|
|
|
|
|
|
|
|
|
|
|
|
Delaware
(State or other jurisdiction of incorporation or organization)
|
000-55264
(Commission File Number)
|
45-0486747
(I.R.S. Employer Identification Number)
|
140 Intracoastal Pointe Drive, Suite 400
Jupiter, FL 33477
|
||
(Address of principal executive offices and zip code)
|
||
(561) 743-8333
|
||
(Registrant's telephone number, including area code)
|
||
(Former Name or Former Address, if Changed Since Last Report)
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, par value $0.001 per share
|
DYAI
|
The NASDAQ Stock Market LLC
|
|
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
|
|
10.1
|
|
Sub-License Agreement among Dyadic International (USA), Inc., Luina Bio Pty Ltd. and Novovet Pty Ltd, dated April 26, 2019
. Specific items in this exhibit have been redacted, as marked by three asterisks [***].
|
10.2
|
|
Shareholders Agreement among Dyadic International (USA), Inc., JCL Biologics Pty Ltd and Novovet Pty Ltd, dated April 26, 2019
. Specific items in this exhibit have been redacted, as marked by three asterisks [***].
|
99.1
|
|
|
|
|
|
Dyadic International, Inc.
|
|
|
|
|
Date: May 2, 2019
|
By:
|
/s/ Mark A. Emalfarb
|
|
Name:
|
Mark A. Emalfarb
|
|
Title:
|
Chief Executive Officer
|
1
|
Dyadic International (USA), Inc
of 140 Intracoastal Pointe Drive, Suite 404, Jupiter FL 33477-5094, United States
(
Dyadic
)
|
2
|
Luina Bio Pty Ltd ACN 074 656 509
of 2806 Ipswich Road, Darra, Brisbane 4076 Queensland, Australia
(
Luina
)
|
3
|
Novovet Pty Ltd ACN 631 032 749
of
2806 Ipswich Road, Darra, Brisbane 4076 Queensland, Australia
(
Novovet
)
|
A
|
Dyadic owns or has been granted rights under certain Patent Rights and Know-How from Danisco US, Inc. relating to the Sub-Licensed IP.
|
B
|
Luina is an experienced contract manufacturing and development company with experience in manufacturing animal health products.
|
C
|
Luina wishes to Commercialise the Sub-Licensed IP within the Field and Territory.
|
D
|
Luina and Dyadic have agreed that they will work together to Commercialise the Sub-Licensed IP and have agreed to establish Novovet for the purposes of achieving this objective.
|
E
|
In consideration of the mutual promises and consideration set out in this document, Dyadic has agreed to grant to Novovet a licence to the Sub-Licensed IP on the terms of this document.
|
1
|
Definitions and interpretation
|
1.1
|
Definitions
|
(a)
|
a corporation that is related to a party as defined in the
Corporations Act 2001
(Cth); or
|
(b)
|
any individual who, or any corporation or other form of business organisation which, in any country directly or indirectly (including through intermediaries), is Controlled by, or is under common Control with, or Controls, a party.
|
(a)
|
in relation to a Product, to make, have made, use, sell, have sold, offer for sale, import and export the Product; and
|
(b)
|
in relation to an Intellectual Property Right, the exercise of the rights granted to the holder of such Intellectual Property Right by the laws of the jurisdiction in which the Intellectual Property Right subsists, including the right to grant sub‑licences in accordance with clause 3.
|
(a)
|
is by its nature confidential;
|
(b)
|
is designated as confidential; or
|
(c)
|
the Recipient knows or ought to reasonably know is confidential,
|
(a)
|
information comprised in or relating to the Sub-Licensed IP;
|
(b)
|
information relating to the business and financial affairs of the Discloser;
|
(a)
|
is in or comes into the public domain otherwise than by disclosure in breach of this document or other duty of confidentiality owed to the Discloser;
|
(b)
|
had been independently developed by the Recipient prior to obtaining it from the Discloser; or
|
(c)
|
is received by the Recipient from a third party who has the right to provide that information without breach of any legal obligation.
|
(a)
|
the ability to cast or control the casting of more than 50% of the maximum number of votes that might be cast at any general meeting (or equivalent) of an entity;
|
(b)
|
the holding of more than 50% of the issued ordinary share capital, the equity, or other ownership interest, in the entity, or the holding of the maximum ownership interest permitted in the country where the entity exists; or
|
(c)
|
the ability of a person or persons to direct, or share equally in the direction of, the composition of the board of directors (or equivalent) of the entity, or to manage the entity pursuant to an agreement.
|
(a)
|
a person is or states that the person is unable to pay from the person’s own money all the person’s debts as and when they become due and payable;
|
(b)
|
a person is taken or must be presumed to be insolvent or unable to pay the person’s debts under any applicable legislation;
|
(c)
|
an application order is made for the winding up or dissolution or a resolution is passed or any steps are taken to pass a resolution for the winding up or dissolution of a corporation and the application or resolution is not stayed, withdrawn or dismissed within seven days;
|
(d)
|
an administrator, provisional liquidator, liquidator or person having a similar or analogous function under the laws of any relevant jurisdiction is appointed in respect of a corporation or any action is taken to appoint any such person and the action is not stayed, withdrawn or dismissed within seven days;
|
(e)
|
a controlled is appointed in respect of any property of a corporation;
|
(f)
|
a corporation is deregistered under the Corporations Act or notice of its proposed deregistration is given to the corporation and the notice is not stayed, withdrawn or dismissed within seven days;
|
(g)
|
a distress, attachment or execution is levied or becomes enforceable against any property of a person;
|
(h)
|
a person enters into or takes any action to enter into an arrangement (including a scheme of arrangement or deed of company arrangement), composition or compromise with, or assignment for the benefit of, all or any class of the person’s creditors or members or a moratorium involving any of them; or
|
(i)
|
anything analogous to or of a similar effect to anything described above under the law of any relevant jurisdiction occurs in respect of a person.
|
(a)
|
cash, trade or quantity discounts;
|
(b)
|
value-added, sales, use, tariff, import/export duties or other excise taxes imposed on particular sales (except for income taxes); and
|
(c)
|
transportation charges if not paid by the customer.
|
(a)
|
the party’s employees, agents, students, contractors, directors, officers; and
|
(b)
|
the employees, agents, students, contractors, directors and officers of that party’s Associates.
|
(a)
|
[***]
;
|
(b)
|
[***]
;
|
(c)
|
[***]
;
|
(d)
|
[***]
;
|
(e)
|
[***]
; and
|
(f)
|
[***]
|
1.2
|
Rules for interpreting this document
|
(a)
|
A reference to:
|
(i)
|
legislation (including subordinate legislation) is to that legislation as amended, re-enacted or replaced, and includes any subordinate legislation issued under it;
|
(ii)
|
a document (including this document) or agreement, or a provision of a document (including this document) or agreement, is to that document, agreement or provision as amended, supplemented, replaced or novated;
|
(iii)
|
a party to this document or to any other document or agreement includes a permitted substitute or a permitted assign of that party;
|
(iv)
|
a person includes any type of body of persons, whether or not it is incorporated or has a separate legal identity, and any executor, administrator or successor in law of that person; and
|
(v)
|
anything (including a right, obligation or concept) includes each part of it.
|
(b)
|
A singular word includes the plural, and vice versa.
|
(c)
|
A word which suggests one gender includes all other genders.
|
(d)
|
If a word or phrase is defined, any other grammatical form of that word or phrase has a corresponding meaning.
|
(e)
|
If an example is given of anything (including a right, obligation or concept), such as by saying it includes something else, the example does not limit the scope of that thing.
|
(f)
|
A reference to
dollars
and
$
is to Australian currency.
|
(g)
|
The word
agreement
includes an undertaking or other binding arrangement or understanding, whether or not in writing.
|
(h)
|
The expression
this document
includes the agreement, arrangement, understanding or transaction recorded in this document.
|
(i)
|
The expressions
subsidiary
,
holding company
and
related body corporate
each have the same meaning as in the Corporations Act.
|
1.3
|
Business Days
|
(a)
|
if the act involves a payment that is due on demand, the person must do I ton or by the next Business Day; and
|
(b)
|
in any other case, the person must do it on or by the previous Business Day.
|
1.4
|
Multiple parties
|
(a)
|
an obligation of those persons is several;
|
(b)
|
a right of those persons is held by each of them severally; and
|
(c)
|
any other reference to that party or that term is a reference to each of those persons separately, so that (for example) a representation, warranty or undertaking relates to each of them separately.
|
2
|
Grant of rights
|
2.1
|
Grant
|
(a)
|
the Patent Rights; and
|
(b)
|
the Know-How,
|
2.2
|
Exclusivity
|
2.3
|
Acknowledgments
|
(a)
|
sell or otherwise dispose of Products outside of the Territory or Field or to a customer that it knows or has reason to believe intends to use or resupply the Products outside of the Territory or Field, unless Dyadic has given its prior written approval; and
|
(b)
|
use any of the Sub-Licensed IP other than for bona fide Commercialisation of the Products in accordance with this agreement.
|
3
|
Sub-licensing
|
3.1
|
Consent required
|
(a)
|
Novovet is not permitted to sub-license the Sub-Licensed IP to any Affiliate or Third Party unless Dyadic has given its prior written consent.
|
(b)
|
Dyadic will not unreasonably withhold its consent where the proposed Sub-Licensee is an Affiliate of Novovet and has adequate resources to enable it to fulfil its obligations under the proposed sub-licence.
|
(c)
|
Novovet remains solely liable for the performance of its obligations under this agreement, notwithstanding the grant of any sub-licence or sub-contract.
|
3.2
|
Conditions of sub-licence
|
(a)
|
prohibit the grant of further sub-licences unless Dyadic has given its prior written consent (which consent may be granted, whether or not subject to conditions, or withheld in Dyadic’s sole discretion);
|
(b)
|
contain provisions no less onerous than those set out in clauses 6.7 (
Branding
), 6.12 (
Personnel
), 7.3 (
Adverse Event Reporting
), 7.4 (
Recalls, Market Withdrawals or Corrective Action
) , 13 (
Insurance
) and
|
(c)
|
will automatically terminate if Novovet exercises its right of termination under clause 8.5; and
|
(d)
|
will, at Dyadic’s option, either terminate or be novated to Dyadic on termination of this agreement (other than termination by Novovet under clause 8.5).
|
3.3
|
Contract Manufacture
|
3.4
|
Related party services
|
4
|
Payment Obligations
|
4.1
|
Payments by Novovet
|
(a)
|
pay Dyadic the Upfront Sub-Licence Fee by way of the issue of ordinary shares (credited as fully paid) equal to 20% of the equity in Novovet in accordance with the terms of the Shareholders’ Agreement; and
|
(b)
|
pay to Dyadic any Royalties on Net Sales and Non-Sales Revenue in accordance with Schedule 1.
|
4.2
|
Timing of Royalty Payments
|
(a)
|
Payments of Royalties are to be made by Novovet to Dyadic within 30 days after the end of each Quarter and are to be calculated by reference to Net Sales and Non-Sales Revenue made during that Quarter.
|
(b)
|
Each payment must be accompanied by a statement signed by an authorised officer of Novovet containing a detailed summary of:
|
(i)
|
Products sold, delivered or otherwise disposed of during the relevant Quarter;
|
(ii)
|
the calculation of the Net Sales, Non-Sales Revenue and Royalties payable in respect of, the relevant Quarter; and
|
(iii)
|
sales, marketing, training and other activities relating to the Commercialisation of the Product, provided that after Launch such reports only need to be made annually.
|
4.3
|
Currency
|
4.4
|
Payment
|
4.5
|
Interest on overdue payments
|
4.6
|
Withholding tax
|
(a)
|
If any laws, rules or regulations require the withholding or deduction of amounts of income or other taxes or other amounts from payments made by a party to the other under this agreement, the party making the payment will make such withholding payments as required.
|
(b)
|
The recipient will, provided it has received proof of payment of the withholding taxes, sign such documentation as the paying party reasonably requires in order for it to obtain credits or rebates under any applicable double taxation treaties.
