UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): February 25, 2015

 

Unique Growing Solutions, Inc.

(Exact name of registrant as specified in its charter)

 

Nevada   333-170118   27-2830681
(State of other jurisdiction   (Commission   (IRS Employer
of incorporation)   File Number)   Identification No.)

 

100 Europa Drive, Chapel Hill, NC 27517

(Address of principal executive office)

 

919-933-2720

(Registrant's telephone number, including area code)

 

 

(Former name, former address and former fiscal year, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐    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))

 

 

  

 
 

 

Item 1.01 Entry into Material Definitive Agreement.

 

On February 25, 2015, Unique Growing Solutions, Inc. (f/k/a Alternative Energy & Environmental Solutions, Inc.) (the “Company”) entered into a License Agreement (the “License Agreement”) with Lamina Equities Corporation (“Lamina”). Lamina is a private corporation over which Dr. Raouf Guirguis has sole control. Pursuant to the License Agreement, the Company agreed to pay $1,000 to Lamina in exchange for an exclusive worldwide license to Lamina’s intellectual property relating to diagnosing illness in humans via a saliva test. In addition, the Company will pay total regulatory milestone payments of up to $10,000 and a royalty of 7.5% of Net Sales (as defined in the License Agreement) to Lamina. The foregoing description of the terms of the License Agreement is qualified in its entirety by reference to the provisions of the agreement filed as Exhibit 10.1 to this Current Report on Form 8-K (this “Report”), which is incorporated by reference herein.

 

Simultaneously with the signing of the License Agreement, on February 25, 2015, the Company entered into two separate Cancellation Agreements. One Cancellation Agreement is with Mr. Peter Coker, its sole officer and sole director, and one Cancellation Agreement is with Ms. Linda Hiatt, an affiliate of the Company (collectively, the “Cancellation Agreements”). Pursuant to the Cancellation Agreements, Mr. Coker and Ms. Hiatt agreed to have the Company cancel, in total, eleven million, five hundred thousand (11,500,000) shares of the Company’s common stock that they currently own. In return, Mr. Coker and Ms. Hiatt are receiving a total of $115,000 from the Company. The foregoing description of the terms of the Cancellation Agreements is qualified in its entirety by reference to the provisions of the agreements filed as Exhibits 10.2 and 10.3 to this Report, which is incorporated by reference herein.

 

Simultaneously with the signing of the License Agreement, on February 25, 2015, the Company signed an Employment Agreement with Dr. Guirguis (the “Employment Agreement”). Pursuant to the Employment Agreement, the Company appointed Dr. Guirguis as Chief Executive Officer of the Company effective as of February 26, 2015 (the “Employment Effective Date”). The Company will pay Dr. Guirguis an annual salary of $350,000. In addition, within twenty days of the Employment Effective Date, the Company will issue thirty seven million, five hundred thousand (37,500,000) shares of the Company’s common stock to Dr. Guirguis (the “Stock Issuance”). The foregoing description of the terms of the Employment Agreements is qualified in its entirety by reference to the provisions of the agreement filed as Exhibits 10.4 to this Report, which is incorporated by reference herein.

 

The Stock Issuance will result in a change of control of the Company. On February 25, 2015, there were 18,836,528 shares of the Company’s common stock outstanding (including the shares to be issued pursuant to the Warrant Exercise discussed below). Once the 11,500,000 shares of the Company’s common stock are cancelled pursuant to the Cancellation Agreements, there will be 7,336,528 shares of common stock outstanding. Once the Stock Issuance takes effect, there will be 44,836,528 shares of common stock outstanding. Dr. Guirguis has chosen to have the Company issue some of the Stock Issuance shares to other people. Once the Stock Issuance takes place, Dr. Guirguis will control 26,000,000 shares directly and 2,500,000 shares indirectly via his wife’s ownership of those shares. Dr. Guirguis will control 63.56% of the Company’s shares.

 

As part of the Stock Issuance, Mr. Ayman Elsalhy, a member of the Company’s board of directors (the “Board”) (see Item 5.02 of this Report), will be receiving 1,500,000 shares of the Company’s common stock.

 

In connection with the Stock Issuance, the Company relied on the exemption from registration provided by Section 4(2) of the Securities Act of 1933, as amended, for transactions not involving a public offering.

 

On February 25, 2015, the Company, due to the exercise of warrants at $0.83 per share, became obligated to issue a total of 330,000 shares of common stock to three individuals. This resulted in total proceeds to the Company of $273,900 (the “Warrant Exercise”). The individuals who engaged in the Warrant Exercise are not related to or part of a group with Dr. Guirguis or Mr. Elsalhy.

 

In connection with the Warrant Exercise, the Company relied on the exemption from registration provided by Section 4(2) of the Securities Act of 1933, as amended, for transactions not involving a public offering.

 

Item 3.02 Unregistered Sale of Equity Securities.

 

Reference is made to the disclosure regarding the Stock Issuance and the Warrant Exercise set forth under Item 1.01 of this Report, which disclosure is incorporated herein by reference.

 

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Item 5.01 Changes in Control of Registrant.

 

Reference is made to the disclosure regarding the Cancellation Agreements and the Stock Issuance set forth under Item 1.01 of this Report, which disclosure is incorporated herein by reference.

 

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers.

 

Effective as of the Employment Effective Date, Dr. Guirguis became the Chief Executive Officer of the Company. On February 25, 2015, by unanimous written consent of the single member of the Board, Dr. Guirguis was appointed a member of the Company’s Board, effective as of the Employment Effective Date.

 

Effective as of the Employment Effective Date, Mr. Coker, previously the Company’s sole officer and sole director, resigned as the Company’s Chief Executive Officer. Mr. Coker did not resign as the result of any disagreement with the Company on any matter relating to its operation, policies (including accounting or financial policies), or practices. Mr. Coker remains the Company’s Chief Financial Officer and a member of the Company’s Board.

 

On February 25, 2015, by unanimous written consent of the single member of the Company’s Board, Mr. Elsalhy was appointed a member of the Company’s Board, effective as of the Employment Effective Date.

 

Dr. Raouf Guirguis , 61, has been the Chairman and Chief Executive Officer of Lamina Equities Corporation since 2001. From 2005 to 2010, he was the President of Diplomatic Language Services, LLC. Since 2011, Dr. Guirguis has been the President of Converting Biophile Laboratories, LLC. His involvement with the companies ranged from the conception of the business plan to technology packaging, mergers and acquisitions, and business development.

 

Family Relationships

 

There are no family relationships between and among Mr. Coker, Dr. Guirguis, and Mr. Elsalhy.

 

Committees

 

There are currently no Board committees.

 

Arrangements or Understandings

 

There are no arrangements or understandings between and among Dr. Guirguis, Mr. Elsalhy, and any other person pursuant to which Dr. Guirguis or Mr. Elsalhy were appointed as members of the Board.

 

Related Party Transactions

 

There are no related party transactions with regard to Dr. Guirguis or Mr. Elsalhy reportable under Item 404(a) of Regulation S-K.

 

Material Plans, Contracts, or Arrangements

 

With regard to Dr. Guirguis, reference is made to the disclosure regarding the License Agreement and the Employment Agreement set forth under Item 1.01 of this Report, which disclosure is incorporated herein by reference.

 

Mr. Elsalhy, in connection with Dr. Guirguis’ Employment Agreement, will be receiving 1,500,000 shares of the Company’s common stock in connection with the Stock Issuance.

 

Material Compensatory Plans, Contracts, or Arrangements

 

With regard to Dr. Guirguis, reference is made to the disclosure regarding the Employment Agreement set forth under Item 1.01 of this Report, which disclosure is incorporated herein by reference.

 

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Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits. The following exhibits are filed as part of this report:

 

Exhibit
Number
  Description
     
10.1   License Agreement with Lamina Equities Corporation, dated February 25, 2015.
     
10.2   Cancellation Agreement with Peter Coker, dated February 25, 2015.
     
10.3   Cancellation Agreement with Linda Hiatt, dated February 25, 2015.
     
10.4   Employment Agreement with Dr. Raouf Guirguis dated February 25, 2015.

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized

 

  UNIQUE GROWING SOLUTIONS, INC.
     
DATED: February 27, 2015 By: /s/ Raouf Guirguis
    Raouf Guirguis
    Chief Executive Officer

 

 

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Exhibit 10.1

 

LICENSE AGREEMENT

 

 

between

 

 

UNIQUE GROWING SOLUTIONS, INC.
(f/k/a Alternative Energy & Environmental Solutions, Inc.)

