WHEREAS, highly competent persons have become more reluctant to serve corporations as directors and/or officers or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;
  
 WHEREAS, the Board of Directors of the Company (the "Board") has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions. At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself. The Bylaws and Articles of Incorporation of the Company require indemnification of the officers and directors of the Company. Indemnitee may also be entitled to indemnification pursuant to the Nevada Business Corporation Act of the State of Nevada ("NBCA"). The Bylaws and Certificate of Incorporation and the NBCA expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the Board, officers and other persons with respect to indemnification;
  
 WHEREAS, the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons;
  
 WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company's stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;
  
 WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; 
  
 WHEREAS, this Agreement is a supplement to and in furtherance of the Bylaws and Articles of Incorporation of the Company and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder; and
  
 	 
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 WHEREAS, Indemnitee does not regard the protection available under the Company's Bylaws and Articles of Incorporation and insurance as adequate in the present circumstances, and may not be willing to serve as an officer or director without adequate protection, and the Company desires Indemnitee to serve in such capacity. Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that he or she be so indemnified; and
  
 NOW, THEREFORE, in consideration of Indemnitee's agreement to serve as an officer and/or director from and after the date hereof, the parties hereto agree as follows:
  
 1. Indemnity of Indemnitee. The Company hereby agrees to hold harmless and indemnify Indemnitee to the fullest extent permitted by law, as such may be amended from time to time. In furtherance of the foregoing indemnification, and without limiting the generality thereof:
  
 (a) Proceedings Other Than Proceedings by or in the Right of the Company. Indemnitee shall be entitled to the rights of indemnification provided in this Section 1(a) if, by reason of his or her Corporate Status (as hereinafter defined), the Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding (as hereinafter defined) other than a Proceeding by or in the right of the Company. Pursuant to this Section 1(a), Indemnitee shall be indemnified against all Expenses (as hereinafter defined), judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him or her, or on his or her behalf, in connection with such Proceeding or any claim, issue or matter therein, if the Indemnitee acted in good faith and in a manner the Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and with respect to any criminal Proceeding, had no reasonable cause to believe the Indemnitee's conduct was unlawful. 
  
 (b) Proceedings by or in the Right of the Company. Indemnitee shall be entitled to the rights of indemnification provided in this Section 1(b) if, by reason of his or her Corporate Status, the Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding brought by or in the right of the Company. Pursuant to this Section 1(b), Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by the Indemnitee, or on the Indemnitee's behalf, in connection with such Proceeding if the Indemnitee acted in good faith and in a manner the Indemnitee reasonably believed to be in or not opposed to the best interests of the Company; provided, however, if applicable law so provides, no indemnification against such Expenses shall be made in respect of any claim, issue or matter in such Proceeding as to which Indemnitee shall have been adjudged to be liable to the Company unless and to the extent that the District Courts of the State of Nevada shall determine that such indemnification may be made.
  
 (c) Indemnification for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his or her Corporate Status, a party to (or participant in) and is successful, on the merits or otherwise, in any Proceeding, he or she shall be indemnified to the maximum extent permitted by law, as such may be amended from time to time, against all Expenses actually and reasonably incurred by him or her, or on his or 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 (1) or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or her, or on his or her behalf, in connection with each successfully resolved claim, issue or matter. For purposes of this Section 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.
  
 	 
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 (d) Indemnification of Appointing Stockholder. If (i) Indemnitee is or was affiliated with one (1) or more investment funds that has invested in the Company (an "Appointing Stockholder"), and (ii) the Appointing Stockholder is, or is threatened to be made, a party to or a participant in any Proceeding, and (iii) the Appointing Stockholder's involvement in the Proceeding (A) arises primarily out of, or relates to, any action taken by the Company that was approved by the Company's Board, and (B) arises out of facts or circumstances that are the same or substantially similar to the facts and circumstances that form the basis of claims that have been, could have been or could be brought against the Indemnitee in a Proceeding, regardless of whether the legal basis of the claims against the Indemnitee and the Appointing Stockholder are the same or similar, then the Appointing Stockholder shall be entitled to all rights and remedies, including with respect to indemnification and advancement, provided to the Indemnitee under this Agreement as if the Appointing Stockholder were the Indemnitee. The rights provided to the Appointing Stockholder under this Section 1(d) shall (i) be suspended during any period during which the Appointing Stockholder does not have a representative on the Company's Board, and (ii) terminate on an initial public offering of the Company's Common Stock; provided, however, that in the event of any such suspension or termination, the Appointing Stockholder's rights to indemnification and advancement of expenses will not be suspended or terminated with respect to any Proceeding based in whole or in part on facts and circumstances occurring at any time prior to such suspension or termination regardless of whether the Proceeding arises before or after such suspension or termination. The Company and Indemnitee intend and agree that the Appointing Stockholder is an express third party beneficiary of the terms of this Section 1(d).
  
 (e) Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.
  
 2. Additional Indemnity. In addition to, and without regard to any limitations on, the indemnification provided for in Section 1 of this Agreement, the Company shall and hereby does indemnify and hold harmless Indemnitee against all Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him or her, or on his or her behalf, if, by reason of his or her Corporate Status, he or she is, or is threatened to be made, a party to or participant in any Proceeding (including a Proceeding by or in the right of the Company), including, without limitation, all liability arising out of the negligence or active or passive wrongdoing of Indemnitee. The only limitation that shall exist upon the Company's obligations pursuant to this Agreement shall be that the Company shall not be obligated to make any payment to Indemnitee that is finally determined (under the procedures, and subject to the presumptions, set forth in Sections 6 and 7 hereof) to be unlawful.
  