|
5
|
Records and audits
|
5.1
|
Records
|
5.2
|
Right of audit
|
(a)
|
Novovet agrees at all reasonable times to permit Dyadic’s auditor to access, inspect and review the accounts, books and records referred to in clause 5.1.
|
(b)
|
Novovet further agrees to permit those books of accounts and records to be examined at Dyadic’s expense by an independent accountant, and to permit that accountant to take copies of or extracts from the accounts, books and records. Such audits may not be conducted more than once each calendar year.
|
(c)
|
Novovet agrees to give Dyadic’s representatives reasonable assistance, access and facilities to enable them to verify such accounts, books and
|
(d)
|
If an audit conducted in accordance with clause 5.2(b) identifies a deviation of more than 5% from the amounts identified as payable in statements provided by Novovet pursuant to clause 4.2 in any consecutive period of four Quarters, the costs of the audit are to be reimbursed to Dyadic by Novovet on demand.
|
(e)
|
Dyadic’s rights under this clause 5.2 apply during the Term and for seven years thereafter.
|
(f)
|
Novovet agrees to permit Dyadic’s representative to inspect Novovet’s manufacturing facilities and those of any permitted sub-contract manufacturers in order to verify {Novovet]’s compliance with this agreement (including under clause 6.6). At least ten Business Days’ notice of any such inspection will be given.
|
6
|
Further obligations of the parties
|
6.1
|
Technology transfer and assistance
|
(a)
|
Dyadic will disclose the Sub-Licensed IP to Novovet, including providing Novovet with electronic copies of the Know-How, within 60 days of the Commencement Date. All documents will be provided in English.
|
(b)
|
Dyadic will use all reasonable endeavours to provide updated versions of the Know-How on a timely basis. Novovet is solely responsible for the cost of modifying or translating any materials supplied by Dyadic, or developing its own materials, as may be necessary or desirable for the Territory.
|
(c)
|
Dyadic will provide such technical advice and assistance as Novovet may reasonably require, via telephone and email, for a maximum of [***]. Any additional assistance will be at Dyadic’s discretion and on its standard consulting terms.
|
(d)
|
Any site visits by Dyadic’s Personnel will be at Dyadic’s discretion and sole expense unless such site visit(s) are requested by Novovet. If Novovet requests such a site(s) visits then all travel, hotel, meal and other costs and expenses along with the then current Dyadic or its Collaborators FTE daily rate will be at the sole expense of Novovet.
|
6.2
|
Prosecution and maintain Sub-Licensed IP
|
6.3
|
Registration Costs
|
6.4
|
Commercialisation efforts
|
(a)
|
Novovet is to use reasonable and diligent efforts to develop and Commercialise the Sub-Licensed IP and Products throughout the Territory within the Field as soon as practicable, consistent with sound business practices and judgement.
|
(b)
|
Without limiting the generality of the foregoing, Novovet agrees to sell, distribute, market and promote Products in the Territory, including the provision of customer support, logistics, inventory, pharmacovigilance and related activities so as to maximise sales of Products in the Territory.
|
6.5
|
Commercialisation progress
|
(a)
|
extend the deadline for performance;
|
(b)
|
convert Novovet’s exclusive rights to non-exclusive in all or part of the Field and Territory by giving five Business Days’ notice; or
|
(c)
|
terminate this agreement by giving 60 days’ written notice,
|
6.6
|
Care and skill
|
6.7
|
Branding
|
6.8
|
Patent marking
|
6.9
|
Recording licence
|
6.10
|
Diligence Report
|
6.11
|
Review meetings
|
6.12
|
Personnel
|
(a)
|
agree in writing, prior to beginning work, to assign to Novovet or Dyadic, as the case may be, all Intellectual Property Rights that may be created by such Personnel in connection with this agreement; and
|
(b)
|
have not been debarred by any Regulatory Authority.
|
6.13
|
Non-Solicitation
|
7
|
Further development and regulatory matters
|
7.1
|
Regulatory approvals
|
(a)
|
is solely responsible for obtaining all Regulatory Approvals needed to Commercialise Products in the Field in the Territory;
|
(b)
|
must keep Dyadic informed of all material correspondence with, or investigations by, Regulatory Authorities; and
|
(c)
|
notify Dyadic in writing immediately if it becomes aware that it, its Affiliates or Sub-Licensees, contract manufacturer or any Third Party involved in the Commercialisation of Products or their respective Personnel is subject to a debarment investigation by a Regulatory Authority or if any action, suit, claim, investigation, or proceeding relating to the foregoing is pending or threatened.
|
7.2
|
Clinical trial data
|
(a)
|
Each party agrees to share with the other all results and data resulting from or generated in the course of any pre-clinical studies or clinical trials of the Product conducted by it, or its Affiliates (
Data
).
|
(b)
|
Each party will have the right to use any and all Data in the conduct of its obligations and exercise of its rights under this agreement.
|
(c)
|
Dyadic has the non-exclusive, royalty-free, irrevocable and perpetual right to use Data supplied by Novovet:
|
(i)
|
outside the Field; and
|
(ii)
|
within the Territory; and
|
(iii)
|
in the event that this agreement is terminated by Dyadic for any reason or by Dyadic under clause 8.5, within the Field and within the Territory.
|
(d)
|
Any use of Data supplied by the other party in support of a patent application or a filing to obtain a Regulatory Approval (other than as required by law in connection with Dyadic’s fulfilling its obligations as a publicly traded company) may only be made with the other party’s prior written consent which will not be unreasonably withheld.
|
7.3
|
Adverse event reporting
|
(a)
|
Novovet will be responsible for Adverse Event (as defined below) reporting to applicable authorities in the Territory and complying with other pharmacovigilance obligations under applicable laws.
|
(b)
|
Novovet must promptly (and in any event within three Business Days) report and provide details to Dyadic of any Adverse Event. Adverse Events must be reported in as much detail as possible, whether or not there is proof of a causal connection between events and use of Products.
|
(c)
|
Each party must promptly notify the other if such party becomes aware of any information or circumstance that is likely to have a material adverse effect on the safety of animals using the Products.
|
(d)
|
For the purposes of this clause,
Adverse Event
means any side effect, injury, toxicity, sensitivity reaction, or other unintended harmful effect, or any unexpected incident, and the severity thereof, which are or may possibly be attributable to the Products.
|
7.4
|
Recalls, Market Withdrawals or Corrective Action
|
(a)
|
In the event that any Regulatory Authority issues or requests a recall or takes a similar action in connection with the Products in the Territory, or in the event either party determines that an event, incident or circumstance has occurred that may result in the need for a recall or market withdrawal in the Territory, the party notified of such recall or similar action, or the party that desires such recall or similar action, must within 24 hours, advise the other party by telephone (with written confirmation notice to follow) or by facsimile or email to the address specified in clause 17.1.
|
(b)
|
Novovet, in consultation with [Dyadic], will decide whether to conduct any recall of Products in the Territory (except in the case of a Regulatory Authority mandated recall, in which case either party may act without such advance notice but, will notify the other party as soon as possible) and the manner in which any such recall will be conducted.
|
(c)
|
Novovet must bear the sole expense of any recall of Products in the Territory.
|
8
|
Term and termination
|
8.1
|
Term
|
(a)
|
This agreement commences on the Commencement Date and, unless this agreement is terminated earlier in accordance with its terms, will continue in each country in the Territory until the later of:
|
(i)
|
[***]
;
|
(ii)
|
[***]
; or
|
(iii)
|
[***]
.
|
(b)
|
On expiry or termination of this agreement in a country, Novovet will have a fully paid-up, perpetual, irrevocable, non-exclusive, non-transferrable licence to use the Know-How in that in a country, except in the event of termination by Dyadic for any reason or by Novovet pursuant to clause 8.5.
|
8.2
|
Termination for insolvency
|
8.3
|
Termination for breach
|
(a)
|
the other party is in breach of any of its material obligations under this agreement; and
|
(b)
|
the party in breach has failed to remedy the breach within 60 days of receipt of written notice from the other party describing the breach and calling for it to be remedied.
|
8.4
|
Termination by Dyadic
|
(a)
|
if Novovet or its Affiliates challenge or assist any Third Party to challenge the validity of the Patent Rights; or
|
(b)
|
there is a change in the Control of Novovet, in respect of which Dyadic has not given its prior approval in accordance with the Shareholders’ Agreement.
|
8.5
|
Termination by Novovet
|
8.6
|
Consequences of termination
|
(a)
|
the licences granted in clause 2.1 terminate (other than any ongoing rights under clause 8.1(b));
|
(b)
|
Novovet, its Affiliates and Sub-Licensees if any must cease all use of the C1 Expression Platform, the Sub-Licensed IP and all research and development efforts in any way related to the C1 expression Platform and the Development, Registration, Manufacturing and Commercialisation of the Target Indicators Products;
|
(c)
|
each party must return to the other party all documents and other materials in any form in its possession or under its control which contain or refer to any Confidential Information of the other party;
|
(d)
|
Novovet must do such things as may be required to transfer all pending and granted Regulatory Approvals in respect of the Products to Dyadic or its nominee (except where this agreement is terminated by Novovet pursuant to clause 8.5).
|
8.7
|
Survival
|
8.8
|
Conversion to non-exclusive rights
|
9
|
Improvements
|
9.1
|
Relevant definitions
|
9.2
|
Novovet Improvements
|
(a)
|
[***]
.
|
(b)
|
[***]
.
|
(c)
|
Novovet hereby grants Dyadic a non-exclusive, perpetual, irrevocable royalty free licence of all Novovet Non-Sub-Licensed IP Improvements outside of the Field and within the Territory.
|
(d)
|
In the event Dyadic terminates this agreement for any reason or Novovet terminates this agreement pursuant to clause 8.5, with effect from such termination Novovet hereby grants Dyadic a non-exclusive, perpetual, irrevocable royalty free licence of all Novovet Non-Sub-Licensed IP Improvements within the Field and within the Territory.
|
(e)
|
In the event Dyadic terminates this agreement under clause 8.3 or 8.4 with effect from such termination Novovet hereby assigns to Dyadic all right, title and interest in all Novovet Licensed IP Improvements and agrees to take all steps as Dyadic may reasonable require in order to give effect to such assignment and enable it to have the benefit of such Novovet Licensed IP Improvements.
|
9.3
|
Financial terms
|
(a)
|
No royalties or other payments are required to be made by Dyadic for the licenses of Novovet Improvements in clause 9.2 or for the assignment of Novovet Licensed IP Improvements in clause 9.2(e).
|
(b)
|
If the provisions of clause 9.3(a) are prohibited or unenforceable under the laws of a country within the Territory, the parties agree to negotiate financial terms for the assignment or licence in good faith.
|
9.4
|
Obligations in respect to Novovet Improvements
|
(a)
|
Novovet must give Dyadic details of all Novovet Improvements and do so promptly after their creation or acquisition, and in any event at least Quarterly.
|
(b)
|
Novovet must not transfer, use, license a Third Party to use or otherwise Commercialise the Novovet Improvements, in violation of the terms & conditions of the Pharma License Agreement or if such use or Commercialisation depends on the use of or would otherwise infringe any Sub-Licensed IP or other Intellectual Property Rights of Dyadic or its Affiliates, Dyadic’s contract research collaborators unless Dyadic has given its prior written consent, which must be done only by Dyadic’s CEO.
|
10
|
Prosecution and enforcement of Patent Rights
|
10.1
|
Notice of suspected infringement
|
(a)
|
any claim or allegations that the exercise of the rights under this agreement constitute an infringement of the rights of any Third Party, including an attack on the grant or validity of any of the Sub-Licensed IP;
|
(b)
|
any Third Party’s infringement or threatened infringement of the Sub-Licensed IP.
|
10.2
|
Action by Dyadic
|
(a)
|
will retain damages or other amounts recovered by it; and
|
(b)
|
Novovet must, at Dyadic’s and/or Danisco US, Inc’s expense, do all acts and execute such documents as may be necessary or desirable to enable Dyadic and/or Danisco US, Inc. to institute and prosecute those proceedings.
