Document:

prop_ex1013.htm

COMMERCIAL IN CONFIDENCE 

EXHIBIT 10.13

 

Dated 7th May 2008

 

PROPANC PTY. LTD

and

EUROPEAN NUTRIPHARM. LTD.

__________________________________

LIMITED DISTRIBUTOR DEED

__________________________________

 

FRANCIS ABOURIZK LIGHTOWLERS

Commercial & Technology Lawyers

Level 16

356 Collins Street

MELBOURNE  VIC  3000

Tel:  (03) 9642 2252

Fax:  (03) 9642 2272

Email: fal@fal-lawyers.com.au

www.fal-lawyers.com.au

 

  

1

  

THIS LIMITED DISTRIBUTOR DEED is made the ____day of____ 2008

 

BETWEEN

 

PROPANC PTY. LTD (ACN 127 984 089), of 1/76 Summerhill Road Glen Iris Victoria 3146 (“Propanc”)

 

AND

 

EUROPEAN NUTRIPHARM. LTD. (Company Number 4635699) of Hockey Mills Stables, Twyford, Nr Winchester, Hampshire, SO12 1NT (“ENP”)

 

RECITALS

 

	
A.  

	
Propanc owns or has applied for intellectual property rights in respect of the Unlicensed Medicines specified in Item 2 of the Schedule.

 

	
B.  

	
The intellectual property rights include certain confidential information and the Patent Application specified in Item 3 of the Schedule.

 

	
C.  

	
The Unlicensed Medicines are comprised of an unlicensed drug that may only be manufactured and supplied under strict conditions.  In the UK and Australia this is governed by the Relevant Legislation.

 

	
D.  

	
ENP wishes to be able to undertake the Distributor Services to distribute the Unlicensed Medicines in the UK and Australia in accordance with the Relevant Legislation.

 

	
E.  

	
In order to ensure that the Unlicensed Medicines are appropriately manufactured, distributed and administered in accordance with the Relevant Legislation, Propanc and ENP have agreed to enter into this Deed.

 

	
F.  

	
The Relevant Legislation takes priority over the terms of this Deed and the parties must always adhere to the Relevant Legislation.

 

IT IS AGREED

 

	
1.  

	
DEFINITIONS AND INTERPRETATION

 

	
1.1  

	
In this Deed, the following definitions will apply except where the context otherwise requires:

 

“Confidential Information” means all know-how, results from the use of the Unlicensed Medicines, financial information and other commercially valuable information in whatever form including unpatented inventions, trade secrets, formulae, discoveries, works, improvements, innovations, ideas, concepts, graphs, drawings, designs, biological materials, samples, devices, models and other materials of whatever description and howsoever documented, recorded or disclosed, which a Party claims as confidential to itself or to a third party to whom it owes a duty of confidentiality and which is within its control.  The following are exceptions to such information:

 

	
(a)  

	
information which is already in the public domain;

 

  

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(b)  

	
information which becomes part of the public domain otherwise than as a result of an unauthorised disclosure by the recipient Party or its representatives;

 

	
(c)  

	
information which is or becomes available to the recipient Party from a third party lawfully in possession of such information and who has the lawful power to disclose such information to the recipient Party on a non-confidential basis;

 

	
(d)  

	
information which is rightfully known by the recipient Party (as shown by its written record) prior to the date of disclosure to it hereunder; or

 

	
(e)  

	
information which is independently developed by an employee of the recipient Party who has no knowledge of the disclosure under this Deed;

 

“Distributor Services” means those services to be provided by ENP as specified in this Deed, in particular in clause 3 and Item 1 of the Schedule;

 

“Financial Quarter” means each quarterly period of three (3) consecutive calendar months consisting of 1 January to 31 March; 1 April to 30 June; 1 July to 30 September; and 1 October to 31 December of the same year.

 

 “Manufacturing Fee” means the fee payable to the Nominated Manufacturer as consideration for the supply of the goods;

 

“Nominated Manufacturer” means a manufacturer appointed in accordance with this Deed which, for the purpose of the United Kingdom is a ‘specials licence holder’ and is otherwise authorised to manufacture unlicensed medicines in accordance with the Relevant Legislation;

 

“Patent Application” means the patent details as specified in Item 3 of the Schedule;

 

“Propanc Payment Share” means the amount payable to Propanc as Specified in Item 4 of the Schedule;

 

 “Relevant Legislation” means, as applicable and as updated, the Therapeutic Unlicensed Medicines Act 1989 (Commonwealth of Australia) or the Medicines Act 1968 (UK), associated rules and regulations and all other legislation applicable to unlicensed medicines in the United Kingdom or Australia;

 

“Requesting Doctor” means any appropriately qualified United Kingdom or Australian doctor requesting access to the Unlicensed Medicines in accordance with the Relevant Legislation;

 

“Unlicensed Medicines” means the unlicensed medicinal drug/s as specified in Item 2 of the Schedule.

 

	
1.2  

	
In this Deed, unless the contrary intention appears:

 

	
(a)  

	
the Recitals form part of this Deed;

 

	
(b)  

	
headings are for convenience only and do not affect the interpretation of this Deed;

 

	
(c)  

	
a reference to a clause, Schedule or Recital is a reference, respectively, to a clause of, schedule to or recital of this Deed;

 

	
(d)  

	
a reference to a statute or regulation includes an amendment or re-enactment to that legislation and includes subordinate legislation in force under it;

 

  

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(e)  

	
the singular includes the plural and vice versa;

 

	
(f)  

	
a reference to a gender includes reference to every gender;

 

	
(g)  

	
a provision of this Deed will not be interpreted against a Party just because that Party prepared the provision; and

 

	
(h)  

	
the rights, obligations, representations, warranties and indemnities of a Party are given, undertaken, made or offered (as the case may be) jointly and separately by each of the parties who together constitute that Party under this Deed and each of the rights, obligations, representations, warranties and indemnities of that Party is to be read accordingly.