 

 

and

 

 

LAMINA EQUITIES CORPORATION

 

 

 

Dated February 25, 2015

 

 

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LICENSE AGREEMENT

 

This License Agreement (the “ Agreement ”) is made and entered into February 25, 2015 (the “ Effective Date ”) by and between Lamina Equities Corporation, a Nevada corporation (“ Lamina ”) and Unique Growing Solutions, Inc. (f/k/a Alternative Energy & Environmental Solutions, Inc.), a Nevada corporation (“ ALNE ”). Lamina and ALNE are sometimes referred to herein individually as a “ Party ” and collectively as the “ Parties ”.

 

Recitals

 

WHEREAS , Lamina owns or Controls certain intellectual property relating to diagnosing illness in humans via a saliva test; and

 

WHEREAS , Lamina wishes to license to ALNE, and ALNE wishes to license from Lamina, through the license grants contemplated herein, such intellectual property rights to develop and commercialize Products (as defined below) in accordance with the terms and conditions set forth below.

 

NOW, THEREFORE , in consideration of the premises and the mutual promises and conditions hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, do hereby agree as follows:

 

ARTICLE 1
DEFINITIONS

 

Unless otherwise specifically provided herein, the following terms shall have the following meanings:

 

1.1 Affiliate ” means, with respect to a Party, any Person that, directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with such Party. For purposes of this definition, “control” and, with correlative meanings, the terms “controlled by” and “under common control with”, means (i) the possession, directly or indirectly, of the power to direct the management or policies of a business entity, whether through the ownership of voting securities, by contract relating to voting rights or corporate governance, or otherwise; or (ii) the ownership, directly or indirectly, of more than fifty percent (50%) of the voting securities or other ownership interest of a business entity (or, with respect to a limited partnership or other similar entity, its general partner or controlling entity). The Parties acknowledge that in the case of certain entities organized under the laws of certain countries outside of the United States, the maximum percentage ownership permitted by law for a foreign investor may be less than fifty percent (50%), and that in such case such lower percentage shall be substituted in the preceding sentence, provided that such foreign investor has the power to direct the management or policies of such entity.

 

1.2 ALNE ” has the meaning set forth in the preamble hereto.

 

1.3 Applicable Law means federal, state, local, national and supra-national laws, statutes, rules, and regulations, including any rules, regulations, guidelines, or other requirements of the Regulatory Authorities, major national securities exchanges or major securities listing organizations, that may be in effect from time to time during the Term and applicable to a particular activity.

 

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1.4 Business Day ” means a day other than a Saturday or Sunday on which banking institutions in New York, New York are open for business.

 

1.5 Calendar Quarter ” means each successive period of three (3) calendar months commencing on January 1, April 1, July 1 and October 1, except that the first Calendar Quarter of the Term shall commence on the Effective Date and end on the day immediately prior to the first to occur of January 1, April 1, July 1 or October 1 after the Effective Date, and the last Calendar Quarter shall end on the last day of the Term.

 

1.6 Calendar Year ” means each successive period of twelve (12) calendar months commencing on January 1 and ending on December 31, except that the first Calendar Year of the Term shall commence on the Effective Date and end on December 31 of the year in which the Effective Date occurs and the last Calendar Year of the Term shall commence on January 1 of the year in which the Term ends and end on the last day of the Term.

 

1.7 Change in Control ” means with respect to a Party: (1) the sale of all or substantially all of such Party’s assets or business relating to this Agreement; (2) a merger, reorganization or consolidation involving such Party in which the holders of voting securities of such Party outstanding immediately prior thereto cease to hold voting securities that represent at least fifty percent (50%) of the combined voting power of the surviving entity immediately after such merger, reorganization or consolidation; or (3) a person or entity, or group of persons or entities, acting in concert acquire more than fifty percent (50%) of the voting equity securities or management control of such Party.

 

1.8 Commercial Sublicensee ” means a Sublicensee to whom ALNE has granted a right to offer for sale, have sold or sell one or more Products in all or a portion of the Territory including exclusive distributors.

 

1.9 Commercialization ” means any and all activities directed to the preparation for sale of, offering for sale of, or sale of a Product, including activities related to marketing, promoting, distributing, and importing such Product, and interacting with Regulatory Authorities regarding any of the foregoing. When used as a verb, “ to Commercialize ” and “ Commercializing ” means to engage in Commercialization, and “ Commercialized ” has a corresponding meaning.

 

1.10 Commercially Reasonable Efforts means, with respect to the objective that is the subject of such efforts, such reasonable, good faith efforts and resources as a similarly-situated (including in relation to size and personnel and other resources) company within the pharmaceutical industry would normally use to accomplish a similar objective under similar circumstances.

 

1.11 Confidential Information ” means any technical, business, or other information or data provided orally, visually, in writing or other form by or on behalf of one Party to the other Party in connection with this Agreement, including information relating to the terms of this Agreement, any Product (including the Regulatory Documentation), any Exploitation of any Product, any know-how with respect thereto developed by or on behalf of the disclosing Party or its Affiliates, or the scientific, regulatory or business affairs or other activities of either Party.

 

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1.12 Control” means, with respect to any item of Information, Regulatory Documentation, material, Patent, or other property right existing on or after the Effective Date and during the Term, possession of the right, whether directly or indirectly, and whether by ownership, license or otherwise (other than by operation of the license and other grants in Section 2.1 ), to grant a license, sublicense or other right (including the right to reference Regulatory Documentation) to or under such Information, Regulatory Documentation, material, Patent, or other property right as provided for herein without violating the terms of any agreement or other arrangement with any Third Party.

 

1.13 Development ” means all activities related to research, pre-clinical and other non-clinical testing, test method development and stability testing, toxicology, formulation, process development, manufacturing scale-up, qualification and validation, quality assurance/quality control, clinical studies, statistical analysis and report writing, the preparation and submission of Drug Approval Applications, regulatory affairs with respect to the foregoing and all other activities necessary or reasonably useful or otherwise requested or required by a Regulatory Authority as a condition or in support of obtaining or maintaining a Regulatory Approval. When used as a verb, “ Develop ” means to engage in Development.

 

1.14 Development Data ” means all non-clinical, clinical, technical, chemical, safety, and scientific data and information and other results, including relevant laboratory notebook information, screening data, and synthesis schemes, including descriptions in any form, data and other information, in each case, that is generated by or resulting from or in connection with the conduct of Development of Products.

 

1.15 Dollars ” or “ $ ” means United States Dollars.

 

1.16 Drug Approval Application ” means a New Drug Application (an “ NDA ”) as defined in the FFDCA, or any corresponding foreign application, including, with respect to the European Union, a Marketing Authorization Application filed with the EMA or with the applicable Regulatory Authority of a country in Europe with respect to the mutual recognition or any other national approval procedure.

 

1.17 Effective Date means the effective date of this Agreement as set forth in the preamble hereto.

 

1.18 EMA ” means the European Medicines Agency and any successor agency or authority having substantially the same function.

 

1.19 Exploit ” means to make, have made, import, use, sell, or offer for sale, including to research, Develop, Commercialize, Manufacture, have Manufactured, obtain Regulatory Approval for, hold, or keep (whether for disposal or otherwise), have used, export, transport, distribute, promote, market, or have sold or otherwise dispose of on a worldwide basis. “ Exploitation ” shall mean the act of Exploiting.

 

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1.20 FDA ” means the United States Food and Drug Administration and any successor agency or agencies or authority having substantially the same function.

 

1.21 FFDCA ” means the United States Federal Food, Drug, and Cosmetic Act, 21 U.S.C. §301 et seq. , as amended from time to time, together with any rules, regulations and requirements promulgated thereunder (including all additions, supplements, extensions, and modifications thereto).

 

1.22 First Commercial Sale ” means, with respect to a Product and a country, the first sale by ALNE, its Affiliate or its Commercial Sublicensee to a Third Party for monetary value of such Product in such country after Regulatory Approval for such Product has been obtained in such country.

 

1.23 IND ” means an application filed with a Regulatory Authority for authorization to commence human clinical studies, including (a) an Investigational New Drug Application as defined in the FFDCA or any successor application or procedure filed with the FDA, (b) any equivalent of a United States IND in other countries or regulatory jurisdictions, and (c) all supplements, amendments, variations, extensions and renewals thereof that may be filed with respect to the foregoing.

 

1.24 Information ” means all technical, scientific, and other know-how and information, trade secrets, knowledge, technology, means, methods, processes, practices, formulae, instructions, skills, techniques, procedures, experiences, ideas, technical assistance, designs, drawings, assembly procedures, computer programs, apparatuses, specifications, data, results and other material, including: biological, chemical, pharmacological, toxicological, pharmaceutical, physical and analytical, pre-clinical, clinical, safety, manufacturing and quality control data and information, including study designs and protocols, assays, biological methodology, other data relating to Development, all data, information and materials relating to Commercialization, including customer lists (both actual and target customers), any market studies and competitive data; in each case (whether or not confidential, proprietary, patented or patentable) in written, electronic or any other form now known or hereafter developed.