 	 
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 3. Contribution.
  
 (a) Whether or not the indemnification provided in Sections 1 and 2 hereof is available, in respect of any threatened, pending or completed action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), the Company shall pay, in the first instance, the entire amount of any judgment or settlement of such action, suit or proceeding without requiring Indemnitee to contribute to such payment and the Company hereby waives and relinquishes any right of contribution it may have against Indemnitee. The Company shall not enter into any settlement of any action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding) unless such settlement provides for a full and final release of all claims asserted against Indemnitee.
  
 (b) Without diminishing or impairing the obligations of the Company set forth in the preceding subparagraph, if, for any reason, Indemnitee shall elect or be required to pay all or any portion of any judgment or settlement in any threatened, pending or completed action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), the Company shall contribute to the amount of Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by Indemnitee in proportion to the relative benefits received by the Company and all officers, directors or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, from the transaction or events from which such action, suit or proceeding arose; provided, however, that the proportion determined on the basis of relative benefit may, to the extent necessary to conform to law, be further adjusted by reference to the relative fault of the Company and all officers, directors or employees of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, in connection with the transaction or events that resulted in such expenses, judgments, fines or settlement amounts, as well as any other equitable considerations which applicable law may require to be considered. The relative fault of the Company and all officers, directors or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, shall be determined by reference to, among other things, the degree to which their actions were motivated by intent to gain personal profit or advantage, the degree to which their liability is primary or secondary and the degree to which their conduct is active or passive.
  
 (c) The Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims of contribution which may be brought by officers, directors, or employees of the Company, other than Indemnitee, who may be jointly liable with Indemnitee.
  
 (d) To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).
  
 	 
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 4. Indemnification for Expenses of a Witness. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his or her Corporate Status, a witness, or is made (or asked) to respond to discovery requests, in any Proceeding to which Indemnitee is not a party, he or she shall be indemnified against all Expenses actually and reasonably incurred by him or her, or on his or her behalf, in connection therewith.
  
 5. Advancement of Expenses. Notwithstanding any other provision of this Agreement, the Company shall advance all Expenses incurred by or on behalf of Indemnitee in connection with any Proceeding by reason of Indemnitee's Corporate Status within thirty (30) days after the receipt by the Company of a statement or statements from Indemnitee 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 undertaking by or on behalf of Indemnitee to repay any Expenses advanced if it shall ultimately be determined that Indemnitee is not entitled to be indemnified against such Expenses. Any advances and undertakings to repay pursuant to this Section 5 shall be unsecured and interest free. This Section 5 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 9.
  
 6. Procedures and Presumptions for Determination of Entitlement to Indemnification. It is the intent of this Agreement to secure for Indemnitee rights of indemnity that are as favorable as may be permitted under the NBCA and public policy of the State of Nevada. Accordingly, the parties agree that the following procedures and presumptions shall apply in the event of any question as to whether Indemnitee is entitled to indemnification under this Agreement:
  
 (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. The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification. Notwithstanding the foregoing, any failure of Indemnitee to provide such a request to the Company, or to provide such a request in a timely fashion, shall not relieve the Company of any liability that it may have to Indemnitee unless, and to the extent that, such failure actually and materially prejudices the interests of the Company. The Company will be entitled to participate in the Proceeding at its own Expense.
  
 (b) Upon written request by Indemnitee for indemnification pursuant to the first sentence of Section 6(a) hereof, a determination with respect to Indemnitee's entitlement thereto shall be made in the specific case by one of the following four methods, which shall be at the election of the Board: (i) by a majority vote of the disinterested directors, even though less than a quorum, (ii) by a committee of disinterested directors designated by a majority vote of the disinterested directors, even though less than a quorum, (iii) if there are no disinterested directors or if the disinterested directors so direct, by independent legal counsel in a written opinion to the Board, a copy of which shall be delivered to the Indemnitee, or (iv) if so directed by the Board, by the stockholders of the Company. For purposes hereof, disinterested directors are those members of the Board who are not parties to the action, suit or proceeding in respect of which indemnification is sought by Indemnitee.
  
 	 
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 (c) If the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 6(b) hereof, the Independent Counsel shall be selected as provided in this Section 6(c). The Independent Counsel shall be selected by the Board. Indemnitee may, within ten (10) days after such written notice of selection shall have been given, deliver to the Company a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of "Independent Counsel" as defined in Section 13 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If a written objection is made and substantiated, the Independent Counsel selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit. If, within twenty (20) days after submission by Indemnitee of a written request for indemnification pursuant to Section 6(a) hereof, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition the District Court of the State of Nevada or other court of competent jurisdiction for resolution of any objection which shall have been made by the Indemnitee to the Company's selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the court or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 6(b) hereof. The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting pursuant to Section 6(b) hereof, and the Company shall pay all reasonable fees and expenses incurred by the Company and the Indemnitee incident to the procedures of this Section 6(c), regardless of the manner in which such Independent Counsel was selected or appointed.
  
 (d) In making a 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. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence. Neither the failure of the Company (including by its directors or independent legal counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or independent legal counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.
  
