Document:

Exhibit 10.11

 

 

PROTOKINETIX, INCORPORATED

DIRECTOR CONSULTING AGREEMENT

This DIRECTOR CONSULTING AGREEMENT (the "Agreement") is made and entered into as of December 30, 2016 and made effective as of January 1, 2017 (the "Effective Date"), by and between ProtoKinetix, Incorporated, a Nevada corporation ("Company"), and Edward P. McDonough, an individual (the "Director").

WHEREAS, the Company is a bio-technology company in the business of developing anti-aging glycoproteins ("AAGP") for the purpose of enhancing cell survival and health in various applications including transplant procedures, engraftment of tissue and cell preservation; and

WHEREAS, the Company and the Director entered into an agreement to perform directorial services for the Company due to his profession as a certified public accountant and his financial experience effective January 1, 2016 and terminating December 31, 2016 (the "Prior Director Agreement"); and

WHEREAS, effective January 1, 2017, the Company and the Director desire to supersede the Prior Consulting Agreement and enter into a new agreement to perform certain services for the Company and the Director has agreed to provide such services, on the terms and conditions set forth herein.

AGREEMENT:

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Director agree as follows:

1. Services.

(a)   General Services.  During the Term (as defined below) of this Agreement the Director will provide the Company with such services as specified herein on a proactive basis or as the Company may request, from time to time, as is normally expected of a director of a public company including but not limited to the following (the "Services"):

(i)    Act as chairman of the Company's audit committee;

(ii)    Provide advice in the evaluation of qualified, capable, reputable individuals, to fill director and management positions and thereby attempt to develop a superior management and operational capability for the Company;

(iii)   Provide advice in the preparation by the Company of information presentations, planning of approaches and analysis of financial proposals and presentations for the solicitation of expressions of interest of, contracting of, and closing of financings with potential investors;

(iv)   Provide advice with respect to corporate structuring and financing, including mergers, reverse mergers, spin-offs, acquisitions and dispositions;

(v)    Provide advice with respect to public company issues;

(vi)   Provide advice in the identification and development of strategic alliances, partnerships, and joint ventures; and

 

 

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(vii)  Provide such other advice as the board or management may reasonably request.

Notwithstanding anything to the contrary herein, the Director shall not be required to spend any set number of hours, but shall use commercially reasonable efforts to fulfill its obligations hereunder.

2. Compensation and Expenses.

(a)   Expenses.  Promptly upon the completion of each month of Services, but no later than the 10th day of the following month, the Director shall provide the Company with an invoice for Permitted Expenses (defined below).  Such invoice shall be accurate, complete, and include sufficient detail and receipts to substantiate amounts due hereunder.  Amounts due shall be payable within 30 business days of the Company's receipt of a correct and undisputed invoice from the Director.  "Permitted Expenses" include the following: (i) when requested by the Company, reasonable expenses for travel, and (ii) other expenses specifically approved by the Company in writing.  Notwithstanding the above, the Company will not be responsible for any single expense in excess of $500 or aggregate expenses in any one month of more than $2,000 without prior written approval of the Company.

(b)   Stock Option.  On the Effective Date, the Director will receive an option to purchase 1,000,000 shares of common stock of the Company pursuant to the Company's 2017 Stock Option and Stock Bonus Plan and the Stock Option Agreement between the Company and the Director dated January 1, 2017.

3. Ownership.  (a) Ownership of Work Products.  To the extent that the Services provided hereunder include original material subject to copyright (referred to as "Work Product"), the Director agrees that the Services are done as a "work for hire" as that term is defined under U.S. copyright law, and that as a result, the Company shall own all copyrights in and to the Work Product.  To the extent that the Work Product does not qualify as a work for hire under applicable law, and to the extent that the Work Product includes material subject to copyright, patent, trade secret, or other proprietary right protection, the Director hereby assigns to the Company, its successors and assigns, all right, title and interest in and to the Work Product, including all copyrights, patents, trade secrets, and other proprietary rights therein (including renewals thereof).  The Director shall execute and deliver such instruments and take such other action as may be required and requested by the Company to carry out the assignment contemplated by this paragraph.  To the extent permitted by applicable law, the Director hereby waives all moral rights in and to the Work Product.

(b)   License for Prior Works.  By incorporating into any Services any original work or authorship created prior to this Agreement ("Prior Works"), the Director thereby grants the Company a worldwide, perpetual, nonexclusive, transferable license to use, distribute, publish, or publicly display such Prior Works and modify such Prior Works as incorporated into the Services.

 

 

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(c)   Ownership of Equipment.  Unless otherwise expressly set forth elsewhere in this Agreement, any and all tangible equipment, materials, documentation, or other items provided by the Company in connection with this Agreement shall remain the property of the Company.