|
10.3
|
Action by Novovet
|
(a)
|
Novovet may institute and prosecute enforcement proceedings in its own name or, if required under local law, by joining Dyadic and/or Danisco US, Inc. if permitted under the Pharma License Agreement to such proceedings;
|
(b)
|
Dyadic must, at Novovet’s expense, do all acts and execute such documents as may be necessary or desirable to enable Novovet to institute and prosecute those proceedings;
|
(c)
|
Novovet must ensure that it does not perform any acts or omissions that in anyway adversely affect the validity of the Sub-Licensed IP and the reputation of Dyadic and/or Danisco US, Inc. the owners or Licensee of the Sub-Licensed IP;
|
(d)
|
Novovet must indemnify Dyadic and/or Danisco US, Inc. against all actions, claims, loss, damage, costs, expenses and awards arising out of or in connection with those proceedings;
|
(e)
|
Novovet must regularly keep Dyadic and/or Danisco US, Inc. advised of the progress of such proceedings and provide copies of all material correspondence and documents; and
|
(f)
|
Novovet must remit 50% of all damages. accounts of profits, settlements or other amounts recovered in respect of the proceedings, after deduction of all
|
10.4
|
Notice of claims
|
(a)
|
Novovet must immediately notify Dyadic and provide Dyadic with details of the claim or proceedings; and
|
(b)
|
Novovet and its Affiliates are to be solely responsible for the defence of proceedings against them, and Dyadic must, at Novovet’s expense, do all acts and execute such documents as may be necessary or desirable to enable Novovet to institute and prosecute those proceedings.
|
11
|
Warranties
|
11.1
|
Mutual warranties
|
(a)
|
it has the power and authority to enter into and perform its obligations under this agreement and that the execution of this agreement by it has been duly and validly authorised by all necessary corporate action;
|
(b)
|
its obligations under this agreement are valid and binding and enforceable against it in accordance with their terms.
|
11.2
|
Dyadic’s warranties
|
(a)
|
Dyadic warrants that, as far as its directors are aware, the Sub-Licensed IP is owned or licensed by Dyadic and it is entitled to grant the licences under clause 2.1 to Novovet.
|
(b)
|
In addition to the exclusions set out in clause 12.1, Dyadic does not warrant that any Patent Rights are or will be valid, or that the Commercialisation of the Sub-Licensed IP is not or will not be an infringement of the rights of Third Parties.
|
11.3
|
Novovet’s warranties
|
12
|
liabilities and indemnities
|
12.1
|
Dyadic’s exclusions
|
(a)
|
Dyadic excludes all liability to Novovet in respect of the prospects of, or the suitability of the Sub-Licensed IP for the Commercialisation of the Sub-Licensed IP, the quality or performance of any Product, the fitness for purpose of any advice provided under this agreement or the claims of Third Parties arising from the Commercialisation of the Sub-Licensed IP.
|
(b)
|
Any clinical or scientific information provided as part of the Know-How is provided for Novovet’s information only, and it must obtain its own
|
12.2
|
Prescribed Terms
|
(a)
|
Except as required by any Prescribed Terms, all conditions, warranties, terms, and obligations expressed or implied by law or otherwise relating to the performance of Dyadic’s obligations under, or any other services supplied by Dyadic in connection with, this agreement are excluded.
|
(b)
|
Where any Prescribed Terms apply, the liability of Dyadic to Novovet for a breach of a Prescribed Term implied into this agreement is limited to the re-supply of services or the payment of the cost of re-supplying services (at Dyadic’s option).
|
(c)
|
For the avoidance of doubt, any Prescribed Term relating to the completeness, effectiveness or fitness for purpose of any Sub-Licensed IP is limited to the use of the Sub-Licensed IP solely for the purposes expressly contemplated by this agreement or otherwise agreed in writing by the parties.
|
(d)
|
For the purposes of this clause,
Prescribed Terms
mean terms, conditions and warranties implied by law into some contracts for the supply of goods or services or for the license of Intellectual Property Rights and which the law expressly provides may not be excluded, restricted or modified or may be excluded, restricted or modified only to a limited extent.
|
12.3
|
Novovet’s indemnity
|
(a)
|
a breach of Novovet’s warranties or obligations contained in this agreement; or
|
(b)
|
the Commercialisation of the Sub-Licensed IP or Products by or on behalf of Novovet,
|
12.4
|
Consequential loss
|
12.5
|
Cap on liability
|
(a)
|
arising out of any one act, omission or event and any one series of related acts, omissions or events will not under any circumstance exceed the amounts paid by Novovet to Dyadic under this agreement in the 12 month period prior to the act, omission or event or the first in the series of acts, omissions or events; and
|
(b)
|
arising out of all acts, omissions and events whenever occurring will not under any circumstance exceed the total amounts paid by Novovet to Dyadic under this agreement.
|
13
|
Insurance
|
13.1
|
Novovet and Sub-Licensees to maintain insurance
|
(a)
|
a comprehensive commercial general liability and products liability policy to cover all sums which it may become legally liable to pay as compensation consequent upon:
|
(i)
|
death of, or bodily injury (including disease or illness) to, any person; and
|
(ii)
|
loss of, or damage to, property,
|
(b)
|
clinical trial liability insurance in respect of all clinical trials;
|
(c)
|
insurance in respect of all claims and liabilities arising, whether at common law or under statute relating to workers compensation or employer’s liability, from any accident or injury to any person employed in connection with the Commercialisation of Products, in compliance with applicable local; and
|
(d)
|
any other insurance required by law.
|
13.2
|
Dyadic to be noted
|
13.3
|
Evidence of currency
|
13.4
|
Cancellation and changes
|
13.5
|
Potential claims
|
(a)
|
notify Dyadic as soon as reasonably practicable but in any event within five Business Days of the occurrence of that event; and
|
(b)
|
ensure that Dyadic is kept fully informed of any subsequent actions and developments concerning the relevant claim.
|
14
|
Confidentiality and media releases
|
14.1
|
Permitted use and disclosure
|
(a)
|
A party may disclose Confidential Information of the other party if legally compelled to do so by any judicial or administrative body, provided that the party required to make such disclosure must promptly inform the other party and cooperate (at the other party’s expense) with the other party’s efforts to take reasonably available legal measures to avoid or limit the extent of such disclosure.
|
1.1.
|
Either party may disclose the terms of this agreement as to its auditors, and other advisors and as required by the SEC, a share listing exchange or other such regulatory or governmental agencies and to a Third Party who
|
(b)
|
is evaluating whether or not to acquire or invest in that party, where that Third Party is acting in good faith and is subject to a binding obligation of confidence.
|
14.2
|
Protection of Confidential Information
|
(a)
|
not use, and ensure that its Personnel do not use, any Confidential Information for any purpose other than compliance with its obligations or exercise of its rights under this agreement;
|
(b)
|
take reasonable action necessary to maintain the confidential nature of the Confidential Information, including keeping all records of the Confidential Information under the same degree of protection that such party uses for its own Confidential Information of a similar nature;
|
(c)
|
not disclose any of the Confidential Information to any person other than those Personnel of the party or an Affiliate who need to have access to the Confidential Information for the purposes of this agreement provided:
|
(i)
|
such person has been made aware of the requirements of this clause and is subject to a legally enforceable undertaking of confidence on terms substantially equivalent to those in this agreement; and
|
(ii)
|
enforce the terms of that obligation of confidence at its own expense, on the request of the party that disclosed the Confidential Information; and
|
(d)
|
return all documents and other materials in any medium in its possession, power or control which contain or refer to any Confidential Information, on the earlier of demand by the other party or the time the documents and other material are no longer required for the purposes of this agreement, except
|
14.3
|
Publications
|
(a)
|
Novovet must provide Dyadic with the opportunity to review any proposed publications, manuscripts or summaries of presentations in respect of the Product at least 45 days prior to publication, submission or being presented.
|
(b)
|
Dyadic will respond promptly and in no event later than 21 days after receipt of the proposed material with either approval of the proposed material or a specific statement of concern, based upon either the need to seek patent protection for any Improvement owned by Dyadic or concern regarding protection of its Confidential Information.
|
(c)
|
In the event of concern, Novovet agrees not to submit such publication or to make such presentation that contains such information until Dyadic is given a reasonable period of time (not to exceed 90 days) to seek patent protection for any material in such publication or presentation that it believes is patentable or to resolve any other issues, and Novovet must remove any Confidential Information of Dyadic from such proposed publication as requested.
|
14.4
|
Media and stock exchange releases
|
(a)
|
A party may not make press or other announcements or releases relating to this agreement and the matters the subject of this agreement without the prior approval of the other party. Each party acknowledges that the other party has a proprietary interest in its legal and business name and reputation. Therefore, each party agrees not to make reference to or otherwise use the other party’s name or mention or describe this agreement or its relationship with the other party and its Affiliates in any advertising, marketing and/or promotional materials or other publications or materials (except as required or permitted by this agreement) without first obtaining the prior written approval of the other party.
|
(b)
|
Notwithstanding clause 14.4(a), if a party is required by law to disclose any information relating to this agreement or the identity of the other party (including filing a copy of this agreement with relevant authorities in the Territory or statements required to be made by either party to a relevant stock exchanges), it may do so to the extent required by law, provided that it:
|
(i)
|
gives notice to the other party, including a copy of the proposed release containing the information, as soon as practicable after it becomes aware of the need for the release; and
|
(ii)
|
minimises, to the extent permitted by law, the extent of the disclosure.
|
15
|
Dispute resolution
|
15.1
|
Notice of dispute
|
15.2
|
Dispute resolution procedure
|
(a)
|
If a dispute arises a party may not commence any court or arbitration proceedings relating to the dispute unless it has complied with this clause 15.2, except where the party seeks urgent interlocutory relief.
|
(b)
|
A party claiming that a dispute has arisen must give notice to the other party specifying the nature of the dispute.
|
(c)
|
On receipt of that notice by that other party, senior executives of both parties must endeavour in good faith to resolve the dispute expeditiously by negotiation or using informal dispute resolution techniques such as mediation, expert evaluation or determination or similar techniques agreed by them.
|
(d)
|
If the dispute has not been resolved or parties have not agreed within 30 days of receipt of the notice (or such further period as agreed in writing by them) as to:
|
(i)
|
the dispute resolution technique and procedures to be adopted;
|
(ii)
|
the timetable for all steps in those procedures; and
|
(iii)
|
the selection and compensation of the independent person required for such technique,
|
15.3
|
Expert determination
|
(a)
|
If this clause 15.3 applies, an independent chartered accountant with at least 10 years’ experience in valuing technology must be appointed as a valuer (
Independent Expert
) to determine the proportion of the value of a Third Party Transaction that is attributable to Target Indicators Products within the Field (
Apportionment
) in accordance with this clause 15.3.
|
(b)
|
If there is failure to agree on an independent chartered accountant, the Independent Expert will be appointed by the President for the time being of the Institute of Chartered Accountants in England and Wales.
|
(c)
|
Neither the Independent Expert, nor any firm or company of which the Independent Expert is an employee, partner, director or consultant, must have had any business dealings with either party in the two years before the date of appointment.
|
(d)
|
The Independent Expert will have a right of access at all reasonable times to the accounting records and other records of Dyadic, Luina and Novovet and its affiliates and is entitled to require from any officer of Dyadic, Luina, Novovet and its affiliates such information and explanation as the Independent Expert requires to determine the Apportionment.
|
(e)
|
The Independent Expert will be instructed to make a determination as soon as practicable and in any event within 30 Business Days after receiving instructions.
|
(f)
|
The parties agree that, in determining the Apportionment, the Independent Expert:
|
(i)
|
will act as an expert and not as an arbitrator;
|
(ii)
|
may obtain or refer to any documents, information or material and undertake any inspections or enquiries as he or she determines appropriate;
|
(iii)
|
must provide the parties with a draft of his or her determination and must give the parties an opportunity to comment on the draft determination before it is finalised; and
|
(iv)
|
may engage such assistance as or she reasonably believes is appropriate or necessary to make a determination.
