Document:

Exhibit
10.13 

 

Settlement
and Release AGREEMENT

 

This
Settlement and Release Agreement (“Agreement”) by and between Synergy CHC Corp., a Nevada corporation (“Releasor”),
the former shareholders (the “Shareholders”) of Breakthrough Products, Inc., a Delaware corporation (the “Company”),
URX ACQUISITION TRUST, a Delaware statutory trust (the “Trust”), on its own behalf and as the representative
of the Shareholders, David T. Leyrer (“Leyrer”), Michael Valentino (“Valentino”),
Ron Fugate (“Fugate”), and Randall Kaplan (“Kaplan”, and collectively with Leyrer,
Valentino, Fugate, the “Former Directors”) is dated and effective as of the 17th day of December,
2015.

 

WHEREAS,
the Company, the Trust, Jordan Eisenberg, the former chief executive officer of the Company and a Shareholder, the Shareholders and Releasor
are parties to that certain Stock Purchase Agreement (the “SPA”) dated November 12, 2015 (capitalized terms
used herein but not otherwise defined have the meaning ascribed to them in the SPA);

 

WHEREAS,
pursuant to the terms of the SPA, Releasor acquired all outstanding shares of capital stock of the Company (the “Transaction”);

 

WHEREAS,
pursuant to the terms of the SPA, the Shareholders, the Company and the Trust made certain representations and warranties to Releasor
regarding, among other things, the financial condition of the Company and the Company’s outstanding liabilities and obligations
to third parties;

 

WHEREAS,
following the Transaction, Releasor discovered certain irregularities in the financial information of the Company as well as conflicting
information regarding the Company’s liabilities and obligations to third parties from what was previously provided by the Company;

 

WHEREAS,
Releasor made a claim for indemnification against the Shareholders and the Trust pursuant to Section 8 of the SPA (the “Claim”);

 

WHEREAS,
Releasor and the Trust, on its own behalf and on behalf of the Shareholders, have reached an agreement to resolve the Claim to the mutual
satisfaction of all parties and wish to document such settlement in this Agreement.

 

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

 

1.
Settlement Payments.

 

	 	a.	The
    Trust will return Three Million (3,000,000) shares of Releasor’s common stock to Releasor. Upon execution of this Agreement,
    the Trust will return the certificate representing the Equity Consideration to Releasor’s transfer agent, VStock Transfer,
    with instructions to transfer Three Million (3,000,000) shares to Releasor and return a new certificate to the Trust for the balance
    of Three Million (3,000,000) shares of Releasor’s common stock.
	 	 	 
	 	b.	The
    time period under which Royalty Consideration is payable to the Trust by Releasor under the SPA is reduced from seven (7) years to
    five (5) years.
	 	 	 
	 	c.	Releasor
    will issue a warrant in the form of Exhibit A to the Trust.

 

    	 

    	 

    

 

2.
Releases.

 

	 	a.	Release
    of the Trust and Shareholders by Releasor. Except as set forth in Section 3 of this Agreement, in exchange for the payments
    outlined above, Releasor, on its own behalf and on behalf of its Affiliates, directors, officers, managers, employees, agents, representatives,
    successors, and assigns, forever releases and discharges the Trust and its trustees, the Shareholders and their respective agents,
    representatives, successors, and assigns from any and all claims, demands, and causes of action of every kind and nature, whether
    known or unknown, direct or indirect, accrued, contingent or potential, which Releasor ever had or now has and which arose from the
    beginning of time until the date of this Agreement.
	 	 	 
	 	b.	Release
    of the former Directors of the Company by Releasor. Except as set forth in Section 3 of this Agreement, in exchange for
    the payments outlined above, Releasor, on its own behalf and on behalf of its Affiliates, directors, officers, managers, employees,
    agents, representatives, successors, and assigns, forever releases and discharges the Former Directors and their agents, representatives,
    heirs and assigns from any and all claims, demands, and causes of action of every kind and nature, whether known or unknown, direct
    or indirect, accrued, contingent or potential, which Releasor ever had or now has and which arose from the beginning of time until
    the date of this Agreement.
	 	 	 
	 	c.	Release
    of Releasor by the Trust and the Former Directors. Except as set forth in Section 3 of this Agreement, in exchange for
    the payments outlined above, the Trust, on its own behalf and as the representative of the Shareholders, its trustees, agents, representatives,
    successors, and assigns and the Former Directors, their heirs and assigns, forever release and discharge Releasor, its Affiliates,
    and their respective directors, officers (other than the officers of the Company prior to November 12, 2015), managers, employees
    (other than employees of the Company who were employees prior to November 12, 2015, whether or not they remained employees after
    such date), agents, representatives, successors, and assigns from any and all claims, demands, and causes of action of every kind
    and nature, whether known or unknown, direct or indirect, accrued, contingent or potential, which such parties ever had or now have
    and which arose from the beginning of time until the date of this Agreement.
	 	 	 
	 	d.	With
    respect to the foregoing releases, Releasor, Trust and the Former Directors each expressly waive any and all provisions, rights and
    benefits conferred by any law of the United States or of any country, state or territory of the United States, or principle of common
    law, which is similar, comparable, or equivalent to Section 1542 of the California Civil Code, and including Section 1542 of the
    California Civil Code which provides:

