Document:

xene-ex101_22.htm

 

Exhibit 10.1

 

TERMINATION AGREEMENT

This Termination Agreement (this “Agreement”) is dated for reference as of the 7th day of March, 2018, by and between Xenon Pharmaceuticals, Inc., a Canadian corporation having its principal place of business at 3650 Gilmore Way, Burnaby, British Columbia V5G 4W8 (“Xenon”), Teva Pharmaceuticals International GmbH, formerly known as Ivax International GmbH, a Swiss limited liability company having its principal place of business at Alpenstrasse 2, 8640 Rapperswil, Switzerland (“Teva”), and Teva Canada Limited, a Canadian legal entity having its principal place of business at 30 Novopharm Court, Toronto, Ontario, Canada M1B 2K9 (“Teva Canada”). Xenon, Teva and Teva Canada are referred to herein collectively as the “Parties” and individually as a “Party.” 

RECITALS

WHEREAS, Teva and Xenon entered into a Collaboration Development and License Agreement dated December 7, 2012, as amended by certain Letter Agreements between them, dated as of March 27, 2013 and April 4, 2013, respectively (the “Collaboration Agreement”); and

WHEREAS, pursuant to an Agreement for Assignment and Assumption, dated as of October 31, 2014, with its Affiliate, Teva Canada, Teva assigned to Teva Canada, and Teva Canada assumed, Teva’s right and obligation under Section 14.3 of the Collaboration Agreement to conduct the IPO Purchase, resulting in Teva Canada acquiring 1,111,111 common shares of Xenon; and

WHEREAS, Xenon and Teva desire to terminate the Collaboration Agreement and the Parties desire to settle fully and finally any potential or actual claims or disputes that they may have or had against the other in connection with the Collaboration Agreement or the transactions contemplated therein, without any admission of wrongdoing or liability by any of the Parties, and on the terms set forth below; 

WHEREAS, in order to complete the Proposed Transaction (as defined below), Xenon must receive an order from the Ontario Securities Commission (the “OSC”) granting Xenon exemptive relief from the requirements related to issuer bids under applicable Canadian securities laws (the “OSC Order”); and

WHEREAS, capitalized terms that are not defined in this Agreement shall have the meanings ascribed to them in the Collaboration Agreement;

NOW, THEREFORE, in consideration of the respective covenants, undertakings, representations, warranties and conditions set forth in this Agreement, and for other good and valuable consideration, the sufficiency and receipt of which is hereby acknowledged, intending to be legally bound hereby, the Parties agree to the following. 

TERMS OF AGREEMENT

1.No Admissions. This Agreement is being entered into to avoid lengthy, costly and time-consuming disputes. By entering into this Agreement, no Party is admitting any liability or wrongdoing whatsoever, and each Party continues to deny any and all liability and wrongdoing. This Agreement shall not be construed as an admission by any Party as to the merits of any position adopted by the other Parties. 

[†] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION

 

2.Effective Date. This Agreement shall become effective on the Effective Date (as defined below). 

3.Cancellation of Xenon Shares. 

(A)Upon and subject to the terms and conditions hereof, Teva Canada will transfer and assign 1,000,000 common shares of Xenon (the “Subject Shares”) to Xenon for cancellation and Xenon will acquire the Subject Shares from Teva for cancellation (the “Proposed Transaction”), such that immediately following the Proposed Transaction and the cancellation of the Subject Shares by Xenon, Teva Canada will be the beneficial and registered owner of 111,111 common shares of Xenon (the “Retained Shares”).

(B)Teva Canada shall not, without the prior written consent of Xenon, sell more than one quarter (1⁄4) of the Retained Shares per calendar month.

(C)Teva Canada will from time to time execute and deliver all documents and instruments and do all acts and things as Xenon may reasonably require to effectively carry out or better evidence or perfect the full intent of the Proposed Transaction and the cancellation of the Subject Shares. 

(D)Teva Canada and Xenon acknowledge and agree that the Proposed Transaction is subject to, and conditional upon, Xenon being granted the OSC Order. Xenon will provide written notice to Teva and Teva Canada when the OSC Order has been granted to Xenon and Teva Canada will transfer and assign the Subject Shares to Xenon as contemplated in Section 3(A) on the date specified by Xenon in such notice (the “Effective Date”).

4.Termination of the Collaboration. 

(A)As of the Effective Date, the Collaboration Agreement and all obligations of the Parties thereunder shall be deemed fully terminated, discharged, bought out, extinguished, paid, commuted, released and satisfied in full, except to the extent expressly provided otherwise in this Agreement and the reference herein to relevant defined terms in the Collaboration Agreement. The Parties reserve no claims, rights or benefits against each other under the Collaboration Agreement with respect to any past, present or future claims and each Party shall be freed from any and all claims that have been, or could be, made under the Collaboration Agreement, except as expressly provided otherwise in Section 7 below. 

(B)As of the Effective Date, Teva shall immediately cease to:

i.          research, Develop, Manufacture, have Manufactured, market, use, offer to sell, sell, export or import for sale, or otherwise Commercialize any Product under the Xenon Background IP or Collaboration IP,

ii.         have the right to assign or otherwise transfer or grant any interest in Xenon Background IP or Collaboration IP to any Third Party, or

iii.        have the right to grant a sublicense under any Xenon Background IP or Collaboration IP to any Third Party,

provided that, if any such assignment, transfer, grant and/or sublicense have been granted to Third Party by Teva, Teva hereby undertakes to terminate them and provide written evidence of any such termination to Xenon within [†] ([†]) days of the Effective Date. 

[†] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION

 

(C)In addition to the foregoing, as of the Effective Date:

i.          the license granted to Teva by Xenon under the Collaboration Agreement shall immediately terminate with respect to all Products, and Teva shall assign to Xenon any Collaboration IP relating to such terminated Products to the extent that such Collaboration IP was conceived, identified, or first made by Xenon during the Collaborative Development Term, however, Teva will retain a non-exclusive license under such Xenon Background IP and such Collaboration IP for research purposes only;

ii.         Teva shall, at Xenon's cost (which shall cover reasonable external costs and may include, for example, shipping costs and any administrative fees charged by the Regulatory Authorities), transfer and assign to Xenon the IND for each Product and the erythromelalgia Orphan Disease Designation, including, in particular the following actions by Teva and Xenon: (a) Teva shall submit to the applicable Regulatory Authorities within [†] ([†]) [†] days of the Effective Date a letter authorizing the transfer of ownership from Teva to Xenon, and shall otherwise take action within its control to transfer to Xenon, all Regulatory Documents, PROVIDED that it is understood and agreed that such letters and any other related documentation shall be prepared by Xenon and forwarded to Teva, and that Teva has no obligation to transfer to Xenon any physical copies of any Regulatory Documents that are made available to Xenon in electronic format (compatible with Xenon's systems), unless Xenon pays for the shipping costs of such transfer of physical copies, (b) in coordination with Teva, Xenon promptly shall execute and submit within [†] ([†]) [†] days to the applicable Regulatory Authority a letter, accompanied by the transfer letter referred to in clause (a), acknowledging Xenon’s assumption of ownership of and responsibility for the Regulatory Documents, and (c) Xenon, effective as of the submission of the documentation set forth in (a) and (b), shall have exclusive authority and responsibility to submit all reports or amendments, and pay any fees, necessary to maintain any Regulatory Approval for the Products;

iii.        Teva (a) hereby grants Xenon a non-exclusive license under the Know-How that falls within the Ivax Termination IP, and (b) subject to (a), an exclusive license under all other Ivax Termination IP and any future patents arising out of the Ivax Termination IP  (including all study data, results, clinical trial study data, regulatory filings and all Regulatory Approvals relating to same) utilized or practiced by Teva in the research and Development of the Product, collectively as described in Schedule A attached hereto;

iv.        subject to Clause 3(C)iii, Teva shall assign all existing Patent Rights under the Ivax Termination IP (the “Assigned Patents”) to Xenon by delivering a signed and notarized copy of the Patent Assignment attached hereto as Schedule B to Xenon within [†] ([†]) [†] days of the Effective Date;

v.         Teva shall, within [†] days of the Effective Date of this Agreement, deliver, electronically or on paper, to Xenon any Confidential Information reasonably known to it and in its possession relating to each terminated Product, except for one copy which may be retained in its confidential files for archive purposes only; and

[†] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION

 

vi.        in the event Xenon, its Affiliates, sublicensees, assignees or successors subsequently Commercialize any Product, during the period of time such Product is being sold to Third Parties, Xenon will pay Teva, as applicable, a [†] percent ([†]%) royalty on annual Net Sales (as applied mutatis mutandis to sales by or on behalf of Xenon, its Affiliates, sublicensees, assignees or successors) of such Product for the duration of time that (i) Patent Rights under the Ivax Termination IP Cover the terminated Product or (ii) any future patents arising out of the Ivax Termination IP would be infringed by the commercialization of the Product in the absence of the licenses granted hereunder.