 

	
2.  

	
TERM

 

	
2.1  

	
This Deed will begin on the date of execution and continue for the Term subject to its earlier termination pursuant to clause 16.

 

	
3.  

	
DISTRIBUTOR SERVICES

 

	
3.1  

	
Propanc appoints ENP to undertake the Distributor Services within the territories of the United Kingdom and Australia for the Term in accordance with the Relevant Legislation.

 

	
3.2  

	
ENP will provide the Distributor Services in accordance with the Relevant Legislation and the terms of this Deed.  The Relevant Legislation will prevail over the terms of this Deed to the extent of any inconsistency.

 

	
3.3  

	
Propanc provides ENP with a non-exclusive licence to the Patent Application and Propanc Confidential Information for use in relation to the Distributor Services and any other use required by the Relevant Legislation during the Term.

 

	
3.4  

	
The rights granted pursuant to this Deed and the Distributor Services do not include the right to market the Unlicensed Medicines but only to distribute in accordance with the Relevant Legislation to a Requesting Doctor who has received a bona fide unsolicited order.  ENP, the Nominated Manufacturer and each Requesting Doctor shall not market the Unlicensed Medicines in any jurisdiction without the express written consent of Propanc.

 

Nominated Manufacturer

 

	
3.5  

	
ENP is responsible for appointing the Nominated Manufacturer determined in accordance with Item 7 of the Schedule.

 

	
3.6  

	
ENP will have sole responsibility for contracting with the Nominated Manufacturer for the manufacture of the Unlicensed Medicines and ensuring that the Nominated Manufacturer:

 

	
(a)  

	
meets and complies with the Relevant Legislation;

 

	
(b)  

	
manufactures the Unlicensed Medicines in accordance with the Relevant Legislation, any other applicable legislation, standards, quality controls for goods of this type;

 

  

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(c)  

	
adheres to the applicable terms of this Deed, including, without limitation, confidentiality requirements in relation to Propanc Confidential Information and in relation to the Patent Application; and

 

	
(d)  

	
is paid the Manufacturing Fee by ENP at the times agreed to by the Nominated Manufacturer.

 

Requesting Doctors

 

	
3.7  

	
The Distributor Services to be provided by ENP include sole responsibility for supplying the Unlicensed Medicines to the Requesting Doctors and in particular:

 

	
(a)  

	
ensuring that each Requesting Doctor is appropriately qualified to be supplied the Unlicensed Medicines in accordance with the Relevant Legislation;

 

	
(b)  

	
seeking Propanc’s consent in relation to the supply of Unlicensed Medicines to any new Requesting Doctor, which consent may include ENP ensuring that the Requesting Doctor executes a ‘Deed of Access’ with Propanc, provided always that ENP shall be entitled to meet the requirements of the Relevant Legislation in relation to supply and continuing supply;

 

	
(c)  

	
appropriately storing the Unlicensed Medicines and supplying these to each Requesting Doctor;

 

	
(d)  

	
ensuring that each Requesting Doctor meets and complies with the Relevant Legislation in supplying the Unlicensed Medicines to patients;

 

	
(e)  

	
adheres to confidentiality requirements in relation to Propanc Confidential Information and in relation to the Patent Application; and

 

	
(f)  

	
collecting payment from each Requesting Doctor for the Unlicensed Medicines;

 

	
(g)  

	
ensuring that each Requesting Doctor reports on the use of the Unlicensed Medicines as required by the Relevant Legislation and as otherwise reasonably requested by Propanc; and

 

	
(h)  

	
ensuring that any export/import and local legislative requirements are fully adhered to by ENP and/or the Requesting Doctor, as applicable, if the Unlicensed Medicines are sent to Requesting Doctors in Australia.

 

Results and Reporting

 

	
3.8  

	
ENP shall ensure that the Nominated Manufacturer immediately reports to it:

 

	
(a)  

	
any concerns in relation to the quality of the Unlicensed Medicines;

 

	
(b)  

	
any changes in its status as a registered manufacturer of unlicensed medicines in accordance with the Relevant Legislation;

 

	
(c)  

	
copies of any reports the Nominated Manufacturer is required to provide to authorities in accordance with the Relevant Legislation;

 

and ENP shall promptly provide all such reports and details to Propanc.

 

  

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3.9  

	
Subject to the requirements of the Relevant Legislation, the results and reports provided pursuant to clause 3.8 shall be treated as strictly confidential.  ENP shall obtain from the Nominated Manufacturer and grants to Propanc, the exclusive right for Propanc to use the results and reports provided pursuant to clause 3.8 for the further development of the Unlicensed Medicines.

 

	
3.10  

	
ENP shall ensure that each Requesting Doctor provides to it:

 

	
(a)  

	
copies of any reports the Requesting Doctor is required to provide to authorities in accordance with the Relevant Legislation;

 

	
(b)  

	
upon request, de-identified details of the performance results obtained from all patients who have been administered the Unlicensed Medicines, including details of any adverse reactions;

 

	
(c)  

	
any other information reasonably required by Propanc from time to time;

 

and ENP shall promptly provide all such information obtained from the Requesting Doctors to Propanc.

 

	
3.11 

	
Subject to the requirements of the Relevant Legislation, the results and reports provided pursuant to clause 3.9 shall be treated as strictly confidential.  ENP shall obtain from each Requesting Doctor and grants to Propanc, the exclusive right for Propanc to use the results and reports provided pursuant to clause 3.9 for the further development of the Unlicensed Medicines.

 

	
4.  

	
FEES

 

	
4.1  

	
ENP is responsible for collecting payments from the Requesting Doctors and for paying the Manufacturing Fee to the Nominated Manufacturer as and when these amounts fall due for services and, at a minimum, monthly.

 

	
4.2  

	
ENP will pay the Propanc Payment Share to Propanc in accordance with clause 5.

 

	
4.3  

	
ENP will satisfy all other debts, charges and liabilities payable pursuant to the terms of this Deed or otherwise incurred as a result of ENP’s performance of its obligations under the terms of this Deed.