 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING
THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

3.
Future Claims. Each party to this Agreement specifically acknowledges and agrees that all rights of any party to pursue Jordan
Eisenberg and any former officers and employees of the Company (the “Company Management Team”) are specifically
reserved, except that no claim survives against Valentino notwithstanding his title as Chairman of the Company. Releasor hereby covenants
and agrees not to bring or initiate any proceeding to assert any claims, rights or remedies against the Trust, any trustee of the Trust,
any Former Director or any Shareholder (other than Shareholders who are also members of the Company Management Team) under the indemnification
provisions of the SPA or otherwise that relate in any way to the Claim, to any other potential claims under the SPA or to the Transaction;
provided, however, that all parties acknowledge and agree that any claims by Releasor against the Trust or any Shareholder
for breach of any representation or warranty contained in Sections 3 and 4(e) of the SPA are specifically preserved (the “Preserved
Claims”). For purposes of clarity, Releasor and its successors and assigns shall have no further rights to indemnification
under Section 8 of the SPA other than claims against the Company Management Team and other than the Preserved Claims.

 

4.
Authority. Each party to this Agreement, on its own behalf and on behalf of those it represents, represents and warrants to
all other parties that such party has all requisite power and authority to enter into this Agreement and to carry out its obligations
thereunder.

 

    	 

    	 

    

 

5.
Successors and Assigns. This Agreement shall inure to the benefit of and shall be binding upon the successors and assigns
of the parties hereto.

 

6.
Governing Law; Jurisdiction. This Agreement shall be construed, performed and enforced in accordance with, and governed by,
the laws of the State of North Carolina, United States, without giving effect to the principles of conflicts of laws thereof. The parties
hereto irrevocably consent to the jurisdiction of, the federal and state courts of the State of North Carolina located in Wake County,
North Carolina for such purpose.

 

7.
Expenses. Except as otherwise provided herein, each of the parties hereto shall pay all its own expenses in connection with
this Agreement and the transactions contemplated hereby, including, without limitation, any legal and accounting fees.

 

8.
Severability. In the event that any part of this Agreement is declared by any court or other judicial or administrative body
to be null, void or unenforceable, said provision shall survive to the extent it is not so declared, and all of the other provisions
of this Agreement shall remain in full force and effect.

 

9.
Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed
to have been duly given (i) on the date of service if served personally on the party to whom notice is to be given, or (ii) on the day
of delivery by Federal Express or similar overnight courier or the Express Mail service maintained by the U.S. Postal Service, to the
party the addresses set forth in the SPA.

 

10.
Amendments; Waivers. This Agreement may be amended or modified, and any of the terms, covenants, representations, warranties
or conditions hereof may be waived, only by a written instrument executed by the parties hereto, or in the case of a waiver, by the party
waiving compliance. Any waiver by any party of any condition, or of the breach of any provision, term, covenant, representation or warranty
contained in this Agreement, in any one or more instances, shall not be deemed to be nor construed as further or continuing waiver of
any such condition, or of the breach of any other provision, term, covenant, representation or warranty of this Agreement.

 

11.
Public Announcements. The Trust shall not make any public statement regarding this Agreement or the transactions contemplated
herein without Releasor’s prior written approval. Releasor will be required to file a Form 8-K with the U.S. Securities and Exchange
Commission regarding this Agreement

.

12.
Entire Agreement. This Agreement and the exhibits hereto contain the entire understanding between the parties hereto with
respect to the matters contemplated hereby and thereby and supersede and replace all prior agreements and understandings, oral or written,
with regard to such matters.

 

13.
Section and Paragraph Headings. The section and paragraph headings in this Agreement are for reference purposes only and shall
not affect the meaning or interpretation of this Agreement.

 

14.
Counterparts. This Agreement may be executed in counterparts and via .pdf, each of which shall be deemed an original, but
all of which shall constitute the same instrument.

 

15.
Independent Counsel; Mutual Drafting. Each party hereto consulted, or had the opportunity to consult, legal counsel or other
advisors of its own choosing with respect to this Agreement and fully understands the meaning and intent of, this Agreement, including,
but not limited to, the final and binding effect of this Agreement and the acknowledgments, releases, and waivers contained herein. Each
party hereto shall be deemed to have consulted and assisted with the drafting of this Agreement such that any ambiguity herein shall
not be construed in favor of one party over the other party.

 

[Signature
Page Follows]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this Settlement and Release Agreement effective as of the day and year first above written.

 

	 	SYNERGY
    CHC CORP.
	 	 	 