|
(g)
|
The Independent Expert’s determination will be final and binding on the parties.
|
(h)
|
The parties will equally pay the costs and expenses of the Independent Expert.
|
16
|
GST
|
16.1
|
GST pass on
|
(a)
|
the consideration otherwise provided for that supply under this document is increased by the amount of that GST; and
|
(b)
|
the recipient must make payment of the increase as and when the consideration otherwise provided for, or relevant part of it, must be paid or provided or, if the consideration has already been paid or provided, within seven days of receiving a written demand from the supplier.
|
16.2
|
Tax Invoice
|
16.3
|
Consideration exclusive of GST
|
16.4
|
Adjustments
|
(a)
|
may recover from the recipient the amount by which the amount of GST on the supply exceeds the amount already recovered by giving seven days written notice; or
|
(b)
|
must refund to the recipient the amount by which the amount already recovered exceeds the amount of GST on the supply to the extent that the supplier is entitled to a refund or credit from the Commissioner of Taxation; and
|
(c)
|
must issue an adjustment note or tax invoice reflecting the adjustment event in relation to the supply to the recipient within 28 days of the adjustment event except where the recipient is required to issue an adjustment note or tax invoice in relation to the supply.
|
16.5
|
Reimbursements
|
17
|
Miscellaneous
|
17.1
|
Notices
|
(a)
|
must be in in writing and signed by the send or by a person duly authorised by the sender;
|
(b)
|
must be delivered to the intended recipient by prepaid post (if posted to an address in another country, by registered airmail) or by hand or email to the address or email address below or the address or email address last notified by the intended recipient to the sender after the date of this document:
|
(i)
to Dyadic:
|
Address: 140 Intracoastal Pointe Drive, Suite #404
Jupiter, Florida USA 33477
Attention: Mark Emalfarb
Email: memalfarb@dyadic.com
|
(ii)
to Luina:
|
Address: 2806 Ipswich Road, Darra, Brisbane 4076
Queensland, Australia Attention: [***] Email: [***] |
(iii)
to Novovet:
|
Address: 2806 Ipswich Road, Darra, Brisbane 4076
Queensland, Australia
Attention: Chris Burrell
Email: chris.burrell@novovet.com
|
(c)
|
will be conclusively taken to be duly given or made:
|
(i)
|
in the case of delivery in person, when delivered; or
|
(ii)
|
in the case of delivery by post, two Business Days after the date of posting (if posted to an address in the same country) or seven Business Days after the date of posting (if posted to an address in another country) and
|
(iii)
|
in the case of email, the earlier of:
|
(A)
|
the time that the sender receives an automated message from the recipient’s information system confirming delivery of the email; or
|
(B)
|
the time that the email is first opened or read by the recipient, or an employee or officer of the recipient,
|
17.2
|
No waiver
|
17.3
|
Amendment
|
17.4
|
Assignment
|
17.5
|
Further assurances
|
17.6
|
Costs and duty
|
17.7
|
Severability of provisions
|
17.8
|
Variation of rights
|
17.9
|
No merger
|
17.10
|
Entire agreement
|
17.11
|
Governing law and jurisdiction
|
17.12
|
Counterparts
|
17.13
|
Authorised signatories
|
1
|
Royalties on Net Sales of Products
|
Total Net Sales per country (AUD)
|
Royalty Rate
(%) of Net Sales) |
A.
Countries in which Patent Rights exist
|
|
$0 - $10 million
|
[***]%
|
Over $10 million
|
[***]%
|
B.
Countries in which Patent Rights have expired or abandoned, or do not exist
|
|
$0 - $10 million
|
[***]%
|
Over $10 million
|
[***]%
|
2
|
Royalties on Non-Sales Revenue
|
1
|
Know-How
|
(a)
|
Strains and constructs:
|
(i)
|
[***]
.
|
(ii)
|
[***]
.
|
(iii)
|
[***]
.
|
(b)
|
Dyadic SOPs:
|
(i)
|
[***]
|
(ii)
|
[***]
|
(iii)
|
[***]
|
(iv)
|
[***]
|
(v)
|
[***]
|
(vi)
|
[***]
|
(vii)
|
[***]
|
(viii)
|
[***]
|
(ix)
|
[***]
|
(c)
|
[***]
|
|
Signed by
Dyadic International (USA), Inc by |
sign here ►
|
/s/ Mark A Emalfarb ____________________ Director |
print name ►
|
Mark A. Emalfarb
|
Sign here ►
|
/s/ Ping Rawson _________________________ Company Secretary |
print name ►
|
Ping Rawson
|
|
Signed by
Luina Bio Pty Ltd by |
sign here ►
|
/s/ Chris Burrell _________________________ Director |
print name ►
|
_Chris Burrell
_______________________
|
Sign here ►
|
/s/ Robbie White
________________________
Company Secretary |
print name ►
|
Robbie White
_______________________
|
|
Signed by
Novovet Pty Ltd by |
sign here ►
|
/s/ Chris Burrell _________________________ Director |
print name ►
|
_
Chris Burrell
_______________________
|
Sign here ►
|
/s/ Robbie White
________________________
Company Secretary |
print name ►
|
Robbie White
_______________________
|
1
|
The Shareholders detailed in Schedule 1
(
Shareholders
)
|
2
|
Novovet Pty Ltd ACN 631 032 749
of 2806 Ipswich Road, Darra, Brisbane 4076 Queensland, Australia
(
Company
)
|
A
|
The Company was registered in Queensland on 16 January 2019.
|
B
|
The Company has entered into the Sub-Licence Agreement for the purposes of conducting the Business.
|
C
|
The Shareholders wish to enter into this Agreement to:
|
(1)
|
record their aims and objectives in relation to the Company;
|
(2)
|
regulate their rights and obligations as members of the Company;
|
(3)
|
provide for the admission (from time to time) of new shareholders to the Company; and
|
(4)
|
provide for the operation and administration of the Company.
|
1
|
Definitions and interpretation
|
1.1
|
Definitions
|
(a)
|
the accounting standards made by the Australian Accounting Standards Board in accordance with the Corporations Act, and the requirements of that Act relating to the preparation and content of financial statements; and
|
(b)
|
generally accepted accounting principles that are consistently applied in Australia, except those inconsistent with the standards or requirements referred to in paragraph (a).
|
(a)
|
a person that Controls or is Controlled by the first-mentioned person;
|
(b)
|
a Related Body Corporate of the first-mentioned person;
|
(c)
|
in the case of a party that is a trustee of a trust, includes any replacement trustee of that trust where there is no change to the ultimate beneficial owner of the Securities
|
(a)
|
a business plan specifying the proposed marketing plans, finance arrangements, capital expenditures and activities of the Business during that Financial Year; and
|
(b)
|
a budget specifying an estimate of the income to be received and the expenses to be incurred in carrying out that business plan.
|
(a)
|
control the composition of more than one half of the body's board of directors;
|
(b)
|
be in a position to cast, or control the casting of, more than one half of the maximum number of votes that might be cast at a general meeting of the members of the body or its ultimate holding company; or
|
(c)
|
hold or have a beneficial interest in more than one half of the issued share capital of the or its ultimate holding company.
|
(a)
|
the terms of this Agreement and its subject matter, including Information submitted or disclosed by a party during negotiations, discussions and meetings relating to this Agreement;
|
(b)
|
Information that at the time of disclosure by a Disclosing Party is identified to the Receiving Party as being confidential; and
|
(c)
|
all other Information belonging or relating to a Disclosing Party, or any Related Entity of that Disclosing Party, that is not generally available to the public at the time of disclosure other than by reason of a breach of this Agreement or which the Receiving Party knows, or ought reasonably to be expected to know, is confidential to that Disclosing Party or any Related Entity of that Disclosing Party.
|
(a)
|
any:
|
(i)
|
legal or equitable interest or power created, arising in or reserved in or over an interest in any property or asset; or
|
(ii)
|
security for payment of money, performance of obligations or protection against default (including a mortgage, bill of sale, charge, lien, pledge, trust, power or retention of title arrangement, right of set-off, assignment of income, garnishee order, monetary claim and flawed deposit arrangement);
|
(b)
|
any thing or preferential interest or arrangement of any kind giving a person priority or preference over claims or other persons with respect to any property or asset;
|
(c)
|
a security interest as defined in the PPSA; or
|
(d)
|
any agreement or arrangement (whether legally binding or not) to grant or create anything referred to in paragraphs (a), (b) or (c);
|
(a)
|
the Shareholder fails to comply with any of its obligations under this Agreement;
|
(b)
|
an Insolvency Event occurs in relation to the Shareholder;
|
(c)
|
a Change of Control occurs in relation to the Shareholder, other than with the prior written consent of the other Shareholders;
|
(d)
|
a notice of deregistration of the Shareholder (or in the case of a joint shareholding, any person comprising the Shareholder) is given under sections 601AA(5) or 601AB(5) of the Corporations Act.
|
(a)
|
an issue of Securities expressly contemplated under this document or the Sub-License Agreement;
|
(b)
|
an issue of Securities in connection with the First Close Raising;
|
(c)
|
an issue of Securities to Dyadic pursuant to the Anti-Dilution Right in clause 11;
|
(d)
|
Securities issued in connection with share splits or the issue of dividends which is approved by a Special Majority Vote of the Board;
|
(e)
|
an issue of Securities under an Employee Incentive Plan;
|
(f)
|
Securities issued as part of an IPO which is approved by a Special Majority vote of the Board;
|
(g)
|
Securities constituting all or part of the consideration for a bona-fide acquisition of assets or shares by the Group which is approved by the Required Resolution of the Board; or
|
(h)
|
an issue of Securities approved in writing by all Shareholders.
|
(a)
|
forms, memoranda, letters, specifications, processes, procedures, statements, formulae, technology, inventions, trade secrets, research and development information, know how, designs, plans, photographs, microfiche, business records, notes, accounting procedures or financial information, sales and marketing information, names and details of customers, suppliers and agents, employee details, reports, drawings and data;
|
(b)
|
copies and extracts made of or from that information and data, whether translated from the original form, recompiled, partially copied, modified, updated or otherwise altered; and
|
(c)
|
samples or specimens (if any) disclosed either before or after execution of this Agreement.
|
(a)
|
its winding up, liquidation or provisional liquidation;
|
(b)
|
the appointment of an administrator under the Corporations Act;
|
(c)
|
the appointment of a controller (as defined in the Corporations Act) or analogous person to it or any of its property;
|
(d)
|
being deregistered as a company or other body corporate or otherwise dissolved;
|
(e)
|
being unable to pay any of its debts as and when due and payable or being deemed to be insolvent under any Law;
|
(f)
|
seeking protection from its creditors under any Law or entering into a compromise, moratorium, assignment, composition or arrangement with, or for the benefit of, any of its members or creditors;
|
(g)
|
it otherwise becomes a Chapter 5 body corporate, as defined in the Corporations Act;
|
(h)
|
if the Shareholder is an individual, they commit an act of bankruptcy within the meaning of section 40 of the
Bankruptcy Act 1966 (Cth)
or they are or become bankrupt within the meaning of section 5 of that Act;
|
(i)
|
an analogous event or circumstance to any listed above occurs in any jurisdiction;
|
(j)
|
suspending or threatening to suspend payment of its debts as and when they become due,
|
(a)
|
principles of law or equity established by decisions of courts;
|
(b)
|
statutes, regulations or by-laws of the Commonwealth, or any State or Territory of the Commonwealth of Australia or a Government Agency; and
|
(c)
|
requirements and approvals (including conditions) of the Commonwealth or any State or Territory of the Commonwealth of Australia or a Government Agency that have the force of law.
|
(a)
|
in the case of a vote or resolution of Shareholders, Shareholders who together hold more than 50% of the Shares (excluding any Shares held by a Defaulting Party); or
|
(b)
|
in the case of a vote or resolution of the Board, Directors who together represent Shareholders who hold more than 50% of the Shares (excluding any Shares held by a Defaulting Party).