 

1.25 Invention ” means any writing, invention, discovery, improvement, technology, Information or other Know-How (in each case, whether patented or not) that is not existing as of the Effective Date and is invented under this Agreement during the Term.

 

1.26 LIBOR ” means the London Interbank Offered Rate for deposits in United States Dollars having a maturity of one month published by the British Bankers’ Association, as adjusted from time to time on the first London business day of each month.

 

1.27 “Lamina ” has the meaning set forth in the preamble hereto.

 

1.28 Lamina Know-How ” means all Information Controlled by Lamina or any of its Affiliates as of the Effective Date or at any time during the Term (subject to Section 9.2.2 ) that is not generally known and is necessary or reasonably useful for the Development, manufacture, or Commercialization of a Product.

 

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1.29 Liens ” means any and all liens, encumbrances, charges, security interests, options, claims, mortgages, pledges, or agreements, obligations, understandings or arrangements or other restrictions on title or transfer of any nature whatsoever.

 

1.30 Manufacture ” or “ Manufacturing ” means all activities related to the production, manufacture, processing, filling, finishing, packaging, labeling, shipping and holding of a Product or any intermediate thereof, including clinical and commercial manufacture.

 

1.31 NDA ” has the meaning set forth in the definition of “Drug Approval Application.”

 

1.32 Net Sales ” means, with respect to a Product for any period, the total amount billed or invoiced on sales of such Product during such period by ALNE, its Affiliates, or Sublicensees to Third Parties, less the following normal and customary bona-fide deductions and allowances actually taken:

 

1.32.1 trade, cash and quantity discounts;

 

1.32.2 price reductions, refunds or rebates, retroactive or otherwise, imposed by, negotiated with or otherwise paid (whether in cash or trade) to governmental authorities or third party payors;

 

1.32.3 taxes on sales (such as sales, value added, or use taxes) and customs and excise duties and other duties related to sale, in each case, to the extent such taxes are included in the gross amount invoiced;

 

1.32.4 wholesale and distribution fees, deductions and prompt pay discounts;

 

1.32.5 bad debts not exceeding five percent (5%) of the value of the sales of Product during the then-current Calendar Year, provided that any recovery of bad debts shall be deemed a sale for purposes of this definition of “Net Sales”;

 

1.32.6 amounts repaid, deducted or credited by reason of rejections, defects, recalls or returns, or because of retroactive price reductions, including rebates or wholesaler charge backs; and

 

1.32.7 freight, insurance, and other transportation charges to the extent added to the sale price and set forth separately as such in the total amount invoiced.

 

Notwithstanding the foregoing, Net Sales shall not include transfers or dispositions for charitable, pre-clinical, clinical, regulatory, or governmental. To the extent that ALNE, its Affiliate or any Commercial Sublicensee sells a Product, on an arms-length basis, to any Sublicensee who is not an Affiliate of such selling Person for resale, only the initial sale of such Product by ALNE, its Affiliate, or its Commercial Sublicensee shall constitute a sale for purposes of determining Net Sales. Except as contemplated by the immediately foregoing sentence, Net sales shall not include sales between or among ALNE, its Affiliates, or Sublicensees. Net Sales shall be calculated in accordance with the standard internal policies and procedures of ALNE, its Affiliates, or Sublicensees, which must be in accordance with United States Generally Accepted Accounting Principles or International Financial Reporting Standards as applicable.

 

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1.33 Party ” and Parties has the meaning set forth in the preamble hereto.

 

1.34 Patents ” means (i) all national, regional and international patents and patent applications, including provisional patent applications; (ii) all patent applications filed either from such patents, patent applications or provisional applications or from an application claiming priority from either of these, including divisionals, continuations, continuations-in-part, provisionals, converted provisionals and continued prosecution applications; (iii) any and all patents that have issued or in the future issue from the foregoing patent applications ((i) and (ii)), including utility models, petty patents and design patents and certificates of invention; (iv) any and all extensions or restorations by existing or future extension or restoration mechanisms, including revalidations, reissues, re-examinations and extensions (including any supplementary protection certificates and the like) of the foregoing patents or patent applications ((i), (ii), and (iii)); and (v) any similar rights, including so-called pipeline protection or any importation, revalidation, confirmation or introduction patent or registration patent or patent of additions to any of such foregoing patent applications and patents.

 

1.35 Person ” means an individual, sole proprietorship, partnership, limited partnership, limited liability partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, foundation, joint venture or other similar entity or organization, including a government or political subdivision, department or agency of a government.

 

1.36 Product ” means any pharmaceutical product or medical device, whether prescription or over-the-counter, marketed for diagnosing illness in humans via a saliva test; provided , however , that “Product” shall not refer to any product Controlled, developed, manufactured, marketed, sold, offered for sale, exported, or imported directly or indirectly by a Sublicensee if such Sublicensee’s rights in respect of such product were obtained or developed independently of any sublicense or right granted by ALNE hereunder.

 

1.37 Regulatory Approval ” means, with respect to a country or other jurisdiction, any and all approvals (including Drug Approval Applications), licenses, registrations, or authorizations of any Regulatory Authority necessary to commercially distribute, sell, offer for sale, market, import or use a Product in such country or other jurisdiction, including, where applicable, (i) pricing or reimbursement approval in such country or other jurisdiction, (ii) pre- and post-approval marketing authorizations (including any prerequisite Manufacturing approval or authorization related thereto), and (iii) labeling approval.

 

1.38 Regulatory Authority ” means any applicable supra-national, federal, national, regional, state, provincial, or local governmental or regulatory agencies, departments, bureaus, commissions, councils, or other government entities (e.g., the FDA and EMA) regulating or otherwise exercising authority with respect to activities contemplated in this Agreement, including the Exploitation of Products.

 

1.39 Regulatory Documentation ” means all (i) applications (including all INDs and Drug Approval Applications), registrations, licenses, authorizations, and approvals (including Regulatory Approvals); (ii) correspondence and reports submitted to or received from Regulatory Authorities (including minutes and official contact reports relating to any communications with any Regulatory Authority) and all supporting documents with respect thereto, including all regulatory drug lists, advertising and promotion documents, adverse event files, and complaint files; and (iii) clinical and other data contained or relied upon in any of the foregoing, in each case ((i), (ii), and (iii)) relating to a Product.

 

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1.40 Representatives ” means (actual or potential) Sublicensees, other Persons who have been granted rights to Exploit Products in accordance with this Agreement, acquirers, financing sources, investors or permitted assignees under Section 9.3 and to their financial and legal advisors who have a need to know the Confidential Information in connection with any such sublicense, financing, investment, acquisition or assignment.

 

1.41 Sublicensee ” means a Person, other than an Affiliate, that is granted a sublicense by ALNE under a license granted in Section 2.1 or a right by ALNE, its Affiliates or Commercial Sublicensees to sell a Product, offer a Product for sale, or have a Product sold (each such sublicense or right, a “ Sublicense ”).

 

1.42 Territory ” means worldwide.

 

1.43 Third Party means any Person other than Lamina, ALNE and their respective Affiliates.

 

1.44 United States ” means the United States of America and its territories and possessions (including the District of Columbia and Puerto Rico).

 

Additional Definitions . The following terms have the meanings set forth in the corresponding Sections of this Agreement:

 

Term Section
“ALNE Indemnitees” 7.2
“Breaching Party” 8.3
“Default Notice” 8.3
“Follow-On Product” 5.2.5
“Force Majeure” 9.1
“Lamina Indemnitees” 7.1
“Losses” 7.1
“Non-Breaching Party” 8.3
“Sublicense” 1.41
“Term” 8.1
“Third Party Claims” 7.1

 

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ARTICLE 2
TRANSFER AND ASSIGNMENT; GRANT OF RIGHTS

 

2.1 Grants to ALNE . Subject to the terms and conditions of this Agreement, Lamina hereby grants to ALNE an exclusive (including with regard to Lamina) worldwide license, with the right to grant sublicenses in accordance with Section 2.2 , under the Lamina Know-How.

 

2.2 Sublicenses .

 

2.2.1 Right to Grant Sublicenses . ALNE shall have the right to grant Sublicenses (through multiple tiers of Sublicensees). ALNE shall cause each Sublicensee to comply with the applicable terms and conditions of this Agreement. ALNE shall remain responsible for the performance of its Affiliates and Sublicensees that are granted Sublicenses as permitted herein, and the grant of any such Sublicense shall not relieve ALNE of its obligations under this Agreement. With respect to any such Sublicense, ALNE shall ensure that the agreement pursuant to which it grants such Sublicense (i) does not conflict with the terms and conditions of this Agreement and (ii) contains terms obligating the Sublicensee to comply with confidentiality and non-use provisions consistent with those set forth in this Agreement.