 

	
5.  

	
PAYMENT AND ACCOUNTING

 

	
5.1  

	
ENP will pay the Propanc Payment Share to Propanc as directed, within 30 days of the completion of each Financial Quarter, for manufacturing orders occurring in that Financial Quarter.  ENP shall ensure that payment is accompanied by a report setting out:

 

	
(a)  

	
the quantity of the Unlicensed Medicines manufactured in that Financial Quarter;

 

	
(b)  

	
the quantity of the Unlicensed Medicines requested by the Requesting Doctors in that Financial Quarter;

	
(c)  

	
the calculation of the Proponc Payment Share for that Financial Quarter; and

 

	
(d)  

	
a non-binding estimation of the above for the subsequent Financial Quarter.

 

  

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5.2  

	
ENP will keep accurate and comprehensive records in accordance with international accounting standards in relation to the all aspects of the Distributor Services including, orders, payments and receipt of payments in relation to the Nominated Manufacturer, Requesting Doctors and Propanc.

 

	
5.3  

	
Propanc may inspect, audit and copy ENP’s accounting records referred to in this clause 5 at all reasonable times.  If Propanc’s inspection or audit identifies a deviation of five percent (5%) or more from the amounts identified as payable to Propanc in statements provided by ENP pursuant to clause 5.1, then Propanc’s inspection and audit costs will be paid by ENP and ENP must refund the deviation.

 

	
5.4  

	
ENP will maintain a separate bank account for the sole purpose of the Distributor Services. ENP will ensure that the bank account maintained pursuant to this clause will not be used for the receipt of any other payments.

 

	
6.  

	
TECHNICAL STANDARDS

 

	
6.1  

	
ENP will at all times comply with any technical standards and other criteria relating to the Distributor Services required from time to time by legislation.

 

	
6.2  

	
ENP will permit Propanc or its nominee, upon reasonable notice, to enter the premises of ENP for the purpose of inspecting ENP’s activities and facilities used in the performance of the Distributor Services and will, upon request, deliver to Propanc or its nominee samples of any product incorporating the Unlicensed Medicines for inspection and analysis.

 

	
6.3  

	
ENP will at all times comply with the requirements of the Relevant Legislation.

 

	
6.4  

	
Nothing in this clause will be construed as making Propanc liable for any defect, damage, loss, death or injury caused by or as a result of the imposition of any technical standards or other criteria.

 

	
7.  

	
INTELLECTUAL PROPERTY RIGHTS

 

	
7.1  

	
Nothing in this Deed transfers ownership of the intellectual property rights, including the Patent Application, in the Unlicensed Medicines which shall remain at all times vested in Propanc.  However, Propanc gives no warranties in relation to the validity or enforceability of any such intellectual property rights.

 

	
7.2  

	
Any developments to the Unlicensed Medicines and all intellectual property rights therein shall be the property of Propanc and ENP hereby agrees to assign any such rights to Propanc.

 

	
7.3  

	
ENP shall ensure that the Nominated Manufacturer and the Requesting Doctors comply with clauses 7.1 and 7.2 and assign any developments to Propanc in accordance with clause 7.2.

 

	
8.  

	
CONFIDENTIALITY AND PUBLICATION

 

	
8.1  

	
Each Party will treat the terms of this Deed and all Confidential Information disclosed by the other Party as confidential and will not, without the prior written consent of the other Party, disclose or permit the same to be disclosed to any third person.

 

  

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8.2  

	
It will be the responsibility of a Party to ensure that its employees, officers and agents comply with the obligations of confidentiality imposed upon it by this clause as if personally bound by such obligations.

 

	
9.  

	
USE OF NAME AND LOGO

 

Neither Party will use the name or logo of the other Party without having obtained the other Party’s prior written consent.

 

	
10.  

	
INSURANCE

 

	
10.1  

	
ENP will:

 

	
(a)  

	
perform the Distributor Services at its own risk; and

 

	
(b)  

	
maintain or cause to be maintained adequate insurance in respect of its performance of the Distributor Services.

 

	
10.2  

	
Each such insurance policy will note Propanc’s interest.

 

	
10.3  

	
ENP will, upon the request of Propanc, produce evidence of the currency of the insurance policies referred to in this clause.  Failure by ENP to produce such evidence of currency within thirty (30) days from the date a notice of request is served upon ENP will be treated as breach by ENP of this clause and the relevant provisions of clause 14 will apply.

 

	
10.4  

	
ENP will at all times comply with the terms of its insurance policies the subject of this clause.

 

	
11.  

	
ACKNOWLEDGEMENT BY ENP

 

ENP agrees and acknowledges that:

 

	
(a)  

	
The Unlicensed Medicines have not been trialled by Propanc in humans or otherwise;

 

	
(b)  

	
The Unlicensed Medicines are unlicensed medicines and an unapproved formulation and their use for treatment in individual human patients may be subject to restrictions imposed under the various legislative and regulatory regimes, including but not limited to the Relevant Legislation, and Propanc makes no express or implied warranty as to the legality of the use of the Unlicensed Medicines for any purpose;

 

	
(c)  

	
Propanc has not made any and excludes all guarantees, warranties, terms, conditions or undertakings, whether express or implied, written or oral, statutory or otherwise including any implied warranty of merchantability or of fitness for a particular purpose in respect of the Unlicensed Medicines;

 

	
(d)  

	
Propanc will not be liable for any special, indirect or consequential damages arising under or pursuant to this Deed;

 

	
(e)  

	
Propanc has not made and does not by entering into this Deed make any representation or warranty, express or implied, that the Unlicensed Medicines do not infringe any third party’s intellectual property rights; and

 

	
(f)  

	
ENP will not challenge the validity of the Patent Application or any of Propanc’s other intellectual property rights licensed pursuant to this Deed, or oppose any application for such intellectual property rights.

 

  

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12.  