5.Diligence. Xenon will have no obligation with respect to the research, development, exploitation of the Assigned Patents, regulatory approval or commercialization of the terminated Product under this Agreement. Xenon will decide at its sole discretion with Assigned Patents, if any, it wishes to maintain, prosecute and/or enforce.

6.Releases. In consideration of the mutual execution of this Agreement and the mutual agreement to be legally bound by the terms hereof, and other good and valuable consideration, Teva and Teva Canada, on the one hand, and Xenon, on the other hand, each on behalf of itself and any and all parent corporations, subsidiaries, affiliates, predecessors, successors, assigns, officers, directors, employees, attorneys, shareholders, and agents, do hereby mutually remise, release, covenant not to sue and forever discharge each other (and their agents and assigns) from and against all manner of actions, causes of action, suits, debts, accounts, promises, warranties, damages (including consequential or punitive damages), agreements, costs, interest, expenses, premiums, deductibles, claims or demands whatsoever, whether in law, equity, restitution or otherwise, in any jurisdiction (including but not limited to any rights, claims, or causes of action available by virtue of any statute or law in Canada or the United States), whether past, present or future, presently known or unknown, suspected or unsuspected, contractual or extra-contractual, asserted or unasserted, whether concealed or hidden, with respect to any and all past, present or future claims of any type whatsoever that they ever had now have, or hereafter may have against each other —except for any future claims Teva Canada hereafter may have relating to or arising from its ownership of Retained Stock, which are hereby excluded from this release—based upon, arising out of, in connection with, in consequence of, or in any way involving, arising under, relating to or in connection with the Collaboration Agreement or conducting or failing to conduct activities relating to the research, development, formulation, pre-clinical, non-clinical, clinical, testing and all other activities (including test method development, stability testing, toxicology studies, process development, statistical analysis and report writing, packaging, labelling and regulatory affairs, product approval and registration activities) relating to the Products. Notwithstanding the foregoing, nothing herein shall preclude, prevent or impair the right of any Party to bring a proceeding in court or any other forum for a breach of this Agreement, or any representation, warranty or covenant herein, or affect any of the Parties’ rights, obligations, or claims under this Agreement, including with respect to indemnification rights pursuant to Section 7 below. 

7.Reps & Warranties.

(A)As of the date hereof and the Effective Date, Teva hereby represents and warrants to Xenon that: 

i.          Teva has good and sufficient power, authority and right to enter into and deliver this Agreement and to complete the transactions to be completed by Teva contemplated hereunder;

[†] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION

 

ii.          this Agreement constitutes a valid and binding obligation of Teva, enforceable against Teva in accordance with its terms subject to applicable bankruptcy, insolvency, reorganization and other laws of general application limiting the enforcement of creditors’ rights generally and to the fact that specific performance is an equitable remedy available only in the discretion of the court;

iii.        neither entering into nor the delivery of this Agreement nor the completion of the transactions contemplated hereby by Teva will result in the violation of (a) any of the provisions of the constating documents or by-laws of Teva; (b) any agreement or other instrument to which Teva is a party or by which Teva is bound; or (c) any applicable domestic or foreign law, including any statute, subordinate legislation or treaty, and any applicable guideline, directive, rule, standard, requirement, policy, order, judgment, injunction, award or decree of any domestic or foreign legislative, executive, judicial or administrative body or person having or purporting to have jurisdiction in the relevant circumstances, whether or not having the force of law, in respect of which Teva must comply;

iv.         Teva owns the Assigned Patents;

v.          Teva has the power and authority to execute the Patent Assignment attached hereto as Schedule A; and

vi.         Teva has not entered into any agreement that conflicts with the terms of the Patent Assignment attached hereto as Schedule A;

(B)As of the date hereof and the Effective Date, Teva Canada hereby represents and warrants to Xenon that:

i.           Teva Canada’s address is 30 Novopharm Court, Toronto, Ontario, Canada M1B 2K9; 

ii.          Teva Canada is the beneficial and registered owner of the Subject Shares, free and clear of all liens, charges, encumbrances and any other rights of others; 

iii.         Teva Canada has good and sufficient power, authority and right to enter into and deliver this Agreement and to complete the transaction to be completed by Teva Canada contemplated hereunder, including the power, authority and right to transfer and assign the legal and beneficial title and ownership of the Subject Shares to Xenon free and clear of all liens, charges, encumbrances and any other rights of others; 

[†] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION

 

iv.         this Agreement constitutes a valid and legally binding obligation of Teva Canada, enforceable against Teva Canada in accordance with its terms subject to applicable bankruptcy, insolvency, reorganization and other laws of general application limiting the enforcement of creditors’ rights generally and to the fact that specific performance is an equitable remedy available only in the discretion of the court; 

v.          there is no contract, option or any other right of another binding upon or which at any time in the future may become binding upon Teva Canada to sell, transfer, assign, pledge, charge, mortgage or in any other way dispose of or encumber any of the Subject Shares other than pursuant to the provisions of this Agreement; and 

vi          neither the entering into nor the delivery of this Agreement nor the completion of the transactions contemplated hereby by Teva Canada will result in the violation of (a) any of the provisions of the constating documents or by-laws of Teva Canada; (b) any agreement or other instrument to which Teva Canada is a party or by which Teva Canada is bound; or (c) any applicable domestic or foreign law, including any statute, subordinate legislation or treaty, and any applicable guideline, directive, rule, standard, requirement, policy, order, judgment, injunction, award or decree of any domestic or foreign legislative, executive, judicial or administrative body or person having or purporting to have jurisdiction in the relevant circumstances, whether or not having the force of law, in respect of which Teva Canada must comply.

(C)As of the date hereof and the Effective Date, Xenon hereby represents and warrants to Teva and Teva Canada that:

i.           Xenon has good and sufficient power, authority and right to enter into and deliver this Agreement and to complete the transactions to be completed by Xenon contemplated hereunder; 

ii.          this Agreement constitutes a valid and legally binding obligation of Xenon, enforceable against Xenon in accordance with its terms subject to applicable bankruptcy, insolvency, reorganization and other laws of general application limiting the enforcement of creditors’ rights generally and to the fact that specific performance is an equitable remedy available only in the discretion of the court; and

iii.         neither the entering into nor the delivery of this Agreement nor the completion of the transactions contemplated hereby by Xenon will result in a violation of (a) any of the provisions of the constating documents or by-laws of Xenon; (b) any agreement or other instrument to which Xenon is a party or by which Xenon is bound; or (c) any applicable domestic or foreign law, including any statute, subordinate legislation or treaty, and any applicable guideline, directive, rule, standard, requirement, policy, order, judgment, injunction, award or decree of any domestic or foreign legislative, executive, judicial or administrative body or person having or purporting to have jurisdiction in the relevant circumstances, whether or not having the force of law, in respect of which Xenon must comply.

[†] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION

 

8.Indemnification.

(A)Teva and Teva Canada agree to defend Xenon at their cost and expense, and will indemnify and hold Xenon and its directors, officers, employees and agents (the "Xenon Indemnified Parties") harmless from and against any action, suit, liabilities, losses, costs, damages, claims, demands, encumbrances, fees or expenses (including reasonable legal fees and disbursements) (collectively, a "Loss") arising out of any Third Party claim relating to:

i.           Any breach by Teva or Teva Canada of any of its representations, warranties or obligations pursuant to this Agreement;

ii.          The negligence or willful misconduct of Teva or Teva Canada; or

iii.         The development (including without limitation prior clinical development and any claims made by subjects enrolled by or on behalf of Teva), manufacture, import or export of the Product, including claims of infringement or misappropriation relating to the Product, between December 7, 2012 and the Effective Date of this Agreement.

(B)Xenon agrees to defend Teva at Xenon's cost and expense, and will indemnify and hold Teva and their respective directors, officers, employees and agents (the "Teva Indemnified Parties") harmless from and against any Loss arising out of any Third Party claim relating to:

i.           Any breach by Xenon of any of its representations, warranties or obligations pursuant to this Agreement;

ii.          The negligence or willful misconduct of Xenon; or

iii.         The further development, manufacture, import, export, offer for sale, marketing, promotion or sale of the Product, including claims of infringement or misappropriation relating to the Product, that take place on or after the Effective Date of this Agreement, except to the extent Teva or Teva Canada are obligated to indemnify Xenon pursuant to Section 7(A).