 (e) Indemnitee shall be deemed to have acted in good faith if Indemnitee's action is based on the records or books of account of the Enterprise (as hereinafter defined), including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Enterprise. The provisions of this Section 6(e) shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement. In addition, the knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement. Whether or not the foregoing provisions of this Section 6(e) are satisfied, it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.
  
 	 
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 (f) If the person, persons or entity empowered or selected under Section 6 to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification absent (i) 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, or (ii) a prohibition of such indemnification under applicable law; provided, however, that such sixty (60) day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making such determination with respect to entitlement to indemnification in good faith requires such additional time to obtain or evaluate documentation and/or information relating thereto; and provided further, that the foregoing provisions of this Section 6(f) shall not apply if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 6(b) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination, the Board or the Disinterested Directors, if appropriate, resolve to submit such determination to the stockholders for their consideration at an annual meeting thereof to be held within seventy five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such determination is made thereat.
  
 (g) 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. Any Independent Counsel, member of the Board or stockholder of the Company shall act reasonably and in good faith in making a determination regarding the Indemnitee's entitlement to indemnification under this Agreement. Any costs or expenses (including attorneys' fees and disbursements) 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 hereby indemnifies and agrees to hold Indemnitee harmless therefrom.
  
 (h) In the event that any action, suit or proceeding to which Indemnitee is a party is resolved in any manner other than by adverse judgment against Indemnitee (including, without limitation, settlement of such action, suit or proceeding with or without payment of money or other consideration) it shall be presumed that Indemnitee has been successful on the merits or otherwise in such action, suit or proceeding. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.
  
 (i) The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his or her conduct was unlawful.
  
 	 
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 7. Remedies of Indemnitee.
  
 (a) In the event that (i) a determination is made pursuant to Section 6 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 5 of this Agreement, (iii) no determination of entitlement to indemnification is made pursuant to Section 6(b) of this Agreement within ninety (90) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Sections 1(c), 1(e), 4 or the last sentence of Section 6(g) of this Agreement within ten (10) days after receipt by the Company of a written request therefor, or (v) payment of indemnification is not made pursuant to Sections 1(a), 1(b) and 2 of this Agreement within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to Section 6 of this Agreement, Indemnitee shall be entitled to an adjudication in an appropriate court of the State of Nevada, or in any other court of competent jurisdiction, of Indemnitee's entitlement to such indemnification. Indemnitee shall commence such proceeding seeking an adjudication within one hundred eighty (180) days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 7(a). The Company shall not oppose Indemnitee's right to seek any such adjudication.
  
 (b) In the event that a determination shall have been made pursuant to Section 6(b) of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding commenced pursuant to this Section 7 shall be conducted in all respects as a de novo trial on the merits, and Indemnitee shall not be prejudiced by reason of the adverse determination under Section 6(b).
  
 (c) If a determination shall have been made pursuant to Section 6(b) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding commenced pursuant to this Section 7, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's misstatement not materially misleading in connection with the application for indemnification, or (ii) a prohibition of such indemnification under applicable law.
   
 	 
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 (d) In the event that Indemnitee, pursuant to this Section 7, seeks a judicial adjudication of his or her rights under, or to recover damages for breach of, this Agreement, or to recover under any directors' and officers' liability insurance policies maintained by the Company, the Company shall pay on his or her behalf, in advance, any and all expenses (of the types described in the definition of Expenses in Section 13 of this Agreement) actually and reasonably incurred by him or her in such judicial adjudication, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement of expenses or insurance recovery.
  
 (e) The Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this Section 7 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is bound by all the provisions of this Agreement. It is the intent of the Company that, to the fullest extent permitted by law, the Indemnitee not be required to incur legal fees or other Expenses associated with the interpretation, enforcement or defense of Indemnitee's rights under this Agreement by litigation or otherwise because the cost and expense thereof would substantially detract from the benefits intended to be extended to the Indemnitee hereunder. The Company shall indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefore) advance, to the extent not prohibited by law, such expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advance of Expenses from the Company under this Agreement or under any directors' and officers' liability insurance policies maintained by the Company, if, in the case of indemnification, Indemnitee is wholly successful on the underlying claims; if Indemnitee is not wholly successful on the underlying claims, then such indemnification shall be only to the extent Indemnitee is successful on such underlying claims or otherwise as permitted by law, whichever is greater.
  
 (f) Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding.
   
 8. Non-Exclusivity; Survival of Rights; Insurance; Primacy of Indemnification; Subrogation.
  
 (a) The rights of indemnification 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 Articles of Incorporation, the By-laws, any agreement, a vote of stockholders, a resolution of directors of the Company, or otherwise. 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 or her Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in the NBCA, whether by statute or judicial decision, permits greater indemnification than would be afforded currently under the Articles of Incorporation, By-laws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.
  
 	 
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 (b) To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents or fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such person serves at the request of the Company (a "D&O Policy"), Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any director, officer, employee, agent or fiduciary under such policy or policies. If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has directors' and officers' liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.
  
 (c) Except as provided in paragraph (c) above, 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.
  
 (d) Except as provided in paragraph (c) above, the Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.
  
 (e) Except as provided in paragraph (c) above, the Company's obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer, employee or agent of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses from such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise.
  
