Document:

Unassociated Document

Exhibit 10.2

 

CONSULTING AGREEMENT

 

This CONSULTING AGREEMENT (“Agreement”) is made and entered into May 11, 2016 by and between Virtual Piggy, Inc., a Delaware corporation (the “Company“), and International Corporate Management, LLC. a company who’s office is located at 1246-49 South 26th Street, Building J mailbox 6, Philadelphia PA 19146 (“Consultant”).

In consideration of the mutual premises herein contained and intending to be legally bound hereby, the parties agree as follows:

 

1.    Consulting Services.

1.1.          Services.  During the term of this Agreement, Consultant shall provide consulting services to the Company as set forth on Schedule 1 hereto (the “Consulting Services”).  The Consultant will perform the Consulting Services faithfully, diligently and to the best of the Consultant’s skill and ability.

1.2           Consulting Term.  The term of this Agreement shall begin on the date hereof May 11, 2016 and shall continue on a monthly basis. The (“Term”), unless terminated prior thereto pursuant to Section 3 below.

 

1.3           Independent Contractor.  Consultant and Company acknowledge and agree that the relationship hereunder created is one of an independent contractor and not one of employment.  Consultant shall at all times during the Consulting Term act as an independent contractor and nothing hereunder shall be construed to be inconsistent with this relationship or status or  create or imply a relationship of employer-employee between the Company and Consultant.  Consultant shall not hold himself out to third parties as an employee of Company, and shall have no authority to bind or commit Company, legally or otherwise.  The Consultant shall not be entitled to any benefits paid by the Company to its employees.  The Consultant shall be solely responsible for any tax consequences applicable to him by reason of this Agreement and the relationship established hereunder, and the Company shall not be responsible for the payment of any federal, state or local taxes or contributions imposed under any employment insurance, social security, income tax or other tax law or regulation with respect to the Consultant’s performance of consulting services hereunder.  Company and Consultant shall report any and all payments made by Company pursuant to this Agreement to the appropriate governmental agencies in a manner consistent with Consultant's status as an independent contractor.

 

2.              Compensation; Expenses.

 

 (a)           The Company shall pay Consultant a fee equal to $12,500.00 per month during the Term hereof, which shall be paid no later than the fifth business day of that month.

 

 (b)           The Company shall reimburse the Consultant for any reasonable costs and expenses incurred by the Consultant on the Company’s behalf, provided, however, that the Consultant shall not incur any expenses greater than $1,000 on behalf of the Company without obtaining prior consent from the Chairman of the Company.

 

  

  

  

 

3.             Termination.

 

3.1.          Either party may terminate this Agreement upon ten (10) days written notice to the other. In the event of a termination pursuant to this Section 3.1, the Company shall not be responsible to make any further payment of any kind to Consultant except for payment of fees earned prior to the date of termination.

3.2           This Agreement shall terminate upon the execution of a definitive employment agreement between the Consultant and the Company; or automatically in the event of Consultant's death.

4.         Confidentiality.   Consultant understands that Consultant's work as a consultant of the Company creates a relationship of trust and confidence between Consultant and the Company.  During and after the Term of this Agreement, Consultant will not use or disclose or allow anyone else to use or disclose any "Confidential Information" (as defined below) relating to the Company, its subsidiaries, its products, services, suppliers or customers except (i) as may be necessary in the performance of Consultant's work for the Company which use or disclosure shall be solely for the benefit of the Company in connection with the Company’s business and in accordance with the Company’s business practices and employee policies or (ii) as may be specifically authorized in advance by appropriate officers of the Company.  "Confidential Information" shall include, but shall not be limited to, information consisting of research and development, patents, trademarks and copyrights and applications thereto, technical information, computer programs, software, methodologies, innovations, software tools, know-how, knowledge, designs, drawings, specifications, concepts, data, reports, processes, techniques, documentation, pricing, marketing plans, customer and prospect lists, trade secrets, financial information, salaries, business affairs, suppliers, profits, markets, sales strategies, forecasts, employee information and any other information not available to the general public, whether written or oral, which Consultant knows or has reason to know the Company or its subsidiaries would like to treat as confidential for any purpose, such as maintaining a competitive advantage or avoiding undesirable publicity.  Consultant will keep Confidential Information secret and will not allow any unauthorized use of the same, whether or not any document containing it is marked as confidential.  These restrictions, however, will not apply to Confidential Information that has become known to the public generally through no fault or breach of Consultant's or that the Company regularly gives to third parties without restriction on use or disclosure.  Consultant further understands and acknowledges that (a) the Confidential Information is the property of the Company, constitutes a major asset of the Company and is crucial to the successful operation of the Company's business; (b) the use, misappropriation or disclosure of the Confidential Information would constitute a breach of trust and could cause irreparable injury to the Company; and (c) it is essential to the protection of the Company's goodwill and to the maintenance of the Company's competitive position that the Confidential Information be kept secret.