(C)NEITHER PARTY WILL BE LIABLE TO THE OTHER FOR ANY LOST PROFITS, LOST BUSINESS OR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, EXEMPLARY OR OTHER SPECIAL DAMAGES SUFFERED BY THE OTHER PARTY OR ITS AFFILIATES ARISING OUT OF OR RELATED TO THIS AGREEMENT FOR ALL CAUSES OF ACTION OF ANY KIND (INCLUDING TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, INDEMNITY AND BREACH OF WARRANTY) EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, UNLESS SUCH DAMAGES ARE PAYABLE TO A THIRD PARTY IN CONNECTION WITH A CLAIM BY SUCH THIRD PARTY THAT IS INDEMNIFIABLE HEREUNDER.

[†] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION

 

(D)A party that intends to claim indemnification under this Section 7 (the “Indemnified Party”) shall promptly notify the other party (the “Indemnifying Party”) in writing of the assertion or the commencement of any action, suit or proceeding, claim, arbitration, litigation or investigation by a Third Party (a “Third Party Claim”) and will provide the Indemnifying Party such information with respect thereto that the Indemnifying Party may reasonably request. The failure to deliver written notice to the Indemnifying Party within a reasonable time after the commencement of any Third Party Claim shall not relieve the Indemnitor of its obligations under this Section 7 unless the delay or failure is materially prejudicial to its ability to defend such Third Party Claim. The Indemnifying Party shall be entitled to control the defense of any Third Party Claim, at its sole expense. The Indemnified Party under this Section 7(D) shall cooperate fully with the Indemnifying Party and its legal representatives in the investigation of any Third Party Claim covered by this indemnification. The Indemnifying Party shall conduct the defense of such Third Party Claim and shall keep the Indemnified Party, reasonably informed of the status of such Third Party Claim. The Indemnified Party shall cooperate fully with the Indemnifying Party and its legal representatives in the investigation of any Third Party Claim. The Indemnified Party shall be entitled to participate in any such defense at its sole cost and expense. The Indemnifying Party shall seek the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed) in connection with the Indemnifying Party’s settlement or compromise of any such Third Party Claim.

(E) Third-Party Agreements. Teva shall provide a list of all active third-party agreements that relate to TV-45070 within [†] ([†]) days of the Effective Date. Teva shall use reasonable efforts to promptly assign to Xenon or its designee all such third-party agreements identified by Xenon and communicated to Teva in writing within [†] ([†]) days following the receipt of the list from Teva. 

9.Notice. Any notices, correspondence, or any other communication between the Parties in the course of implementation of this Agreement shall be in writing and sent by facsimile, email, or by mail to any representative designated by the Party which is to receive such written communication.

If to Xenon to:

 

Xenon Pharmaceuticals Inc.

200-3650 Gilmore Way

Burnaby, British Columbia

V5G 4W8 Canada

 

Attention: Legal Affairs

With a copy to: Chief Financial Officer

 

[†] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION

 

If to Teva to:

 

Teva Pharmaceuticals International GmbH

Alpenstrasse 2, 8640 Rapperswil 

Switzerland 

Attention: General Manager

 

With a copy (which shall not be deemed notice) to:

 

Teva Pharmaceuticals

425 Privet Road

Horsham, PA  19044  United States

Attention: General Counsel

 

If to Teva Canada to:

 

Teva Canada Limited

Novopharm Court

Toronto, Ontario

M1B 2K9  Canada

 

With a copy (which shall not be deemed notice) to:

 

Teva Pharmaceuticals

425 Privet Road

Horsham, PA  19044  United States

Attention: General Counsel

 

10.Prevailing Party. In the event an action is commenced to enforce any of the provisions of this Agreement or to obtain declaratory relief in connection with any of its provisions, the prevailing Party shall be entitled to an award of its reasonable attorneys’ fees, interest, costs and expenses, including expert fees, in addition to any other relief to which such Party may be entitled under Ontario Law.

11.Governing Law; Venue. This Agreement shall be construed and the respective rights of the Parties determined according to the substantive laws of the Province of Ontario and the laws of Canada in force therein notwithstanding any provisions governing conflict of laws under such law to the contrary. Any Disputed Matter shall be brought exclusively in a court of competent jurisdiction located in the city of Toronto, in the Province of Ontario, Canada. Each Party irrevocably waives any right to, and will not oppose any such Ontario action or proceeding in any jurisdictional basis, including forum non conveniens, and will not oppose the enforcement of any judgment or other duly obtained order from an Ontario court. Each Party irrevocably and unconditionally attains and submits to the jurisdiction of such Ontario court, and agrees to service of process issued or authorized by, such court. EACH PARTY HEREBY IRREVOCABLY WAIVES ITS RIGHT TO A JURY TRIAL.

12.Presumption. The Parties agree that this Agreement was drafted jointly by the Parties, and each Party and its legal counsel have had a sufficient opportunity to review this Agreement. No presumption shall arise regarding this Agreement based on the identity of the drafter.  

[†] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION

 

13.Acknowledgment. Each Party to this Agreement represents and warrants that (a) it has read this Agreement; (b) it has made such investigation of the matters pertaining to this Agreement as it deems necessary and finds the terms of this Agreement to be satisfactory; (c) it understands all of this Agreement’s terms; (d) it has negotiated and executed this Agreement freely, voluntarily and without coercion, at arm’s length, and with full knowledge of its significance and the legal consequences thereof; and (e) it has been represented by legal counsel, it has received financial advice related to this Agreement and it has had an adequate opportunity to review and consider the terms of this Agreement. The Parties waive all rights to challenge the validity or enforceability of this Agreement. 

14.Interpretation. The various headings of this Agreement are inserted for convenience only and shall not affect the interpretation of this Agreement. All references to “including” shall mean “including without limitation.”

15.Waiver. Any waiver by any Party of any provision of this Agreement shall not operate as or be construed to be a waiver of any breach of that provision or of any breach of any provision of this Agreement. The failure of a Party to insist upon strict adherence to any term of this Agreement on one or more occasions will not be considered a waiver or deprive that Party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. Any waiver must be in writing.

16.Severability. If any provision hereof should be held invalid, illegal or unenforceable in any respect in any jurisdiction, the Parties hereto shall substitute, by mutual consent, valid provisions for such invalid, illegal or unenforceable provisions which valid provisions in their economic effect are sufficiently similar to the invalid, illegal or unenforceable provisions that it can be reasonably assumed that the Parties would have entered into this Agreement with such valid provisions. In case such valid provisions cannot be agreed upon, the invalid, illegal or unenforceable of one or several provisions of this Agreement shall not affect the validity of this Agreement as a whole. 

17.Successors and Assigns; After-acquired Affiliates; Future Partners. 

(A)This Agreement shall inure to the benefit of and be binding on the Parties’ successors and permitted assigns. Xenon may not assign or otherwise transfer this Agreement without the prior written consent of Teva, which consent shall not be unreasonably withheld. 

(B)Any proposed assignment which is inconsistent with the assignment language in this Article 16 shall be null and void.

(C)No assignment shall release any Party from responsibility for the performance of any accrued obligation of such Party hereunder.

18.Compliance with Laws. Each Party will comply with all relevant laws and regulations in exercising its rights and fulfilling its obligations under this Agreement.

19.Counterparts. This Agreement may be executed by the Parties in one or more facsimile or PDF counterparts and such facsimile or PDF counterparts shall each be deemed an original signature for all purposes including interpretation under governing law. 

[†] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION

 

20.Non-Disparagement. The Parties agree not to make any disparaging or negative statements to any third parties about the termination of the Collaboration Agreement and/or the transactions contemplated thereunder or under this Agreement, except for (a) information that has already been disclosed publicly and (b) good faith responses to any inquiries under oath or in response to governmental inquiry. 

21.Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the matters referred to herein. In the event of a conflict between this Agreement and the Collaboration Agreement, this Agreement shall prevail.

22.Amendment. This Agreement, including the Schedules hereto, may only be amended by a written document duly executed by authorized signatories of each of the Parties.