 9. Exception to Right of Indemnification. Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity in connection with any claim made against Indemnitee:
  
 (a) for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision, provided, that the foregoing shall not affect the rights of Indemnitee set forth in Section 8(c) above; or
  
 (b) for (i) an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of state statutory law or common law, (ii) any reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by the Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act) or (iii) any reimbursement of the Company by Indemnitee of any compensation pursuant to any compensation recoupment or clawback policy adopted by the Board or the compensation committee of the Board, including but not limited to any such policy adopted to comply with stock exchange listing requirements implementing Section 10D of the Exchange Act; or
  
 	 
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 (c) except as provided in Section 7(e) of this Agreement, in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation, (ii) such payment arises in connection with any mandatory counterclaim or cross claim brought or raised by Indemnitee in any Proceeding (or any part of any Proceeding) or (iii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law; or
  
 (d) for Expenses determined by the Company to have arisen out of Indemnitee's breach or violation of his or her obligations under (i) any employment agreement between the Indemnitee and the Company or (ii) the Company's Code of Business Conduct and Ethics (as amended from time to time).
  
 10. Duration of Agreement. All agreements and obligations of the Company contained herein shall continue during the period Indemnitee is an officer or director of the Company (or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise) and shall continue thereafter so long as Indemnitee shall be subject to any Proceeding (or any proceeding commenced under Section 7 hereof) by reason of his or her Corporate Status, whether or not he or she is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under this Agreement. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors (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), assigns, spouses, heirs, executors and personal and legal representatives.
  
 11. Security. To the extent requested by Indemnitee and approved by the Board, the Company may at any time and from time to time provide security to Indemnitee for the Company's obligations hereunder through an irrevocable bank line of credit, funded trust or other collateral. Any such security, once provided to Indemnitee, may not be revoked or released without the prior written consent of the Indemnitee.
  
 	 
	11
	

	 

  
 12. Enforcement.
  
 (a) The Company expressly confirms and agrees that it has entered into this Agreement and assumes the obligations imposed on it hereby in order to induce Indemnitee to serve as an officer or director of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as an officer or director of the Company.
  
 (b) This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof.
  
 (c) The Company shall not seek from a court, or agree to, a "bar order" which would have the effect of prohibiting or limiting the Indemnitee's rights to receive advancement of expenses under this Agreement.
  
 13. Definitions. For purposes of this Agreement:
  
 (a) "Corporate Status" describes the status of a person who is or was a director, officer, employee, agent or fiduciary of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving at the request of the Company.
  
 (b) "Disinterested Director" means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.
  
 (c) "Enterprise" shall mean the Company and any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that Indemnitee is or was serving at the request of the Company as a director, officer, employee, agent or fiduciary.
  
 (d) "Expenses" shall include all reasonable attorneys' fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and any federal, state, local or foreign taxes imposed on the Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, participating, or being or preparing to be a witness in a Proceeding, or responding to, or objecting to, a request to provide discovery in any Proceeding. Expenses also shall include (i) 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, supersedeas bond, or other appeal bond or its equivalent (ii) Expenses incurred in connection with recovery under any directors' and officers' liability insurance policies maintained by the Company, regardless of whether Indemnitee is ultimately determined to be entitled to such indemnification, advancement or Expenses or insurance recovery, as the case may be, and (iii) for purposes of Section 7(e) only, Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee's rights under this Agreement, the Certificate of Incorporation, the Bylaws or under any directors' and officers' liability insurance policies maintained by the Company, by litigation or otherwise. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.
  
 	 
	12
	

	 

   
 (e) "Independent Counsel" means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither at present is, nor in the past five (5) 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 the Proceeding giving rise to a claim for indemnification 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. The Company agrees to pay the reasonable fees of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.
  
 (f) "Proceeding" includes any threatened, pending or completed action, suit, claim, counterclaim, cross claim, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought by or in the right of the Company or otherwise and whether civil, criminal, administrative or investigative, including any appeal therefrom, in which Indemnitee was, is or will be involved as a party or otherwise, by reason of his or her Corporate Status, by reason of any action taken by him or her, or of any inaction on his or her part, while acting in his or her Corporate Status; in each case whether or not he or she is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification, reimbursement or advancement of expenses can be provided under this Agreement; including one pending on or before the date of this Agreement, but excluding one initiated by an Indemnitee pursuant to Section 7 of this Agreement to enforce his or her rights under this Agreement.
  
 14. Severability. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision. Further, the invalidity or unenforceability of any provision hereof as to either Indemnitee or Appointing Stockholder shall in no way affect the validity or enforceability of any provision hereof as to the other. Without limiting the generality of the foregoing, this Agreement is intended to confer upon Indemnitee and Appointing Stockholder indemnification rights to the fullest extent permitted by applicable laws. In the event any provision hereof conflicts with any applicable law, such provision shall be deemed modified, consistent with the aforementioned intent, to the extent necessary to resolve such conflict.
  
 15. Modification and Waiver. No supplement, modification, termination 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.
  
 16. Notice By Indemnitee. Indemnitee agrees promptly to notify the Company in writing upon being served with or otherwise receiving any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification covered hereunder. The failure to so notify the Company shall not relieve the Company of any obligation which it may have to Indemnitee under this Agreement or otherwise unless and only to the extent that such failure or delay materially prejudices the Company.
  
 	 
	13
	

	 

  
 17. Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail if sent during normal business hours of the recipient, and if not so confirmed, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent: 
  
 	  
	 (a)
	 To Indemnitee at the address set forth below Indemnitee signature hereto.