(d)   Ownership of Intellectual Property.  The Company shall retain title to and all rights in all intellectual property provided by the Company in connection with the Services, including, but not limited to, any know-how related to the Services or products provided or developed in the course of the Director's Services or the creation of Work Product, such as hardware, software, data, media or other tools or technologies.

4. Confidentiality.

(a)   Nature of Confidential Information.  In this Agreement, "Confidential Information" includes, but is not limited to, information, whether or not in written form, which has a business purpose and is not known or generally available from sources outside the Company or typical of industry practice, including but not limited to, the Company's internal structure, financial affairs, programs, software systems, procedures, manuals, confidential reports, marketing methods, the amount, nature and type of services and methods used and preferred by the Company's vendors and customers and the fees paid by such persons or entities; the identity of the Company's present and prospective customers and vendors; customer and vendor lists; any data relating to a customer or vendor of the Company; the Company's business arrangements and costs; and information regarding earnings, forecasts, reports and technical data of the Company, provided that Confidential Information does not include:

(i)   Information that is in the public domain at the date hereof or becomes part of the public domain after the date hereof through no act or omission of the Director;

(ii)  Information which the Director can prove was in its possession prior to the date hereof and was not acquired by the Director from the Company or any person under a confidentiality obligation to the Company;

(iii) Documents or information independently developed by or for the Director; and

(iv) Information received by the Director without restriction as to disclosure from a third party who has the lawful right to disclose the same.

(b)   Agreement to Keep Information Confidential.  The Director acknowledges the confidential and proprietary nature of the Confidential Information, shall keep all Confidential Information in strict confidence and will not disclose or dispose of any Confidential Information to any third party.  The Director may, however, disclose the Confidential Information to its officers, employees, advisers and agents who need to know the Confidential Information for the purposes of the evaluating and assessing the Confidential Information.  All individuals receiving any Confidential Information under this Agreement shall be directed by the Director to treat the Confidential Information confidentially pursuant to the terms of this Agreement.  Nothing in this Agreement prevents the Director from disclosing any Confidential Information as may be required by applicable law, regulation, court order or securities regulatory authority.

 

 

 

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(c)   No-Trade.  The Director acknowledges that it may be in possession of material nonpublic information which is considered to be any information concerning the Company that is both (i) material (meaning the average investor would want to know such information before deciding whether to buy, sell or hold securities of the Company, or, in other words, information that could affect the market price of Company securities); and (ii) nonpublic (meaning the information has not been disclosed in the Company's filings with the SEC or in a press release issued by the Company that has been broadly disseminated to the investing public).  Information is not considered public until the second business day after such disclosure in an SEC filing or press release.  If such material nonpublic information is disclosed to the public, the Director may not trade in Company securities until the second business day after such disclosure (i.e., the second day after the applicable SEC filing or press release).  The prohibition on trading while in possession of material nonpublic information continues for as long as any information the Director has is both material and nonpublic and can continue even after the Director's engagement with the Company has terminated.

(d)   Compliance with Laws.  The Director shall comply with all laws, whether federal, provincial or state, applicable to the Director position or Services provided.  The Director may, at his option, retain counsel experienced in these matters to work with the Director and the fees and disbursements of such counsel and accountants will be paid for by the Company, provided that the Director has obtained the prior written approval of the Company to incur such expenses.

5. Termination.

(a)   Term. This Agreement shall commence as of the Effective Date and continue until December 31, 2017 (the "Term").

(b)   Survival.  In the event of termination of this Agreement for any reason, Sections 3 through 6 shall survive indefinitely.

6. Indemnification.

(a)   Indemnification.  Each party agrees to indemnify and save the other, its  affiliates and their respective directors, officers, consultants and agents (each an "Indemnified Party") harmless from and against any and all losses, claims, actions, suits, proceedings, damages liabilities or expenses of whatsoever nature or kind, including any investigation expenses incurred by any Indemnified Party to which an Indemnified Party may become subject by reason of breach of this Agreement or of law by the defaulting party.  Notwithstanding the above, the Company shall indemnify and hold harmless the Director from and against any claims, damages, losses or expenses incurred by the Director which arise out of any acts or omissions taken in good faith by the Director in connection with or related to the Director's performance of the Services.

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7. General Terms.

(a)   Return of Work Product.  The Director agrees, promptly upon completion of the Services or other termination of this Agreement, to deliver to the Company all Work Product and to return all notes, designs, code, storage devices, documents and any other Company materials, including Confidential Information.  The Director shall not retain any such materials without the Company's written approval.