23.Confidentiality Obligations. Both Parties hereby acknowledge that the confidentiality obligations included in Article 11 of the Collaboration Agreement shall continue for a period of ten (10) years from the Effective Date of this Agreement, provided however that any and all Confidential Information related to the terminated Product, including any such Confidential Information initially disclosed by Teva to Xenon, shall from now on be considered Xenon’s Confidential Information. Notwithstanding anything to the contrary, Teva shall pre-approve all public disclosures to be filed by Xenon in connection with this Agreement pursuant to US and/or Canadian securities laws. 

[Signature Page Follows]

 

[†] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION

 

IN WITNESS THEREOF, the Parties hereto have caused this Agreement to be duly executed as of the Effective Date.

 

	
XENON PHARMACEUTICALS INC.

	
 
	
 

	
By:
	
    /s/ Simon Pimstone

	
 
	
Name: Simon Pimstone

	
 
	
Title:  CEO & President

 

 

	
By:
	
    /s/ Ian Mortimer

	
 
	
Name:  Ian Mortimer

	
 
	
Title:  CFO & COO

 

 

	
TEVA PHARMACEUTICALS INTERNATIONAL GMBH

	
 
	
 

	
By:
	
    /s/ R. David Koch

	
 
	
Name:  R. David Koch

	
 
	
Title:  President of the Managing Officers

 

 

	
By:
	
    /s/ Naama Bar Am

	
 
	
Name:  Naama Bar Am

	
 
	
Title:  General Manager

 

 

	
TEVA CANADA LIMITED

	
 
	
 

	
By:
	
    /s/ Suzanne Brand

	
 
	
Name:  Suzanne Brand

	
 
	
Title:  Senior Director Finance CFO

 

 

	
By:
	
    /s/ C. Benjamin Gray

	
 
	
Name:  C. Benjamin Gray

	
 
	
Title:  VP & General Counsel

 

[†] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION

 

SCHEDULE A

Know-How covered under Ivax Termination IP

 

 

	
 
	
•
	
All documents, reports, processes relating to products, including all research data, all regulatory files, all Regulatory Authority correspondence, all PTO correspondence, all product development plans, all non-clinical audited GLP study reports, all other non-clinical study reports referenced in the regulatory files, all raw and analyzed genomic and exome sequence data, all drug substance manufacturing reports and processes useful to the manufacture of drug substance; 

 

	
 
	
•
	
All documents, reports, processes relating to the API, including all batch records, analytical methods, analytical method validation reports, specifications, reference standard qualification reports, campaign reports, process development reports, stability protocols, stability reports (whether interim or final), CMC quality-related documentation (such as investigations, out-of-Specification reports, batch dispositions and CAPA), CMC regulatory filings and any process validation documentation;

[†] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION

 

SCHEDULE B

PATENT ASSIGNMENT

THIS PATENT ASSIGNMENT (this “Patent Assignment”) from Teva Pharmaceuticals International GmbH, formerly known as Ivax International GmbH, a Swiss limited liability company having its principal place of business at Alpenstrasse 2, 8640 Rapperswil, Switzerland (“Assignor”) to Xenon Pharmaceuticals, Inc., a corporation continued under the federal laws of Canada (“Assignee”), is effective as of [__], 2018. 

WHEREAS, Assignor and Assignee have entered into a Termination Agreement, dated as of [DATE] (the “Termination Agreement”), pursuant to which, among other things, Assignor has agreed to assign to Assignee the Assigned Patents (as defined below).

1.Assigned Patents. The term “Assigned Patents” means the issued patents and pending patent applications set forth on Exhibit 1 attached hereto.

2.Assignment. For good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, Assignor hereby irrevocably assigns, transfers, sells and delivers to Assignee all of Assignor’s right, title and interest in and to (i) the Assigned Patents and the inventions and improvements disclosed therein; (ii) all reissues, divisionals, continuations, continuations-in-part, extensions, renewals, reexaminations and foreign counterparts thereof; (iii) all patents and applications which claim priority to or have common priority with any such patents or patent applications; and (iv) all rights corresponding to any of the foregoing throughout the world, including the right to claim priority from any of the Assigned Patents, the right to prosecute and maintain any of the Assigned Patents, and the right to sue, claim remedies and recover damages for past, present and future infringement or other violation or impairment of any of the Assigned Patents, the same to be held and enjoyed by Assignee for its own use and enjoyment, and for the use and enjoyment of its successors, assigns and other legal representatives, as fully and entirely as the same would have been held and enjoyed by Assignor, if this assignment had not been made. 

3.Further Assurances. Assignor agrees that Assignee shall have the right to file or record this Patent Assignment with the United States Patent and Trademark Office or other such entities throughout the world, and Assignor authorizes and requests the relevant authorities to record Assignee as the assignee and owner of the Assigned Patents. Assignor shall execute and deliver to Assignee such documents and take such actions as requested by Assignee to register, evidence or perfect Assignee’s rights under this Patent Assignment. In addition, Assignor hereby irrevocably designates and appoints Assignee and its duly authorized officers and agents as its agents and attorneys in fact, to act for and on their behalf and stead to execute and file any such documents and to do all other lawfully permitted acts to register, evidence or perfect Assignee’s rights under this Patent Assignment with the same legal force and effect as if executed by Assignor. This includes, but is not limited to, the power to insert on this Patent Assignment any further identification that may be necessary to comply with the rules of the United States Patent and Trademark Office, or rules of other entities throughout the world, for recordation of this document.

4.Governing Law. This Patent Assignment shall be governed by, and construed in accordance with, the laws of the Province of Ontario and the laws of Canada in force therein, regardless of the laws that might otherwise govern under applicable principles of choice or conflicts of law thereof.

[†] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION

 

IN WITNESS WHEREOF, Assignor has caused this Patent Assignment to be executed as of the date first written above by its duly authorized officer.

 

 

	
ASSIGNOR:

	
 

	
TEVA PHARMACEUTICALS INTERNATIONAL GMBH

	
 
	
 

	
By:
	
 

	
Name:
	
 

	
Title:
	
 

 

 

ACKNOWLEDGMENT

 

 

Notarial Certificate

 

lic.iur. Daniel Beeler M.B.L., Notary Public for the Canton St. Gallen (Switzerland), with office at Untere Bahnhofstrasse 2, 8640 Rapperswil, Switzerland, hereby 

 

certifies: 

 

the signatures on the reverse page were written in their own hands by 

 

Mrs. Naama BAR AM, born 6th January 1967, lsraeli citizen, and 

Mr. David KOCH, born 10th July 1955, Swiss citizen,

 

both personally known to the notary.

 

Certified on the    th day of 

 

The notary public, Daniel Beeler

 

 

 

[†] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION

 

EXHIBIT 1

ASSIGNED PATENTS

 

	
Title
	
Application Number/ Patent Number
	
Filing Date
	
Issue Date
	
Inventor(s)
	
Owner/
Assignee
	
Status

	
[†]
	
[†]
	
[†]
	
[†]
	
[†]
	
[†]
	
[†]

	
[†]
	
[†]
	
[†]
	
[†]
	
[†]
	
[†]
	
[†]

	
[†]
	
[†]
	
[†]
	
[†]
	
[†]
	
[†]
	
[†]

	
[†]
	
[†]
	
[†]
	
[†]
	
[†]
	
[†]
	
[†]

	
[†]
	
[†]
	
[†]
	
[†]
	
[†]
	
[†]
	
[†]

 

[†] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION_________________________________________________________________

_________________________________________________________________

ASSET PURCHASE AGREEMENT

by and among

NEWBRIDGE GLOBAL VENTURES, INC.

a Delaware corporation

 

as the Company

 

 

ELEVATED EDUCATION, INC.

a Delaware corporation

as Buyer 

ELEVATED PORTFOLIO HOLDINGS, LLC

a Wyoming limited liability company

 

as the Seller

 

Dated as of February __, 2018

_________________________________________________________________

ASSET PURCHASE AGREEMENT

THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of February __, 2018, by and among (i) NEWBRIDGE GLOBAL VENTURES, Inc., a Delaware corporation (the “Company”); (ii) ELEVATED EDUCATION, INC., a Delaware corporation (the “Buyer”) and (iii) ELEVATED PORTFOLIO HOLDINGS, LLC, a Wyoming limited liability company (the “Seller”).  Buyer, the Company and Seller are sometimes individually referred to in this Agreement as a “Party” and collectively as the “Parties.”