	 	By:	/s/
    Jack Ross
	 	Name:	Jack
    Ross
	 	Title:	Chief
    Executive Officer

 

	 	URX
    ACQUISITION TRUST,
	 	on
    its own behalf and as representative of the Shareholders
	 	 	 
	 	KMJZ
    Investments, L.L.C., Voting Trustee
	 	 	 
	 	By:
    	/s/
    Scott Peppett
	 	Name:
    	Scott
    Peppett
	 	Title:	Authorized
    Representative
	 	 	 
	 	Arbicha
    Invesments, L.L.C., Voting Trustee
	 	By
    Arbicha, LLC, Sole Member
	 	 	 
	 	By:
    	/s/
    Randall Kaplan
	 	Name:
    	Randall
    Kaplan
	 	Title:	Manager
	 	 	 
	 	Casa
    Vicente, LLC, Voting Trustee
	 	 	 
	 	By:
    	/s/
    David Leyrer
	 	Name:
    	David
    Leyrer
	 	Title:	Manager
	 	 	 
	 	URX
    Acquisition Trustee, LLC
	 	 	 
	 	By:
    	/s/
    Michael Valentino
	 	Name:
    	Michael
    Valentino
	 	Title:	Sole
    Member

 

[Signature
Page to Settlement and Release Agreement]

 

    	 

    	 

    

 

	 	FORMER
    DIRECTORS:
	 	 
	 	David
    T. Leyrer 
	 	 
	 	/s/
    David T. Leyrer
	 	 
	 	Michael
    Valentino
	 	 
	 	/s/
    Michael Valentino
	 	 
	 	Ron
    Fugate 
	 	 
	 	/s/
    Ron Fugate
	 	 
	 	Randall
    Kaplan
	 	 
	 	/s/
    Randall Kaplan

 

[Signature
Page to Settlement and Release Agreement]

 

    	 

    	 

    

 

Exhibit
A

 

Form
of Warrant

 

[Exhibit
A to Settlement and Release Agreement]Exhibit
10.14

 

HAND
MD

DISTRIBUTION
AGREEMENT

(Canada)

 

THIS
AGREEMENT, effective December 23, 2016, by and among KNIGHT THERAPEUTICS INC. (“Knight”), a corporation incorporated
under the laws of Canada, and SYNERGY CHC CORP. (“Synergy”), a corporation formed under the laws of Nevada.

 

WHEREAS
Synergy and Knight Therapeutics (Barbados) Inc. (“KB”) are parties to that certain distribution, license and supply
agreement dated January 22, 2015 as may be amended, supplemented or restated from time to time (collectively the “DLS Agreement”);

 

WHEREAS
pursuant to the DLS Agreement, Synergy, for itself and on behalf of its Affiliates, has named KB its exclusive distributor of Licensed
Products in the Territory;

 

WHEREAS
KB assigned all of its rights under the DLS Agreement in respect of Licensed Products in Canada to Knight;

 

WHEREAS
MD Products (as herein defined) are included amongst the Licensed Products;

 

WHEREAS
Knight wishes to enter into this distribution agreement with Synergy in respect of Direct Channel Sales and of Retail Sales of MD
Products in Canada;

 

NOW
THEREFORE in consideration of the mutual promises and covenants contained herein, the Parties, intending to be legally bound, agree
as follows:

 

	1	DEFINITIONS 

 

	1.1	Definitions.
    Unless the context otherwise indicates, defined terms used in this Agreement shall have the meaning ascribed thereto in the DLS
    Agreement.
	 	 
	1.2	The
    following terms as used hereinafter in this Agreement shall have the meaning set forth in this Section:

 

“Cost
of Goods” means Knight’s cost of manufacture, packaging and/or purchase of MD Products and supply of same to Synergy
under this Agreement. For greater certainty, where Knight purchases MD Products from a Manufacturer, the Cost of Goods will be the amount
paid by Knight to the Manufacturer.

 

“Direct
Channel Sales” means the Commercialization of MD Products in Canada directly to consumers from a website or any other direct-to-consumer
sales channel.

 

“MD
Products” means the “Hand MD” line of products as now or may in the future be Commercialized by Synergy or its
Affiliates (including future line extensions relating thereto) and other skin care products and related accessories Commercialized from
time to time by Synergy or any company or entity controlled by Synergy. For greater certainty, the “Hand MD” line of products
shall include any products and accessories that are Commercialized under the “Hand MD” trademark and/or tradename (or any
variations thereof).

 

    	 

    	2

    

 

“Gross
Sales” means the gross invoiced sales price for MD Products sold by Synergy or its Affiliates, as applicable, to Third Parties
throughout Canada during each Calendar Quarter, less only (i) the shipping and handling charges that are actually incurred by Synergy
or its Affiliates in delivering such MD Products to Third Parties in Canada and (ii) sales, value added and other similar taxes that
are included in the gross invoiced sales price of MD Products. Sales between or among Synergy and its Affiliates shall be excluded from
the computation of Gross Sales, but Gross Sales shall include the subsequent final sales to Third Parties by any such Affiliates. Where
(a) MD Products are sold by Synergy or its Affiliates other than in an arm’s length sale, (b) MD Products are sold as one of a
number of items without a separate invoiced price; or (c) consideration for MD Products shall include any non-cash element, the Gross
Sales applicable to any such transaction shall be deemed to be Synergy’s average Gross Sales to Third Parties for the applicable
quantity of MD Products at that time.

 

“Retail
Sales” means the Commercialisation of MD Products in Canada, other than through Direct Channel Sales, and includes wholesale distribution
and retail sales.