 

  

  

  

 

5.          Return of Company Property.  Promptly upon the expiration or sooner termination of the term of this Agreement, and earlier if requested by the Company at any time, Consultant shall deliver to the Company (and will not keep in Consultant’s possession or deliver to anyone else) all Confidential Information and all devices, records, data, notes, reports, proposals, lists, correspondence, specifications, materials, equipment, other documents or property, or reproductions of any aforementioned items developed by Consultant as part of or in connection with the Consulting Services or otherwise belonging to the Company.

 

6          Equitable Relief.

6.1         Injunction.  Consultant acknowledges that the restrictions contained in Sections 4 and 5 hereof are reasonable and necessary to protect the legitimate interests of the Company, its subsidiaries, and its affiliate, that such restrictions are deemed to be material, that the Company would not have entered into this Agreement in the absence of such restrictions, that it would be impossible or inadequate to measure and calculate the Company’s or its subsidiary’s or affiliate’s damages from any violation of those Sections and that any violation of any provision of those Sections may result in irreparable injury to the Company, its subsidiaries or affiliate (each of which shall be deemed a third party beneficiary of such restriction).  Consultant agrees that each of the Company, its subsidiaries, its affiliate shall, whether or not it is pursuing any potential remedies at law, be entitled to seek in any court of competent jurisdiction, preliminary and permanent injunctive relief and to specific performance of any such provision of this Agreement, without the necessity of proving actual damages as well as to an equitable accounting of all earnings, profits and other benefits arising from any actual or threatened breach of Section 4 or 5 hereof, which rights shall be cumulative and in addition to any other rights or remedies to which the Company or any subsidiary or affiliate of the Company may be entitled.  Consultant further agrees that no bond or other security shall be required in obtaining such equitable relief and Consultant hereby consents to the issuance of such injunction and to the ordering of specific performance.

6.2           Jurisdiction.  The parties irrevocably and unconditionally (a) agree that any suit, action or other legal proceeding seeking equitable relief under this Section 6, including without limitation, any action commenced by the Company or any of its subsidiaries for preliminary and permanent injunctive relief and other equitable relief, and any suit, action or other legal proceeding brought against the Company or any of its subsidiaries or affiliates, shall be brought and adjudicated in any court of competent civil jurisdiction sitting in Los Angeles County, California or the United States District Court for the Southern District of California, (b) consents to the non-exclusive jurisdiction of any such court in any such suit, action or proceeding and (c) waives any objection which Consultant may have to the laying of venue of any such suit, action or proceeding in any such court.  Consultant also irrevocably and unconditionally consents to the service of any process, pleading, notices or other papers in any manner permitted by the notice provisions of Section 9 hereof.

7.             Representations, Warranties and Covenants.  The Consultant hereby represents, warrants and covenants to the Company as follows:

7.1.           Neither the execution and delivery of this Agreement, the performance of the transactions contemplated hereby, nor compliance by the Consultant with any of the provisions hereof will: (a) violate any order, writ, injunction, decree, law, statue, rule or regulation applicable in any respect to the Consultant or with respect to any of his obligations hereunder; or (b) require the consent, approval, permission or other authorization of, or qualification or filing with or notice to, any court, arbitrator or other tribunal or any governmental, administrative, regulatory or self-regulatory agency or any other third party, except for those that have been obtained;

 

  

  

  

 

7.2         Consultant: (a) is not and will not become a party to, and is not and will not become subject to, any employment agreement, non-competition agreement or covenant, non-disclosure agreement or covenant or any other agreement, covenant, understanding or restriction that would prohibit the Consultant from executing this Agreement, engaging in the transactions contemplated hereby or performing fully his duties and responsibilities hereunder; and (b) can perform his obligations hereunder without disclosing or using any confidential or proprietary information of any third party; and

 

7.3         To Consultant’s knowledge, this Agreement and the transactions contemplated hereby will not infringe or conflict with, and are not inconsistent with, the rights of any other person.

 

8.           Governing Law.  This Agreement shall be governed by and all questions relating to its validity, interpretation, enforcement and performance (including, without limitation, provisions concerning limitations of actions) shall be construed in accordance with the laws of the State of California without regard to its choice of law statutes and/or case law.  The parties hereto consent to the jurisdiction of the Superior Court of Los Angeles County, California, and the United States District Court for the Southern District of California as the exclusive courts of jurisdiction with respect to the interpretation or enforcement of the provisions of this Agreement.