 

2.2.2 Termination of Sublicenses . In the event of termination of this Agreement, in whole or in part, any sublicense granted by ALNE pursuant to this Section 2.2 shall automatically be deemed to terminate to the same extent as the other terms and conditions of this Agreement terminate.

 

2.3 No Other Rights Granted by Lamina . Except as expressly provided herein and without limiting the foregoing, Lamina grants no other right or license, including any rights or licenses to the Lamina Know-How, the Regulatory Documentation, or any other intellectual property rights not otherwise expressly granted herein.

 

2.4 Transfer of Lamina Know-How . As soon as practicable after the Effective Date, Lamina shall provide to ALNE (which can be in the form of copies and electronic files) all material Lamina Know-How existing as of the Effective Date.

 

2.5 Compliance with Law . ALNE shall conduct, or cause to be conducted, the Development, Commercialization, Manufacture and Exploitation of Products in compliance with all Applicable Laws.

 

ARTICLE 3
PAYMENTS AND RECORDS

 

3.1 Upfront Payment . On the Effective Date, ALNE shall pay Lamina an upfront amount equal to One Thousand Dollars ($1,000). Such payment shall be nonrefundable and noncreditable against any other payments due hereunder.

 

3.2 Regulatory Milestones . In partial consideration of the rights granted by Lamina to ALNE hereunder and subject to the terms and conditions set forth in this Agreement, ALNE shall pay to Lamina a milestone payment within thirty (30) days after the achievement of each of the following milestones:

 

3.2.1 ALNE’s first receipt of notice from the FDA that an NDA in respect of a Product has received approval, Four Thousand Dollars ($4,000);

 

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3.2.2 First Commercial Sale of a Product in the United States, Five Thousand Dollars ($5,000);

 

3.2.3 First Commercial Sale of a Product in any country or territory outside the United States after receipt of all requisite Regulatory Approvals in such country, One Thousand Dollars ($1,000);

 

Each milestone payment in this Section 3.2 shall be payable only upon the first achievement of such milestone and no amounts shall be due for subsequent or repeated achievements of such milestone, whether for the same or a different Product. The maximum aggregate amount payable by ALNE pursuant to this Section 3.2 is Ten Thousand Dollars ($10,000).

 

3.3 Royalty . As further consideration for the rights granted to ALNE hereunder, commencing upon the First Commercial Sale, ALNE shall pay to Lamina a royalty on Net Sales of 7.5% during each Calendar Year.

 

3.4 Mode of Payment . All payments under this Agreement shall be made by deposit of Dollars in the requisite amount to such bank account as Lamina may from time to time designate by notice to ALNE. For the purpose of calculating any sums due under, or otherwise reimbursable pursuant to, this Agreement (including the calculation of Net Sales expressed in currencies other than Dollars), a Party shall convert any amount expressed in a foreign currency into Dollar equivalents using an exchange rate to be mutually agreed upon by the Parties.

 

3.5 Taxes . The milestones payable by ALNE to Lamina pursuant to this Agreement shall be paid free and clear of any and all taxes, except for any withholding taxes required by Applicable Law.

 

3.6 Interest on Late Payments . If any payment due to Lamina under this Agreement is not paid when due, then ALNE shall pay interest thereon (before and after any judgment) at an annual rate (but with interest accruing on a daily basis) of one percent above LIBOR, such interest to run from the date on which payment of such sum became due until payment thereof in full together with such interest.

 

ARTICLE 4
INTELLECTUAL PROPERTY

 

4.1 Ownership of Intellectual Property .

 

4.1.1 Ownership of Technology . As between the Parties, each Party shall own and retain all right, title, and interest in and to any and all Inventions and Information that are conceived, discovered, developed, or otherwise made solely by or on behalf of such Party (or its Affiliates or Sublicensees) under or in connection with this Agreement, whether or not patented or patentable, and any and all Patents and other intellectual property rights with respect thereto.

 

4.1.2 United States Law . The determination of whether Information and Inventions are conceived, discovered, developed, or otherwise made by a Party for the purpose of allocating proprietary rights (including Patent, copyright or other intellectual property rights) therein, shall, for purposes of this Agreement, be made in accordance with Applicable Law in the United States as such law exists as of the Effective Date irrespective of where such conception, discovery, development or making occurs.

 

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4.1.3 Assignment Obligation . Each Party shall cause all Persons who perform activities for such Party under this Agreement to be under an obligation to assign their rights in any Inventions resulting therefrom to such Party.

 

ARTICLE 5
CONFIDENTIALITY AND NON-DISCLOSURE

 

5.1 Confidentiality Obligations . At all times during the Term and for a period of ten (10) years following termination or expiration hereof in its entirety, each Party shall, and shall cause its Affiliates, and its and their respective officers, directors, employees and agents to, keep confidential and not publish or otherwise disclose to a Third Party and not use, directly or indirectly, for any purpose, any Confidential Information furnished or otherwise made known to it, directly or indirectly, by the other Party, except to the extent such disclosure or use is expressly permitted by the terms of this Agreement or is reasonably necessary or useful for the performance of a Party’s obligations, or the exercise of a Party’s rights, under this Agreement. Notwithstanding the foregoing, but to the extent the receiving Party can demonstrate by documentation or other competent proof, the confidentiality and non-use obligations under this Section 5.1 with respect to any Confidential Information shall not include any information that:

 

5.1.1 has been published by a Third Party or is or hereafter becomes part of the public domain by public use, publication, general knowledge or the like through no wrongful act, fault or negligence on the part of the receiving Party;

 

5.1.2 has been in the receiving Party’s possession prior to disclosure by the disclosing Party without any obligation of confidentiality with respect to such information;

 

5.1.3 is subsequently received by the receiving Party from a Third Party without restriction and without breach of any agreement between such Third Party and the disclosing Party; or

 

5.1.4 has been independently developed by or for the receiving Party without reference to, or use or disclosure of the disclosing Party’s Confidential Information.

 

Specific aspects or details of Confidential Information shall not be deemed to be within the public domain or in the possession of the receiving Party merely because the Confidential Information is embraced by more general information in the public domain or in the possession of the receiving Party. Further, any combination of Confidential Information shall not be considered in the public domain or in the possession of the receiving Party merely because individual elements of such Confidential Information are in the public domain or in the possession of the receiving Party unless the combination and its principles are in the public domain or in the possession of the receiving Party.

 

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5.2 Permitted Disclosures . Each Party may disclose Confidential Information to the extent that such disclosure is:

 

5.2.1 in the reasonable opinion of the receiving Party’s legal counsel, required to be disclosed pursuant to Applicable Law or made in response to a valid order of a court of competent jurisdiction or other supra-national, federal, national, regional, state, provincial and local governmental or regulatory body of competent jurisdiction, including by reason of filing with securities regulators; provided, however, that the receiving Party, to the extent practicable and legally permissible, shall first have given prompt written notice (and to the extent practicable and legally permissible, at least five (5) Business Days’ notice) to the disclosing Party and given the disclosing Party a reasonable opportunity to take whatever action it deems necessary to protect its Confidential Information (for example, quash such order or to obtain a protective order or confidential treatment requiring that the Confidential Information and documents that are the subject of such order be held in confidence by such court or regulatory body or, if disclosed, be used only for the purposes for which the order was issued). In the event that no protective order or other remedy is sought or obtained, or the disclosing Party waives compliance with the terms of this Agreement, receiving Party shall furnish only that portion of Confidential Information which receiving Party is advised by counsel is legally required to be disclosed;

 

5.2.2 made by or on behalf of the receiving Party to Regulatory Authorities as required in connection with any filing, application or request for Regulatory Approval in accordance with the terms of this Agreement; provided, however , that reasonable measures shall be taken to assure confidential treatment of such information to the extent practicable and consistent with Applicable Law;

 

5.2.3 made to its Representatives; provided that any such recipient of such Confidential Information agrees to be bound by the confidentiality and non-use restrictions contemplated hereby; provided, further that the Party making such disclosure shall remain responsible for any failure by any such Person to treat such Confidential Information as required under this Article 5 .

 

5.2.4 made to its or its Affiliates’ financial and legal advisors who have a need to know such Confidential Information and are either under professional codes of conduct giving rise to expectations of confidentiality and non-use or under written agreements of confidentiality and non-use, in each case, at least as restrictive as those set forth in this Agreement; provided that the receiving Party shall remain responsible for any failure by such financial and legal advisors and other Persons contemplated by this Section 5.2.4 , to treat such Confidential Information as required under this Article 5 .