|
1.2
|
Rules for interpreting this document
|
(a)
|
A reference to:
|
(i)
|
legislation (including subordinate legislation) is to that legislation as amended, re-enacted or replaced, and includes any subordinate legislation issued under it;
|
(ii)
|
a document (including this document) or agreement, or a provision of a document (including this document) or agreement, is to that document, agreement or provision as amended, supplemented, replaced or novated;
|
(iii)
|
a party to this document or to any other document or agreement includes a permitted substitute or a permitted assign of that party;
|
(iv)
|
a person includes any type of body of persons, whether or not it is incorporated or has a separate legal identity, and any executor, administrator or successor in law of that person; and
|
(v)
|
anything (including a right, obligation or concept) includes each part of it.
|
(b)
|
A singular word includes the plural, and vice versa.
|
(c)
|
A word which suggests one gender includes all other genders.
|
(d)
|
If a word or phrase is defined, any other grammatical form of that word or phrase has a corresponding meaning.
|
(e)
|
If an example is given of anything (including a right, obligation or concept), such as by saying it includes something else, the example does not limit the scope of that thing.
|
(f)
|
A reference to
dollars
and
$
is to Australian currency.
|
(g)
|
The word
agreement
includes an undertaking or other binding arrangement or understanding, whether or not in writing.
|
(h)
|
The expression
this document
includes the agreement, arrangement, understanding or transaction recorded in this document.
|
(i)
|
The expressions
subsidiary
,
holding company
and
related body corporate
each have the same meaning as in the Corporations Act.
|
1.3
|
Business Days
|
(a)
|
if the act involves a payment that is due on demand, the person must do I ton or by the next Business Day; and
|
(b)
|
in any other case, the person must do it on or by the previous Business Day.
|
1.4
|
Multiple parties
|
(a)
|
an obligation of those persons is several;
|
(b)
|
a right of those persons is held by each of them severally; and
|
(c)
|
any other reference to that party or that term is a reference to each of those persons separately, so that (for example) a representation, warranty or undertaking relates to each of them separately.
|
2
|
Operation of this Agreement
|
2.1
|
Agreement to override the Constitution
|
2.2
|
Shareholders to observe and implement this Agreement
|
(a)
|
Each Shareholder undertakes with each other party to:
|
(i)
|
exercise all its votes, powers and rights under the Constitution so as to give full force and effect to the provisions and intentions of this Agreement;
|
(ii)
|
exercise all its votes, powers and rights in relation to the Company so as to ensure that the Company fully and promptly observes, complies with and gives effect to the requirements and intentions of this Agreement and the Constitution; and
|
(iii)
|
not unreasonably delay or withhold an action, approval, direction, determination or decision that is required of the Shareholder.
|
(b)
|
The obligations in this clause 2.2 include an obligation to:
|
(i)
|
exercise its powers both as a Shareholder and, where applicable and to the extent permitted by Law, through any Director appointed by it; and
|
(ii)
|
ensure, to the extent permitted by Law, that any Director appointed by it (whether alone or jointly with any other person) does any matter or thing required of that Director or the Board under the Law, this Agreement or otherwise.
|
2.3
|
Company to observe and implement this Agreement
|
(a)
|
must do all things necessary or desirable to give effect to the provisions and intentions of this Agreement in accordance with its terms; and
|
(b)
|
is bound by all provisions of this Agreement that expressly or by implication apply to the Company.
|
3
|
Board of Directors
|
3.1
|
Number of Directors
|
3.2
|
Current Directors
|
(a)
|
Chris Burrell;
|
(b)
|
[***]
; and
|
(c)
|
Mark A. Emalfarb..
|
3.3
|
Appointment and removal of Directors
|
(a)
|
For so long as:
|
(i)
|
Luina has a Respective Proportion equal to or more than 40%, it is entitled to appoint up to 3 Directors. In all other circumstances, it is entitled to appoint up to 2 Directors.
|
(ii)
|
Dyadic has a Respective Proportion equal to or more than 20%, it is entitled to appoint 1 Director.
|
(b)
|
Any Shareholder that has a Respective Proportion equal to or more than 20% is entitled to appoint 1 Director.
|
(c)
|
A Shareholder may nominate a person for consideration as a Director of the Company and at the next general meeting of the Company. The Shareholders may elect a nominee as a Director by a Simple Majority Vote.
|
(d)
|
The Board by a Simple Majority Vote may from time to time appoint a person to be a Director but they will hold office only until the next general Shareholders meeting at which their appointment is to be considered by the Shareholders (again requiring a Simple Majority Vote by Shareholders for appointment to the Board).
|
(e)
|
A Director may at any time resign from office by written notice to the Board.
|
3.4
|
Chairperson of Board
|
(a)
|
be Chris Burrell unless removed by a Special Majority Vote of the Board; and
|
(b)
|
if there is an equality of votes, have a casting vote as Chairperson in addition to any vote she or he may otherwise have as a Director.
|
4
|
Board meetings
|
4.1
|
Frequency of Board meetings
|
(a)
|
At least 1 Board Meeting must take place at least every Quarter.
|
(b)
|
Any Board Meetings in addition to those referred to in clause 4.1(a) may be convened at the written request of any Shareholder or Shareholders that have an aggregate Respective Proportion of more than 20%. The agenda for a Board Meeting convened under this clause 4.1(b) must be determined by the Shareholder or Shareholders convening the meeting and no business other than that stated on the agenda may be transacted at that Board Meeting.
|
(c)
|
In addition to meetings held under clause 4.1(a) or clause 4.1(b), any Director may convene a meeting of the Board at any time by giving notice in accordance with this clause 4.
|
(d)
|
Subject to complying with the other provisions of this clause 4.1, the time, date and location of all Board Meetings must be determined by the Chairperson after consultation with the Board or, if there is no Chairperson, by a Simple Majority Vote of the Board.
|
(e)
|
Board meetings may be conducted by telephone conference, video conference or any other means of audio or audio-visual communication.
|
4.2
|
Notice of Board meetings
|
(a)
|
All Directors must be given at least 10 Business Days prior notice of a Board Meeting unless otherwise agreed by all Directors.
|
(b)
|
That notice must include an agenda and any proposed resolutions and, unless all Directors otherwise agree, a Board Meeting may only resolve matters specifically referred to in the agenda.
|
4.3
|
Voting rights at Board meetings
|
4.4
|
Quorum
|
4.5
|
Quorum not present
|
(a)
|
If a quorum is not present within 30 minutes after the time specified for the Board Meeting, the meeting will be adjourned, by notice from the Chairperson or the Company secretary to all Directors, to a date and time 7 days after the original time of the meeting and at the same place as the original meeting.
|
(b)
|
Any Directors in attendance (in person or by alternate) at that adjourned meeting will constitute a quorum.
|
(c)
|
If no Director attends (in person or by alternate) that adjourned meeting, the meeting is regarded as dissolved.
|
5
|
Decision making
|
5.1
|
Simple Majority Vote
|
5.2
|
Special Majority Vote required
|
5.3
|
Director's decisions
|
(a)
|
the interests of the other Shareholders individually; or
|
(b)
|
the interests of the other Shareholders as a whole,
|
5.4
|
Resolution without meeting
|
(a)
|
A resolution of the Board which is in writing and signed by all of the Directors who are entitled to vote (
Circular Resolution
) will be as valid and effective as if it had been passed at a meeting of the Board properly convened and held.
|
(b)
|
A Circular Resolution may consist of one or more documents in identical terms.
|
6
|
Financial reporting
|
6.1
|
Adopt Business Plan
|
6.2
|
Current Business Plan
|
6.3
|
Provision of financial information
|
(a)
|
within 10 Business Days after the end of each month, unaudited financial statements (with projections for the balance of the then current Financial Year) for the month just elapsed and for the then current Financial Year to date, which are prepared in reasonable detail and comply with the Accounting Standards;
|
(b)
|
within 15 Business Days after the end of March, June, September and December in each Financial Year:
|
(i)
|
financial statements for the 3 months just elapsed with revised projections for the following 12 months; and
|
(ii)
|
comparisons of the actual results with the projections set out in the current Business Plan and explanations for any variations,
|
(c)
|
within 60 Business Days after the end of each Financial Year, financial statements for the Financial Year just elapsed and a statement of financial position as at the end of that Financial Year, each prepared in reasonable detail and complying with the Accounting Standards
;
and
|
(d)
|
any other reports or statements that the Board may require.
|
7
|
Funding
|
7.1
|
Excluded issues
|
7.2
|
Offer to Shareholders to contribute
|
(a)
|
the Shareholders applying for the issue to them of new Shares in accordance with their Respective Proportions; or
|
(b)
|
the making of loans to the Company by the Shareholders in accordance with their Respective Proportions,
|
7.3
|
Board's responsibility
|
(a)
|
the number of Shares to be issued under clause 7.2(a); and
|
(b)
|
subject to clause 7.4, the terms and conditions (including the amount) of loans to be provided under clause 7.2(b),
|
7.4
|
Conditions of loans
|
(a)
|
made on identical terms and conditions (except for the amount of the loans if the Shareholders' Respective Proportions are not identical);
|
(b)
|
unsecured;
|
(c)
|
at interest rates to be agreed upon by the Board or, in the absence of agreement, interest-free; and
|
(d)
|
not assignable by the Shareholder or the Company.
|
7.5
|
Non-Contributing Shareholder
|
(a)
|
If a Shareholder fails to or elects not to provide all or part of its Funding Contribution (
Non-Contributing Shareholder
), the Board must offer the other Shareholders that have made their Funding Contribution (
Contributing Shareholder
) the opportunity to:
|
(i)
|
apply for the new Shares which the Non-Contributing Shareholder did not apply for (
Shortfall Shares
); or
|
(ii)
|
provide the loan which the Non-Contributing Shareholder did not provide (
Shortfall Loan
),
|
(b)
|
If a Contributing Shareholder provides a proportion of the Shortfall Loan in accordance with clause 7.5(a)(ii):
|
(i)
|
the loan will be made on terms no more favourable than those originally offered to the Non-Contributing Shareholder; and
|
(ii)
|
clauses 7.4(b) to 7.4(d) will apply to the loan.
|
7.6
|
Proportion
|
A
|
= the Contribution Amount (rounded up or down to the nearest whole number at the discretion of the Board if A is not a whole number);
|
B
|
= the Shortfall Shares (expressed as a whole number rounded up or down at the discretion of the Board) or the Shortfall Loan (expressed as a dollar amount), as the case may be;
|
C
|
= the number of Shares held by that Contributing Shareholder at that time; and
|
D
|
= the total number of Shares held by all Contributing Shareholders at that time.
|
7.7
|
Offer of Shares to Third Parties
|
(a)
|
on terms that are no more favourable than those offered to the Shareholders; and
|
(b)
|
clause 17.1 will apply.
|
7.8
|
External borrowings
|
8
|
Dividend policy
|
8.1
|
General rule
|
(a)
|
consistent with prudent financial management; and
|
(b)
|
having regard to:
|
(i)
|
the Business Plan;
|
(ii)
|
the taxation, working capital, banking covenants and operational requirements of the Company; and
|
(iii)
|
the terms of all loan agreements under which the Company has borrowed funds and all related security instruments, covenants and other contracts to which the Company is a party.
|
8.2
|
Special dividends/distribution
|
9
|
Encumbrances
|
9.1
|
No Encumbrance
|
9.2
|
Security
|
(a)
|
The Shareholders must ensure that the Company does not undertake any activity, including entering into a contract or arrangement to provide services or obtain external borrowings from a financial institution or other Third Party, that requires the Shareholders to give a guarantee, bond or other security (
Security
), without the prior written consent of all Shareholders, which consent may be withheld by any Shareholder at its absolute discretion.