9.           Notices.  All notices and other communications hereunder or in connection herewith shall be in writing and shall be deemed to have been given when delivered by hand, reputable express delivery service, mailed by certified or registered mail, return receipt requested, or sent via facsimile and followed up by hand delivery, reputable express delivery service or mailed by certified or registered mail, return receipt requested to the party as follows (provided that notice of change of address shall be deemed given only when received):

 

  

  

  

 

If to the Company, to:

Virtual Piggy, Inc.

1618 South Broad Street

Philadelphia, PA 19145

Fax:     (215) 465-2013

Attention:  Corporate Secretary

If to Consultant, to:

International Corporate Management, LLC.

1246-49 South 26th Street

Building J Mailbox 6

Philadelphia, Pa 19146

Attn: Peter Pelullo

or to such other names or addresses as Company or Consultant, as the case may be, shall designate by notice to the other person in the manner specified in this Section.

10.           Miscellaneous.  This Agreement: (a) constitutes the entire agreement and supersedes any prior and contemporaneously-made written or oral agreements between the parties relating to the subject matter hereof; (b) except as specifically provided herein, may be modified only in a writing duly executed by the parties hereto; (c) shall be binding upon and inure to the benefit of and be enforceable by the successors and permitted assigns of the Company; and (d) shall not be assignable or delegable in whole or in part by Consultant without the prior written consent of the Company.

 

11.           Severability.  The covenants in this Agreement are severable, and if any covenant or portion thereof is held to be invalid or unenforceable for any reason, such covenant or portion thereof shall be modified or adjusted by a court or other tribunal exercising its equitable powers to the extent necessary to cure such invalidity or unenforceability, and all other covenants and provisions shall remain valid and enforceable.

 

12.           Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, and both of which together shall constitute one and the same instrument.  The Agreement may further be delivered by facsimile or electronic transmission, and the facsimile or electronic signatures may be deemed original signatures for all purposes, including for purposes of the Best Evidence Rule and all other rules or doctrines of similar effect.

 

13.           Survival.  Notwithstanding any termination or expiration of this Agreement, Sections 4, 5, 6, 7 and 8 of this Agreement shall survive and remain in full force and effect in accordance with their respective terms.

 

  

  

  

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.

 

	 	
VIRTUAL PIGGY, INC.

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	 	 
	 	
Name: Ernest Cimadamore

Title: Secretary

	 
	 	 	 
	 	 	 
	 	
CONSULTANT

 International Corporate Management, LLC

	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	
Officer: Peter S. Pelullo

	 

 

  

  

  

SCHEDULE 1

The Consultant shall provide consulting and other services to the Company, including but not limited to the analysis of the Company’s products and services to merchants, and such other services as determined by the Company’s Chairman and Board of Directors from time to time during the term hereof.SEC Exhibit

Exhibit 10.1

DEPOSIT AGREEMENT
THIS DEPOSIT AGREEMENT (this “Agreement”) is made and entered into as of May 12, 2016 (the “Effective Date”) by and between Takara Bio USA Holdings, Inc., a Delaware corporation (“Parent”), and WaferGen Bio-systems, Inc., a Nevada corporation (the “Company”).
RECITALS
WHEREAS, Parent, the Company and Walrus Acquisition Corporation, a Nevada corporation, have entered into an Agreement and Plan of Merger dated as of the date hereof (the “Merger Agreement”).
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby, Parent and the Company hereby agree as follows:
		
	1.
	Capitalized Terms. Capitalized terms not defined herein shall have the meanings given to them in the Merger Agreement.

		
	2.
	Delivery of Deposit Amount.  Following receipt by the Company of the Required Company Vote, such that the condition set forth in Section 7.1(a) of the Merger Agreement has been satisfied, and provided in the case of each of the payments below that the Company Common Stock has remained listed on Nasdaq continually since the date of this Agreement and that, at the time required for each such payment, there is not an inaccuracy in the Company’s representations in the Merger Agreement, or a breach by the Company of its covenants therein, in either case such that the conditions set forth in Sections 7.2(a) and (b) of the Merger Agreement would fail to be satisfied, and that the Merger Agreement has not been terminated, Parent shall deliver (or cause to be delivered) to the Company:

		
	a.
	Promptly (and in any event within five (5) business days) after the Company notifies Parent in writing that the Company has received the Required Company Vote and the Company has disclosed publicly (including by filing of an appropriate Form 8-K) such receipt of the Required Company Vote, the amount of two million five hundred thousand dollars ($2,500,000) (“Deposit No. 1”), by wire transfer in immediately available funds to the account of the Company specified by the Company in such notice (the “Account”); and 

		
	b.
	After January 1, 2017 and on or before January 15, 2017 (as determined by Parent), the amount of two million five hundred thousand dollars ($2,500,000) 

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(“Deposit No. 2”, and, collectively with Deposit No.1, the “Deposit Amount”), by wire transfer in immediately available funds to the Account.
		