 

5.3 Public Announcements . Except as contemplated by Section 5.4 or as otherwise agreed by the Parties, neither Party shall issue any other public announcement, press release, or other public disclosure regarding this Agreement or its subject matter without the other Party’s prior written consent, except for any such disclosure that is, in the opinion of the disclosing Party’s counsel, required by Applicable Law (including, without limitation, public disclosure on a Quarterly Report on Form 10-Q, an Annual Report on Form 10-K, or a Current Report on Form 8-K) or the rules of a stock exchange on which the securities of the disclosing Party are listed or for information which has previously been made public. In the event a Party is, in the opinion of its counsel, required by Applicable Law or the rules of a stock exchange on which its securities are listed to make such a public disclosure, such Party shall submit the proposed disclosure in writing to the other Party as far in advance as reasonably practicable so as to provide a reasonable opportunity to comment thereon and such required Party shall consider all comments from such other Party in good faith.

 

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5.4 Publications . Each Party recognizes that the publication of papers regarding results of and other information regarding activities under this Agreement may be beneficial to the Development and Commercialization of Products. Accordingly, ALNE and its Affiliates and Sublicensees shall have the right to publish or present or permit the publication or presenting of papers and presentations that contain clinical data regarding, or pertain to results of clinical testing of, Products (each, a “ Publication ”); provided, however, that such publications do not contain the Confidential Information of Lamina and Lamina shall be provided with a copy of any such Publication in advance of public publication or presentation thereof and ALNE shall consider in good faith any comments Lamina may have with respect thereto.

 

5.5 Return of Confidential Information . Upon the effective date of the termination of this Agreement for any reason, either Party may request in writing, and the other Party shall either, with respect to Confidential Information to which such first Party does not retain rights under the surviving provisions of this Agreement: (i) promptly destroy all copies of such Confidential Information in the possession of the other Party and confirm such destruction in writing to the requesting Party; or (ii) promptly deliver to the requesting Party, at the other Party’s expense, all copies of such Confidential Information in the possession of the other Party; provided, however , the other Party shall be permitted to retain one (1) copy of such Confidential Information for the sole purpose of performing any continuing obligations hereunder or for archival purposes. Notwithstanding the foregoing, such other Party also shall be permitted to retain such additional copies of or any computer records or files containing such Confidential Information that have been created solely by such Party’s automatic archiving and back-up procedures, to the extent created and retained in a manner consistent with such other Party’s standard archiving and back-up procedures, but not for any other use or purpose.

 

5.6 Survival . All Confidential Information shall continue to be subject to the terms of this Agreement for the period set forth in Section 5.1 .

 

ARTICLE 6
REPRESENTATIONS AND WARRANTIES

 

6.1 Mutual Representations and Warranties . Lamina and ALNE each represents and warrants to the other, as of the Effective Date, and covenants, as follows:

 

6.1.1 Organization . It is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its organization, and has all requisite power and authority, corporate or otherwise, to execute, deliver, and perform this Agreement.

 

6.1.2 Authorization . The execution and delivery of this Agreement and the performance by it of its obligations contemplated hereby have been duly authorized by all necessary corporate action, and do not violate (i) such Party’s charter documents, bylaws, or other organizational documents, (ii) in any material respect, any agreement, instrument, or contractual obligation to which such Party is bound, (iii) any requirement of any Applicable Law, or (iv) any order, writ, judgment, injunction, decree, determination, or award of any court or governmental agency presently in effect applicable to such Party.

 

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6.1.3 Binding Agreement . This Agreement is a legal, valid, and binding obligation of such Party enforceable against it in accordance with its terms and conditions, subject to the effects of bankruptcy, insolvency, or other laws of general application affecting the enforcement of creditor rights, judicial principles affecting the availability of specific performance, and general principles of equity (whether enforceability is considered a proceeding at law or equity).

 

6.1.4 Consents and Approvals . No consent, approval, waiver, order or authorization of, or registration, declaration or filing with, any Third Party is required in connection with the execution, delivery and performance of this Agreement by such Party or the performance by such Party of its obligations contemplated hereby or thereby.

 

6.1.5 No Inconsistent Obligation . It is not under any obligation, contractual or otherwise, to any Person that conflicts with or is inconsistent in any material respect with the terms of this Agreement, or that would impede the diligent and complete fulfillment of its obligations hereunder.

 

6.2 Additional Representations and Warranties of Lamina . Lamina further represents and warrants to ALNE, as of the Effective Date, and covenants, as follows:

 

6.2.1 Lamina has the right to grant the licenses specified herein.

 

6.2.2 Lamina is the sole and exclusive owner of the entire right, title and interest in the Lamina Know-How. Such rights are not subject to any Liens in favor of, or claims of ownership by, any Third Party.

 

6.2.3 To Lamina’s knowledge, the Exploitation by ALNE and its Affiliates and Sublicensees hereunder of the Products will not infringe any Patent or other intellectual property or proprietary right of any Person.

 

6.2.4 The conception, development and reduction to practice of the Lamina Know-How existing as of the Effective Date have not constituted or involved the misappropriation of trade secrets or other rights or property of any Person. There are no claims, judgments or settlements against or amounts with respect thereto owed by Lamina or any of its Affiliates relating to the existing Regulatory Filings or the Lamina Know-How.

 

6.2.5 To its knowledge, Lamina has conducted, and its contractors and consultants have conducted, all Development with respect to the Product that it has conducted prior to the Effective Date in accordance with good laboratory practice and good clinical practices, as applicable and defined by the FDA, and Applicable Law.

 

6.2.6 Neither Lamina nor any of its Affiliates, nor any of its or its Affiliates’ directors or officers has been debarred or is subject to debarment and neither Lamina nor any of its Affiliates will use in any capacity, in connection with the services to be performed under this Agreement, any Person who has been debarred pursuant Lamina Section 306 of the FFDCA or who is the subject of a conviction described in such section. Lamina shall inform ALNE in writing immediately if it or any Person who is performing services hereunder is debarred or is the subject of a conviction described in Section 306 or if any action, suit, claim, investigation or legal or administrative proceeding is pending or, to the best of Lamina’s knowledge, is threatened, relating to the debarment or conviction of Lamina or any Person performing services on behalf of Lamina hereunder.

 

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6.2.7 To Lamina’s knowledge, no Person is misappropriating or threatening to misappropriate the Lamina Know-How.

 

6.2.8 Lamina has prepared, maintained or retained all material Regulatory Documentation required to be maintained or reported pursuant to and in accordance with the applicable requirements of good laboratory practices and good clinical practices, as applicable, as defined by the FDA, to the extent required, and Applicable Law, and such Regulatory Documentation does not contain any materially false or misleading statements.

 

6.3 DISCLAIMER OF WARRANTIES . EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH HEREIN, NEITHER PARTY MAKES ANY REPRESENTATIONS OR GRANTS ANY WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, AND EACH PARTY SPECIFICALLY DISCLAIMS ANY OTHER WARRANTIES, WHETHER WRITTEN OR ORAL, OR EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF QUALITY, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR USE OR PURPOSE OR ANY WARRANTY AS TO THE VALIDITY OF ANY PATENTS OR THE NON-INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES.

 

ARTICLE 7
INDEMNITY

 

7.1 Indemnification of Lamina . ALNE shall indemnify Lamina, its Affiliates and its and their respective directors, officers, employees, and agents (“ Lamina Indemnitees ”), and defend and save each of them harmless, from and against any and all losses, damages, liabilities, penalties, costs, and expenses (including attorneys’ fees and expenses) (collectively, “ Losses ”) in connection with any and all suits, investigations, claims, or demands of Third Parties (collectively, “ Third Party Claims ”) incurred by or rendered against the Lamina Indemnitees arising from or occurring as a result of: (i) the breach by ALNE of this Agreement, (ii) the gross negligence or willful misconduct on the part of ALNE or its Affiliates or Sublicensees or its or their distributors or contractors or its or their respective directors, officers, employees, and agents in performing its or their obligations under this Agreement, or (iii) the Exploitation by ALNE or any of its Affiliates or Sublicensees or its or their distributors or contractors of any Product, except to the extent Lamina has an obligation to indemnify ALNE Indemnitees pursuant to Section 7.2 for such Losses and Third Party Claims.

 

7.2 Indemnification of ALNE . Lamina shall indemnify ALNE, its Affiliates and its and their respective directors, officers, employees, and agents (the “ ALNE Indemnitees ”), and defend and save each of them harmless, from and against any and all Losses in connection with any and all Third Party Claims incurred by or rendered against the ALNE Indemnitees arising from or occurring as a result of: (i) the breach by Lamina of this Agreement, (ii) the gross negligence or willful misconduct on the part of Lamina or its Affiliates or its or their respective directors, officers, employees, and agents in performing its obligations under this Agreement, (iii) any claim by any current or former Lamina shareholder, investor or contributor that any ALNE Indemnitee or any Sublicensee owes such Person any compensation in relation to the Exploitation of the Products or the rights granted hereunder, or (iv) Lamina’s or its Affiliate’s or subcontractor’s violation of any Applicable Law, or gross negligence or willful misconduct, in relation to the Exploitation of Products prior to the Effective Date, except to the extent ALNE has an obligation to indemnify Lamina Indemnitees pursuant to Section 7.1 for such Losses and Third Party Claims.