|
(b)
|
Where the Shareholders agree to provide such Security and the Shareholders agree with the financial institution or Third Party that any liability is to be assumed jointly, or jointly and severally, by them under the Security, the Shareholders agree that:
|
(i)
|
the amount of that liability will be apportioned between the Shareholders in their Respective Proportions; and
|
(ii)
|
despite any agreement with or action by the beneficiary of the Security, the Shareholders, between themselves, will be liable to make contributions to and indemnify each other so that any such liability is ultimately borne by the Shareholders in their Respective Proportions.
|
9.3
|
Security irrevocable
|
10
|
Employee Incentive Plan
|
(a)
|
at any time, the Board may establish a formal written employee incentive plan to issue Securities to eligible service providers (whether Directors, employees or contractors) that result in the issue of that number of shares of an amount up to 10% of the fully diluted share capital of the Company as at the date of this document (
Employee Incentive Plan
);
|
(b)
|
the Employee Incentive Plan will authorise the Directors to issue Securities under the Employee Incentive Plan to eligible service providers in their discretion; and
|
(c)
|
any issue of Securities under the Employee Incentive Plan will be an Excluded Issue.
|
11
|
Anti-Dilution Right
|
(a)
|
Where an issue of Securities is completed pursuant to the First Close Raising, the Company will issue to Dyadic for nil consideration such number of Shares that is required for Dyadic to maintain its Ownership Percentage (
Anti-Dilution Right
).
|
(b)
|
The parties acknowledge and agree that the Anti-Dilution Right:
|
(i)
|
has been granted to Dyadic to reflect the valuation of the Sub-Licensed IP which has been licensed by Dyadic to the Company pursuant to the Sub-Licensed Agreement;
|
(ii)
|
shall not apply to:
|
(A)
|
issue of Securities through pro-rata issues, Shares issued on the exercise of any Securities convertible into Shares, dividend reinvestment plans, share purchase plans, asset acquisition or pursuant to a takeover or scheme of arrangement; or
|
(B)
|
issues of any Shares, options or performance rights under the Employee Incentive Plan;
|
(iii)
|
will immediately terminate in the event that Dyadic suffers an Insolvency Event; and
|
(iv)
|
is non-transferrable other than to an Affiliate in accordance with clause 12.2.
|
12
|
Transfer of Shares
|
12.1
|
Transfer in accordance with Agreement
|
(a)
|
Unless all the Shareholders otherwise agree, a Shareholder must not Transfer Shares except in accordance with this Agreement.
|
(b)
|
Under this Agreement, Shares may be transferred only:
|
(i)
|
by a Shareholder giving a Transfer Notice under clause 13.1;
|
(ii)
|
where a Transfer Notice is taken to have been issued by a Shareholder under clause 12.3 (
Incapacity of Individual Shareholder
) or clause 22.2(f) (
Consequences of default
);
|
(iii)
|
if the Transfer is to an authorised transferee under clause 12.2;
|
(iv)
|
if a Founding Shareholder gives a Drag Along Notice (as defined in clause 14.1) under clause 14 to the Remaining Shareholders;
|
(v)
|
if a Remaining Shareholder gives a notice under clause 15.1 to the Founding Shareholder in response to a Tag Along Notice (as defined in that clause); or
|
(vi)
|
under the provisions of clause 23.4 relating to
resolution of deadlocks
,
|
(c)
|
The Company must not register any Transfer made in breach of this Agreement. Any purported Transfer so made has no effect.
|
12.2
|
Authorised transferees
|
(a)
|
Subject to clauses 12.4 and 12.5, but despite any other provision of this document:
|
(i)
|
a Shareholder may Dispose any or all of its Securities from time to time to any of its Affiliates without restriction; and
|
(ii)
|
an Affiliate of a Shareholder may Dispose any or all of its Securities from time to time to that Shareholder or another Affiliate of that Shareholder without restriction.
|
(b)
|
If a person to whom a Shareholder has disposed any Securities ceases to be an Affiliate (as applicable) of that Shareholder:
|
(i)
|
that Shareholder must procure that that person immediately disposes the relevant Securities back to the original transferor (who must purchase the Securities); and
|
(ii)
|
all rights attaching to the Securities held by that person will be suspended until the disposal back to the original transferor is completed.
|
12.3
|
Incapacity of individual Shareholder
|
12.4
|
Restrictions on Transfers
|
12.5
|
Conditions
|
(a)
|
the Transfer relates to all of the Shares held by the Shareholder;
|
(b)
|
subject to compliance with the Corporations Act:
|
(i)
|
all loans from the Company to the Shareholder transferring its Shares are repaid to the Company in full;
|
(ii)
|
all loans from the Shareholder transferring its Shares to the Company are repaid in full to the Shareholder and replaced by
|
(c)
|
the transferee, if a Third Party, complies with clauses 17.1 and 17.2.
|
13
|
Procedure on Transfer of Shares
|
13.1
|
Permitted Transfer
|
13.2
|
Date notice given
|
(a)
|
given under clause 13.1 is issued on the date the Board receives the Transfer Notice from a Shareholder; or
|
(b)
|
that is taken to have been issued by a Shareholder under clause 12.3 (Incapacity of Individual Shareholder), 22.2(f) (Consequences of default) or any other provision of this Agreement, is issued on the first date that a Director is aware of the circumstances that cause that provision to operate in respect of that Shareholder.
|
13.3
|
Terms of Transfer
|
(a)
|
at the price specified in the Transfer Notice or, if none is specified, at the price determined under clause 16 (
Sale Price
), but in any event the Sale Price must always be a single instalment cash price; and
|
(b)
|
otherwise on terms that comply with this Agreement.
|
13.4
|
Offer to other Shareholders
|
(a)
|
the date the Board receives a Transfer Notice; or
|
(b)
|
where no Sale Price is specified in the Transfer Notice, the date on which the Sale Price is determined according to clause 16,
|
A
|
= the number of Sale Shares offered to a Recipient, which number may be rounded up or down to the nearest whole number at the discretion of the Board if A is not a whole number;
|
B
|
= the total number of all Sale Shares;
|
C
|
= the number of Shares held by that Recipient on the date of the Round 1 Offers; and
|
D
|
= the total number of Shares held by all Recipients on the date of the Round 1 Offers.
|
13.5
|
Acceptance of Round 1 Offers
|
(a)
|
On or within 5 Business Days after receipt of the Round 1 Offers, each Recipient must notify the Board whether it accepts or rejects its Round 1 Offer. A Round 1 Offer can only be accepted or rejected in full.
|
(b)
|
If a Recipient fails to notify the Board of its acceptance or rejection of the Round 1 Offer within the period set out in clause 13.5(a), that Recipient is taken to have rejected the Round 1 Offer.
|
(c)
|
Subject to clause 13.9(a), if a Recipient accepts its Round 1 Offer, the Seller must sell free from Encumbrances, and the accepting Recipient (
Accepting Shareholder
) must purchase, the total number of Sale Shares contained in that Round 1 Offer at the Sale Price and otherwise on the terms specified in the Round 1 Offer.
|
13.6
|
Remaining Sale Shares
|
A
|
= the number of Remaining Sale Shares offered to an Accepting Shareholder, which number may be rounded up or down to the nearest whole number at the discretion of the Board if A is not a whole number;
|
B
|
= the total number of all Remaining Sale Shares;
|
C
|
= the number of Shares held by that Accepting Shareholder on the date of the Round 2 Offers (including the Sale Shares accepted by the Accepting Shareholder under its Round 1 Offer); and
|
D
|
= the total number of Shares held by all Accepting Shareholders on the date of the Round 2 Offers (including the Sale Shares accepted by the Accepting Shareholders under the Round 1 Offers).
|
13.7
|
Acceptance of Round 2 Offers
|
(a)
|
On or within 5 Business Days after receipt of the Round 2 Offers, each Accepting Shareholder must notify the Board whether it accepts or rejects its Round 2 Offer. A Round 2 Offer can only be accepted or rejected in full.
|
(b)
|
If an Accepting Shareholder fails to notify the Board of its acceptance or rejection of the Round 2 Offer within the period set out in clause 13.7(a), that Accepting Shareholder is taken to have rejected the Round 2 Offer.
|
(c)
|
Subject to clause 13.9(a), if an Accepting Shareholder accepts its Round 2 Offer, the Seller must sell free from Encumbrances, and the Accepting Shareholder must purchase, the total number of Remaining Sale Shares contained in that Round 2 Offer at the Sale Price and otherwise on the terms specified in the Round 2 Offer.
|
13.8
|
Time and place of completion
|
(a)
|
within 10 Business Days after:
|
(i)
|
the date by which Round 1 Offers must be accepted under clause 13.5(a); or
|
(ii)
|
if any Round 2 Offer is made, the date by which Round 2 Offers must be accepted under clause 13.7(a); and
|
(b)
|
at a time and place to be agreed by the Seller and the Recipient or failing agreement, at the registered office of the Company at 10 am on the next Business Day after expiry of the period stated in clause 13.8(a).
|
13.9
|
Transfer to Third Party by Founding Shareholder
|
(a)
|
Subject to clauses 12.4 and 12.5, where:
|
(i)
|
the Founding Shareholder has given a Transfer Notice under clause 13.1 as a result of the Founding Shareholder receiving a Third Party Offer, which it wishes to accept, for the purchase of all of the Founding Shareholder's Shares;
|
(ii)
|
not all of the Round 1 Offers and not all Round 2 Offers (if any) were accepted within the periods set out in clauses 13.5(a) and 13.7(a) respectively; and
|
(iii)
|
the Founding Shareholder gives an Election Notice under clause 13.9(b),
|
(iv)
|
all of the Round 1 Offers and Round 2 Offers, whether accepted or not, are taken to be cancelled and of no effect and no Shares can be Transferred under them; and
|
(v)
|
subject to clause 13.9(b), the Founding Shareholder may sell all the Sale Shares to the Third Party.
|
(b)
|
The Founding Shareholder must, within 3 Business Days after the expiration of the period set out in clause 13.5(a) or, if any Round 2 Offers are made, clause 13.7(a), give notice (
Election Notice
) in the same terms, to each of the other Shareholders (
Remaining Shareholders
):
|
(i)
|
specifying:
|
(A)
|
the details of the Third Party;
|
(B)
|
the price payable for each Share;
|
(C)
|
the date on which the Transfer of the Founding Shareholder's Shares is to occur, which must not be less than 20 Business Days after the date of the Election Notice; and
|
(D)
|
any other material terms of the Third Party Offer;
|
(ii)
|
stating whether the Founding Shareholder wishes to exercise its right under clause 14 to require each Remaining Shareholder to sell to the Third Party all of the Remaining Shareholder's Shares for the price and on the terms specified in the Election Notice, in which case the procedure set out in clause 14 must be followed; and
|
(iii)
|
if the Founding Shareholder does not wish to exercise its right under clause 14, advising each Remaining Shareholder that the Remaining Shareholder may exercise the right conferred on the Remaining Shareholder by clause 15.1 to require the Founding Shareholder to use its best endeavours to cause the Third Party to purchase all of the Remaining Shareholder's Shares, in which case the procedure set out in clause 15 must be followed.
|
13.10
|
Transfer to Third Party
|
(a)
|
where a Shareholder has given or is taken to have given a Transfer Notice for the purposes of this clause 13
and that Shareholder does not give an Election Notice under clause 13.9(b); and
|
(b)
|
after Round 1 Offers and any Round 2 Offers have been made, there are still Remaining Sale Shares that have not been Transferred as not all of the Round 1 Offers and any Round 2 Offers were accepted within the periods set out in clauses 13.5(a) and 13.7(a) respectively,
|
13.11
|
Inconsistency between Agreement and Transfer Notice
|
14
|
Drag along rights
|
14.1
|
Remaining Shareholders must sell
|
14.2
|
Notice irrevocable
|
14.3
|
Terms of sale must be the same
|
(a)
|
for the avoidance of any doubt, the Founding Shareholder has first complied with the procedure set out in clause 13;
|
(b)
|
the Founding Shareholder completes the Transfer of its Shares to the Third Party on the date (or any other date agreed between all the Shareholders and the Third Party) and terms stated in the Drag Along Notice;
|
(c)
|
prior to the Transfer being effected, the Founding Shareholder discloses to the Remaining Shareholders any terms of any proposed transaction between the Founding Shareholder and the Third Party that a reasonable person would think could impact on the price (or other consideration) or terms on which a Shareholder would so sell its Shares; and
|
(d)
|
the price per Share to be paid (or price per Share equivalent if other consideration is provided) and the other terms on which the Third Party offers to acquire the Remaining Shareholders’ Shares are the same as the price and the terms of the Third Party Offer to acquire the Founding Shareholders’ Shares.