WHEREAS, the Seller has developed certain Assets (as defined below) which include educational materials, programs, intellectual property and associated assets which it owns, holds, manages and uses in the operation and management of the Seller’s business (“Business”)

WHEREAS, Buyer is a wholly owned subsidiary of the Company, and the Company desires that Buyer acquire from the Seller and the Seller wishes to sell to the Buyer all of the Assets in exchange for shares of Common Stock in the Company;

NOW, THEREFORE, in consideration of the foregoing and the respective representations, mutual covenants, agreements and understandings contained herein and intending to be legally bound, the Parties hereto hereby agree as follows:

ARTICLE I
CERTAIN DEFINITIONS

Certain Definitions 

.  For purposes of this Agreement, the following terms have the meanings set forth below:

“Accounts Receivable” means all of the accounts receivable of the Business, including those listed on Schedule 2.  

“Acquired Agreements” means all agreements pertaining to the Business, including the Contracts and Commitments and any non-competition, non-disclosure or non-solicitation agreement of any kind.

“Affiliate” of any particular Person means any other Person controlling, controlled by or under common control with such Person.  For purposes of this definition, “control” (including the terms “controlling,” “controlled by” and “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise, and such “control” will be presumed if any Person owns 10% or more of the voting capital stock or other ownership interests, directly or indirectly, of any other Person. 

“Assets” means the assets of every type and description that are owned, leased or licensed by the Seller and used or held in connection with the Business (other than the Excluded Assets), including without limitation the Accounts Receivable, Acquired Agreements, Books and Records, Software and Intellectual Property. 

“Books and Records” means all of the books and records, electronic or otherwise, relating to the Business, including all financial statements, financial and operating records, records relating to active and canceled customer contracts and invoices and personnel records.

“Common Stock” means the common stock of the Company, par value $0.001.

“Confidential Information” means all information of a confidential or proprietary nature (whether or not specifically labeled or identified as “confidential”), in any form or medium that relates to the Assets.

“Contracts and Commitments” means all contracts, commitments and other arrangements, both written and oral, between the Seller and customers and/or vendors of the Business. 

“Excluded Assets” means those assets set forth on Exhibit A. 

“Lien” or “Liens” means any lien (statutory or otherwise), hypothecation, encumbrance, claim, liability, security interest, interest, mortgage, pledge, restriction, charge, instrument, license, preference, priority, security agreement, easement, covenant, encroachment, option, right of recovery, tax (including foreign, federal, state and local tax), order of any governmental authority, of any kind or nature (including any leasehold interest, license or other right, in favor of a third party, to use any portion of the Assets), whether secured or unsecured, choate or inchoate, filed or unfiled, scheduled or unscheduled, noticed or unnoticed, recorded or unrecorded, contingent or non-contingent, material or non-material, known or unknown. 

“Governmental Body” means any federal, state, local, supra-national or foreign government, political subdivision, governmental, regulatory or administrative authority, instrumentality, agency body or commission, self-regulatory organization, court, tribunal or judicial or arbitral body.

“Intellectual Property” means (a) patents, provisional patent applications, patent applications, continuations, continuations-in-part, divisions, reissues, extensions, patent disclosures, industrial designs, inventions (whether or not patentable or reduced to practice) and improvements thereto, (b) trademarks, service marks, trade dress, logos, trade names, corporate names, designs, slogans and general intangibles of like nature, together with all translations, adaptations, derivations, and combinations thereof and including all goodwill associated therewith, whether registered or unregistered, and all applications, registrations and renewals in connection with the foregoing, (c) copyrightable works and copyrights, and all applications, registrations and renewals in connection therewith, (d) trade secrets and confidential business information (including ideas, research and development, know-how, concepts, methods, models, formulas, technology, compositions, manufacturing and production processes and techniques, data, designs, drawings, specifications, customer and supplier lists, mailing lists, pricing and cost information, business and marketing plans and proposals and other proprietary information), (e) business and regulatory agency licenses, (f) Software (including data and related documentation), whether in source code, object code or human readable form, (g) Web sites and uniform resource locators (URL), (h) all other proprietary rights, and (i) copies and tangible embodiments of the foregoing (in whatever form or medium).

“Permitted Liens” shall mean (i) any lien for taxes not yet due or delinquent, (ii) any statutory lien arising in the ordinary course of business by operation of law with respect to an obligation or liability that is not yet delinquent or in default that would be released upon payment when due without penalty, or (iii) any liens that will be released simultaneous with the closing of the transactions contemplated by this Agreement.

	 

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“Person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated association, corporation, limited liability company, entity or governmental entity (whether federal, state, county, city or otherwise and including any instrumentality, division, agency or department thereof).

“Software” means (a) computer programs, including application software, system software, firmware, middleware, mobile digital applications, assemblers, applets, compilers and binary libraries, together with any error corrections, updates, modifications, or enhancements thereto, in both machine-readable form and human-readable form; (b) computer databases, including all data and information included in such databases; (c) screens, user interfaces, command structures, report formats, templates, menus, buttons and icons; (d) descriptions, flowcharts, architectures, development tools and other materials used to design, plan, organize and develop any of the foregoing; and (e) all documentation, including development, diagnostic, support, user and training documentation, related to any of the foregoing.

ARTICLE II
PURCHASE AND SALE OF ASSETS

Purchase and Sale of Assets 

. On the terms and subject to the conditions set forth in this Agreement, Buyer shall purchase from the Seller, and Seller shall sell, convey, assign, transfer and deliver to Buyer at the Closing, all of Seller’s interests in the Assets of the Seller, free and clear of all Liens . Notwithstanding anything contained herein to the contrary, the Seller is not selling, transferring, delivering or conveying to Buyer any right, title or interest of the Seller in the Excluded Assets. 

Exclusion of Liabilities 

.  Notwithstanding anything to the contrary in this Agreement, Buyer shall not assume or in any way become liable for any of Sellers’ debts, liabilities or obligations of any nature whatsoever, whether accrued, absolute, contingent or otherwise, whether known or unknown, whether due or to become due, whether related to the Assets, and regardless of when or by whom asserted, except for the Assumed Liabilities set forth on Schedule 2.2.

Purchase Price 

.  At the Closing, in consideration of the Sellers’ transfer of the Assets to Buyer, the Company shall issue to Seller Two Million (2,000,000) shares of restricted Common Stock in the Company (the “Issued Shares”).

Closing Transactions 

.  

(a)Closing.  The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place simultaneously with the execution of this Agreement. 

(b)Closing Deliveries.  Subject to the conditions set forth in this Agreement, at the Closing: 

(i)The Company shall deliver the Issued Shares to the Seller; and 

(ii)Seller shall convey all of the Assets to Buyer by executing (a) a Bill of Sale in the form of Exhibit B attached hereto, along with such other appropriately executed instruments of sale, transfer, assignment, conveyance and delivery and all other instruments of conveyance which are necessary or desirable to effect transfer to Buyer of good and marketable title to the Assets (free and clear of all Liens except for Permitted Liens). 

	 

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ARTICLE III

REPRESENTATIONS AND WARRANTIES OF SELLER 

As an inducement to Buyer to enter into this Agreement and consummate the transactions contemplated hereby, the Seller hereby represents and warrants to the Buyer that:

Power and Authorization 

.  The Seller has full power, authority and legal capacity to enter into this Agreement and the other agreements contemplated hereby to which it is a party and to perform its obligations hereunder and thereunder.  The execution, delivery and performance of this Agreement and the other agreements contemplated hereby to be executed and delivered by the Seller, and the consummation of the transactions contemplated hereby and thereby, have been duly and validly authorized by all requisite corporate or other necessary action on the part of the Seller, and no other corporate or other proceedings on the part of the Seller are necessary to authorize the execution, delivery or performance of this Agreement or the other agreements contemplated hereby.  This Agreement and the other agreements contemplated hereby to be executed and delivered by the Seller constitute valid and binding obligations of the Seller, enforceable in accordance with their respective terms except as the enforcement thereof may be limited by bankruptcy, insolvency or other similar laws affecting the rights of creditors generally.

3.2Absence of Liabilities; Material Adverse Change. As of the Closing (after giving effect to the transactions contemplated hereby), the Seller has no knowledge of any event which has occurred or circumstance which exists that could give rise to or serve as a basis for any, obligation or liability (whether known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated or due or to become due) other than: (i) liabilities and obligations that have arisen in the ordinary course of business and (ii) liabilities and obligations under the documents and instruments executed in connection with the Closing. The Seller has not been subject to any event or condition of any character that has had, or could have, a material adverse effect on the Seller or the Business. 

3.3Title to Assets. The Seller has good and marketable title to the Assets, free and clear of any Liens (except for Permitted Liens).  