	
INDEMNITY

 

	
12.1  

	
ENP releases and indemnifies and will continue to release and indemnify Propanc, its officers, employees, subcontractors and agents from and against all actions, claims, proceedings or demands (including those brought by third parties) which may be brought against it or them, whether at common law, in equity or pursuant to statute or otherwise, in respect of any loss, death, injury, illness or damage (whether personal or property, and whether direct or consequential, including consequential financial loss) and any infringement of intellectual property rights, howsoever arising out of the ENP’s exercise of its rights under this Deed, including without limitation in relation to the provision of the Distributor Services and the supply of the Unlicensed Medicines to patients, and from and against all damages, costs and expenses incurred in defending or settling any such claim, proceeding or demand.

 

	
13.  

	
INFRINGEMENT AND THIRD PARTY PROCEEDINGS

 

	
13.1  

	
Each Party will give the other notice of:

 

	
(a)  

	
any claim or allegation that the exercise of the rights under this Deed constitute an infringement of the rights of any third party; and

 

	
(b)  

	
any third party’s infringement or threatened infringement of the Unlicensed Medicines,

 

of which it becomes aware.

 

	
13.2  

	
ENP will not institute any legal proceedings relating to the Unlicensed Medicines without the prior written consent of Propoanc.  ENP will notify Propanc in writing of any legal proceedings instituted against it in relation to the Unlicensed Medicines.  ENP will not settle any such legal proceedings without the prior written consent of Propanc and any such settlement will contain a release in favour of Propanc.

 

	
14.  

	
TERMINATION

 

	
14.1  

	
Propanc may terminate this Deed at any time without reason by providing forty-five (45) days notice in writing to ENP.

 

	
14.2  

	
A Party may terminate this Deed by providing to the other Party written notice on the happening of any of the following events:

 

	
(a)  

	
if the other Party commits or allows to be committed a breach of any of the obligations set out in this Deed and on its part to be performed or observed (which, in the case of ENP, includes failure to pay the Propanc Payment Share), and does not within thirty (30) days of receipt of notice in writing from the terminating Party make good the breach (where such breach is capable of remedy);

 

	
(b)  

	
if the other Party commits or allows to be committed a breach of any of the obligations set out in this Deed and that breach is not capable of remedy;

 

  

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(c)  

	
if the other Party is the subject of winding up or liquidation proceedings, whether voluntary or compulsory, otherwise than for the purpose of and followed by, a reconstruction, amalgamation or reorganisation;

 

	
(d)  

	
if the other Party has become insolvent, bankrupt or is subject to the appointment of an administrator, a mortgagee, a receiver or manager or an inspector to investigate its affairs, enters into any arrangement or composition with its creditors generally, or is unable to pay its debts as and when they become due; or

 

	
(e)  

	
if execution is levied upon all or any part of the assets of the other Party, provided that no breach will take place under this Deed if the execution is contested in good faith or if within seven (7) days after it is levied payment is made in full to the judgment creditor in question of all amounts owing to such judgment creditor,

 

such termination to be effective immediately upon notice provided that the relevant timeline has passed.

 

	
14.3  

	
Upon termination of this Deed pursuant to this clause:

 

	
(a)  

	
ENP will promptly pay Propanc any Propanc Payment Share outstanding at the date of termination;

 

	
(b)  

	
any reports and other material submitted to ENP by Propanc will be immediately returned to Propanc by ENP and ENP will not retain any copies of them in any form;

 

	
(c)  

	
ENP will at all times thereafter strictly maintain the confidentiality of the terms of this Deed and any Confidential Information of Propanc, and will not permit or suffer the disclosure of any of such information to any third party or make or permit to be made any use of such information for any purpose whatsoever; and

 

	
(d)  

	
subject to clause 14.4, all rights and licences granted to ENP under this Deed will cease and ENP will cease all Distributor Services.

 

	
14.4  

	
Termination of this Deed will be without prejudice to any rights of pre-existing patients to continue to access the Unlicensed Medicines pursuant to the Relevant Legislation.  ENP may continue to provide supplies of Unlicensed Medicines for such pre-existing patients provided that the obligations of this Deed continue to apply to such on-going supply.

 

	
14.5  

	
Termination of this Deed will be without prejudice to the rights of Propanc to sue for and recover any fees, monies, or payments then due and to the rights of either Party in respect of any previous breach of any of the provisions of this Deed.

 

	
15.  

	
RESOLUTION OF DISPUTES

 

	
15.1  

	

If a dispute arises between the Parties (the “Dispute”), the Parties agree to negotiate in good faith to resolve the Dispute and will refer resolution of the Dispute to their chief executive officers, or their nominees.  If the Dispute has not been resolved by negotiation within a reasonable time then either Party may refer the Dispute to arbitration.

 

  

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15.2  

	
In the event that a dispute cannot be resolved, then a Party may require the matter to be settled by arbitration proceedings which will be heard in accordance with the UNCITRAL Model Law on International and Commercial Arbitration by one arbitrator appointed under those rules.  The arbitration will take place in the city in which the principal office of the Party not first requiring the arbitration is located.  The award will be final and binding on the Parties to this Agreement and the costs of arbitration will be borne and paid for as the arbitration tribunal directs.

 

	
16.  

	
NOTICES

 

	
16.1  

	
Any notice, demand or other communication required to be given or made in writing under this Deed will be deemed duly given or made if delivered or sent by prepaid post or facsimile transmission to the attention of the contact person and to the address specified in Item 9 of the Schedule.

 

	
16.2  

	
Either Party may change its nominated contact person, address or facsimile transmission number for the purposes of this Deed by giving notice of such change to the other Party within thirty (30) days of the change.