	  
	  
	  

	  
	 (b)
	 To the Company at:

	  
	  
	  

	  
	  
	 Unrivaled Brands, Inc.
 ______________________________
 ______________________________
 Attention:______________________

   
 or to such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.
  
 18. Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same the same instrument. Counterparts may be delivered via electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. 
  
 19. 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.
  
 20. Governing Law and Consent to Jurisdiction. This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Nevada, without regard to its conflict of laws rules. The Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the District Courts of the State of Nevada (the "Nevada Court"), and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Nevada Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii), waive any objection to the laying of venue of any such action or proceeding in the Nevada Court, and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Nevada Court has been brought in an improper or inconvenient forum.
  
 [Signature Page Follows]
  
 	 
	14
	

	 

  
 IN WITNESS WHEREOF, the parties hereto have executed this Indemnification Agreement on and as of the day and year first above written.
  
 	 	 COMPANY:
  
 Unrivaled Brands, Inc.
	
	 	 	 	 
		By:	/s/ Francis Knuettel II	
	  
	 Name:
	Francis Knuettel II	 
	 	Title:  	CEO/President 	 
	 	 	 	 
	  
	 INDEMNITEE
	  

	  
	  
	  
	  

	  
	 /s/ Oren Schauble
	  

	  
	 Name: 
	 Oren Schauble
	  

	  
	  
	  
	  

	  
	 Address:
	  
	  

	  
	  
	  
	  

	  
	  
	  
	  

	  
	  
	  
	  

  
 	 
	15Exhibit
10.4

 

 

Business
Confidential – Protected B

 

THIS
IS AN AMENDING AGREEMENT

 

	BETWEEN:	NATIONAL
    RESEARCH COUNCIL OF CANADA
	 	 
	 	a departmental corporation forming part of the Government of Canada

                                                                                created by the National Research Council Act (R.S.C. 1985, c. N-15), and

                                                                                an agent of Her Majesty the Queen in Right of Canada 

                                                                                whose head office address is:

	 	 
	 	 	1200
    Montreal Road
	 	 	Ottawa,
    Ontario K1A 0R6 	(called
    the “NRC”)
	 	 	 	 
	AND:	VARIATION
    BIOTECHNOLOGIES INC.
	 	 
	 	a
    Company incorporated under the Canada Business Corporations Act under number 393728-3 whose Registered
    Office Address is located in:
	 	 
	 	 	300
    Hunt Club Road East, 2nd Floor
	 	 	Ottawa,
    Ontario K1V 1C1	(called
    the “Collaborator” or “VBI”)
	 	 	 	 
	 	 	 	(Collectively
    known as the “Parties”)

 

WHEREAS
the parties entered into an Agreement signed by the NRC on 30 March 2020 (called the “Original
Agreement”) and an Amendment One signed by NRC on 21 December 2020 (called “Amendment One”) by which the Parties
agreed to collaborate in a “Project”, described as: COVID-19 vaccine evaluation. Original and Amendment One Agreements
are now called “The Agreements”.

 

WHEREAS
this Amending Agreement includes certain special obligations which relate solely to Tasks performed for the purpose of developing a vaccine
against the South Africa (Beta) variant of COVID-19, which project is being funded by the Coalition for Epidemic Preparedness Innovations
(CEPI). These special obligations are required by the terms of the funding agreement between Collaborator and CEPI.

 

WHEREAS
the parties wish to amend the Agreements. In consideration of the mutual covenants hereunder, the parties agree as follows

 

	1.	The
    Agreements shall be read with the amended terms stated below. With respect to all other terms, the Parties confirm the Agreements.
	 	 
	2.	The
    attached “SCHEDULE OF PAYMENTS” is in addition to, the “Schedule
    of Payments” from the Agreements except that the amount shown for Task 1.7 shall replace the amount shown for Task
    1.7 in Amendment One and the amount shown for Task 1.8 shall replace the amount shown for Task 1.8-1.9 in Amendment One. Furthermore,
    Annex B to Amendment One has been cancelled.
	 	 
	3.	The
    attached “NEW STATEMENT OF WORK AND DELIVERABLES” is in addition and, in the case of Tasks 1.7, 1.8 and 1.9 and
    Annex B is an amendment to the “STATEMENT OF WORK AND DELIVERABLES” in the Agreements.
	 	 
	4.	The
    estimated total value of this Project amendment two is: minimum of $[***] (without options) to a maximum
    of $[***] (with options) as stated in the Statement of Work.
	 	 
	5.	The
    Collaborator is a Canadian Small and Medium Enterprise (SME) or a Canadian educational institution, including a community college,
    CEGEP, polytechnic or university, and benefits from a Fee Reduction of minimum of $[***] (without options) to a maximum
    of $[***] (with options). The Collaborator hereby warrants that, at the time of signing this Agreement, it is a SME and
    has 500 or fewer full-time equivalent employees, or it is a Canadian educational institution.

 

    	HUMAN HEALTH THERAPEUTICS – Vaccines and Emerging infections RI	Page 1 of 8
	NRC Ref. #: A-0040072 (orig. A-0035546)

     

    

 

 

	6.	The
    amount that the Collaborator will pay to the NRC in cash for this amendment two is: minimum of $[***] (without options)
    to a maximum of $[***] (with options) as stated in the Statement of Work.
	 	 
