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stlt_ex1034.htm

EXHIBIT 10.34
 
TERMINATION AGREEMENT
 
This Termination Agreement (the “Agreement”) is entered into by and between Memcine Pharmaceuticals, Inc. (“Memcine”), Spotlight Innovation Inc. (“Spotlight”), the University of Iowa Research Foundation (“UIRF”) and Tony Vanden Bush (“Founder”) as of October 12, 2016 (“Effective Date”). 
 
WHEREAS, Founder is the inventor and founder of Memcine, a company formed for the purpose of continuing the research and commercialization of its non-invasive vaccination delivery system; and 
 
WHEREAS, Spotlight and Memcine entered into that certain Securities Purchase Agreement dated June, 2015 (the “Investment Agreement”), whereby Spotlight was issued common stock of Memcine, representing approximately 82% of the outstanding equity interests of Memcine in exchange for Spotlight providing certain financing and other support for Memcine’s operations; and 
 
WHEREAS, Spotlight, Founder and UIRF entered into that certain Shareholders Agreement on or about May 29, 2015, and subsequently amended on or about August 20, 2015 (collectively referred to as the “Shareholders Agreement”); and
 
WHEREAS, since entering into the Investment Agreement and Shareholders Agreement, and conducting further research regarding Memcine’s technology, Spotlight has determined that Spotlight cannot and will not be able to provide the needed resources and services to effectively commercialize Memcine’s technology; and
 
WHEREAS, Founder and UIRF holds all of the remaining outstanding equity interests of Memcine and desire to continue to work towards finding a strategic partner to help him develop and commercialize Memcine’s technology; and 
 
WHEREAS, the parties desire to terminate the relationship between them so that both parties may effectively move forward and pursue their independent interests, on the terms and conditions set forth herein.
 
NOW THEREFORE, for good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereby agree as follows:
 
1. Transfer/Termination of Stock; Surrender of Rights. On the Effective Date, in consideration of the promises and agreements contained herein, in addition to the commitments contained in Section 2 below, Spotlight hereby terminates all of its right, title, and interest in any stock or other equity interests that it holds of Memcine. To the extent that Spotlight holds any right to acquire any stock or other equity interests in Memcine, it hereby completely surrenders and forfeits such rights. On the Effective Date Spotlight shall no longer be deemed a party to the Shareholders Agreement.
 
2. Additional Commitments of Spotlight. In addition to the obligations in Section 1, Spotlight agrees to the following:
 
(a) Payment of Davis Brown Legal Fees. Spotlight agrees to pay directly to the Davis Brown Law Firm those certain accrued legal fees and costs owed by Memcine up through the Effective Date, not to exceed $65,000. Such amounts will be paid within 90 days, or in such other period as may be mutually agreed by Spotlight and the Davis Brown Law Firm. 

	 
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(b) Payment to UIRF for Certain Post-License Patent Costs. Spotlight will assume and agrees to pay on Memcine’s behalf $49,139.28 to UIRF for patent costs incurred by UIRF after execution of its license agreement with Memcine, as set forth on Exhibit A. Such amount shall be paid in immediately available funds on the Effective Date. 
 
(c) Payment to Memcine. Spotlight will pay to Memcine the following amounts: (i) $2000 on the Effective Date, (ii) $4000 on November 1, 2016, and (iii) $4000 on December 1, 2016. 
 
3. Resignation as Directors and Officers. As of the Effective Date, Cristopher Grunewald and John Krohn hereby resign from the board of directors of Memcine and all positions as officers, employees, contractors, or other representatives of Memcine. Neither such resignation, nor the release set forth in Section 4 shall waive or release any indemnification obligation that Memcine may have under its organizational documents or applicable law related to such individuals service as directors, officers, employees, contractors, or other representatives of Memcine.
 
4. Mutual Release. Memcine, UIRF, and Founder hereby release and discharge Spotlight, together with its predecessors, successors, direct and indirect parent companies, direct and indirect subsidiary companies, companies under common control with any of the foregoing, affiliates and assigns and its and their past, present and future officers, directors, shareholders, interest holders, members, partners, attorneys, agents, employees, managers, representatives, assigns and successors in interest, and all persons acting by, through, under or in concert with them, and each of them, from all known and unknown charges, complaints, claims, grievances, liabilities, obligations, promises, agreements, controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, debts, penalties, fees, wages, medical costs, pain and suffering, mental anguish, emotional distress, expenses (including attorneys' fees and costs actually incurred) and punitive damages, of any nature whatsoever, known or unknown, which such parties have, or may have had, against Spotlight, whether or not apparent or yet to be discovered, or which may hereafter develop, for any acts or omissions related to or arising from the Investment Agreement, Shareholders Agreement, and/or any other related transactions between and among such parties and Spotlight. 
 