 

	
16.3  

	
Any notice or other communication will be deemed to have been received by the Party to which it was sent:

 

	
(a)  

	
in the case of hand delivery, upon the date of such delivery;

 

	
(b)  

	
in the case of prepaid post within Australia, on the third day next following the date of dispatch; or

 

	
(c)  

	
in the case of facsimile transmission, at the time of transmission, provided that, following the transmission, the sender receives a transmission confirmation report unless in any such case it would be deemed to have been received on a day which is not a Business Day, or after 5 p.m. on such a Business Day, in which event it will be deemed to have been received on the next such Business Day.

 

	
17.  

	
GST

 

	
17.1  

	
When any consideration (whether expressed in money or otherwise) becomes due in respect of a Taxable Supply by the Licensor, the Licensor will provide the Licensee with a Tax Invoice and any other documentation required under the GST Law.

 

	
17.2  

	
If GST is applicable to a Supply made under this Deed, then, to the extent that the consideration for the relevant Supply is not stated in the Schedule to include an amount in respect of GST, the Licensor may increase the consideration by the applicable amount of GST and the Licensee will pay that increased amount.

 

	
17.3  

	
If the GST on a Taxable Supply is varied pursuant to any change in legislation, the consideration payable under this Deed will be increased or decreased to reflect that variation of the GST.

 

	
17.4  

	
For the purposes of this clause 17, GST, GST Law, Input Tax Credit, Supply, Tax Invoice and Taxable Supply have the meanings attributed to those terms in A New Tax System (Unlicensed Medicines and Distributor Services Tax) Act 1999 (Cth) as amended from time to time.

 

  

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18.  

	
GENERAL

 

	
18.1  

	
Governing Law

 

	
(a)  

	
This Agreement and any disputes of claims arising out of or in connection with its subject matter are governed by and construed in accordance with the law of England.

 

	
(b)  

	
The Parties irrevocably agree that the courts of England have exclusive jurisdiction to settle any dispute or claim that arises out of or in connection with this Agreement.

 

	
18.2 

	
Reading Down and Severability

 

If a provision of this Deed is inconsistent with the Relevant Legislation then it shall be renegotiated by the Parties in a manner generally consistent with the intent of this Deed and, if renegotiating is not possible, it shall be read down in a manner consistent with the intent of this Deed.  Any illegal or invalid provision of this Deed will be severable and all other provisions will remain in full force and effect.

 

	
18.3 

	
Waiver

 

Any failure by a Party to compel performance by the other Party of any of the terms or conditions of this Deed will not constitute a waiver of those terms or conditions, nor will it affect or impair the right to enforce those rights at a later time or to pursue remedies for any breach of those terms or conditions.  A waiver of any right under this Deed will be in writing.

 

	
18.4 

	
Amendment

 

This Deed may only be amended by a written instrument signed by each of Propanc and ENP.

 

	
18.5 

	
Entire Agreement

 

This Deed contains the whole of the agreement between the Propanc and ENP with respect to its subject matter and supersedes any and all other representations or statements by either Party whether oral or in writing and whether made prior or subsequent to the date of this Deed.

 

	
18.6 

	
Relationship

 

Each Party enters this Deed as an independent contractor and nothing in this Deed will create any other relationship between them.

 

	
18.7 

	
Force Majeure

 

A Party will not be liable for any failure to carry out its obligations under this Deed where such failure is due to any cause beyond the reasonable control of that Party.

 

	
18.8 

	
Assignment

 

A Party will not assign its rights under this Deed without the prior written consent of the other Party.

 

  

12

  

 

	
18.9 

	
Further Assurance

 

Each Party agrees to do all acts, including the signing of documentation, necessary or desirable to give effect to this Deed.

 

	
18.10 

	
No Authority

 

Neither Party may enter into any agreement or incur any liabilities on behalf of the other Party without that other Party’s prior written consent and may not represent to any person that it has any authority to do so.

 

	
18.11 

	
Counterparts

 

This Deed may be executed in any number of counterparts.

 

	
18.12 

	
Survival

 

Clauses 3.7 – 3.11 and 7 – 12 shall survive the termination of this Deed.

 

	
18.13 

	
Costs and Expenses

 

Each Party will bear its own costs and expenses in relation to the negotiation, preparation, execution, delivery and completion of this Deed and any other related documentation.

 

  

13

  

EXECUTED BY THE PARTIES AS A DEED

 

  

14

  

 

SCHEDULE

ITEM    DISTRIBUTOR SERVICES

 

In addition to those duties specified in the Deed, ENP will be responsible for those duties necessary for the effective distribution of the Unlicensed Medicines to the Requesting Doctors. In particular ENP will be responsible for:

	
(a)  

	
All aspects of coordinating manufacture of the Unlicensed Medicines from the Nominated Manufacturer;

 

	
(b)  

	
Ensuring that the Unlicensed Medicines are manufactured in accordance with the Relevant Legislation and all other applicable legislation and requirements for goods of such type;

 

	
(c)  

	
The receipt of requests and orders for the supply of the Unlicensed Medicines from the Requesting Doctors.

 

	
(d)  

	
Directing the Nominated Manufacturer to produce the Unlicensed Medicines as and when they are required.

 

	
(e)  

	
Arranging and organising packaging and transport of the Unlicensed Medicines from the Nominated Manufacturer to the Requesting Doctors.

 

	
(f)  

	
Collection of payments from the Requesting Doctors.

 

	
(g)  

	
Payment of all debts incurred as a result of the provision of the Distributor Services including but not limited to all production, packaging or transportation costs, trade and quantity discounts, sales, use or turnover taxes or other government taxes, import, export and excise duties, charges or imposts.

 

	
(h)  

	
Payment of the Propanc Payment Share to Propanc;

 

	
(i)  

	
Providing reports to Propanc as specified.

 

ITEM 2 UNLICENSED MEDICINES

The Unlicensed Medicines comprise a therapy used for the treatment of metastatic cancer being a mixture of pancreatic proenzymes consisting of 1.7 milligrams Amylase, 1.2 grams Trypsinogen, and 1.25 grams Chymotrypsinogen and made up using a suppository base.

 

Dependant upon the prescription of the Requesting Doctor, one suppository is generally inserted into the rectum on a daily basis.