	7.	The
    estimated value of the NRC’s in-kind contribution for this amendment is: $[***].
	 	 
	8.	The
    following special provisions apply to Tasks carried out pursuant to this Amending Agreement:
	 	 	 
	 	(a)	NRC
    shall exert reasonable efforts to retain records of its activities regarding the work performed pursuant to this Amending Agreement
    for a period of at least 5 years from the date of completion of the work, to the extent that it does not contradict with any applicable
    laws, regulations, or policies of the NRC and can provide a copy of such documentation to Collaborator upon request. 
	 	 	 
	 	(b)	NRC
    shall exert reasonable efforts to retain, for a period of at least 5 years (to the extent that it does not contradict with any applicable
    laws, regulations, or policies of the NRC) from the date of completion of the work described in this Amending Agreement, documentation
    supporting the amounts invoiced to and paid by Collaborator pursuant to this Amending Agreement and can provide a copy of such documentation
    to Collaborator upon request.
	 	 	 
	 	(c)	Each
    of NRC and Collaborator agree that it shall carry its obligations hereunder in accordance with laws and regulations that are applicable
    to its activities and operations.
	 	 	 
	 	(d)	Section
    IU-8 of the Original Agreement is amended to add the following last paragraph:
	 	 	 
	 	 	Collaborator
    shall be permitted to disclose Confidential Non-Project Information to CEPI solely to the extent required to comply with its obligations
    pursuant to its funding agreement with CEPI, including its obligations pursuant to the CEPI Third Party Code. NRC will have the right
    to review the Confidential Information prior to any disclosure to CEPI;
	 	 	 
	 	(e)
    	The
    NRC is part of the Government of Canada and confirms that it is in compliance with laws, regulations, and policies whose goals are
    aligned with the goals of the CEPI Third Party Code.
	 	 	 
	9.	This
    Amending Agreement may be executed in one or more counterparts and by the different parties hereto in separate counterparts, each
    of which when executed shall be deemed to be an original but all of which taken together shall constitute one valid and binding agreement.
    A portable document format (PDF) copy of an executed counterpart signature page will be as valid as an originally executed counterpart
    for purposes of signing this Amending Agreement. 

 

SIGNED
by the Collaborator at Ottawa, Ontario

 

	 	 	 	VARIATION
    BIOTECHNOLOGIES INC.
	 	 	 	 	 
	Date:
    	July 6, 2021
	 	Per:	/s/ Jeff
    Baxter   
	 	 	 	 	Jeff
    Baxter
	 	 	 	 	CEO

 

SIGNED
by the NRC at Ottawa, Ontario

 

	 	NATIONAL
    RESEARCH COUNCIL OF CANADA

 

	Date:
    	July
    8, 2021
	 	Per:
    	/s/ Lakshmi
    Krishnan 
	 	 	 	 	Lakshmi
    Krishnan, Ph.D.
	 	 	 	 	A/Vice
    President, Life Sciences

 

    	HUMAN HEALTH THERAPEUTICS – Vaccines and Emerging infections RI	Page 2 of 8
	NRC Ref. #: A-0040072 (orig. A-0035546)

     

    

 

 

ANNEX
SP – SCHEDULE OF PAYMENTS TO NRC

 

Billing
address: See page 1

 

Billing
contact:

 

	 	Name:
    	 	Andrea
    McRae
	 	Title:	 	Project
    Manager
	 	Telephone:	 	[***]	Email:	[***]

 

	SP-1	The
                                            Collaborator shall be invoiced as follows:

 

	Invoicing
    Schedule (Estimated Dates)	 	Amount
    Due*
	STAGE
    1	 	 
	1.
    Invoice to be issued on signature of this amendment for Task 1.7 	 	[***]
	2.
    Invoice to be issued upon completion of Task 1.8	 	[***]
	3.
    Invoice to be issued on completion of Task 1.10	 	[***]
	4.
    Invoice to be issued upon completion of Task 1.11	 	[***]
	5.
    Invoice to be issued upon completion of Task 1.12	 	[***]
	6.
    Invoice to be issued upon completion of Task 1.13	 	[***]
	7.
    Invoice to be issued upon completion of Task 1.14	 	[***]
	8.
    Invoice to be issued upon approval to exercise Optional Task 1.9.1 	 	[***]
	9.
    Invoice to be issued upon approval to exercise Optional Task 1.9.2	 	[***]
	10.
    Invoice to be issued upon approval to exercise Optional Task 1.15.1	 	[***]
	11.
    Invoice to be issued upon approval to exercise Optional Task 1.15.2	 	[***]
	12.
    Invoice to be issued upon approval to exercise Optional Task 1.16.1	 	[***]
	13.
    Invoice to be issued upon approval to exercise Optional Task 1.16.2	 	[***]
	STAGE
    2	 	 
	14.
    Invoice to be issued on signature of this amendment for Tasks 2.6 and 2.7.1	 	[***]
	15.
    Invoice to be issued on completion of Tasks 2.7.2, 2.7.3 and 2.7.4	 	[***]
	16.
    Invoice to be issued upon approval to exercise Optional Task 2.7.5.1	 	[***]
	17.
    Invoice to be issued upon approval to exercise Optional Task 2.7.5.2	 	[***]

 

*Plus
applicable taxes

 

	SP-2	All
                                            amounts shall be due 30 days from the date of the invoice.