 

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7.3 Special, Indirect, and Other Losses . EXCEPT IN THE EVENT OF A PARTY’S BREACH OF ITS OBLIGATIONS UNDER ARTICLE 5 , AND EXCEPT TO THE EXTENT ANY SUCH DAMAGES ARE REQUIRED TO BE PAID TO A THIRD PARTY AS PART OF A CLAIM FOR WHICH A PARTY PROVIDES INDEMNIFICATION UNDER THIS ARTICLE 7 , NEITHER PARTY NOR ANY OF ITS AFFILIATES SHALL BE LIABLE FOR INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF PROFITS OR BUSINESS INTERRUPTION, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, TORT, NEGLIGENCE, BREACH OF STATUTORY DUTY OR OTHERWISE IN CONNECTION WITH OR ARISING IN ANY WAY OUT OF THE TERMS OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.

 

ARTICLE 8
TERM AND TERMINATION

 

8.1 Term . This Agreement shall commence on the Effective Date and, unless earlier terminated in accordance herewith, shall continue in force and effect until terminated in accordance with this Article 8 (such period, the “ Term ”).

 

8.2 ALNE Termination for Convenience . ALNE shall have the right to terminate this Agreement in its sole discretion, either in its entirety or in respect of one or more countries, at any time by providing sixty (60) days prior written notice to Lamina.

 

8.3 Termination for Material Breach . If either Party (the “ Non-Breaching Party ”) believes that the other Party (the “ Breaching Party ”) has materially breached one or more of its obligations under this Agreement, then the Non-Breaching Party may deliver notice of such material breach to the Breaching Party specifying the nature of the alleged breach in reasonable detail (a “ Default Notice ”). Thereafter, the Non-Breaching Party shall have the right to terminate this Agreement if the breach asserted in such Default Notice has not been cured within sixty (60) days after such Default Notice.

 

8.4 Termination for Insolvency . In the event that either Party (i) files for protection under bankruptcy or insolvency laws, (ii) makes an assignment for the benefit of creditors, (iii) appoints or suffers appointment of a receiver or trustee over substantially all of its property that is not discharged within ninety (90) days after such filing, (iv) proposes a written agreement of composition or extension of its debts, (v) proposes or is a party to any dissolution or liquidation, (vi) files a petition under any bankruptcy or insolvency act or has any such petition filed against that is not discharged within sixty (60) days of the filing thereof, then the other Party may terminate this Agreement in its entirety effective immediately upon written notice to such Party.

 

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8.5 Effects of Termination . In the event of a termination of this Agreement in its entirety by Lamina pursuant to Section 8.3 or by ALNE pursuant to Section 8.2 :

 

8.5.1 all rights and licenses granted by Lamina hereunder shall immediately terminate;

 

8.5.2 ALNE shall, and hereby does, effective as of the effective date of termination, assign to Lamina at ALNE’s expense, all of its right, title, and interest in and to all Regulatory Approvals applicable to any Product, and all Regulatory Documentation specific to such Regulatory Approvals then owned by ALNE or any of its Affiliates, and shall use Commercially Reasonable Efforts to cause any and all Sublicensees to assign to Lamina any such Regulatory Approvals and related Regulatory Documentation then owned by such Sublicensee; and

 

8.5.3 at Lamina’s request, assign to Lamina all right, title, and interest in and to the Development Data that ALNE is not precluded from disclosing or assigning to Lamina pursuant to the terms of any applicable agreement with a Third Party; provided, however, that ALNE shall use Commercially Reasonable Efforts (which shall not include any obligation to expend money) to obtain the consent of the applicable Third Party for such disclosure and/or assignment in the event that ALNE is so precluded.

 

8.6 Remedies . Except as otherwise expressly provided herein, termination of this Agreement (either in its entirety or with respect to one or more country or countries) or other jurisdiction(s) in accordance with the provisions hereof shall not limit remedies that may otherwise be available in law or equity.

 

8.7 Accrued Rights; Surviving Obligations . Termination or expiration of this Agreement for any reason shall be without prejudice to any rights that shall have accrued to the benefit of a Party prior to such termination or expiration. Such termination or expiration shall not relieve a Party from obligations that are expressly indicated to survive the termination or expiration of this Agreement. Without limiting the foregoing, (i) Section 8.6 and this Section 8.7 and Articles 5 , 7 and 9 of this Agreement shall survive the termination or expiration of this Agreement for any reason, (ii) Section 4.1 shall survive any termination of this Agreement other than a termination by Lamina pursuant to Section 8.3 hereof or a termination by ALNE pursuant to Section 8.2 hereof, (iii) Sections 3.5 through 3.7 shall survive a termination by ALNE pursuant to Section 8.3 hereof, (iv) Article 3 shall survive a termination by ALNE pursuant to Section 8.4 hereof and (v) Section 8.5 shall survive any termination of this Agreement by Lamina pursuant to Section 8.3 hereof. With respect to any Sections that survive in accordance with this Section 8.8 , the corresponding definitions shall appropriately survive (e.g. the definition of “Term” shall continue with respect to the above noted Sections and usage in other definitions).

 

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ARTICLE 9
MISCELLANEOUS

 

9.1 Force Majeure . Neither Party shall be held liable or responsible to the other Party or be deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling or performing any term of this Agreement when such failure or delay is caused by or results from fires, floods, earthquakes, hurricanes, embargoes, shortages, epidemics, quarantines, war, acts of war (whether war be declared or not), terrorist acts, insurrections, riots, civil commotion, acts of God or acts, omissions, or delays in acting by any Governmental Authority (except to the extent such delay results from the breach by the non-performing Party or any of its Affiliates of any term or condition of this Agreement) or similar events beyond the reasonable control of the non-performing Party (a “ Force Majeure ”). The non-performing Party shall notify the other Party of such force majeure within thirty (30) days after such occurrence by giving written notice to the other Party stating the nature of the event, its anticipated duration, and any action being taken to avoid or minimize its effect. The suspension of performance shall be of no greater scope and no longer duration than is necessary and the non-performing Party shall use Commercially Reasonable Efforts to remedy its inability to perform.

 

9.2 Assignment .

 

9.2.1 Without the prior written consent of Lamina, ALNE shall not assign, delegate, or otherwise dispose of, whether voluntarily, involuntarily, by operation of law or otherwise, this Agreement or any of its rights or duties hereunder; provided, however , that ALNE may make such an assignment without Lamina’s prior written consent to its Affiliate or to a successor, whether in a merger, sale of stock, sale of assets or any other transaction, of all or substantially all the assets or business of ALNE or substantially all of the assets or business of ALNE to which this Agreement relates. With respect to an assignment to an Affiliate, ALNE shall remain responsible for the performance by such Affiliate of the rights and obligations hereunder. Without the prior written consent of ALNE, Lamina shall not assign, delegate, or otherwise dispose of, whether voluntarily, involuntarily, by operation of law or otherwise, this Agreement or any of its rights or duties hereunder; provided, however , that Lamina may make such an assignment without ALNE’s prior written consent to its Affiliate or to a successor, whether in a merger, sale of stock, sale of assets or any other transaction, of all or substantially all the assets or business of Lamina or substantially all of the assets or business of Lamina to which this Agreement relates. With respect to an assignment to an Affiliate, Lamina shall remain responsible for the performance by such Affiliate of the rights and obligations hereunder. Any attempted assignment or delegation in violation of this Section 9.3 shall be void and of no effect. All validly assigned and delegated rights and obligations of the Parties hereunder shall be binding upon and inure to the benefit of and be enforceable by and against the successors and permitted assigns of Lamina or ALNE, as the case may be. The permitted assignee or permitted transferee shall assume all obligations of its assignor or transferor under this Agreement.

 

9.2.2 All rights to Information, materials and intellectual property: (i) controlled by a Third Party permitted assignee of a Party, which Information, materials and intellectual property were controlled by such assignee immediately prior to such assignment; or (ii) controlled by an Affiliate of a Party who becomes an Affiliate through any Change in Control of or a merger, acquisition (whether of all of the stock or all or substantially all of the assets of a Person or any operating or business division of a Person) or similar transaction by or with the Party, which Information, materials and intellectual property were controlled by such Affiliate immediately prior thereto, in each case ((i) and (ii)), shall be automatically excluded from the rights licensed or granted to the other Party under this Agreement.