3.4Acquired Agreements. The Seller has made available to Buyer a correct and complete copy of each Acquired Agreement, including all amendments, material waivers or modifications thereto.  Each Acquired Agreement is in full force and effect, is binding and enforceable in accordance with its terms and, to the knowledge of the Seller, is not subject to any claims, charges, set-offs or defenses, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to or affecting the enforcement of creditors’ rights in general and subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or law). The Seller is not in material breach or default, or, to the knowledge of the Seller, is any other party to any Acquired Agreement in material breach or default under such Acquired Agreement.  To the knowledge of the Seller, no event has occurred which, with the giving of notice or passage of time or both, would constitute a breach or default, under any Acquired Agreement.  The Seller has any present expectation or intention of not fully performing any obligation pursuant to any Acquired Agreement to which it is a party.   

	 

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3.5Accounts Receivable. All of the Accounts Receivable have arisen from bona fide transactions by the Seller in the ordinary course of the Business and are valid and enforceable in accordance with their terms.  

3.6Intellectual Property.  

(a)The Seller owns or has the right to use pursuant to an enforceable written license, sublicense, agreement or permission, all Intellectual Property relating to the Business.  Each item of Intellectual Property relating to the Business immediately prior to the Closing will be owned, licensed or otherwise available for use by Buyer on identical terms and conditions immediately subsequent to the Closing.  The Seller has taken all reasonably necessary action to maintain and protect each item of Intellectual Property relating to the Business. 

(b)The Seller has not interfered with, infringed upon, misappropriated, violated or otherwise come into conflict with any rights of any third party with respect to Intellectual Property, and the Seller has not received any written charge, complaint, claim, demand, or notice alleging any such interference, infringement, misappropriation, violation or conflict (including any claim that the Seller must license or refrain from using any Intellectual Property of any third party). To the knowledge of the Seller, no third party has interfered with, infringed upon, misappropriated, violated or otherwise come into conflict with any Intellectual Property rights of the Seller. 

(c)Schedule 3.6 sets forth a true and complete list of (i) all patent, trademark, service mark, Internet domain name and copyright registrations, and applications to obtain or register the foregoing that have been issued to the Seller, (ii) all licenses, agreements or other permissions that the Seller has granted to any third party with respect to any Intellectual Property relating to the Business and (iii) all trade names, unregistered trademarks and service marks relating to the Business.  With respect to each of the foregoing items: (A) the Seller possesses all right, title, and interest in and to each item, free and clear of all Encumbrances; (B) no item is subject to any outstanding injunction, judgment, order, decree, ruling or charge by any Governmental Body; (C) no action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand is pending or, to the knowledge of the Seller, threatened that challenges the legality, validity, enforceability, use, or ownership of any such item; and (D) the Seller has not agreed to indemnify any person, party, or entity for or against any interference, infringement, misappropriation, violation or other conflict with respect to any such item. 

(d)Schedule 4 also contains a true and complete list of (i) all Intellectual Property owned by third parties and used in the Business and (ii) all licenses, agreements or other permissions granted by any third party and relating to the Business.  With respect to each of the foregoing items: (A) the license, sublicense, agreement, or permission covering the item is legal, valid, binding, enforceable and in full force and effect; (B) the license, sublicense, agreement or permission will continue to be in full force and effect on identical terms following the Closing; (C) no party to the license, sublicense, agreement or permission is in breach or default, and no event has occurred which, with notice or lapse of time, or both, would constitute a breach or default or permit termination, modification, or acceleration thereunder; (D) no party to the license, sublicense, agreement or permission has repudiated any provision thereof; (E) no action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand is pending or, to the knowledge of the Seller, is threatened which challenges the legality, validity, or enforceability of the underlying item of Intellectual Property; and (F) the Seller has not granted any sublicense or similar right with respect to the license, sublicense, agreement or permission. 

3.7Employee Matters. The Seller has complied with all applicable laws relating to prices, wages, hours, discrimination in employment and collective bargaining and is not liable for any arrears of wages or any taxes or penalties for failure to comply with any of the foregoing.    

	 

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3.8Laws. To Seller’s knowledge, the Business has been and is being conducted in accordance with all applicable laws, and the Seller has not received any notice of alleged violation of, or of any investigation pertaining to, any applicable laws.   

3.9Tax Matters. The Seller has filed all tax returns required to be filed pursuant to all applicable laws and has paid all taxes that have become due pursuant to such tax returns or pursuant to any assessment that has become payable.   

3.10Litigation and Claims. There is no litigation, claim, action, suit, regulatory proceeding, governmental investigation or arbitration proceeding pending or, to the knowledge of the Seller, threatened against or affecting the Seller, the Business, the Assets or the transactions contemplated by this Agreement, nor is there any basis for any of the same.  Neither any Seller, the Business, nor the Assets is subject to any court order. 

3.11Environmental and Safety Laws. The Seller is not in violation of any applicable law or regulation relating to the environment or occupational health and safety, and no material expenditures are or will be required in order to comply with any such existing law or regulation. 

3.12Insurance. Schedule 5 sets forth all insurance policies maintained by the Seller during the past [•] years, copies of which have been delivered by the Seller to Buyer.  With respect to each such policy: (i) the policy is legal, valid, binding, enforceable and in full force and effect; (ii) no party to the policy is in breach or default (including with respect to the payment of premiums or the giving of notices), and no event has occurred that, with notice or lapse of time, or both, would constitute such a breach or default, or permit termination, modification, or acceleration; (iii) no party to the policy has repudiated any provision thereof; and (iv) no reservation of rights or other potential coverage dispute exists. 

3.13Absence of Undisclosed Liabilities. Neither the Seller nor any of the Assets is subject to any liabilities or obligations, other than unsecured trade accounts payable and accrued expenses arising in the ordinary course of the Business. 

3.14Broker. The Seller has not dealt with a broker in connection with the sale of the Business. 

3.15Sophisticated Investor. The Seller has, by reason of its business and financial experience, such knowledge, sophistication and experience in financial and business matters and in making investment decisions of this type that it is capable of (I) evaluating the merits and risks of an investment in the Issued Shares and making an informed investment decision; (II) protecting its own interest; and (III) bearing the economic risk of such investment for an indefinite period of time.  

3.16Section 9 of the Securities Act. During the term of this Agreement, the Seller will comply with the provisions of Section 9 of the 1934 Act, and the rules promulgated thereunder, with respect to transactions involving the Issued Shares.  

3.17Accredited Investor. Seller is an “Accredited Investor” as that term is defined in Rule 501(a) of Regulation D of the 1933 Act.  

3.18Investment Purposes. The Seller is purchasing the Issued Shares for its own account for investment purposes and not with a view towards distribution and agrees to resell or otherwise dispose of the Issued Shares solely in accordance with the registration provisions of the 1933 Act (or pursuant to an exemption from such registration provisions).  

	 

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3.19No Short Sales.  No short sales shall be permitted by the Seller or its Affiliates.   

3.20Disclosure. None of the representations and warranties of the Seller contained in this ARTICLE III, none of the information contained in the Schedules referred to in this ARTICLE III, and none of the other information or documents furnished to Buyer or any of its representatives by the Seller or their respective representatives contains any untrue statement of fact or omits to state any fact necessary in order to make the statements and information contained herein or therein not misleading. 

ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF THE BUYER

As an inducement to the Seller to enter into this Agreement, Buyer hereby represents and warrants to the Seller as follows:

Organization and Power 

.  Buyer has full corporate power and authority to enter into this Agreement and the other agreements contemplated hereby to which it is a party and to perform its obligations hereunder and thereunder.

Authorization 

.  The execution, delivery and performance of this Agreement and the other agreements contemplated hereby to be executed and delivered by Buyer and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized by all requisite corporate action on the part of Buyer, and no other corporate or other proceedings on the part of Buyer are necessary to authorize the execution, delivery or performance of this Agreement or the other agreements contemplated hereby.  This Agreement and the other agreements contemplated hereby to be executed and delivered by Buyer constitute valid and binding obligations of Buyer, enforceable against Buyer in accordance with their respective terms.

ARTICLE V
REPRESENTATIONS AND WARRANTIES OF THE COMPANY

As an inducement to the Seller to enter into this Agreement, the Company hereby represents and warrants to the Seller as follows:

Organization and Power 

.  The Company has full corporate power and authority to enter into this Agreement and the other agreements contemplated hereby to which it is a party and to perform its obligations hereunder and thereunder.

Authorization 

.  The execution, delivery and performance of this Agreement and the other agreements contemplated hereby to be executed and delivered by the Company and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized by all requisite corporate action on the part of the Company, and no other corporate or other proceedings on the part of the Company are necessary to authorize the execution, delivery or performance of this Agreement or the other agreements contemplated hereby.  This Agreement and the other agreements contemplated hereby to be executed and delivered by the Company constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms.