 

	SP-3	Payments
                                            must be made to: “Receiver General - National Research Council of Canada” and
                                            addressed to:

 

Accounts
Receivable

National
Research Council of Canada

1200
Montreal Road

Ottawa,
Ontario, K1A 0R6 CANADA

 

    	HUMAN HEALTH THERAPEUTICS – Vaccines and Emerging infections RI	Page 3 of 8
	NRC Ref. #: A-0040072 (orig. A-0035546)

     

    

 

 

 

	SP-4	Payments
                                            can be made by cheque, MasterCard, Visa or American Express; or by wire transfer. Wire transfer
                                            information is available upon request. The Collaborator is responsible for all bank charges
                                            associated with wire transfers. Any inquiries may be directed to: AccountsReceivable@nrc-cnrc.gc.ca.

 

	SP-5	The
                                            Collaborator shall provide any Invoicing Reference Number at the time of Agreement signature
                                            or promptly thereafter. The NRC will not delay or cancel invoicing nor defer accrual of interest
                                            due to the Collaborator’s failure to provide an Invoicing Reference Number.

 

	SP-6	The
                                            NRC may suspend its performance of any obligations under this Agreement so long as any payment
                                            is overdue for any reason.

 

	SP-7	If
                                            this Agreement is amended to increase the scope of the Services, the NRC reserves the right
                                            to calculate costing for its additional Project activities at its rates that are in effect
                                            at that time. Any such cost increases shall be approved, in writing, by both Parties.

 

	SP-8	If
                                            the NRC expects that the value of its estimated contribution will be exceeded by more than
                                            10%, it shall promptly notify the other Party. The
                                            Parties shall then negotiate a further agreement on costs or payments, and either Party may
                                            suspend the performance of any obligations, other than confidentiality, intellectual property
                                            and accrued obligations to pay, until a further agreement is reached. If the Parties fail
                                            to agree on an amendment within 60 days of the notice, then this Agreement shall terminate
                                            on the 60th day after the notice, unless the Parties agree otherwise in writing.

 

	SP-9	If
                                            a surplus of prepayment remains as a result of premature termination, it will be refunded.

 

	SP-10	If
                                            an instrument tendered in payment or settlement of an amount due to the NRC is dishonoured
                                            for any reason, the NRC will invoice an additional administrative charge of CAD 25 and this
                                            amount will be due as invoiced.

 

	SP-11	Interest
                                            is payable on all overdue amounts. Interest is calculated and compounded monthly at the average
                                            bank rate plus 3% and accrues during the period beginning on the due date and ending on the
                                            day before the day on which payment is received by the NRC. For purposes of this paragraph
                                            “bank rate” means the rate of interest established periodically by the
                                            Bank of Canada as the minimum rate at which the Bank of Canada makes short term advances
                                            to members of the Canadian Payments Association, and “average bank rate”
                                            means the weighted arithmetic average of the bank rates that are established during the month
                                            before the month in respect of which interest is being calculated.

 

(Rate
information may be found at http://www.tpsgc-pwgsc.gc.ca/recgen/txt/tipp-ppir-eng.html. This site provides information
on the rate used by departments of the Government of Canada to calculate the interest on overdue accounts payable and is the same rate
used by the NRC to charge interest on overdue accounts receivable under the Interest and Administrative Charges Regulations, SOR/96-188.
This web site address, and the information set out there, is provided here for convenience. In case of rate discrepancy, the rates quoted
by the Bank of Canada shall prevail.)

 

(the
rest of this page was intentionally left blank)

 

    	HUMAN HEALTH THERAPEUTICS – Vaccines and Emerging infections RI	Page 4 of 8
	NRC Ref. #: A-0040072 (orig. A-0035546)

     

    

 

 

Statement
of Work

 

Covid-19
Vaccine Evaluation – Amendment two

 

	1.	Workplan

 

	 	Stage 1: Candidate Identification & Immunogenicity
	 	 
	 	Tasks 1.5 and 1.6 in Amendment 1 have been completed and invoiced.
	 	 	 
	 	 	The following tasks are amended/added to the workplan:
	 	 	 
	 	 	Work related to ISED funding (Products: VBI-2901;
    VBI -2902)
	 	 	
	 	 	Task 1.7: [***]
	 	 	 
	 	 	[***]
	 	 	 
	 	 	Estimated
    budget: $[***]
	 	 	 
	 	 	Task 1.8 Phase I clinical sample testing by PRNT (R&D
    assay) for both Wuhan and South African:
	 	 	 
	 	 	[***]
	 	 	 
	 	Estimated budget: $[***]
	 	 	 
	 	 	OPTIONAL: Task 1.9 Phase II clinical sample testing
    by PRNT (R&D assay) to be conducted upon Collaborator request.
	 	 	 
	 	 	[***]
	 	 	 
	 	 	Estimated budget: $[***]
	 	 	 
	 	 	Tasks captured below are new work added and relate
    to new variants under project funded by CEPI
	 	 	 
	 	 	Task 1.10 Study 29B688: Mouse study (72 mice, 2 doses)
    and PRNT (R&D assay) for both Wuhan and South African
	 	 	 
	 	 	[***]
	 	 	 
	 	Estimated
    budget: $[***]
	 	 
	 	 	Task 1.11 Study TBD1: Mouse study (48 mice,
    2 doses) and PRNT (R&D assay) for both Wuhan and South African
	 	 	 
	 	 	[***]

 

    	HUMAN HEALTH THERAPEUTICS – Vaccines and Emerging infections RI	Page 5 of 8
	NRC Ref. #: A-0040072 (orig. A-0035546)

     

    

 

 

	 	Estimated budget: $[***]

 

	 	Task 1.12 Study TBD2: Mouse study (48 mice,
    2 doses) and PRNT (R&D assay)
	 	 
	 	[***]
	 	 
	 	Estimated budget: $[***]
	 	 
	 	Task
1.13 PRNTs (R&D assay) for both Wuhan and South African strain on samples from Hamster Challenge Study 1 done at VIDO.
	 	 