 

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9.3 Severability . If any provision of this Agreement is held to be illegal, invalid, or unenforceable under any present or future law, and if the rights or obligations of either Party under this Agreement will not be materially and adversely affected thereby, (i) such provision shall be fully severable, (ii) this Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part hereof, (iii) the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance herefrom, and (iv) in lieu of such illegal, invalid, or unenforceable provision, there shall be added automatically as a part of this Agreement a legal, valid, and enforceable provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and reasonably acceptable to the Parties. To the fullest extent permitted by Applicable Law, each Party hereby waives any provision of law that would render any provision hereof illegal, invalid, or unenforceable in any respect.

 

9.4 Governing Law . This Agreement or the performance, enforcement, breach or termination hereof shall be interpreted, governed by and construed in accordance with the laws of Nevada, United States, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction; provided, that all questions concerning the construction or effect of patent applications and patents shall be determined in accordance with the laws of the country or other jurisdiction in which the particular patent application or patent has been filed or granted, as the case may be.

 

9.5 Submission to Jurisdiction; Waiver of Jury Trial .

 

9.5.1 IN THE EVENT ANY PARTY TO THIS AGREEMENT COMMENCES ANY LITIGATION, PROCEEDING OR OTHER LEGAL ACTION IN CONNECTION WITH OR RELATING TO THIS AGREEMENT, ANY RELATED AGREEMENT OR ANY MATTERS DESCRIBED OR CONTEMPLATED HEREIN OR THEREIN, WITH RESPECT TO ANY OF THE MATTERS DESCRIBED OR CONTEMPLATED HEREIN OR THEREIN, THE PARTIES TO THIS AGREEMENT HEREBY (A) AGREE THAT ANY LITIGATION, PROCEEDING OR OTHER LEGAL ACTION SHALL BE INSTITUTED IN A COURT OF COMPETENT JURISDICTION LOCATED WITHIN THE CITY OF LAS VEGAS, WHETHER A STATE OR FEDERAL COURT; (B) AGREE THAT IN THE EVENT OF ANY SUCH LITIGATION, PROCEEDING OR ACTION, SUCH PARTIES WILL CONSENT AND SUBMIT TO PERSONAL JURISDICTION IN ANY SUCH COURT DESCRIBED IN CLAUSE (A) OF THIS SECTION 9.5 AND TO SERVICE OF PROCESS UPON THEM IN ACCORDANCE WITH THE RULES AND STATUTES GOVERNING SERVICE OF PROCESS (IT BEING UNDERSTOOD THAT NOTHING IN THIS SECTION 9.5 SHALL BE DEEMED TO PREVENT ANY PARTY FROM SEEKING TO REMOVE ANY ACTION TO A FEDERAL COURT IN THE CITY OF LAS VEGAS); AND (C) AGREE TO WAIVE TO THE FULL EXTENT PERMITTED BY LAW ANY OBJECTION THAT THEY MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH LITIGATION, PROCEEDING OR ACTION IN ANY SUCH COURT OR THAT ANY SUCH LITIGATION, PROCEEDING OR ACTION WAS BROUGHT IN AN INCONVENIENT FORUM.

 

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9.5.2 EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.5 .

 

9.6 Notices .

 

9.6.1 Notice Requirements . Any notice, request, demand, waiver, consent, approval, or other communication permitted or required under this Agreement shall be in writing, shall refer specifically to this Agreement and shall be deemed given only if (i) delivered by hand or sent by email to the email addresses to be specified by each Party within sixty (60) days hereof, (ii) by internationally recognized overnight delivery service that maintains records of delivery, addressed to the Parties at their respective addresses specified in Section 9.6.2 or (iii) to such other address as the Party to whom notice is to be given may have provided to the other Party in accordance with this Section 9.6.1 . Such Notice shall be deemed to have been given as of the date delivered by hand or transmitted by email or on the second Business Day (at the place of delivery) after deposit with an internationally recognized overnight delivery service. Any notice delivered by email shall be confirmed by a hard copy delivered as soon as practicable thereafter. This Section 9.6.1 is not intended to govern the day-to-day business communications necessary between the Parties in performing their obligations under the terms of this Agreement.

 

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9.6.2 Address for Notice .

 

If to ALNE, to:

 

Unique Growing Solutions, Inc. 

100 Europa Drive 

Chapel Hill, NC 27517 

Attention: Chief Executive Officer

  

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

 

Szaferman, Lakind, Blumstein & Blader, P.C. 

101 Grovers Mill Road, Suite 200 

Lawrenceville, NJ 

Attention: Gregg E. Jaclin

  

If to Lamina, to:

 

Lamina Equities Corp. 

1901 Fort Myer Drive 

Suite 800 

Arlington, VA 22209 

Attention: Chief Executive Officer

  

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

 

Stradley Ronon Stevens & Young, LLP 

1250 Connecticut Avenue, N.W., Suite 500 

Washington, DC 20036-2652 

Attention: Thomas L. Hanley

  

9.7 Entire Agreement; Amendments . This Agreement sets forth and constitutes the entire agreement and understanding between the Parties with respect to the subject matter hereof and all prior agreements, understandings, promises, and representations, whether written or oral, with respect thereto are superseded hereby. Each Party confirms that it is not relying on any representations or warranties of the other Party except as specifically set forth in this Agreement. No amendment, modification, release, or discharge shall be binding upon the Parties unless in writing and duly executed by authorized representatives of both Parties.

 

9.8 Waiver and Non-Exclusion of Remedies . Any term or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the Party waiving such term or condition. The waiver by either Party hereto of any right hereunder or of the failure to perform or of a breach by the other Party shall not be deemed a waiver of any other right hereunder or of any other breach or failure by such other Party whether of a similar nature or otherwise. The rights and remedies provided herein are cumulative and do not exclude any other right or remedy provided by Applicable Law or otherwise available except as expressly set forth herein.

 

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9.9 No Benefit to Third Parties . Covenants and agreements set forth in this Agreement are for the sole benefit of the Parties hereto and their successors and permitted assigns, and they shall not be construed as conferring any rights on any other Persons.

 

9.10 Further Assurance . Each Party shall duly execute and deliver, or cause to be duly executed and delivered, such further instruments and do and cause to be done such further acts and things, including the filing of such assignments, agreements, documents, and instruments, as may be necessary or as the other Party may reasonably request in connection with this Agreement or to carry out more effectively the provisions and purposes hereof, or to better assure and confirm unto such other Party its rights and remedies under this Agreement.

 

9.11 Relationship of the Parties . It is expressly agreed that Lamina, on the one hand, and ALNE, on the other hand, shall be independent contractors and that the relationship between the two Parties shall not constitute a partnership, joint venture, or agency. Neither Lamina, on the one hand, nor ALNE, on the other hand, shall have the authority to make any statements, representations, or commitments of any kind, or to take any action, which shall be binding on the other, without the prior written consent of the other Party to do so. All persons employed by a Party shall be employees of such Party and not of the other Party and all costs and obligations incurred by reason of any such employment shall be for the account and expense of such Party.

 

9.12 Counterparts . This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may be executed by electronically transmitted signatures and such signatures shall be deemed to bind each Party hereto as if they were original signatures.

 

9.13 References . Unless otherwise specified, (i) references in this Agreement to any Article or Section shall mean references to such Article or Section of this Agreement, (ii) references in any Section to any clause are references to such clause of such Section, and (iii) references to any agreement, instrument, or other document in this Agreement refer to such agreement, instrument, or other document as originally executed or, if subsequently amended, replaced, or supplemented from time to time, as so amended, replaced, or supplemented and in effect at the relevant time of reference thereto.

 

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9.14 Construction . Except where the context otherwise requires, wherever used, the singular shall include the plural, the plural the singular, the use of any gender shall be applicable to all genders and the word “or” is used in the inclusive sense (and/or). Whenever this Agreement refers to a number of days, unless otherwise specified, such number refers to days. The captions of this Agreement are for convenience of reference only and in no way define, describe, extend, or limit the scope or intent of this Agreement or the intent of any provision contained in this Agreement. The term “including,” “include,” or “includes” as used herein shall mean including, without limiting the generality of any description preceding such term. The language of this Agreement shall be deemed to be the language mutually chosen by the Parties and no rule of strict construction shall be applied against either Party hereto. Each Party represents that it has been represented by legal counsel in connection with this Agreement and acknowledges that it has participated in the drafting hereof. In interpreting and applying the terms and provisions of this Agreement, the Parties agree that no presumption will apply against the Party which drafted such terms and provisions.

 

[ SIGNATURE PAGE FOLLOWS ]

 

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THIS AGREEMENT IS EXECUTED by the authorized representatives of the Parties as of the Effective Date.

 

LAMINA EQUITIES CORPORATION

UNIQUE GROWING SOLUTIONS, INC.
(F/K/A ALTERNATIVE ENERGY &

ENVIRONMENTAL SOLUTIONS, INC.)