|
14.4
|
Appointment of attorney
|
15
|
Tag along rights
|
15.1
|
Remaining Shareholders have option
|
15.2
|
Effect of exercise of option
|
(a)
|
Where a Remaining Shareholder gives a notice under clause 15.1 (
Minority Seller
), the Founding Shareholder must use its best endeavours to cause the Third Party to purchase the Shares of that Minority Seller for the price and on the terms set out in the Tag Along Notice.
|
(b)
|
The Founding Shareholder cannot Transfer any of its Shares to the Third Party unless and until the Founding Shareholder:
|
(i)
|
for the avoidance of any doubt, first complies with the procedure set out in clause 13; and
|
(ii)
|
then complies with the procedure set out in this clause 15.
|
15.3
|
Notice irrevocable
|
15.4
|
Extent of obligations
|
15.5
|
Effect of failure by Third Party
|
(a)
|
If the Third Party for any reason fails to buy all of the Shares of the Founding Shareholder on the terms set out in the Tag Along Notice, a Minority Seller must not Transfer any of its Shares to the Third Party.
|
(b)
|
If the Third Party for any reason fails to buy all of the Shares of a Minority Seller:
|
(i)
|
at the price (or at a greater price) and on the on the terms set out in the Tag Along Notice; and
|
(ii)
|
on the same date as the date for completion of the Transfer of the Founding Shareholder's Shares,
|
15.6
|
Completion of sale of Founding Shareholder's Shares
|
16
|
Determination of Sale Price
|
16.1
|
Appointment of Valuer
|
(a)
|
issued under clause 13.1 such that, in accordance with clause 13.3(a), the price of the Sale Shares must be determined under this clause 16; or
|
(b)
|
taken to have been issued under clause 13.2(b),
|
(c)
|
agree on a person or, failing agreement within 5 Business Days, procure that the Australian Disputes Centre (
ADC
) in accordance with the ADC Rules for Expert Determination which are operating at the time of referral to ADC, nominates a person to value the Sale Shares (
Valuer
); and
|
(d)
|
instruct the Valuer to value the Sale Shares, adopting, subject to clause 16.2, the method of valuation that the Valuer considers appropriate.
|
16.2
|
Valuation of Shares
|
(a)
|
must assume that a reasonable time is available within which to obtain a sale of Sale Shares in the open market and for that purpose 90 days is taken to be a reasonable time;
|
(b)
|
must have regard to the following factors (in addition to any other factors that the Valuer believes should properly be taken into account) based on the best information available at the time:
|
(i)
|
the prospects of the Business;
|
(ii)
|
the estimated future maintainable earnings of the Company;
|
(iii)
|
the net tangible assets, earnings before interest and tax and cash flow of the Company as disclosed in the last audited financial statements for the last preceding Financial Year, or to the extent that no audited financial statements of the Company are available, as disclosed in the latest management accounts of the Company; and
|
(c)
|
acts as an expert and not as an arbitrator.
|
16.3
|
Sale Price final and binding
|
16.4
|
Cost of Valuer
|
17
|
Provisions applying to all Transfers
|
17.1
|
Requirements for Transfer to Third Party
|
(a)
|
the Third Party enters into and delivers to each Shareholder a deed of accession under which it agrees to be bound by the terms of this Agreement, in substantially the same form as the Annexure 1 to this Agreement;
|
(b)
|
the Third Party is, in the reasonable opinion of the Shareholders (other than the Seller), of good standing, financial substance and reputation.
|
17.2
|
Obligations of parties at completion
|
(a)
|
each transferee (
Buyer
) must pay to the Shareholder selling or required to Transfer the Shares in question (
Seller
) the relevant purchase price for those Shares in full;
|
(b)
|
the Seller must deliver to each Buyer:
|
(i)
|
the certificates relating to the Shares being Transferred;
|
(ii)
|
a transfer of those Shares, duly executed by the Seller in favour of the Buyer; and
|
(iii)
|
a release of any Encumbrances affecting the relevant Shares; and
|
(c)
|
subject to the Corporations Act and unless otherwise determined by Special Majority Vote of the Board, the Buyer must provide loans to the Company:
|
(i)
|
to replace the value of any outstanding loans from the Seller to the Company immediately prior to the Transfer of the Seller's Shares to the Buyer; and
|
(ii)
|
on the same terms as the Seller's outstanding loans,
|
17.3
|
Non-Completing Seller
|
(a)
|
receive the purchase price from the Buyer on behalf of the Non‑Completing Seller;
|
(b)
|
give to the Buyer a valid receipt of the purchase price on behalf of the Non-Completing Seller;
|
(c)
|
ensure that the Buyer's name is entered in the Company's register of members as the holder of the Non-Completing Seller's Shares; and
|
(d)
|
take all further action necessary to complete the Transfer of the Non‑Completing Seller's Shares as required under this Agreement.
|
17.4
|
Registration of Transfer
|
18
|
Confidentiality
|
18.1
|
Obligations of confidentiality
|
(a)
|
keep the Confidential Information confidential and not directly or indirectly disclose, divulge or communicate any Confidential Information to, or otherwise place any Confidential Information at the disposal of, any other person without the prior written approval of the Disclosing Party;
|
(b)
|
take all reasonable steps to secure and keep secure all Confidential Information coming into its possession or control;
|
(c)
|
not memorise, use, modify, reverse engineer or make copies, notes or records of the Confidential Information for any purpose other than in connection with the performance by the Receiving Party of its obligations under this Agreement; and
|
(d)
|
take all reasonable steps to ensure that any person to whom the Receiving Party is permitted to disclose Confidential Information under clause 18.3 complies at all times with the terms of this clause 18 as if that person were a Receiving Party.
|
18.2
|
Exceptions
|
(a)
|
any Confidential Information that:
|
(i)
|
is disclosed to the Receiving Party by a third party entitled to do so, whether before or after the date of this Agreement;
|
(ii)
|
was already lawfully in the Receiving Party's possession when it was given to the Receiving Party and was not otherwise acquired from the Disclosing Party directly or indirectly; or
|
(iii)
|
is generally available to the public at the date of this Agreement or subsequently becomes so available other than by reason of a breach of this Agreement; or
|
(b)
|
any disclosure of Confidential Information by the Receiving Party that is necessary to comply with any court order, law, or the applicable rules of any financial market (as defined in the Corporations Act) if, to the extent practicable and as soon as reasonably possible, the Receiving Party:
|
(i)
|
notifies the Disclosing Party of the proposed disclosure;
|
(ii)
|
consults with the Disclosing Party as to its content; and
|
(iii)
|
uses reasonable endeavours to comply with any reasonable request by the Disclosing Party concerning the proposed disclosure.
|
18.3
|
Authorised disclosure
|
(a)
|
the Receiving Party notifies the Recipient of the confidential nature of the Confidential Information to be disclosed;
|
(b)
|
the Recipient undertakes to the Receiving Party (for the benefit of the Disclosing Party) to be bound by the obligations in this clause 18 as if the Recipient were a Receiving Party in relation to the Confidential Information to be disclosed to the Recipient; and
|
(c)
|
if requested to do so by the Disclosing Party, the Recipient signs an undertaking or deed in a form acceptable to the Disclosing Party (and for the benefit of the Disclosing Party) agreeing to be bound by the obligations in this clause 18 as if it were a Receiving Party in relation to the Confidential Information to be disclosed to the Recipient.
|
18.4
|
Return or destruction of Confidential Information
|
(a)
|
cease the use of all Confidential Information of or relating to the Disclosing Party (or any Related Entity of the Disclosing Party);
|
(b)
|
deliver to the Disclosing Party all documents and other materials in its possession or control containing, recording or constituting that Confidential Information or, at the option of the Disclosing Party, destroy, and certify to the Disclosing Party that it has destroyed, those documents and materials; and
|
(c)
|
for Confidential Information stored electronically, permanently delete that Confidential Information from all electronic media on which it is stored, so that it cannot be restored.
|
18.5
|
Warranties
|
(a)
|
it has the right to disclose Confidential Information to the Receiving Party and to authorise the Receiving Party to use the Confidential Information as permitted by this Agreement; and
|
(b)
|
the use of the Confidential Information as permitted by this Agreement does not breach the intellectual property rights of any other person.
|
18.6
|
Liability for breach by recipient
|
18.7
|
Survival of clause
|
19
|
Public announcements
|
19.1
|
Making announcements
|
(a)
|
it has the prior written consent of each other party; or
|
(b)
|
it is required to do so by Law or by the rules of any financial market (as defined in the Corporations Act) to which a party, or a Related Body Corporate of a party, is subject.
|
19.2
|
Requirements
|
(a)
|
notify each other party of the proposed announcement;
|
(b)
|
consult with each other party as to its content; and
|
(c)
|
use reasonable endeavours to comply with any reasonable request by any other party concerning the proposed announcement.
|
20
|
Indemnity
|
(a)
|
any breach or non-performance of this Agreement by the Indemnifying Party;
|
(b)
|
any wrongful, wilful or negligent act or omission of the Indemnifying Party or any of its employees, agents or contractors; and
|
(c)
|
any representation or warranty made or repeated by any party under this Agreement being untrue or misleading in any material respect (including by omission) when made or repeated.
|
21
|
Party as trustee
|
21.1
|
Capacity
|
21.2
|
Trustee's warranties
|
(a)
|
the Trustee has power under the Trust Deed and, in the case of a corporation, under its constitution, to enter into and execute this Agreement and to perform the obligations imposed under this Agreement as trustee;
|
(b)
|
all necessary resolutions have been passed as required by the Trust Deed and, in the case of a corporate Trustee, by its constitution, in order to make this Agreement fully binding on the Trustee;
|
(c)
|
the execution of this Agreement is for the benefit of the Trust;
|
(d)
|
the Trustee is not in default under the Trust Deed;
|
(e)
|
the Trustee has not done, and the Trustee will not during the term of the Agreement do anything by virtue of which there will be in the future, any restriction or limitation on the right of the Trustee to be indemnified out of the assets of the Trust; and
|
(f)
|
there is no material fact or circumstance relating to the assets, matters or affairs of the Trust that might, if disclosed, be expected to affect the decision of the other parties, acting reasonably, to enter into this Agreement.
|
21.3
|
Change of Trustee
|
22
|
Default
|
22.1
|
Default Notice
|
22.2
|
Consequences of default
|
(a)
|
receives a Default Notice and does not comply with the notice within the period referred to in clause 22.1;
|
(b)
|
is the subject of an Insolvency Event; or
|
(c)
|
is the subject of a Change of Control that has not had the prior written approval of the other Shareholders,
|
(d)
|
despite any other provision of this Agreement, any Director appointed by the Defaulting Party cannot formally consider nor vote on any matter considered at Board meetings during that period or whilst the default in question continues;
|
(e)
|
other than the Defaulting Party's right to receive sale proceeds if its Shares are sold as contemplated by clause 22.2(f), all rights under this Agreement or otherwise attaching to the Shares (including voting rights) held by the Defaulting Party or its appointed Director will be suspended until the default is remedied (if applicable) and otherwise will be suspended indefinitely; and
|
(f)
|
the Defaulting Party is taken to have issued a Transfer Notice to the Board for all the Defaulting Party's Shares and clause 13 and any other applicable provisions of this Agreement will apply to the sale of those Shares, except that the Shares will not be offered to the Defaulting Party or any Shareholder that is also a Related Entity of the Defaulting Party.