 

“Threshold
Amount” means the aggregate gross sales in Canada for the four (4) successive Calendar Quarters ending December 31, 2016 of
the Flat Tummy Tea products as determined pursuant to the Distribution Agreement between Knight and an affiliate of Synergy in respect
to such product.

 

	1.3	Other
    Definitional and Agreement References. References to any agreement, contract, statute, act, or regulation are to that agreement,
    contract, statute, act, or regulation as amended, modified or supplemented from time to time in accordance with the terms hereof
    and thereof.
	 	 
	1.4	Ambiguities.
    Ambiguities, if any, in this Agreement shall not be construed against any Party, irrespective of which Party may be deemed to
    have authored the ambiguous provision.
	 	 
	1.5	Sections
    and Headings. The term “Section” refers to the specified Section of this Agreement, unless otherwise specified. Headings
    and captions of the Sections hereof are for convenience only and are not to be used in the interpretation of this Agreement.
	 	 
	1.6	Canadian
    Dollars. References in this Agreement to “Dollars” or “$” shall mean the legal tender of Canada, unless
    otherwise noted.
	 	 
	1.7	Gender.
    Words of one gender include the other gender,
	 	 
	1.8	Include,
    Includes, Including. Whenever the words “include”, “includes” or “including” are used in
    this Agreement, they shall be deemed to be followed by the words “without limitation”, whether or not they are in fact
    followed by those words or words of like import.

 

    	 

    	3

    

 

	1.9	Joint
    and Several Obligations. Unless specified otherwise in this Agreement, the obligations of any Party consisting of more than one person
    are joint and several.
	 	 
	1.10	Number
    of Days. Whenever this Agreement refers to a number of days, unless otherwise specified, such number shall refer to calendar days.
	 	 
	1.11	Party
    References. Reference to any Party includes the successors and permitted assigns of that Party.
	 	 
	1.12	Singular/Plural.
    Words using the singular or plural number also include the plural or singular number, respectively.

 

DISTRIBUTION
TERMS

 

	2.1	Distribution.
    Subject to the terms of the Agreement, Knight on behalf of itself and its Affiliates, hereby appoints Synergy as its exclusive Third
    Party distributor of MD Products for Canada solely and exclusively in respect of Direct Channel Sales and Retail Sales and further
    grants to Synergy and Synergy hereby accepts for Canada and solely and exclusively in respect of Direct Channel Sales and Retail
    Sales a non-exclusive sublicense under the Synergy Marks used in association with MD Products to Commercialize MD Products through
    Direct Channel Sales and Retail Sales in Canada. For greater certainty, the said appointment shall not limit the right of Knight
    (directly or through its Affiliates) to distribute MD Products in Canada through Direct Channel Sales and Retail Sales. Without limiting
    the generality of the forgoing, in the event that Knight determines to create and operate a website or uses other social media to
    promote and sell MD Products in Canada, it shall consult with Synergy and each of Synergy and Knight shall coordinate and cooperate
    with respect to their web and social media initiatives. In commercializing the MD Products in Canada through Direct Channel Sales
    or Retail Sales, Knight shall not pursue a brand strategy that Synergy, acting reasonably, determines is materially adverse to the
    brand equity of MD Products in Canada.
	 	 
	2.2	Sublicensing.
    Synergy may sublicense its rights granted hereunder or use sub-distributors or third party service providers to exercise its right
    or fulfill its obligations hereunder. All sublicense agreements, distribution or other arrangements or agreements shall be consistent
    with the terms and conditions of this Agreement, and Synergy assumes full responsibility for any actions taken by any sublicensee,
    distributor or other party and any of the expenses, costs, or fees incurred by any sublicensee, distributor or other party.
	 	 
	2.3	Interim
    Period. Section 3.2 below contemplates that Knight may enter into an agreement with the Manufacturer. Knight shall advise Synergy
    by notice in writing when such agreement is in place (the “Notice Date”). Notwithstanding Section 3.1, until the Notice
    Date, Synergy shall be permitted to source MD Products directly from the Manufacturer. In respect to inventory of MD Products sourced
    directly by Synergy as permitted by this Section 2.3, Synergy will make the following payments to Knight in each Calendar Year:

 

	 	2.3.1	In
    respect to MD Products Commercialized through Direct Channel Sales, sixty percent (60%) of Gross Sales until Gross Sales from Direct
    Channel Sales in such Calendar Year are equal to the Threshold Amount and then forty percent (40%) of all such Gross Sales in such
    Calendar Year in excess of the Threshold Amount.

 

    	 

    	4

    

 

	 	2.3.2	In
    respect to MD Products Commercialized through Retail Sales, five percent (5%) of Gross Sales from Retail Sales .

 

	2.4	Payment.
    Payment shall be made on a monthly basis (on or before the fifteenth (15th) day of each month) for all Gross Sales
    of such inventory and until such inventory is exhausted.

 

	3	SUPPLY

 

	3.1	Exclusivity.
    Except as set forth otherwise in Section 2.3, Synergy will purchase all of its requirements of MD Products for Canada and in
    respect of Direct Channel Sales or Retail Sales exclusively from Knight, subject to the terms and conditions of this Agreement.
	 	 