Spotlight hereby releases and discharges Memcine, UIRF, and Founder, together with their predecessors, successors, direct and indirect parent companies, direct and indirect subsidiary companies, companies under common control with any of the foregoing, affiliates and assigns and its and their past, present and future officers, directors, shareholders, interest holders, members, partners, attorneys, agents, employees, managers, representatives, assigns and successors in interest, and all persons acting by, through, under or in concert with them, and each of them, from all known and unknown charges, complaints, claims, grievances, liabilities, obligations, promises, agreements, controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, debts, penalties, fees, wages, medical costs, pain and suffering, mental anguish, emotional distress, expenses (including attorneys' fees and costs actually incurred) and punitive damages, of any nature whatsoever, known or unknown, which Spotlight has, or may have had, against Memcine, UIRF, and Founder, whether or not apparent or yet to be discovered, or which may hereafter develop, for any acts or omissions related to or arising from the Investment Agreement, Shareholders Agreement, and/or any other related transactions between and among Spotlight, Memcine, UIRF, and Founder.
 
	 
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This Agreement resolves any claim for relief that is, or could have been alleged, no matter how characterized, including, without limitation, compensatory damages, damages for breach of contract, bad faith damages, reliance damages, liquidated damages, damages for humiliation and embarrassment, punitive damages, costs and attorneys' fees related to or arising from the Investment Agreement, Shareholders Agreement, and/or any other related matter between the parties.
 
The parties acknowledge that (a) the consideration set forth in this Agreement is in full settlement of all claims or losses of whatsoever kind or character that they have, or may ever have had, against the other party, as broadly described above, and (b) by signing this Agreement and accepting the consideration provided herein and the benefits of it, they are giving up forever any right to seek further monetary or other relief from the other party, as broadly described above, for any acts or omissions up to and including the Effective Date.
 
The parties agree that except for the obligations set forth in this Agreement, after the Effective Date there shall be no further obligations or liabilities between the parties.
 
5. No Admission of Liability. The parties acknowledge that this Agreement does not constitute an admission or evidence of liability, culpability, fault, negligence, or responsibility on the part of any of the parties hereto. The parties also agree that this Agreement shall not be interpreted, asserted, or construed as an admission of any wrongful acts or liability by any party hereto.
 
6. Confidentiality. Each party agrees that it will not directly or indirectly disclose or discuss the existence or terms of this Agreement with any person or entity, with the exception of (i) a disclosure pursuant to a court order or compulsory process, or (ii) disclosure to tax preparers, attorneys, or investors conducting due diligence, so long as such advisors are informed of the requirement to keep this Agreement confidential and agree to be so bound. Spotlight shall have the right to disclose the existence and terms of this Agreement pursuant to its filing obligations with the Securities and Exchange Commission or other regulatory bodies, as determined in Spotlight’s discretion. 
 
7. Integrated Agreement; Severability. This Agreement constitutes the entire understanding between the parties concerning the subject matter hereof. No other prior or contemporaneous representations, inducements, promises, or agreements, oral or otherwise, between the parties relating to the subject matter hereof and not embodied in this Agreement shall be of any force or effect. This Agreement shall not be modified except in a writing signed by all parties hereto. If any provision of this Agreement shall for any reason be held to be invalid, unenforceable, or contrary to public policy, whether in whole or in part, the remaining provisions shall not be affected by such holding.
 
8. Binding Agreement. This Agreement is binding upon, and shall inure to the benefit of, the parties hereto and their respective heirs, representatives, successors and assigns.
 
9. Review by Parties and Counsel. The Parties acknowledge and agree that they have carefully read and fully understand the terms, provisions and legal effect of this Agreement, and they are signing it of their own free will, after having consulted independent legal counsel, or having the opportunity to consult with independent legal counsel, with full knowledge of its significance, and solely in reliance on their own knowledge, belief and judgment and that of their legal counsel.
 