 

ITEM 3 PATENT DETAILS 

	
Country

	
Patent Number

	
Patent

	
United Kingdom

	
0706828.1

	
The United Kingdom patent, “Combination Product” and any continuations, continuations in part, extensions, reissues, divisions, and any patents, supplementary protection certificates and similar rights anywhere in the world that are based on or derive priority from the foregoing.

 

  

15

  

 

ITEM 4   NOT USED

 

ITEM 5   PROPANCE PAYMENT SHARE

 

ENP shall pay to Propanc 25% of the wholesale purchase price payable for the Unlicensed Medicines (being the price payable by ENP to the Nominated Manufacturer) provided that the minimum wholesale purchase price shall be ₤41.25 per box of six tablets.

 

ITEM 6    NOT USED

 

ITEM 7    NOMINATED MANUFACTURER

 

The initial Nominated Manufacturer shall be Mandeville Medicines.  Any replacement Nominated Manufacturer shall be as agreed between ENP and Propanc

 

ITEM 8    NOT USED

 

ITEM 9    NOTICES

 

	
Propanc

	
ENP

	  	  
	
Propanc Pty Ltd

	
European Nutripharm Limited

	  	  
	
1/76 Summerhill Road Glen Iris Victoria 3146

	
Hockey Mill Stables

Twyford, Nr Winchester, Hampshire, SO12 1NT

	  	  
	  	  
	
Attention:               James Nathanielsz

	
Attention:              Dr Julian Kenyon

	  	  
	  	  
	
Telephone:             +61 (0)3 9898 8777

	
Telephone:             [    ]

	  	  
	
Facsimile:                +61 (0)3 9898 8766

	
Facsimile:               [    ]

	  	  
	
Email:                       j.nathanielsz@iinet.net.au

	
Email:                       jnkenyon@doveclinic.com

 

16prop_ex1014.htm

EXHIBIT 10.14

 

  

Churchill &Associates

 

INVESTMENT BANKING & LISTING AGREEMENT

 

THIS AGREEMENT (the “Agreement”) dated as of August 03, 2010  by and between Propanc Pty Ltd. with its principal address at 576 Swan Street, Richmond, VIC, 3121, AUSTRALIA and its subsidiaries (collectively, the “Company”) and Churchill & Associates, LLC with its principal address at 191 Peachtree Street, Suite 3300, Atlanta, Georgia (the “Banker”) with respect to Company's engagement of Banker, to perform, on a fully underwritten best efforts basis to raise USD$3,000,000 under an initial and follow-on offering and USD$2,000,000 in PIPE financing, and forward investment raisings over consequent quarters in the total amount of USD$48,000,000.00 via an investment & listing structure on the Over-The-Counter Bulletin Board (OTCBB) under the terms of SEC Regulation.

 

W I T N E S S E T H:

WHEREAS, the Company desires to retain the Banker and the Banker desires to be retained by the Company pursuant to the terms and conditions hereinafter set forth:

 

NOW, THEREFORE, in consideration of the foregoing and the mutual promises and covenants herein contained, it is hereby agreed as follows:

 

SECTION 1

 

(a) The Company hereby retains the Banker on a non-exclusive basis to perform the services set forth in Section 1 (b) below during the one (1) year period commencing on the date hereof (the “Term”). The Banker hereby accepts such retention and shall perform for the Company the duties described herein, faithfully and to the best of its ability and within the term.  During the term, the Banker shall report directly to the Chief Executive Officer of the Company or to any other senior officer designated in writing by the Chief Executive Officer of the Company.

 

(b) The Banker shall serve as the investment banker to the Company, procure that the Company raises USD$3,000,000 under an initial and follow-on offering and USD$2,000,000 in PIPE financing via an investment & listing structure on the OTCBB and render such advice and services to the Company as may be reasonably requested by the Company concerning listing advice, reverse merger listing implementation, listing investor relations equity capital raising efforts, without limitation, the following:

 

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Churchill &Associates

 

(i) Study and review of the business, operations, and historical financial performance of the Company (based upon management’s forecast of financial performance) so as to enable the Banker to provide advice to the Company;

 

(ii) Assist in the formulation of the terms and structure of any reasonable proposed business combination transaction involving the Company;

 

(iii) Assist the Company in its efforts to have its securities listed Over- The-Counter via reverse merger reporting but non-trading shell by analyzing  the quantitative and qualitative requirements as required by any exchange or medium, including but not limited to (A) net tangible assets, market capitalization, shareholders equity or net income, (B) public float of the Company’s common stock, (C) market-makers, (D) shareholders, (E) corporate governance requirements, (F) independent directors, (G) audit and compensation committees and (H) assist, where necessary, in an effort to enable the Company to obtain an exchange listing and to be in a position to remain continuously listed thereafter within compliance terms; and

 

(iv) Provide services as specified in the “Propanc Strategic Approach” document provided by Banker, as varied by the parties from time to time, including engaging the services of advisors at the Banker’s cost but excluding audit advisor which will be engaged by Company at Company’s cost.

 

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PHONE: 404-475-5610 • FAX: 1-877-234-0466

 

  

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Churchill & Associates

SECTION 2

 

(a)              Banker will receive from Company USD$300,000 upon the signing of agreement to advise and implement OTC listing, initial investment, and investor relations program; in addition the Company will issue immediately prior to listing to Banker on a fully-diluted basis at an exercise price equal to the price per share purchase the amount of 3,333,333 non-restriction shares as part compensation for the costs absorbed by the Banker in relation to the Company’s listing;

 

(b)              Upon the successful capital raise Company shall pay Banker 8% commissions in cash in an amount equal to eight (8) percent of total gross cash proceeds of the total of every amount raised;

 

(c)              Company will issue 6% of the total Company shares, less the 3,333,333 shares issued to Banker pursuant to Section 2(a) above, to Banker on a fully-diluted basis at an exercise price equal to the price per share purchase by accredited and/or institutional investors via private placement offerings. These shares are to be issued immediately prior to Company listing.