	3.2	Manufacturer.
    Synergy acknowledges that Knight may from time to time enter into an agreement with contract manufacturer(s) (collectively, the
    “Manufacturer”) for the supply (which may include packaging) of MD Products under this Agreement. In such instances,
    Knight and Synergy shall determine mutually acceptable procedures that will allow Synergy to liaise directly with the Manufacturer
    in respect of order entry, logistics, delivery and other related matters; provided that Synergy shall acquire MD Products
    exclusively from Knight as stated in Section 3.1 above. Subject to Section 3.5 below, Knight will, at Synergy’s request, facilitate
    any claims, demands, complaints or similar actions that Synergy wishes to assert against the Manufacturer in respect of MD Products
    purchased by Synergy from Knight.
	 	 
	3.3	Packaging.
    The parties acknowledge that to the extent that the Manufacturer does not supply the packaging for the MD Products, Knight shall
    not be obliged to supply packaging to Synergy. Synergy will continue to source such packaging itself and will make arrangements with
    the Manufacturer to fill bulk product into the packaging provided.
	 	 
	3.4	Credit
    Limit. Knight may impose reasonable credit limits on the amount of MD Products that are on order or unpaid from time to time.
	 	 
	3.5	Liability.
    Synergy acknowledges that Knight’s liability for any and all claims arising from or in connection with the supply of MD
    Products under this Agreement shall be limited to the amounts that Knight may itself recover from the Manufacturer less all amounts
    incurred by Knight to recover such amounts.
	 	 
	3.6	Regulatory
    Submissions. Knight shall be solely responsible, at its expense, for preparing, filing, and managing any Regulatory Submission
    and for maintaining any Regulatory Approval for the MD Products in Canada. Synergy shall provide reasonable assistance to Knight
    in making submissions to Governmental Authorities and maintaining such Regulatory Approvals. Unless otherwise required by Applicable
    Law, any Regulatory Approvals shall be filed, owned and held in the name of Knight. Knight shall notify Synergy of all Regulatory
    Submissions that it submits.

 

    	 

    	5

    

 

	3.7	Regulatory
    Correspondence. Each Party shall promptly (and in any event, within five (5) Business Days of the date of receipt of notice)
    notify the other Party in writing of, and shall provide the other Party with copies of, any material correspondence received from
    a Governmental Authority in Canada. In the event that a Party receives any material regulatory letter requiring a response, the other
    Party will cooperate fully with the receiving Party in preparing such response and will promptly provide the receiving Party with
    any data or information required by the Receiving Party in preparing any such response.

 

	3.8	Other
    Covenants. In addition to its other obligations, commitments and undertakings set out in this Agreement, Knight agrees to assume
    the reasonable costs of intellectual property filings, procurement and maintenance for all intellectual property applications and
    registrations associated with the MD Products in Canada.

 

	3.9	Additional
    Terms.

 

	 	3.9.1	A
    Party shall promptly notify the other Party in writing of all proposed changes, whether voluntary or involuntary, including those
    arising from a request from a Governmental Authority in Canada, concerning the quality of MD Products and/or documentation or other
    items for such changes relating to the quality of the MD Products. The Parties shall negotiate in good faith towards an appropriate
    response to such a Governmental Authority in respect of each proposed change in the quality of the MD Products including any costs
    associated with implementing said changes.
	 	 	 
	 	3.9.2	Minor
    changes in the procedures for manufacture or quality control that do not require approval from a Governmental Authority in Canada
    or that will not affect Regulatory Approvals in Canada will be communicated by Knight to Synergy in an annual review.
	 	 	 
	 	3.9.3	Knight
    will maintain complete and accurate books, records, and accounts used for the determination of expenses, deductions, credits, or
    other relevant factors in connection with the calculation of Cost of Goods, in sufficient detail to confirm the accuracy of any payments
    required under this Agreement, which books, records, and accounts will be retained until three (3) years after the end of the period
    to which such books, records, and accounts pertain.
	 	 	 
	 	3.9.4	During
    the Term of this Agreement and for three (3) years thereafter, Synergy will have the right to have an independent certified public
    accounting firm of internationally recognized standing access during normal business hours, and upon reasonable prior written notice,
    to such of the records of Knight as may be reasonably necessary to verify the accuracy of Cost of Goods for any Calendar Quarter.
    The accounting firm will disclose to the Parties only whether the Cost of Goods reported by Knight is correct or incorrect and the
    specific details concerning any discrepancies. The auditing Party will bear all costs of such audit, unless the audit reveals a discrepancy
    in the auditing Party’s favor of more than five percent (5%), in which case the other Party will bear the cost of the audit.

 

    	 

    	6

    

 

Each
Party will treat all information subject to review under this Section as Confidential Information and will cause its accounting firm
to enter into a reasonably acceptable confidentiality agreement obligating such firm to maintain all such financial information in confidence
pursuant to such confidentiality agreement.

 

	 	3.9.5	If,
    based on the results of any audit under Section 3.9.4, payments are owed by one Party to the other under this Agreement, then the
    Party having such obligation will make such payment promptly after the accounting firm’s written report is delivered by courier
    or registered mail to both Parties.
	 	 	 