5.3Capitalization.  

	 

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(a)The authorized capital stock of Company consists of: (i) 100,000,000 shares of Common Stock, par value $0.0001, of which 3,559,200 shares of Common Stock are issued and outstanding immediately prior to the issuance of the Issued Shares; and (ii) 400,0000 shares of preferred stock, par value $0.0001, of which no shares are issued and outstanding immediately prior to the issuance of the Issued Shares.  

(b) All of the issued and outstanding shares of Common Stock of the Company immediately prior to the issuance of the Issued Shares is, and all shares of Common Stock of the Company when issued in accordance with the terms hereof will be, duly authorized, validly issued, fully paid and non-assessable, will have been issued in compliance with all applicable U.S. federal and state securities laws and state corporate laws, and will have been issued free of preemptive rights of any security holder. The issuance of the Issued Shares described herein have been, or will be, as applicable, in compliance with U.S. federal and state securities laws and state corporate laws and no stockholder of the Company has any right to rescind or bring any other claim against Buyer for failure to comply with the Securities Act, or state securities laws.  

ARTICLE VI
ADDITIONAL AGREEMENTS

Expenses 

.  Except as otherwise expressly provided herein, each Party hereto shall pay all of its own costs and expenses (including attorneys’, accountants’ and investment bankers’ fees and other out-of-pocket expenses) in connection with the negotiation and execution of this Agreement, the performance of its obligations hereunder and the consummation of the transactions contemplated hereby.  

Further Transfers; Transition Assistance 

(a).  Sellers shall execute and deliver such further instruments of conveyance and transfer and take such additional action as Buyer may reasonably request to effect, consummate, confirm or evidence the transfer to Buyer of the Assets, and Seller shall execute such documents as may be necessary to assist Buyer in preserving or perfecting its rights in the Assets.  Following the Closing, the Parties agree to cooperate with each other and to provide each other with all information and documentation reasonably necessary to permit the preparation and filing of all federal, state, local and other tax returns.  The Parties agree that Closing shall be deemed to reflect each Party’s full determination that the other Party had fulfilled all the other Party’s warranties, representations, commitments and other obligations required hereunder of said other Party at or prior to Closing. 

Confidentiality 

.  After the Closing, Seller shall maintain as confidential and shall not use or disclose (except as required by law or as authorized in writing by Buyer) any Confidential Information.  Sellers further agree to take all appropriate steps (and to cause each of its Affiliates to take all appropriate steps) to safeguard such Confidential Information and to protect it against disclosure, misuse, espionage, loss and theft.  In the event any Seller is required by law to disclose any Confidential Information, such Seller shall promptly notify Buyer in writing, which notification shall include the nature of the legal requirement and the extent of the required disclosure, and shall cooperate with Buyer to preserve the confidentiality of such Confidential Information consistent with applicable law.

6.4Lock-Up.  

(a)Effective and contingent upon the Closing, and during the period of twelve (12) months immediately following the Closing (the “Restricted Period”), the Seller will not, directly or indirectly: (i) offer, sell, assign, transfer, pledge, contract to sell, or otherwise dispose of, or announce the intention to otherwise dispose of, any Issued Shares or (ii) enter into any swap, hedge or similar  

	 

	- 8 -

	 

agreement or arrangement that transfers, in whole or in part, the economic consequence of ownership of the Issued Shares (with the actions described in clause (i) or (ii) above being hereinafter referred to as a “Disposition”), except as set forth below:

(i)Twenty-five percent (25%) of the Issued Shares shall be automatically released from the prohibition on Disposition during the Restricted Period on the first (1st) day following the Closing;  

(ii)Twenty-five percent (25%) of the Issued Shares shall be automatically released from the prohibition on Disposition during the Restricted Period on the date that is three (3) months following the Closing; and 

(iii)Twenty-five percent (25%) of the Issued Shares shall be automatically released from the prohibition on Disposition during the Restricted Period on the date that is six (6) months following the Closing; and 

(iv)Twenty-five percent (25%) of the Issued Shares shall be automatically released from the prohibition on Disposition during the Restricted Period on the date that is twelve (12) months following the Closing. 

(b)During the Restricted Period, the Company reserves the right, in its sole and absolute discretion, to accelerate the release schedule as set forth above or waive the Restricted Period; provided, however, that any such amendment or waiver to the release schedule or the Restricted Period shall only apply to the specific instance, must be in writing signed by the Parties and shall not constitute a future or ongoing waiver except as expressly provided otherwise in such written waiver.  

(c)In addition, during the period of eighteen (18) months immediately following the Closing, the Seller will not, directly or indirectly, effect or agree to effect any short sale (as defined in Rule 200 under Regulation SHO of the Exchange Act), whether or not against the box, establish any “put equivalent position” (as defined in Rule 16a-1(h) under the Exchange Act) with respect to any of the Issued Shares, borrow or pre-borrow any of the Issued Shares, or grant any other right (including, without limitation, any put or call option) with respect to Issued Shares or with respect to any security that includes, is convertible into or exercisable for or derives any significant part of its value from the Issued Shares or otherwise seek to hedge the Seller’s position in the Issued Shares. 

(d)Notwithstanding anything contained herein to the contrary, the restrictions set forth in Section 6.4 shall not apply to: 

	 

	(i)Transfers by the Seller to its Members in the form of a liquidating distribution.  

(e)The Seller hereby consents to the placing of legends or the entry of stop transfer instructions with the Buyer’s transfer agent and registrar against the transfer of the Issued Shares, except in compliance with this Agreement.  Each of the Issued Shares shall contain the following additional legend: 

 

“THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO THAT CERTAIN LOCK-UP AGREEMENT DATED FEBRUARY __, 2018 BETWEEN THE COMPANY AND THE STOCKHOLDERS WHICH RESTRICTS THE SALE, PLEDGE OR TRANSFER OF THE 

	 

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SHARES AS SET FORTH THEREIN AND MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF THAT AGREEMENT, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.”

 

ARTICLE VII
POST-CLOSING COVENANT

7.1Additional Growth Capital. Subject to the terms and conditions as set forth herein, Buyer agrees to provide and pay to the Seller, for growth and working capital of the Seller, as follows: 

(a)Within thirty (30) days following Closing, the Company agrees to fund the Buyer, as the owner and operator of the Assets, up to One Hundred Thousand and No/Dollars ($100,000.00); and 

(b)The Company shall use its best effort to provide additional funding to the Buyer up to Four Hundred Thousand and No/100 Dollars ($400,000.00) in the sole discretion of the Company.  

ARTICLE VIII
INDEMNIFICATION

8.1Indemnification.  

(a)The Seller, shall jointly and severally indemnify and pay Company, Buyer and their Affiliates, and each of their respective officers, directors, members, managers, employees, stockholders, agents and representatives (“Buyer Indemnified Parties”) against any loss, liability, claim, cost, damage, or expense (including reasonable legal fees and expenses), as incurred (payable promptly upon written request with appropriate supporting documentation), arising from, in connection with, or otherwise with respect to (i) any breach of any representation or warranty of the Seller contained in this Agreement, and (ii) the operation or conduct of the Business prior to the Closing.  

(b)Buyer shall indemnify and pay the Seller, and each of their respective affiliates, officers, directors, members, managers, employees, stockholders, agents and representatives against any loss, liability, claim, cost, damage, or expense (including reasonable legal fees and expenses), as incurred (payable promptly upon written request with appropriate supporting documentation), arising from, in connection with, or otherwise with respect to (i) any breach of any representation or warranty of the Seller contained in this Agreement, (ii) any breach of any covenant of the Seller contained in this Agreement, and (iii) the operation or conduct of the Business following the Closing, provided, however, that the Seller shall have no indemnification obligations with respect to (a) claims for violation of third-party trademark rights to the Business trade name and related service marks, (b) any intentional or grossly negligent actions or failures to act by the Sellers, or (c) any aspect of operation or conduct of the Business following the Closing that arises as a result of any breach of any covenant, representation or warranty of the Seller contained in this Agreement. 

(c)Survival. The warranties and representations of the Parties contained in this Agreement will survive the Closing and will remain in full force and effect thereafter for a period of eighteen (18) months from the Closing and shall be effective with respect to any breach thereof, notice of which shall have been duly given within such period. The covenants of the Parties contained in this  

	 

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Agreement will survive the Closing and will remain in full force and effect thereafter in accordance with their respective terms. 