 

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PHONE: 404-475-5610 • FAX: 1-877-234-0466

 

  

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Churchill &Associates

 

SECTION 3

 

(i)    All fees due to the Banker hereunder shall have no offsets, are non- refundable, non-cancellable and shall be free and clear of any and all encumbrances.

 

(ii)   All cash fees due the Banker hereunder shall be paid to the Banker immediately upon closing by wire transfer. Please see schedule A below for wire information.

 

(iii)   All securities fees due the Banker hereunder shall be made via DTC or the DWAC system if eligible for such system or by certificates issued by the transfer agent for the Company or the Company, as applicable, and shall be delivered to the Banker immediately upon closing of any Fee Transaction.

 

SECTION 4

 

Confidential Information:  The Banker agrees that during and after the Term, it will keep in strictest confidence, and will not disclose or make accessible to any other person without the written consent of the Company, the Company's products, services and technology, both current and under development, promotion and marketing programs, lists, trade secrets and other confidential and proprietary business information of the Company or any of its clients and third parties including, without limitation, Proprietary Information. The Banker agrees (a) not to use any such Confidential Information for itself or others, except in connection with the performance of its duties hereunder; and (b) not to take any such material or reproductions thereof from the Company's facilities at any time during the Term except, in each case, as required in connection with the Banker's duties hereunder.

 

Notwithstanding the foregoing, the parties agree that the Banker is free to use (a) information in the public domain not as a result of a breach of this Agreement, (b) information lawfully received form a third party who had the right to disclose such information and (c) the Banker’s own independent skill, knowledge, know-how and experience to whatever extent and in whatever way he wishes, in each case consistent with his obligations as the Banker and that, at all times, the Banker is free to conduct any research relating to the Company’s business.

 

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PHONE: 404-475-5610 • FAX: 1-877-234-0466

 

  

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Churchill &Associates

 

SECTION 5

 

Ownership of Proprietary Information:  The Banker agrees that all information that has been created, discovered or developed by the Company, its subsidiaries, affiliates, licensors, licensees, successors or assigns (collectively, the "Affiliates") (including, without limitation, information relating to the development of the Company's business created, discovered, developed by the Company or any of its affiliates during the Term, and information relating to the Company's customers, suppliers, Bankers, and licensees) and/or in which property rights have been assigned or otherwise conveyed to the Company or the Affiliates, shall be the sole property of the Company or the Affiliates, as applicable, and the Company or the Affiliates, as the case may be, shall be the sole owner of all patents, copyrights and other rights in connection therewith, including without limitation the right to make application for statutory protection.  All the aforementioned information is hereinafter called "Proprietary Information." By way of illustration, but not limitation, Proprietary Information includes trade secrets, processes, discoveries, structures, inventions, designs, ideas, works of authorship, copyrightable works, trademarks, copyrights, formulas, improvements, inventions, product concepts, techniques, marketing plans, merger and acquisition targets, strategies, forecasts, blueprints, sketches, records, notes, devices, drawings, customer lists, patent applications, continuation applications, continuation-in-part applications, file wrapper continuation applications and divisional applications and information about the Company's Affiliates, its employees and/or Bankers (including, without limitation, the compensation, job responsibility and job performance of such employees and/or Bankers).

 

All original content, proprietary information, trademarks, copyrights, patents or other intellectual property created by the Banker that does not include any specific information relative to the Company’s proprietary information, shall be the sole and exclusive property of the Banker.

 

SECTION 6

 

Indemnification: The Company represents that all materials provided or to be provided to the Banker or any third party regarding the Company’s financial affairs or operations are and shall be truthful and accurate and in compliance with any and all applicable federal and state securities laws. The Company agrees to indemnify and hold harmless the Banker and its directors, officers, partners, managers, agents and employees and to the full extent lawful, from and against all losses, claims, damages, liabilities and expenses incurred by them (including reasonable attorneys' fees and disbursements) that result from actions taken or omitted to be taken in breach of this agreement (including any untrue statements made or any statement omitted to be made) by the Company, its agents or employees which relate to the scope of this Agreement and the performance of the services by the Banker contemplated hereunder.  The Banker will indemnify and hold harmless the Company and the respective directors, officers, agents, affiliates and employees of the Company from and against all losses, claims damages, liabilities and expenses that result from bad faith, gross negligence of, or unauthorized representations (including any untrue statements made or any statement omitted to be made) by, the Banker.  In no event shall the Banker be responsible or liable hereunder for an amount in excess of the compensation received by it pursuant to this Agreement. Each person or entity seeking indemnification hereunder shall promptly notify the Company, or the Banker, as applicable, of any loss, claim, damage or expense for which the Company or the Banker, as applicable, may become liable pursuant to this Section 6. No party shall pay, settle or acknowledge liability under any such claim without consent of the party liable for indemnification, and shall permit the Company or the Banker, as applicable, a reasonable opportunity to cure any underlying problem or to mitigate actual or potential damages.  The scope of this indemnification between the Banker and the Company shall be limited to, and pertain only to certain transactions contemplated or entered into pursuant to this Agreement. The Company or the Banker, as applicable, shall have the opportunity to defend any claim for which it may be liable hereunder, provided it notifies the party claiming the right to indemnification in writing within fifteen (15) days of notice of the claim.

 

The rights stated pursuant to this Section 6 shall be in addition to any rights that the Banker, the Company, or any other person entitled to indemnification may have in common law or otherwise, including, but not limited to, any right to contribution.

 

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PHONE: 404-475-5610 • FAX: 1-877-234-0466

 

  

5

  

 

Churchill &Associates

SECTION 7

 

Notices:  Any notice or other communication under this Agreement shall be in writing and shall be deemed to have been duly given: (a) upon facsimile transmission (with written transmission confirmation report) at the number designated below; (b) when delivered personally against receipt therefore; (c) five (5) days after being sent by Federal Express or similar overnight delivery; or (d) ten (10) business days after being mailed registered or certified mail, postage prepaid.  The addresses for such communications shall be as set forth below or to such other address as a party shall give by notice hereunder to the other party to this Agreement.