	 	3.9.6	With
    respect to the Commercialization of MD Products in Canada, Synergy shall comply with (i) the requirements of the Advertising Standards
    Canada, (ii) the Code of Ethical Practices adopted from time to time by Innovative Medicines Canada and (iii) all Applicable Laws.

 

	3.10	Responsibility.
    Synergy acknowledges the terms and conditions of the DLS Agreement and agrees that, except as set forth in this Agreement, it shall
    be solely liable and responsible for all obligations, liabilities and requirements under the DLS Agreement and under Applicable Law
    relating to the Commercialization of MD Products in Canada through Direct Channel Sales and Retail Sales as permitted pursuant to
    Section 2.1 and shall indemnify and hold Knight harmless in respect of same.

 

	4	PAYMENT AND FINANCIAL TERMS

 

	4.1	Product
    Price. Knight will supply MD Products to Synergy at a price (the “Product Price”) equal to the aggregate of
    (i) the Cost of Goods and (ii) in respect to MD Products sold through Direct Channel Sales, for each Calendar Year sixty percent
    (60%) of Gross Sales from Direct Channel Sales until the Gross Sales in such Calendar Year from Direct Channel Sales equal the Threshold
    Amount and then forty percent (40%) of all such Gross Sales in that same Calendar Year in excess of the Threshold Amount and (iii)
    in respect to MD Products sold thought Retail Sales, five percent (5%) of Gross Sales from Retail Sales. Knight shall initially invoice
    Synergy for the Cost of Goods for MD Products supplied hereunder. Synergy shall pay Knight’s invoice for the Cost of Goods
    no later than thirty (30) days after delivery of MD Products relating thereto.

 

	4.2	Report.
    Within twenty-five (25) days following the end of each Calendar Quarter, Synergy shall render a written report to Knight setting
    forth the following information and calculations in which sales of MD Products occurred in the Calendar Quarter covered by such report:

 

	 	4.2.1	the
    Gross Sales, if any, in Canadian dollars;
	 	 	 
	 	4.2.2	the
    calculation of the balance of the Product Price for MD Products Commercialised through Direct Chanel Sales (having regard to the
    Cost of Goods previously invoiced) based on that Calendar Quarter’s actual Gross Sales; and

 

    	 

    	7

    

 

	 	4.2.3	the
    calculation of the balance of the Product Price for MD Products Commercialised through Retail Sales (having regard to the Cost of
    Goods previously invoiced) based on that Calendar Quarter’s actual Gross Sales.

 

	4.3	Balance
    of Product Price. The payment of the balance of the Product Price shall be made by Synergy within thirty (30) days from the end
    of each Calendar Quarter in which such payment accrues.
	 	 
	4.4	Minimum.
    The minimum payment to be paid each full Calendar Year during the Term by Synergy to Knight in respect of Retail Sales pursuant
    to Sections 2.3.2 and 4.1(iii) shall be no less than $25,000 in the aggregate. Synergy shall, by no later than January 31 of the
    Calendar Year immediately following, make such payment (if any) as is required to meet such requirement. If the Agreement is terminated
    other than at the end of a Calendar Year, such minimum payment shall be pro-rated.
	 	 
	4.5	Currency.
    The Product Price shall be paid by Synergy in Canadian dollars. For the purposes of determining the Cost of Goods, if incurred
    by Knight in a currency other than Canadian dollars, the Cost of Goods shall be converted into Canadian dollars using the closing
    conversion rate of the Bank of Canada on the business date prior to the date of the invoice to Synergy in respect thereof, and with
    respect to the balance of the Product Price, if Gross Sales were invoiced in a currency other than Canadian dollars, Gross Sales
    shall be converted into Canadian dollars using the closing conversion rate of the Bank of Canada on the last business day of the
    calendar quarter preceding the applicable calendar quarter.
	 	 
	4.6	Procedures.
    All sums due under this Agreement shall be paid by wire transfer of immediately available funds, or such other method mutually
    agreed upon by the Parties, in each case at the expense of the payer, no later than the due date thereof (with twenty-four (24) hours
    advance notice of each wire transfer) to the bank accounts or such other bank accounts as the payee shall designate in writing within
    reasonable period of time prior to such due date.
	 	 
	4.7	Interest.
    In the event that any payment due hereunder is not made when due, interest shall accrue at a rate per annum equal to the lesser
    of one point twenty-five percent (1.25%) per month or the highest rate permitted by Law, calculated on the number of days such payments
    are paid after the date such payments are due and compounded monthly.
	 	 
	4.8	Withholding
    Tax. Synergy will make all payments to Knight under this Agreement without deduction or withholding for taxes except to the extent
    that any such deduction or withholding is required by law in effect at the time of payment. Any tax required to be withheld on amounts
    payable by Synergy under this Agreement will be timely paid by Synergy on behalf of Knight to the appropriate Governmental Authority,
    and Synergy will furnish Knight with the corresponding proof of payment of such tax, as may be required in order to enable Knight
    to request reimbursement or deduction of the withheld amount, or to otherwise comply with its duties. Synergy and Knight agree to
    cooperate to legally minimize and reduce such withholding taxes and provide any information or documentation required by any taxing
    authority.