(b)   No Employer-Employee Relationship.  The Company and the Director understand, acknowledge, and agree that the Director's relationship with the Company will be that of an "independent contractor" and not that of an employee.  The Director will be an "independent contractor" and the Director will be entitled to work at such times and places as the Director determines appropriate, will not be under the direction or control of the Company or the manner in which the Director performs the Services.  The Director will not be entitled to any of the benefits which the Company may make available to its employees (which benefits may in the future include, but not be limited to, group health or life insurance, profit-sharing or retirement benefits).

(c)   Taxes.  The Director is and will be solely responsible for, and will file, on a timely basis, all tax returns and payments required to be filed with, or made to, any federal, state or local tax authority (including, but not limited to Social Security, federal, state, Medicare, and all of other taxes) with respect to the performance of Services and receipt of fees under this Agreement.  No part of the compensation payable to the Director will be subject to withholding by the Company for the payment of any social security, federal, state or any other employee payroll taxes.  If required by the Company, the Director shall prepare and sign such documents affirming the Director's citizenship and residency for tax purposes.

(d)   Client Solicitation.  While providing Services to the Company, the Director shall not solicit work, remuneration or other benefits of any kind directly from any the Company contacts or affiliates without the express, prior written consent of the Company.

(e)   Notices.  All notices, demands, requests, or other communications that may be or are required to be given, served, or sent by any party to any other party pursuant to this Agreement shall be in writing and shall be sent by email, next-day courier, or mailed by first-class, registered or certified mail, return receipt requested, postage prepaid, or transmitted by hand delivery, addressed as follows:

 

	
 

	

If to the Company:

ProtoKinetix, Incorporated

Attn:  Clarence E. Smith, President & CEO

9176 South Pleasants Highway

St. Marys, WV  26170

Tel:  304-299-5070

Email:  csmith@protokinetix.com

	

With a copy to:

Burns Figa & Will PC

Attn: Victoria B. Bantz, Esq.

6400 S. Fiddlers Green Cir., #1000

Greenwood Village, CO  80111

Tel: 303-796-2626

Email: vbantz@bfwlaw.com

	
 

	
 

	
 

	
 

	
 

 

 

 

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If to the Director:

Edward P. McDonough

1226 Washington Avenue

Parkersburg, WV  26101

Tel:      304-428-8091

Email:  ed.mcdonough@mepb.com

	
 

	
 

 

(f)    Assignment.  This Agreement may not be assigned by either party without prior written consent of the other.

(g)   Entire Agreement. This Agreement, not including any other agreement pursuant to which securities of the Company are issued to the Director, represents the entire agreement between the parties and supersedes all prior negotiations, representations, agreements, arrangements, and understandings, if any, either written or oral, between the parties with respect to the subject matter of this Agreement, none of which shall be used to interpret or construe this Agreement.  If any term, covenant, condition or provision of this Agreement or the documents and instruments executed and delivered in connection herewith is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

(h)   Law Governing.  This Agreement shall be construed and enforced in accordance with the laws of the State of Colorado even though the Director may perform services or reside in other states or countries.

(i)   Amendments.  Neither party may amend this Agreement or rescind any of its existing provisions without the prior written consent of the other party.

(j)   Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and will become effective and binding upon the parties at such time as all of the signatories hereto have signed a counterpart of this Agreement.  All counterparts so executed shall constitute one Agreement binding on all of the parties hereto, notwithstanding that all of the parties are not signatory to the same counterpart.  In all other respects, this Agreement shall continue to remain in full force and effect.  Facsimile or .pdf transmissions containing signatures shall be considered delivery and shall be deemed binding.

(k)   Remedies. As the violation by the Director of the provisions of Sections 3 and/or 4 of this Agreement would cause irreparable injury to the Company, and there is no adequate remedy at law for such violation, the Company shall have the right to seek specific performance or injunctive relief against the Director without the posting of a bond or other security.  The remedies available with respect to the rights and obligations under this Agreement are cumulative, and this section shall not be construed to limit in any manner whatsoever any other rights or remedies that may be available for any breach of this Agreement.

 

 

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8. Venue.  All disputes arising out of or relating to this Agreement and all actions to enforce this Agreement shall be adjudicated in the state or federal courts sitting in Denver, Colorado.  The parties hereto irrevocably submit to the jurisdiction of such courts in any suit, action or proceeding relating to any such dispute.  So far as is permitted under applicable law, this consent to personal jurisdiction shall be self-operative and no further instrument or action, other than service of process or as permitted by law, shall be necessary in order to confer jurisdiction upon the undersigned in any such court.