	3.
	Use of Deposit Amount; Interest. 

		
	a.
	The Company shall have the right to commingle the Deposit Amount with other funds of the Company and shall have the right to use the Deposit Amount for its general corporate and working capital purposes.

		
	b.
	No interest will be payable on any portion of the Deposit Amount, through the date of any required return pursuant to the terms hereof.  Interest at 18% per annum or the maximum amount allowed under Law shall be paid on any amounts not returned or repaid when due pursuant to the terms hereof.  

		
	4.
	Return or Repayment of Deposit Amount.  

		
	a.
	If Parent shall have delivered some or all of either Deposit No. 1 or Deposit No. 2 to the Company, then, if the Merger Agreement is terminated for any reason, other than pursuant to Section 8.1(e) of the Merger Agreement, the Company shall promptly deliver to or at the direction of Parent all such amounts of the Deposit Amount not previously returned by the Company to Parent, either (i) on the date of such termination or, (ii) if the Merger Agreement is terminated by Parent, by no later than the date two (2) business days following such termination.  No interest will be payable on Deposit No. 1 or the Deposit Amount, as the case may be, through the date of such required return. 

		
	b.
	The Company shall have the right to return all or any portion of the Deposit Amount to Parent, at any time prior to the date that is ten (10) business days prior to the Closing, by wire transfer in immediately available funds to the account of Parent to be specified by Parent promptly upon request of the Company.  The Company shall give Parent at least two (2) business days prior written notice of any such return. 

		
	5.
	Notices.  All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given and shall be deemed to have been duly given if delivered personally (notice deemed given upon receipt), telecopied (notice deemed given upon confirmation of receipt), sent by a nationally recognized overnight courier service such as Federal Express (notice deemed given upon receipt of proof of delivery) or mailed by registered or certified mail, return receipt requested (notice deemed given upon receipt) to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 5):

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if to Parent:
Takara Bio USA, Inc.
1290 Terra Bella Avenue
Mountain View, CA 94043
Attention: Lorna Neilson, Ph.D.
     Director, Corporate Development

with a copy (which shall not constitute notice) to:

Morrison & Foerster LLP
425 Market Street
San Francisco, CA 94105
Facsimile No: (415) 268-7522
Attention:  Michael O’Bryan, Esq.

if to the Company:

WaferGen Bio-systems, Inc.
34700 Campus Drive
Fremont, CA 94555
Attention:    Ivan Trifunovich, Ph.D.
Executive Chairman

with a copy (which shall not constitute notice) to:

K&L Gates
214 North Tryon Street, 47th Floor
Charlotte, NC 28202
Attn.:    Mark R. Busch
James Herriott
E-Mail: Mark.Busch@klgates.com
  James.Herriott@klgates.com

		
	6.
	Severability.  If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect, so long as the economic or legal substance of the transactions is not affected in any manner materially adverse to any party.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible, in a mutually acceptable manner, in order that the transactions be consummated as originally contemplated to the fullest extent possible.

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	7.
	Successors and Assigns.  This Agreement may not be assigned by either party hereto without the prior written consent of the other party; provided, that Parent may transfer of assign, in whole or in part, or from time to time, to one or more of its Affiliates, any or all of its rights and obligations hereunder, but no such transfer or assignment will relieve Parent of its obligations hereunder.

		
	8.
	Specific Performance. The parties hereto agree that irreparable damage would occur in the event any provision of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms hereof, in addition to any other remedy at law or equity. Notwithstanding anything to the contrary elsewhere in this Agreement or provided for under applicable law, neither party will be responsible or held liable to the other party for any consequential, special, or incidental losses or damages.