ARTICLE IX
MISCELLANEOUS

Amendment and Waiver 

.  This Agreement may be amended, and any provision of this Agreement may be waived; provided that (i) any such amendment or waiver shall be binding upon each Seller only if set forth in a writing executed by such Seller and referring specifically to the provision alleged to have been amended or waived, and (ii) any such amendment or waiver shall be binding upon Buyer only if set forth in a writing executed by Buyer and referring specifically to the provision alleged to have been amended or waived.  No course of dealing between or among the Parties shall be deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any Party under or by reason of this Agreement and a waiver of any provision by any Party on one occasion shall not be deemed to be a waiver of the same or any other breach on a future occasion.

Assignment 

.  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, except that neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned or delegated by any Seller without the prior written consent of the Buyer. 

9.3Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the Parties. 

Severability 

.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement or the application of any such provision to any person or circumstance shall be held to be prohibited by or invalid, illegal or unenforceable under applicable law in any respect by a court of competent jurisdiction, such provision shall be ineffective only to the extent of such prohibition or invalidity, illegality or unenforceability, without invalidating the remainder of such provision or the remaining provisions of this Agreement.  Furthermore, in lieu of such illegal, invalid or unenforceable provision, there shall be added automatically as a part of this Agreement a legal, valid and enforceable provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible.  Notwithstanding the foregoing, if any such determination materially and adversely affects either Party, the Parties shall negotiate in good faith to modify this Agreement to the fullest extent permitted by applicable law so as to effect their original intent as closely as possible to the end that the transactions contemplated hereby are fulfilled and consummated to the maximum extent possible.

Entire Agreement 

.  This Agreement and the agreements and documents referred to herein contain the entire agreement and understanding between the Parties hereto with respect to the subject matter hereof and supersede all prior agreements and understandings, whether written or oral, relating to such subject matter in any way.  

9.6Notices.  

(a)All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid, sent by facsimile or electronic mail or otherwise delivered by hand or by messenger addressed: 

	 

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(i)If to Buyer, to Buyer’s address, facsimile number or electronic mail address as shown in Buyer’s records, as may be updated in accordance with the provisions thereof;  

 

(ii)If to the Seller, to the Seller’s principal business address, facsimile number or electronic mail address as shown in the Seller’s records. 

(b)Each such notice or other communication shall for all purposes of this Agreement be treated as effective or having been given when delivered if delivered personally, or, if sent by mail, at the earlier of its receipt or 72 hours after the same has been deposited in a regularly maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid or, if sent by facsimile or electronic mail, upon transmission by the transmitting device, when directed to the facsimile number of electronic mail address of the party as shown in the Buyer’s records, as may be updated in accordance with the provisions hereof. 

 

Counterparts 

.  This Agreement may be executed in one or more counterparts (including by means of telecopied or electronic signature pages), all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the Parties and delivered to the other Party.

 

Governing Law 

.  THE LAW OF THE STATE OF DELAWARE SHALL GOVERN ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, INTERPRETATION AND ENFORCEABILITY OF THIS AGREEMENT AND THE SCHEDULES ATTACHED HERETO, AND THE PERFORMANCE OF THE OBLIGATIONS IMPOSED BY THIS AGREEMENT, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW RULES OR PROVISIONS (WHETHER OF THE STATE OF DELWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE.

9.9Waiver. Except as expressly provided herein, no waiver of any provision of this Agreement shall be effective except in a written instrument signed by the waiving party.  No waiver shall constitute a future or ongoing waiver except as expressly provided otherwise in such waiver. 

9.10Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, all of which shall continue in full force and effect. 

9.11Further Assurances. Each Party hereto agrees to execute and deliver, by the proper exercise of its corporate, limited liability company, partnership or other powers, all such other and additional instruments and documents and do all such other acts and things as may be necessary to more fully effectuate this Agreement.    

No Strict Construction 

.  Notwithstanding the fact that this Agreement has been drafted and prepared by one of the Parties, each Parties confirms that they and their respective counsel have reviewed, negotiated and adopted this Agreement as the joint agreement and understanding of the Parties, and the language used in this Agreement shall be deemed to be the language chosen by the Parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any Person.

	 

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*     *     *     *     *

	 

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Your signature on this signature evidences your agreement to be bound by the terms and conditions of the Asset Purchase Agreement as of the date first written above.  

SELLER

 

ELEVATED PORTFOLIO HOLDINGS, LLC 

 

 

By: _________________________________

Name: ____________

Title: _____________

 

BUYER

 

ELEVATED EDUCATION, INC.

 

 

By: _________________________________

Name: ____________

Title: _____________

 

COMPANY

 

NEWBRIDGE GLOBAL VENTURES, INC.

 

By: __________________________________

Name: ____________

Title: ____________

 

 

[SIGNATURE PAGE OF ASSET PURCHASE AGREEMENT]

	 

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SCHEDULE 1.1

 

ACCOUNTS RECEIVABLES

SCHEDULE 2.2_

 

ASSUMED LIABILITIES

  

SCHEDULE 3.5

 

ACCOUNTS RECEIVABLE

 

A list of the Seller’s Accounts Receivable arising from service in the ordinary course of the Business, and estimated to be approximately $[•].

 

 

ESTIMATED ACCOUNTS RECEIVABLE AT CLOSING:

Total Estimated Purchase Price of A/R$[•] 

Total Estimated Customer Credits and Prepayments$[•] 

(Amount should include customer payments and discounts associated to the prepayment, pre-billings or other credits for services to be rendered after the closing date)

SCHEDULE 3.6

 

INTELLECTUAL PROPERTY

EXHIBIT A

 

EXCLUDED ASSETS

EXHIBIT B

 

BILL OF SALE

THIS BILL OF SALE (this “Bill of Sale”) is made and delivered this __ day of February, 2018, by the undersigned Seller (the “Seller”), for the benefit of ELEVATED EDUCATION, INC., a Delaware corporation (“Buyer”). Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Agreement (as hereinafter defined).

WHEREAS, Seller and Buyer have entered into that certain Asset Purchase Agreement dated as of the date hereof (the “Agreement”), the terms of which are incorporated herein by reference, which provides, among other things, for the sale and assignment by the Seller to Buyer of all of the Seller’s interest in the Assets (as defined in the Agreement).

NOW, THEREFORE, in consideration of the mutual promises contained in the Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by Seller, and subject to the terms and conditions of the Agreement:

1.The Seller does hereby sell, grant, assign, transfer, convey and deliver unto Buyer, and its successors and assigns, forever, all of the Seller’s right, title and interest in and to the Assets TO HAVE AND TO HOLD such Assets with all appurtenances thereto, unto Buyer, and its successors and assigns, for its use forever. 

2.This Bill of Sale shall inure to the benefit of and be binding upon the parties thereto and their respective successors and assigns. 

3.From time to time after the date hereof, the Seller shall execute, acknowledge and deliver all such further conveyances, notices, assumptions, releases and acquittances and such other instruments, and shall take such further actions, as may be reasonably necessary or appropriate to assure fully to Buyer and its successors or assigns, all of the rights, titles and interests intended to be conveyed to Buyer under the Agreement or to further evidence the conveyance of such rights, titles and interests in a form for filing with any governmental body. 

4.Nothing in this Bill of Sale, expressed or implied, is intended to or shall be construed to modify, expand or limit in any way the terms of the Agreement.  To the extent that any provision of this Bill of Sale conflicts or is inconsistent with the terms of the terms of the Agreement, the Agreement shall govern. 

5.This Bill of Sale is executed and delivered pursuant to the Agreement. 

6.This Bill of Sale shall be governed by, and construed in accordance with, the laws of the State of Utah, as applied to contracts made and performed entirely in such State without giving effect to the choice of law principles of such State that would require or permit the application of the laws of another jurisdiction. 

7.This Bill of Sale may be executed in one or more counterparts (including by means of telecopied or electronic signature pages), all of which shall be considered one and the same agreement and shall become effective when one or more such counterparts have been signed by each of the Parties and delivered to the other Party. 

IN WITNESS WHEREOF, and intending to be legally bound hereby, Seller has caused this Bill of Sale to be executed and delivered as of the day and year first above written.

SELLER: 

ELEVATED PORTFOLIO HOLDINGS, LLC 

 

 

By:_____________________________ 

Name:_____________________________ 

Its:_____________________________ 

 

 

 

BUYER:

 

ELEVATED EDUCATION, INC 

By:_____________________________ 

Name:_____________________________ 

Its:_____________________________

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