 

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PHONE: 404-475-5610 • FAX: 1-877-234-0466

 

  

6

  

 

Churchill &Associates

 

If to the Company:

 

James Nathanielsz

Chief Executive Officer

Propanc Pty Ltd.

576 Swan Street, Richmond, VIC, 3121, AUSTRALIA

Telephone: 61 3 9208 4182

 

If to the Banker:

 

Churchill & Associates, LLC

191 Peachtree Street, Suite 3300

Atlanta, GA 30303 - USA

Telephone: +1 404 475-5610

Telecopy: +1877 234-0466

Attention: Mr. Chris Smith

 

SECTION 8

 

Status of Banker:  The Banker shall be deemed to be an independent contractor and, except as expressly provided or authorized in this Agreement, shall have no authority to act for on behalf of or represent the Company.  This Agreement does not create a partnership or joint venture.

 

SECTION 9

 

Other Activities of Banker:  The Company recognizes that the Banker now renders and may continue to render financial & compliance consulting and other investment banking services to other companies that may or may not conduct business and activities similar to those of the Company.

 

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PHONE: 404-475-5610 • FAX: 1-877-234-0466

 

  

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Churchill &Associates

 

SECTION 10

 

Successors and Assigns:  This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.  This Agreement and any of the rights, interests or obligations hereunder may not be assigned by the Banker without the prior written consent of the Company, which consent shall not be unreasonably withheld. This Agreement and any of the rights, interests or obligations hereunder may not be assigned by the Company without the prior written consent of the Banker, which consent shall not be unreasonably withheld.

 

SECTION 11

 

Severability of Provisions:  If any provision of this Agreement shall be declared by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced in whole or in part, the remaining conditions and provisions or portions thereof shall nevertheless remain in full force and effect and enforceable to the extent they are valid, legal and enforceable, and no provision shall be deemed dependent upon any other covenant or provision unless so expressed herein.

 

SECTION 12

 

Entire Agreement; Modification: This Agreement and the schedule hereto contains the entire agreement of the parties relating to the subject matter hereof, and the parties hereto and thereto have made no agreements, representations or warranties relating to the subject matter of this Agreement which are not set forth herein.  No amendment or modification of this Agreement shall be valid unless made in writing and signed by each of the parties hereto.

 

SECTION 13

 

Non-Waiver:  The failure of any party to insist upon the strict performance of any of the terms, conditions and provisions of this Agreement shall not be construed as a waiver or relinquishment of future compliance therewith; and the said terms, conditions and provisions shall remain in full force and effect.  No waiver of any term or condition of this Agreement on the part of any party shall be effective for any purpose whatsoever unless such waiver is in writing and signed by such party.

 

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PHONE: 404-475-5610 • FAX: 1-877-234-0466

  

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Churchill &Associates

 

SECTION 14

 

Remedies For Breach: The Banker and Company mutually agree that any breach of Sections 1, 2, 3, 4, 5, 6, 7 or 8 of this Agreement by the Banker or the Company may cause irreparable damage to the other party and/or their affiliates, and that monetary damages alone would not be adequate and, in the event of such breach or threat of breach, the damaged party shall have, in addition to any and all remedies at law and without the posting of a bond or other security, the right to an injunction, specific performance or other equitable relief necessary to prevent or redress the violation of either party's obligations under such Sections.  In the event that an actual proceeding is brought in equity to enforce such Sections, the offending party shall not urge as a defense that there is an adequate remedy at law nor shall the damaged party be prevented from seeking any other remedies that may be available to it.  The defaulting party shall pay all attorney’s fees and costs incurred by the other party in enforcing this Agreement.

 

SECTION 15

 

Governing Law: The parties hereto acknowledge that the transactions contemplated by this Agreement bear a reasonable relation to the state of Georgia. This Agreement shall be governed by, and construed and interpreted in accordance with, the internal laws of the state of Georgia without regard to such state’s principles of conflicts of laws.  The parties irrevocably and unconditionally agree that the exclusive place of jurisdiction for any action, suit or proceeding (“Actions”) relating to this Agreement shall be in the state or federal courts situated in the county and state of Georgia.  Each party irrevocably and unconditionally waives any objection it may have to the venue of any Action brought in such courts or to the convenience of the forum.  Final judgment in any such Action shall be conclusive and may be enforced in other jurisdictions by suit on the judgment, a certified or true copy of which shall be conclusive evidence of the fact and the amount of any indebtedness or liability of any party therein described. Service of process in any Action by any party may be made by serving a copy of the summons and complaint, in addition to any other relevant documents, by commercial overnight courier to any other party at their address set forth in this Agreement.

 

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PHONE: 404-475-5610 • FAX: 1-877-234-0466

 

  

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Churchill &Associates

 

SECTION 16

 

Headings: The headings of the Sections are inserted for convenience of reference only and shall not affect any interpretation of this Agreement.

 

SECTION 17

 

Counterparts:  This Agreement may be executed in counterpart signatures, each of which shall be deemed an original, but all of which, when taken together, shall constitute one and the same instrument, it being understood that both parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature page were an original thereof.

 

IN WITNESS WHEREOF, the parties hereto have executed this agreement of ten (10) pages as of the day and year first written above.

 

	Propanc Pty Ltd	 	 	Churchill & Associates, LLC	 
	 	 	 	 	 
	
/s/ James Nathanielsz

	 	 	
/s/ Chris Smith

	 
	
Name: James Nathanielsz

	 	 	
Name: Chris Smith

	 
	
Title: Chief Executive Officer

	 	 	
Title: Managing Partner

	 
	Date:	 	 	Date:	 

 

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PHONE: 404-475-5610 • FAX: 1-877-234-0466

 

10

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