		
	9.
	Governing Law.

		
	a.
	This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware applicable to contracts executed in and to be performed in that state, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof.  

		
	b.
	Each party hereto hereby agrees that any claim, dispute or controversy (of any and every kind or type, whether based on contract, tort, statute, regulation or otherwise, and whether based on state, federal, foreign or any other law), arising out of, relating to or in connection with this Agreement, and including disputes relating to the existence, validity, breach or termination of this Agreement (any such claim being a “Covered Claim”), brought by or against such party or any other party hereto or any of their respective successors or assigns, shall be heard and determined exclusively in the Court of Chancery of the State of Delaware and the appropriate appellate courts therefrom (the “Chancery Court”), and in no other court; provided, however, that in the event the Chancery Court lacks subject matter jurisdiction over a Covered Claim, such claim shall be heard and determined exclusively in another state or federal court sitting in the state of Delaware and the appropriate appellate courts therefrom (an “Other Delaware Court”).  Each party hereto expressly agrees and acknowledges that the Delaware Chancery Court (or, if the Delaware Chancery Court lacks subject matter jurisdiction, an Other Delaware Court) is an appropriate and convenient forum for resolution of any and all Covered Claims, that it will not suffer any undue hardship or inconvenience if required to litigate in such court, and that such court 

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is fully competent and legally capable of adjudicating any Covered Claim.  Each party hereto further represents that it has agreed to the jurisdiction of the Chancery Court (or an Other Delaware Court), in respect of Covered Claims after being fully and adequately advised by legal counsel of its own choice concerning the procedures and laws applied in such courts and has not relied on any representation by any other party hereto or its Representatives as to the content, scope or effect of such procedures and law, and will not contend otherwise in any proceeding in any court of any jurisdiction.
		
	c.
	Each party hereto hereby irrevocably submits, for itself and in respect to its properties, generally and unconditionally, to the exclusive personal jurisdiction of the Chancery Court and Other Delaware Courts in respect of Covered Claims.  The parties hereto hereby consent to and grant any such court jurisdiction over the person of such parties and, to the extent permitted by Law, over the subject matter of such dispute and agree that mailing of process or other papers in connection with any such action or proceeding in the manner provided in Section 5 or in such other manner as may be permitted by applicable Law shall be valid and sufficient service thereof.

		
	d.
	Each party hereto hereby irrevocably waives, and agrees not to attempt to assert or assert, by way of motion or other request for leave from the Chancery Court (or, if the Delaware Chancery Court lacks subject matter jurisdiction, an Other Delaware Court), as a defense, counterclaim or otherwise, in any action involving a Covered Claim, (a) the defense of sovereign immunity, the defense that any Covered Claim or remedy with respect thereto is within the exclusive jurisdiction of a court outside the state of Delaware, (b) any claim that it is not personally subject to the jurisdiction of the above-named courts for any reason other than the failure to serve process in accordance with this Section 9(d), (c) that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise), and (d) to the fullest extent permitted by applicable law that (i) the suit, action or proceeding in any such court is brought in an inconvenient forum, (ii) the suit, action or proceeding is not maintainable in such court, (iii) the venue of such suit, action or proceeding is improper or inappropriate and (iv) this Agreement, or the subject matter hereof, may not be enforced in or by such courts.  Each party hereto further hereby irrevocably waives, and agrees not to attempt to assert, by way of motion or other request in any other court of other forum, that a judgment entered by the Chancery Court or any Other Delaware Court, including a judgment for specific performance, is not 

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enforceable in such other court or forum.  The parties hereto agree that a final judgment in respect of any Covered Claim of the Delaware Chancery Court (or, if the Delaware Chancery Court lacks subject matter jurisdiction, an Other Delaware Court) shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by applicable Legal Requirements.. 
		
	10.
	Waiver of Jury Trial.  EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.  Each of the parties hereto (a) certifies that no representative, agent or attorney of any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce that foregoing waiver and (b) acknowledges that it and the other hereto have been induced to enter into this Agreement and the Transactions, as applicable, by, among other things, the mutual waivers and certifications in this Section 10.

		
	11.
	Amendment. This Agreement may not be amended, except by an instrument in writing signed by each of the parties hereto. 

		
	12.
	Counterparts.  This Agreement may be executed and delivered (including by facsimile or other  form of electronic transmission) in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.  Signatures to this Agreement transmitted by facsimile transmission, by electronic mail in PDF form, or by any other electronic means designed to preserve the original graphic and pictorial appearance of a document, will be deemed to have the same effect as physical delivery of the paper document bearing the original signatures.

[SIGNATURES FOLLOW ON NEXT PAGE]

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IN WITNESS WHEREOF, Parent and the Company have caused this Deposit Agreement to be executed, as of the date first written above, by their respective officers thereunto duly authorized.

TAKARA BIO USA HOLDINGS, INC.

By     /s/ Koichi Nakao     
    Name:  Koichi Nakao   
    Title:    President

WAFERGEN BIO-SYSTEMS, INC.

By     /s/ Rolland Carlson     
    Name:  Rolland Carlson 
    Title:    President and CEO

[Signature Page to Deposit Agreement]

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