	 
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10. Applicable Law, Jurisdiction and Venue. This Agreement shall in all respects be governed by the laws of the State of Iowa. All actions arising from or relating to this Agreement shall be commenced and prosecuted in either the state or federal court that encompasses and governs Polk County, Iowa.
 
11. Counterparts. This Agreement may be executed in one or more counterparts, all of which shall together constitute one and the same instrument and shall become effective when one or more counterparts have been signed by each and every Party hereto and delivered to each and every other Party hereto.
 
12. Due Authority. By signing below, each party warrants and represents that the person signing this Agreement on its behalf has authority to bind that party and that the party's execution of this Agreement is not in violation of any bylaw, covenants and/or other restrictions placed upon them.
 
13. Breach of Agreement. If either party breaches any provision of this Agreement binding upon it, the non-breaching and prevailing party shall be entitled to recover from the breaching party all costs and expenses resulting from such breach including, but not limited to, reasonable attorney’s fees.
 
[Signature Page Follows]

	 
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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement effective as of the Effective Date set forth above.
 
	SPOTLIGHT INNOVATION INC.
	MEMCINE PHARMACEUTICALS, INC.

	 
	 

	By:	 
		By: 
	 
	
		Cris Grunewald, its CEO
			Tony Vanden Bush, its _______________
	
	 
	 
		  
	 
	
	TONY VANDEN BUSH
	University of Iowa Research Foundation

	 
	 
		  
	 
	
	 
	 
		By: 
	 
	
	 
	 
		Print: 
	Jane Garrity
	
	 
	 
		Title: 
	Associate Director of Licensing
	
	 
	 
		  
	 
	
	CRISTOPHER GRUNEWALD
	JOHN KROHN

	 
		 
	
	 
		 
	

 
	 
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EXHIBIT A
 
UIRF Invoice Summary
 

 
	6FS Energy
and Power Fund 8-K 

Exhibit 4.1

SECOND AMENDED AND RESTATED DISTRIBUTION
REINVESTMENT PLAN

OF

FS ENERGY AND POWER FUND

Effective as of November 30, 2016

FS Energy Power Fund, a Delaware statutory
trust (the “Company”), hereby adopts the following plan (the “Plan”) with respect
to distributions declared by its board of trustees (the “Board of Trustees”) on its common shares of
beneficial interest (the “Common Shares”):

1. 

Each shareholder of record may enroll in
the Plan by providing the Plan Administrator (as defined below) with written notice, except that a shareholder may only participate
in the Plan, and sales to a shareholder under the Plan may only occur, if the Company maintains its registration, or an exemption
from registration is available, in the shareholder’s state of residence. To enroll in the Plan, such shareholder shall notify
DST Systems, Inc., the Plan administrator and the Company’s transfer agent and registrar (collectively the “Plan
Administrator”), in writing so that such notice is received by the Plan Administrator no later than the record date
fixed by the Board of Trustees for the distribution involved. If a shareholder elects to enroll in the Plan, all distributions
thereafter declared by the Board of Trustees shall be payable in Common Shares as provided herein, and no action shall be required
on such shareholder’s part to receive a distribution in Common Shares. If a shareholder wishes to receive its distributions
in cash, no action is required.

2. 

Subject to the Board of Trustees’
discretion and applicable legal restrictions, the Company intends to authorize and declare ordinary cash distributions on a monthly
basis or on such other date or dates as may be fixed from time to time by the Board of Trustees to shareholders of record as of
the close of business on the record date for the distribution involved.

3. 

The Company shall use newly-issued Common
Shares to implement the Plan. The number of newly-issued Common Shares to be issued to a shareholder shall be determined by dividing
the total dollar amount of the distribution payable to such shareholder by the Issuance Price. The “Issuance Price”
shall mean a price per Common Share, determined by the Board of Trustees or a committee thereof, in its sole discretion, that is
(i) not less than the net asset value per Common Share determined in good faith by the Board of Trustees or a committee thereof,
in its sole discretion, immediately prior to the payment of the distribution (the “NAV Per Share”) and
(ii) not more than 2.5% greater than the NAV Per Share as of such date. There will be no selling commissions, dealer manager fees
or other sales charges on Common Shares issued to a shareholder under the Plan. The Company shall pay the Plan Administrator’s
fees under the Plan.

4. 