 

    	 

    	8

    

 

	4.9	VAT
    and Similar Taxes. All amounts paid by Synergy to Knight under this Agreement are exclusive of, and Synergy shall pay any sales,
    use, rental, custom, excise, stamp documentary, value added, consumption or other similar Taxes, duties, levies, fees or charges
    that may be assessed in any jurisdiction resulting from or arising under this Agreement. Knight shall collect and remit such taxes,
    duties, levies, fees or charges as required under Law.

 

	5	TERM

 

	5.1	Initial
    Term. The appointment set forth in Section 2.1 shall be for an initial period terminating on February 15, 2021, and this Agreement
    shall automatically renewal for additional one (1) year terms unless either Party gives notice of nonrenewal at least one hundred
    and eighty (180) days prior to the end of the then-current term.
	 	 
	5.2	Termination
    for Breach. Either Party may terminate this Agreement by written notice to the other Party with immediate effect in the following
    cases:

 

	 	(a)	In
    the event of a petition in bankruptcy or insolvency of the other Party, or in case of the filing by the other Party of any petition
    or answer seeking reorganization, readjustment, or rearrangement of its business under any law or any government regulation relating
    to bankruptcy or insolvency, or in case of the institution by the other Party of any proceedings for the liquidation or winding up
    of its business, or for the termination of its corporate charter.

 

	 	(b)	If
    the other Party is otherwise in material default or breach of this Agreement and such default or breach is not cured within (i) sixty
    (60) days after written notice thereof is delivered to the defaulting or breaching Party (thirty (30) days in the case of Synergy’s
    failure to pay any amounts due hereunder), or (ii) in the case of a breach that cannot be cured within sixty (60) days, within a
    reasonable period not exceeding one hundred twenty (120) days after written notice thereof is delivered to the defaulting or breaching
    Party.

 

	5.3	Effect
    of Termination. Upon expiry or termination of this Agreement, all rights granted by Knight hereunder shall terminate and Synergy
    undertakes to except as provided for in Section 5.4, cease any Commercialization of the MD Products in Canada.

 

	5.4	Sell-Off
    of Inventory. Subject to compliance with Section 4 hereof, upon termination of this Agreement, Synergy shall be entitled to sell
    off any inventory of the MD Products in Synergy’s possession or control or which are subject to binding purchase orders on
    the date such termination is effective.

 

    	 

    	9

    

 

	6	LIMITATION
    OF LIABILITY

 

WITHOUT
LIMITING THE PARTIES’ OBLIGATIONS REGARDING INDEMNIFICATION, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY OR TO

 

ANY
THIRD PARTY WHO MAY BENEFIT FROM ANY PROVISION OF THIS AGREEMENT FOR SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES
(INCLUDING DAMAGES RESULTING FROM LOSS OF USE, LOSS OF PROFITS, INTERRUPTION OR LOSS OF BUSINESS OR OTHER ECONOMIC LOSS) ARISING OUT
OF THIS AGREEMENT OR WITH RESPECT TO A PARTY’S PERFORMANCE OR NON-PERFORMANCE HEREUNDER.

 

	7	OTHER
    PROVISIONS

 

	7.1	Further
    Assurances. Upon request by either Party and at such Party’s expense, the other Party shall do such further acts and execute
    such additional agreements and instruments as may be reasonably necessary to give effect to the purposes of this Agreement.
	 	 
	7.2	Independent
    Status. Each Party shall act as an independent contractor and shall not bind nor attempt to bind the other Party to any contract,
    nor any performance of obligations outside of the license agreement. Nothing contained or done under the Agreement shall be interpreted
    as constituting either Party the agent of the other in any sense of the term whatsoever or in the relationship of partners or joint
    venturers.
	 	 
	7.3	Assignment.
    Except in connection with the acquisition of a Party or the sale of all or substantially all of the assets of such Party, this
    Agreement may not be, directly or indirectly, assigned or transferred, in whole or in part, by a Party to a Third Party without the
    prior written consent of the other Party. The rights and obligations contained herein shall inure to the benefit of each Party’s
    successors and permitted assigns, and shall be binding on and enforceable against the relevant Party’s successors and permitted
    assigns. Any reference in this Agreement to any Party shall be construed accordingly.
	 	 
	7.4	Compliance
    with Law. Each Party shall comply with, and shall not be in violation of any valid applicable international, national, provincial
    or local statutes, laws, ordinances, rules, regulations, or other governmental orders of Canada.
	 	 
	7.5	Force
    Majeure. No Party shall be responsible for a failure or delay in performance of any of the obligations hereunder due wars, insurrections,
    strikes, acts of God, power outages, storms, or actions of regulatory agencies (such events being defined as “Force Majeure”),
    provided that the Party seeking relief from its obligations advises the other Party forthwith of the Force Majeure. A Party whose
    performance of obligations has been delayed by force majeure shall use commercially reasonable efforts to overcome the effect of
    the Force Majeure as soon as possible. The other Party will have no right to demand indemnity for damage or assert a breach against
    such Party, provided, however, that if the event of Force Majeure preventing performance shall continue for more than six (6) months
    and such underlying cause would not also prevent other parties from performing such obligations, then the Party not subject to the
    event of Force Majeure may terminate this Agreement with a written notice to the other without any liability hereunder, except the
    obligation to make payments due to such date.