	 	[***] Estimated
    budget: $[***]
	 	 
	 	Task
1.14 PRNTs (R&D assay) for both Wuhan and South African on samples from Hamster Challenge Study 2 done at VIDO
	 	 
	 	[***]
	 	 
	 	Estimated budget: $[***]
	 	 
	 	OPTIONAL:
Task 1.15 Phase I clinical sample testing by PRNT (R&D assay) to be conducted upon Collaborator request.
	 	 
	 	[***]
	 	 
	 	Estimated
budget: $[***]
	 	 
	 	OPTIONAL: Task 1.16 Phase II clinical sample testing
    by PRNT (R&D assay) to be conducted upon client request.
	 	 
	 	[***]
	 	 
	Estimated budget: $[***]

 

	 	[***]
	 	 
	 	 Stage 2: Tech Transfer & Process Development
    Activities
	 	 	 
	 	 	The following Tasks have been completed:
	 	 	 
	 	 	Task
    2.1 - [***] eVLP Purification
	 	 	 
	 	 	Task
    2.4.1 [***] production of [***]
	 	 	 
	 	 	The following tasks are amended/added to the workplan:
	 	 	 
	 	 	Task
    2.2 Process transfer [***]. This includes:
	 	 	 
	 	 	Subtasks
[***] are cancelled ([***]).
	 	 	 
	 	 	Task 2.3
	 	 	 
	 	 	Task
    2.4 [***] process scale up (including new IEX step) No changes to subtasks 2.4.1 and 2.4.2
	 	 	 
	 	 	2.4.3 [***]

 

    	HUMAN HEALTH THERAPEUTICS – Vaccines and Emerging infections RI	Page 6 of 8
	NRC Ref. #: A-0040072 (orig. A-0035546)

     

    

 

 

	 	 	Estimated budget: $[***]
	 	 	 
	 	 	Work related to new variants under project funded by CEPI
	 	 	 
	 	 	Task 2.6 [***]
	 	 	 
	 	 	[***]
	 	 	 
	 	 	Estimated budget: $[***]
	 	 	 
	 	Task 2.7 Upstream Optimization
	 	 
	 	 	[***]
	 	 	 
	 	 	[***]
	 	 	 
	 	 	Estimated budget: [***]
	 	 	 
	 	Stage 4: At Risk Domestic Production during Stage 4 and Prior to Approval
	 	 
	 	 	Task 4.1: [***]
	 	 	 
	 	 	Task 4.2: [***] 
	 	 	 
	 	 	Task
    4.3: [***]
	 	 	 
	 	 	[***]

 

	 	 	●	Deliverables[***]
	 	 	 	 
	 	2. Assumptions
	 	 
	 	 	●	[***]
	 	 	 	 
	 	3. Estimated Budget

 

	Budget
    Summary: VBI Covid-19 Vaccine Evaluation-

    Amendment
    2 – STAGE 1
	 	 	 	 	 	 
	Work Task	 	Task
    Value	 	CAN
    SME Fee Reduction	 	NRC
    Task Price*
	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	 	 	 	 	 

 

    	HUMAN HEALTH THERAPEUTICS – Vaccines and Emerging infections RI	Page 7 of 8
	NRC Ref. #: A-0040072 (orig. A-0035546)

     

    

 

 

	4.	Project Schedule
	 	 	 
	 	 	[***]
	 	 	 
	5.	Responsibilities 

 

	 	NRC Responsibilities
		 	 	 
	 		●	Perform
    the above work according to high standards of quality;
	 		●	The
    NRC will repeat, at its own cost, any portion of work whose failure was due to error by the NRC personnel or to power or equipment
    failure;
	 		●	Maintain
    good lines of communication with Variation Biotechnologies Inc.;
	 		●	To
    report any problems encountered to Variation Biotechnologies Inc. immediately;
	 		●	NRC
    cannot guarantee that a specific amount/level of purity or of product will be obtained. 
	 		●	Samples
    will be stored within an NRC facility for the duration of the project, unless stated otherwise. NRC will dispose of any remaining
    samples or may transfer to Variation Biotechnologies Inc. upon request.

 

	 	Variation Biotechnologies Inc. Responsibilities
	 	 	 	 
	 	 	●	Provide
    to the NRC all of the necessary information;
	 	 	●	Provide
    to the NRC a copy of the Informed Consent Form for the clinical trial samples; 
	 	 	●	Provide
    to NRC the plasmids needed for all productions;
	 	 	●	Maintain
    good lines of communication with the NRC;
	 	 	●	Shipment
    of product will be charged to Variation Biotechnologies Inc.’s courier account.

 

    	HUMAN HEALTH THERAPEUTICS – Vaccines and Emerging infections RI	Page 8 of 8
	NRC Ref. #: A-0040072 (orig. A-0035546)

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