[Signature Page Follows]

 

 

 

 

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IN WITNESS WHEREOF, the parties have executed this Director Consulting Agreement on the date first written above.

	
ProtoKinetix, Incorporated

 

 

 

By: /s/ Clarence E. Smith                      

       Clarence E. Smith, President and CEO

	
Director:

 

 

 

 

/s/ Edward P. McDonough                  

Edward P. McDonough

 

 

 

 

 

 

 

 

  

8Exhibit

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT
SECOND AMENDMENT dated as of November 19, 2015 (this “Amendment”), to CREDIT AGREEMENT among KNOWLES CORPORATION (the “Company”), the Lenders party hereto and JPMORGAN CHASE BANK, N.A., as the Administrative Agent.
WITNESSETH:
WHEREAS, the Company, the Luxembourg Borrower, the Lenders and the Administrative Agent previously entered into that certain Credit Agreement dated as of January 27, 2014, as amended and restated as of December 31, 2014 (as amended by the First Amendment, dated as of April 17, 2015, the “Credit Agreement”; capitalized terms used and not otherwise defined herein have the same meanings as set forth in the Credit Agreement);
WHEREAS, the Company has requested that the Lenders agree to amend the definition of “Change in Control” in the Credit Agreement; and
WHEREAS, the Company, the Administrative Agent and the Lenders party hereto, constituting the Required Lenders, have so agreed on the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.Amendment to Definition of “Change in Control”.  The definition of “Change in Control,” as set forth in Section 1.01, is hereby amended and restated in its entirety to read as follows:
“Change in Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Exchange Act and the rules of the SEC thereunder), excluding any employee benefit plan of the Company or its Subsidiaries, and any person acting as a trustee, agent or other fiduciary or administrator of any such plan, of Equity Interests in the Company representing more than 35% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests in the Company; or (b) persons who were (i) directors of the Company on the Effective Date, (ii) nominated, appointed or approved for consideration for election by the board of directors of the Company or (iii) appointed or elected by directors who were directors of the Company on the Effective Date or were nominated, appointed or approved as provided in clause (ii) above, ceasing to occupy a majority of the seats (excluding vacant seats) on the board of directors of the Company.”
2.Effectiveness.  This Amendment shall become effective upon satisfaction of the following conditions precedent:
(a)The representations and warranties of each Loan Party set forth in the Loan Documents shall be true and correct in all material respects, in each case on and as of the date hereof as if made on and as of such date, except in the case of any such representation and warranty that expressly relates to a prior date, in which case such representation and warranty shall be true and correct in all material respects as of the prior date;

(b)As of the date hereof and immediately after giving effect to this Amendment no Default shall have occurred and be continuing; and
(c)The Administrative Agent shall have received either (i) counterparts of this Amendment that, when taken together, bear the signatures of (A) the Company, (B) the Required Lenders, and (C) the Administrative Agent or (ii) written evidence satisfactory to the Administrative Agent (which may include facsimile or other electronic transmission of a signed counterpart of this Amendment) that each such party has signed a counterpart of this Amendment.
3.Counterparts; Effectiveness; Entirety.
(a)    This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  The delivery of an executed counterpart of a signature page of this Amendment by facsimile or other electronic imaging shall be effective as delivery of a manually executed counterpart of this Amendment.
(b)    Except as expressly set forth herein, all of the terms and provisions of the Credit Agreement are and shall remain in full force and effect.  The amendments contained herein shall not constitute a waiver, amendment or modification of any other provision of the Credit Agreement or for any other purpose except as expressly set forth herein.
(c)    This Amendment, the Credit Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.
4.Severability.  Any provision of this Amendment held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality or enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.
5.Governing Law; Miscellaneous.
(a)    THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
(b)    This Amendment shall be deemed to be a Loan Document.
(c)    The captions and headings of this Amendment are for convenience of reference only and shall not affect the interpretation of this Amendment.

[Signature Pages Follow]

IN WITNESS WHEREOF, the parties hereto have caused this amendment to be duly executed by their respective authorized officers as of the day and year first above written.
KNOWLES CORPORATION
    by
_________________________
Name: John Anderson  
Title: Senior Vice President and 
Chief Financial Officer

JPMORGAN CHASE BANK N.A.,  
individually and as Administrative Agent
    by
_________________________    
Name:    
Title:

SIGNATURE PAGE TO SECOND AMENDMENT 
TO KNOWLES CORPORATION CREDIT AGREEMENT 

Name of Lender:____________________________________
	
		
	by

	 
	 

	 
	Name:

	 
	Title:

For any Lender requiring a second signature line:
	
		
	by

	 
	 

	 
	Name:

	 
	Title:

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