The Plan Administrator will set up an account
for Common Shares acquired pursuant to the Plan for each shareholder who has elected to enroll in the Plan (each a “Participant”).
The Plan Administrator may hold each Participant’s Common Shares, together with the Common Shares of other Participants,
in non-certificated form in the Plan Administrator’s name or that of its nominee. If a Participant’s Common Shares
are held by a broker or other financial intermediary, the Participant may “opt in” to the Plan by notifying its broker
or other financial intermediary of its election.

5. 

The Plan Administrator will confirm to each
Participant each acquisition made pursuant to the Plan as soon as practicable but not later than 10 business days after the date
thereof. Distributions on fractional Common Shares will be credited to each Participant’s account. In the event of termination
of a Participant’s account under the Plan, the Plan Administrator will adjust for any such undivided fractional interest
in cash at the Issuance Price of the Common Shares in effect at the time of termination.

6. 

Common Shares issued pursuant to the Plan
will have the same voting rights as the Common Shares issued pursuant to the Company’s public offering. The Plan Administrator
will forward to each Participant any Company-related proxy solicitation materials and each Company report or other communication
to shareholders, and will vote any Common Shares held by it under the Plan in accordance with the instructions set forth on proxies
returned by Participants to the Company.

7. 

In the event that the Company makes available
to its shareholders rights to purchase additional Common Shares or other securities, the Common Shares held by the Plan Administrator
for each Participant under the Plan will be used in calculating the number of rights to be issued to the Participant. Transaction
processing may either be curtailed or suspended until the completion of any share dividend, share split or corporate action.

8. 

The Plan Administrator’s service fee,
if any, and expenses for administering the Plan will be paid for by the Company. Except as otherwise described herein, there will
be no brokerage charges or other charges to shareholders who participate in the Plan.

9. 

Each Participant may terminate his, her
or its account under the Plan by sending written notice to the Plan Administrator at FS Energy and Power Fund, P.O. Box 219095,
Kansas City, Missouri 64121-9095, or by calling the Plan Administrator’s Interactive Voice Response System at (877) 628-8575.
Such termination will be effective immediately if the Participant’s notice is received by the Plan Administrator at least
2 days prior to any distribution record date; otherwise, such termination will be effective only with respect to any subsequent
distribution. The Plan may be terminated by the Company upon notice in writing mailed to each Participant at least 30 days prior
to any record date for the payment of any distribution by the Company. Upon termination, the Plan Administrator will credit the
Participant’s account for the full Common Shares held for the Participant under the Plan and a cash adjustment for any fractional
Common Shares to be delivered to the Participant without charge to the Participant. If a Participant elects by his, her or its
written notice to the Plan Administrator in advance of termination to have the Plan Administrator sell part or all of his, her
or its Common Shares and remit the proceeds to the Participant, the Plan Administrator is authorized to deduct a $15 transaction
fee plus a $0.10 per share brokerage commission from the proceeds.

10. 

These terms and conditions may be amended
or supplemented by the Company at any time but, except when necessary or appropriate to comply with applicable law or the rules
or policies of the Securities and Exchange Commission or any other regulatory authority, only by mailing to each Participant appropriate
written notice at least 30 days prior to the effective date thereof. The amendment or supplement shall be deemed to be accepted
by each Participant unless, prior to the effective date thereof, the Plan Administrator receives written notice of the termination
of his, her or its account under the Plan. Any such amendment may include an appointment by the Plan Administrator in its place
and stead of a successor agent under these terms and conditions, with full power and authority to perform all or any of the acts
to be performed by the Plan Administrator under these terms and conditions. Upon any such appointment of any agent for the purpose
of receiving dividends and distributions, the Company will be authorized to pay to such successor agent, for each Participant’s
account, all dividends and distributions payable on Common Shares held in the Participant’s name or under the Plan for retention
or application by such successor agent as provided in these terms and conditions.

11. 

The Plan Administrator will at all times
act in good faith and use its best efforts within reasonable limits to ensure its full and timely performance of all services to
be performed by it under the Plan and to comply with applicable law, but assumes no responsibility and shall not be liable for
loss or damage due to errors, unless such error is caused by the Plan Administrator’s negligence, bad faith, or willful misconduct
or that of its employees or agents.

12. 

These terms and conditions shall be governed
by the laws of the State of Delaware.

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