|
23
|
Resolution of deadlocks
|
23.1
|
Adjourned meeting
|
(a)
|
the meeting will, at the request of a Director or a Shareholder (as applicable), be adjourned to a date not earlier than 5 Business Days and not later than 10 Business Days after the date of the original meeting; and
|
(b)
|
the resolution must be proposed again and reconsidered at the adjourned meeting.
|
23.2
|
Deadlock
|
23.3
|
Mediation
|
(a)
|
The Directors or Shareholders (as applicable) must agree on a mediator within 5 Business days. If they fail to do so, any party may request the Australian Dispute Centre (
ADC
) to appoint a mediator.
|
(b)
|
Any mediator agreed by the parties or appointed byADC must be independent and impartial and have appropriate qualifications and experience relevant to negotiating a resolution of the Deadlock.
|
(c)
|
The mediation must be commenced within
20 Business Days after the mediator has been appointed and must be concluded within 30 Business Days after the mediator has been appointed, unless otherwise agreed between the parties to the Dispute.
|
(d)
|
The mediation must take place in Brisbane, Australia.
|
(e)
|
The parties must in good faith co-operate with the mediator and must comply with requests by the mediator including requests to submit written materials, provide evidence, attend meetings and pay the mediator's fees. Each party must pay its own costs of complying with this clause 23.3. The Company must pay the costs of any Mediator engaged.
|
(f)
|
The parties agree that the mediation will be private and confidential and they undertake not to rely on or introduce as evidence in any arbitral or judicial proceedings, whether or not such proceedings relate to the Dispute that is the subject of the mediation, any matter relating to the mediation (including the existence of the mediation), any settlement agreement, materials created for the purpose of the mediation and documents produced by another party in the mediation except:
|
(i)
|
for the purpose of making an application to a court of competent jurisdiction to enforce the settlement agreement;
|
(ii)
|
pursuant to the order of a court of competent jurisdiction; or
|
(iii)
|
if required by the law of any State which is binding on the party making the disclosure.
|
(g)
|
Without limiting any other right that a Shareholder may have to Transfer Shares under this Agreement, if after exhausting the procedure set out in this clause 23.3, the Deadlock has not been resolved, then clause 23.4 applies without the necessity of first complying with clause 13.
|
23.4
|
Party may offer to Sell Shares
|
(a)
|
If the Deadlock is not resolved within the period set out in clause 23.3(c), then within 10 Business Days after that period expires, any Shareholder (
Offeror
) may make an unconditional written offer (
Offer Notice
) to the other Shareholders (
Receiving Parties
) to either:
|
(i)
|
sell all of the Offeror's Shares to the Receiving Parties at the price and on the terms specified in the Offer Notice; or
|
(ii)
|
buy all of the Receiving Parties' Shares at the price and on the terms specified in the Offer Notice,
|
(b)
|
The Receiving Parties must, within 5 Business Days after receipt of an Offer Notice under clause 23.4(a)(i), either:
|
(i)
|
purchase all the Offeror's Shares (with the number of Shares to be purchased by each Receiving Party being calculated under clause 23.4(f)) for the price and on the terms specified in the Offer Notice; or
|
(ii)
|
collectively give notice (
Counter Purchase Notice
) to the Offeror stating that the Receiving Parties:
|
(A)
|
do not intend to purchase the Offeror's Shares; and
|
(B)
|
instead requiring the Offeror to purchase all of the Receiving Parties' Shares at the price per Share and on the other terms set out in the Offer Notice.
|
(c)
|
Not later than 10 Business Days after receipt of a Counter Purchase Notice given under clause 23.4(b)(ii), the Offeror must purchase the Receiving Parties' Shares at the price per Share and on the terms set out in the Offer Notice.
|
(d)
|
The Receiving Parties must, within 5 Business Days after receipt of an Offer Notice under clause 23.4(a)(ii), either:
|
(i)
|
sell all of their Shares to the Offeror for the price and on the terms specified in the Offer Notice; or
|
(ii)
|
give notice (
Counter Sale Notice
) to the Offeror stating that the Receiving Parties:
|
(A)
|
do not intend to sell their Shares; and
|
(B)
|
instead require the Offeror to sell all of its Shares to the Receiving Parties (with the number of Shares to be sold to each Receiving Party being calculated under clause 23.4(f)) at the price per Share and on the other terms set out in the Offer Notice.
|
(e)
|
Not later than 10 Business Days after receipt of a Counter Sale Notice given under clause 23.4(d)(ii), the Offeror must sell all of its Shares to the Receiving Parties at the price per Share and on the terms set out in the Offer Notice.
|
(f)
|
For the purposes of clauses 23.4(b)(i) and 23.4(d)(ii), the number of Shares to be purchased by or sold to each Receiving Party must be determined by applying the following formula:
|
A
|
= the number of Shares to be purchased by or sold to a Receiving Party, which number may be rounded up or down to the nearest whole number at the discretion of the Board if A is not a whole number;
|
B
|
= the total number of the Offeror’s Shares;
|
C
|
= the number of Shares held by that Receiving Party at that time; and
|
D
|
= the total number of Shares held by all Receiving Parties at that time.
|
(g)
|
Completion of the Transfer of Shares under clause 23.4(b)(i), clause 23.4(c), clause 23.4(d)(i) or clause 23.4(e) as applicable must take place in accordance with clause 17.
|
24
|
Termination
|
24.1
|
When terminated
|
(a)
|
by mutual agreement in writing of all Shareholders;
|
(b)
|
for any Shareholder, if and when it ceases to hold, directly or indirectly, any Shares;
|
(c)
|
if and when the Company is deregistered or wound up voluntarily or by an order of a court; or
|
(d)
|
if the Company is listed on any financial market (as that term is defined in the Corporations Act).
|
24.2
|
Consequences generally
|
24.3
|
Clauses surviving termination
|
25
|
Notices
|
(a)
|
must be given in accordance with this clause 25;
|
(b)
|
may be given by personal service, post or facsimile;
|
(c)
|
must be in writing, legible and in English addressed (depending on the manner in which it is given) as shown in Schedule 2 or addressed in accordance with any updated details last notified by the party to the sender by notice given in accordance with this clause;
|
(d)
|
must be signed:
|
(i)
|
in the case of a corporation registered in Australia, by any authorised representative or by the appropriate office holders of that corporation in accordance with the Corporations Act; or
|
(ii)
|
in the case of a corporation registered outside of Australia, by a person duly authorised by the sender in accordance with the laws governing the place of registration of that corporation;
|
(e)
|
is taken to be given by the sender and received by the addressee:
|
(i)
|
if delivered in person, when delivered to the addressee;
|
(ii)
|
if posted, at 9.00 am on the third Business Day after the date of posting to the addressee whether delivered or not; or
|
(iii)
|
if sent by email the earlier of:
|
(A)
|
the time that the sender receives an automated message from the recipient’s information system confirming delivery of the email; or
|
(iv)
|
the time that the email is first opened or read by the recipient, or an employee or officer of the recipient
|
26
|
General
|
26.1
|
Obligations are several
|
26.2
|
Time of the essence
|
26.3
|
Entire understanding
|
(a)
|
This Agreement contains the entire understanding between the parties concerning the subject matter of this Agreement and supersedes, terminates and replaces all prior agreements and communications between the parties concerning that subject matter.
|
(b)
|
Each party acknowledges that, except as expressly stated in this Agreement, it has not relied on any representation, warranty, undertaking or statement made by or on behalf of another party in relation to this Agreement or its subject matter.
|
26.4
|
No adverse construction
|
26.5
|
Further assurances
|
26.6
|
No waiver
|
(a)
|
A failure to exercise, a delay in exercising or partially exercising any power, right or remedy conferred on a party by or in respect of this Agreement does not operate as a waiver by that party of the power, right or remedy.
|
(b)
|
A single or partial exercise of any power, right or remedy does not preclude a further exercise of it or the exercise of any other power, right or remedy. A waiver of a breach does not operate as a waiver of any other breach.
|
26.7
|
Remedies cumulative
|
26.8
|
Severability
|
(a)
|
read down to the minimum extent necessary to achieve its validity, if applicable; and
|
(b)
|
severed from this Agreement in any other case,
|
26.9
|
No assignment
|
26.10
|
Consents and approvals
|
26.11
|
Variation
|
26.12
|
Costs
|
26.13
|
Duty
|
26.14
|
Conflicting provisions
|
26.15
|
No merger
|
26.16
|
Relationship of parties
|
(a)
|
Except as otherwise expressly stated in this Agreement, nothing in this Agreement may be construed as creating a relationship of partnership, of principal and agent or of trustee and beneficiary between the parties or any of them.
|
(b)
|
A Shareholder must not act, represent or hold itself out as having authority to act as the agent of or in any way bind or commit the other Shareholders to any obligation.
|
26.17
|
Counterparts
|
26.18
|
Governing law and jurisdiction
|
(a)
|
This Agreement is governed by and must be construed in accordance with the Laws of Queensland.
|
(b)
|
The parties submit to the exclusive jurisdiction of the courts of that State and the Commonwealth of Australia in respect of all matters arising out of or relating to this Agreement, its performance or subject matter.
|
(c)
|
Each party waives any rights to:
|
(i)
|
object to the venue of any proceedings; or
|
(ii)
|
claim that the proceedings have been brought in an inconvenient forum or that the courts of another place are a more convenient forum,
|
Name
|
Defined term used in this document
|
Address for service
|
Class and number of Shares held at date of this document (if any)
|
Dyadic International (USA), Inc
|
Dyadic
|
Address
140 Intracoastal Pointe Drive, Suite 404
Jupiter, FL 33477
Email
Address
memalfarb@dyadic.com
Contact
Mark Emalfarb
|
Ordinary Shares
1,500,000
|
JCL Biologics Pty Ltd
|
JCL
|
Address
2806 Ipswich Road
Darra QLD 4076 Australia
Email
Address
chris.burrell@luinabio.com.au
Contact
Chris Burrell
|
Ordinary Shares
6,000,000
|
|
Signed by
Novovet Pty Ltd by |
sign here ► |
/s/ Chris Burrell _ ________________________ Director |
print name ► |
_
Chris Burrell
_______________________
|
Sign here ► |
/s/ Robbie White
_
_______________________
Company Secretary |
print name ► |
Robbie White
_______________________
|
|
Signed by
JCL Biologics Pty Ltd by |
sign here ►
|
/s/ Chris Burrell _________________________ Director |
print name ►
|
_
Chris Burrell
___________________________
|
Sign here ►
|
/s/ Robbie White
________________________
Company Secretary |
print name ►
|
Robbie White
___________________________
|
|
Signed by
Dyadic International (USA), Inc by |
sign here ►
|
/s/ Mark A Emalfarb ____________________ Director |
print name ►
|
Mark A. Emalfarb
|
|
|
sign here ► |
/s/ Ping Rawson _________________________ Company Secretary |
print name ► |
Ping Rawson
|
A.
|
The New Shareholder has acquired or will acquire securities in Novovet Pty Ltd ACN 631 032 749 (the
Company
).
|
B.
|
This deed poll is supplemental to the shareholders’ agreement dated 26 April 2019 between the Company and its shareholders in relation to the Company (
Shareholders Agreement
).
|
C.
|
The New Shareholder agrees to become a party to the Shareholders Agreement and to be bound by the terms and conditions of the Shareholders Agreement.
|
1
|
Definitions and Interpretation
|
(a)
|
terms defined in the Shareholders Agreement have the same meaning when used in this deed; and
|
(b)
|
the interpretation provisions in the Shareholders Agreement apply to the interpretation of this deed.
|
2
|
New Shareholder’s Shareholding
|
(a)
|
it has been given a copy of the Shareholders Agreement; and
|
(b)
|
it will hold Securities in the capacity of a Shareholder.
|
3
|
Covenant
|
4
|
Notices
|
(a)
|
address: [insert address];
|
(b)
|
and attention:
[insert name of person notices should be sent to]
; and
|
(c)
|
email: [insert email address].
|
5
|
Costs
|
6
|
Governing law
|