 

    	 

    	10

    

 

	7.6	Notices
    and Amendments. Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be
    given by facsimile or other means of electronic communication or by hand delivery as hereinafter provided. Any such notice, if sent
    by fax or other means of electronic communication, shall be deemed to have been received on the day of sending, or if delivered by
    hand shall be deemed to have been received at the time it is delivered to the applicable address noted below. Notices of change of
    address shall also be governed by this Section 7.6. Notices and other communications shall be addressed as follows:

 

(a)
     In the case of the Synergy:

 

SYNERGY
CHC CORP.

865 Spring Street

Westbrook,
Maine 04092

Attention: Jack Ross

E-mail:
jack.ross@purebrands.ca

 

with
a copy to:

 

Wyrick
Robbins Yates & Ponton LIP

4101
Lake Boone Trail, Suite 300

Raleigh,
North Carolina 27607

U.S.A.

Attention:
W. David Mannheim, Esq.

Fax:
(919) 781-4865

E-mail:
dmannheim@wyrick.com

 

(b)
     In the case of Knight:

 

KNIGHT
THERAPEUTICS INC.

3400
de Mainsonneuve

Suite
1055

Westmount,
Quebec H3Z 3B8

Attention:
Jeff Kadanoff, Chief Financial Officer

Fax:(514)
481-4116

E-mail:
jkadanoff@gud-knight.com

 

With
a copy to:

 

Davies
Ward Phillips & Vineberg LLP

1501
McGill College Ave.

Suite
2600

Montreal,
Quebec H3A 3N9

Attention:
Hillel W. Rosen

Fax:
(514) 841-6499

E-mail:
hrosen@dwpv.com

 

    	 

    	11

    

 

	7.7	Waiver.
    No failure to exercise and no delay in exercising any right or remedy hereunder shall operate as a waiver thereof. Any waiver granted
    hereunder shall only be applicable the specific acts covered thereby and shall not apply to any subsequent events, acts, or circumstances

 

	7.8	Complete
    Agreement. This Agreement embodies all of the understandings and obligations between the Parties with respect to the subject
    matter hereof and supersedes any prior or contemporaneous agreements and understandings, whether written or oral, between the Parties
    with respect to the subject matter hereof. Any amendments or supplements to this Agreement shall not be valid unless executed in
    writing by duly authorized officers of both parties.

 

	7.9	Severability.
    In the event any portion of this Agreement shall be held illegal, void or ineffective, the remaining portion hereof shall remain
    in full force and effect. If any of the terms or provisions of this Agreement are in conflict with any applicable statute or rule
    of law, then such terms or provisions shall be deemed inoperative to the extent that they may conflict therewith and shall be deemed
    to be modified to conform with such statute or rule of law.

 

	7.10	Governing
    Law. This Agreement all disputes arising out of or relating to this Agreement, or the performance, enforcement, breach or termination
    hereof or thereof, and any remedies relating thereto, shall be construed, governed by and interpreted in accordance with the laws
    of the State of New York.
	 	 
	7.11	Counterparts.
    This Agreement may be executed in any number of counterparts, each of which shall be considered one and the same Agreement and
    shall become effective when a counterpart hereof has been signed by each of the Parties and delivered to the other Party.
	 	 
	7.12	Time
    of Essence. Time shall be of the essence of this Agreement and of each provision hereof
	 	 
	7.13	Arbitration.
    Except as otherwise expressly provided herein, any dispute or claim arising out of or relating to this Agreement, or to the breach,
    termination, or validity of this Agreement, will be resolved as follows: each Party shall discuss the matter and make reasonable
    efforts to attempt to resolve the dispute. If the Parties are unable to resolve, the dispute a CEO or President of each Party will
    meet within thirty days (30) of a request to attempt to resolve such dispute being made by a Party. If the CEOs or Presidents cannot
    resolve the dispute through good faith negotiations within sixty (60) days after a Party requests such meeting, then the Parties
    shall resort to binding arbitration before a single arbitrator using the arbitration procedures set forth under the American Arbitration
    Association under its Commercial Arbitration Rules. Any hearing in the course of the arbitration shall be held New York, New York
    in the English language. The decision of the arbitrator shall be final and not subject to appeal and the arbitrator may apportion
    the costs of the arbitration, including the reasonable fees and disbursements of the parties, between or among the parties in such
    manner as the arbitrator considers reasonable. All matters in relation to the arbitration shall be kept confidential to the full
    extent permitted by law, and no individual shall be appointed as an arbitrator unless he or she agrees in writing to be bound by
    this provision..

 

[Signature
page follows]

 

    	 

     

    

 

IN
WITNESS WHEREOF, the Parties have signed this Agreement.

 

	 	KNIGHT
    THERAPEUTICS INC.
	 	By:
    	/s/
    Jeffrey Kadanoff
	 	Name:
    	Jeffrey
    Kadanoff
	 	Title:
    	CFO

 

	 	SYNERGY
    CHC CORP.
	 	By:
    	/s/
    Jack Ross
	 	Name:
    	Jack
    Ross
	 	Title:
    	CEO

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