 

By:

 

/s/ Raouf Albert Guirguis ____________

Name: Raouf Albert Guirguis

Title: Chairman and CEO

 

By: 

 

/s/ Peter Reichard _____________

Name: Peter Reichard

Title: President 

 

 

 

 

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Exhibit 10.2

 

CANCELLATION AGREEMENT

 

This CANCELLATION AGREEMENT (this “ Agreemen t”), dated February 25, 2015 ( the “ Effective Date ”), by and between UNIQUE GROWING SOLUTIONS, INC. (F/K/A ALTERNATIVE ENERGY & ENVIRONMENTAL SOLUTIONS, INC.) (the “ Company ”), a Nevada corporation, and PETER COKER , individually (the “ Canceling Party ”). Company and Cancelling Party are also hereinafter individually and jointly referred to as “ Party ” and/or “ Parties ”. 

 

RECITALS

 

WHEREAS , as of the date hereof, the Canceling Party is the owner of 7,537,008 shares of the Company’s common stock, par value $0.0001 per share (“ Coker Shares ”); and

 

WHEREAS , the Parties, in connection with the Company’s Employment Agreement with the incoming Chief Executive Officer of the Company to be dated as of the Effective Date, wish to cancel 7,000,000 shares of the Coker Shares (“ Subject Shares ”); and

 

WHEREAS , after the cancellation of the Subject Shares, the Canceling Party will own 537,008 Coker Shares (“ Remaining Shares ”).

 

AGREEMENT

 

In consideration of the mutual promises herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:

 

1. Cancellation of Subject Shares and Payment for Cancellation . On the Effective Date, the Canceling Party will deliver to Company the necessary documentation for the cancellation of the stock certificates representing the Subject Shares, along with duly executed medallion guaranteed stock powers covering the Subject Shares (or such other documents acceptable to the Company’s transfer agent) and hereby irrevocably instructs the Company and the Company’s transfer agent to cancel the Subject Shares such that the Subject Shares will no longer be outstanding on the stock ledger of the Company and such that the Canceling Party shall no longer have any interest in the Subject Shares whatsoever. The Company shall immediately deliver to the Company’s transfer agent irrevocable instructions providing for the cancellation of the Subject Shares. In return, the Company shall pay $70,000 to the Canceling Party within five business days of the Effective Date.

 

2. Effective Date . This Agreement shall become effective upon the execution of this Agreement. The transactions to occur at such place and time with respect to this Agreement are referred to herein as the “ Closing ”.

 

3. Waiver . At and subsequent to the Closing, the Canceling Party hereby waives any and all rights and interests she has, had or may have with respect to the cancelled Subject Shares.

 

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4. Representations by the Canceling Party . (a) The Canceling Party owns the Subject Shares of record and beneficially free and clear of all liens, claims, charges, security interests, and/or encumbrances of any kind whatsoever. The Canceling Party has sole control over the Subject Shares and/or sole discretionary authority over any account in which they are held. Except for this Agreement, no person/entity has any option or right to purchase or otherwise acquire the Subject Shares, whether by contract of sale or otherwise, nor is there a “short position” as to the Subject Shares.

 

(b) The Canceling Party has full right, power and authority to execute, deliver and perform this Agreement and to carry out the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by the Canceling Party and constitutes a valid, binding obligation of the Canceling Party, enforceable against it in accordance with its terms (except as such enforceability may be limited by laws affecting creditor's rights generally) .

 

(c) Canceling Party represents and warrants that it has the requisite authority and capacity to enter into this Agreement, as well as carry out the terms/conditions referenced herein. Additionally, Canceling Party represents and warrants that its compliance with the terms and conditions of this Agreement and will not violate any instrument relating to the conduct of its business, or any other agreement which it may be a party, or any federal and state rules or regulations applicable to either Party.

 

5. Further Assurances . Each Party to this Agreement will use its best efforts to take all action and to do all things necessary, proper, or advisable in order to consummate and make effective the transactions contemplated by this Agreement (including the execution and delivery of such other documents and agreements as may be necessary to effectuate the cancellation of the Subject Shares) .

 

6. Entire Agreement; Amendments . This Agreement contains the entire understanding of the Parties with respect to the matters covered herein and therein and, except as specifically set forth herein, neither the Company nor the Canceling Party makes any representation, warranty, covenant or undertaking with respect to such matters. No amendment, modification, termination or waiver of any provision of this Agreement, and no consent to any departure therefrom, shall in any event be effective unless the same shall be in writing and signed by both Parties. Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given.

 

7. Survival of Agreements, Representations and Warranties, etc . All representations and warranties contained herein shall survive the execution and delivery of this Agreement. 

 

8. Successors and Assigns . This Agreement shall bind and inure to the benefit of and be enforceable by the Parties and their respective successors and assigns. 

 

9. Governing Law . This Agreement and the obligations, rights and remedies of the Parties hereto are to be construed in accordance with and governed by the laws of the State of Nevada, with any action/dispute concerning this Agreement to be venued in the County of Clark.

 

10. Severability . In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.

 

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11. Miscellaneous . This Agreement embodies the entire agreement and understanding between the Parties hereto and supersedes all prior agreements and understandings relating to the subject matter hereof. If any provision of this Agreement shall be held invalid or unenforceable for whatever reason, the remainder of this Agreement shall not be affected thereby and every remaining provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. This Agreement may be executed in any number of counterparts and by the Parties hereto on separate counterparts but all such counterparts shall together constitute but one and the same instrument.

 

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

 

  UNIQUE GROWING SOLUTIONS, INC.
  (F/K/A ALTERNATIVE ENERGY & ENVIRONMENTAL SOLUTIONS, INC.)
     
  By: /s/ Peter Coker
  Name: Peter Coker
  Title: Sole Officer
     
  By: /s/ Peter Coker
 

PETER COKER , Individually

 

 

 

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Exhibit 10.3

 

CANCELLATION AGREEMENT

 

This CANCELLATION AGREEMENT (this “ Agreemen t”), dated February 25, 2015 ( the “ Effective Date ”), by and between UNIQUE GROWING SOLUTIONS, INC. (F/K/A ALTERNATIVE ENERGY & ENVIRONMENTAL SOLUTIONS, INC.) (the “ Company ”), a Nevada corporation, and LINDA HIATT , individually (the “ Canceling Party ”). Company and Cancelling Party are also hereinafter individually and jointly referred to as “ Party ” and/or “ Parties ”.

 

RECITALS

 

WHEREAS , as of the date hereof, the Canceling Party is the owner of 7,350,000 shares of the Company’s common stock, par value $0.0001 per share (“ Hiatt Shares ”); and

 

WHEREAS , the Parties, in connection with the Company’s Employment Agreement with the incoming Chief Executive Officer of the Company to be dated as of the Effective Date, wish to cancel 4,500,000 shares of the Hiatt Shares (“ Subject Shares ”); and

 

WHEREAS , after the cancellation of the Subject Shares, the Canceling Party will own 2,850,000 Hiatt Shares (“ Remaining Shares ”).

 

AGREEMENT

 

In consideration of the mutual promises herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:

 

1. Cancellation of Subject Shares and Payment for Cancellation . On the Effective Date, the Canceling Party will deliver to Company the necessary documentation for the cancellation of the stock certificates representing the Subject Shares, along with duly executed medallion guaranteed stock powers covering the Subject Shares (or such other documents acceptable to the Company’s transfer agent) and hereby irrevocably instructs the Company and the Company’s transfer agent to cancel the Subject Shares such that the Subject Shares will no longer be outstanding on the stock ledger of the Company and such that the Canceling Party shall no longer have any interest in the Subject Shares whatsoever. The Company shall immediately deliver to the Company’s transfer agent irrevocable instructions providing for the cancellation of the Subject Shares. In return, the Company shall pay $45,000 to the Canceling Party within five business days of the Effective Date.

 

2. Effective Date . This Agreement shall become effective upon the execution of this Agreement. The transactions to occur at such place and time with respect to this Agreement are referred to herein as the “ Closing ”.

 

3. Waiver . At and subsequent to the Closing, the Canceling Party hereby waives any and all rights and interests she has, had or may have with respect to the cancelled Subject Shares.

 

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4. Representations by the Canceling Party . (a) The Canceling Party owns the Subject Shares of record and beneficially free and clear of all liens, claims, charges, security interests, and/or encumbrances of any kind whatsoever. The Canceling Party has sole control over the Subject Shares and/or sole discretionary authority over any account in which they are held. Except for this Agreement, no person/entity has any option or right to purchase or otherwise acquire the Subject Shares, whether by contract of sale or otherwise, nor is there a “short position” as to the Subject Shares.

 

(b) The Canceling Party has full right, power and authority to execute, deliver and perform this Agreement and to carry out the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by the Canceling Party and constitutes a valid, binding obligation of the Canceling Party, enforceable against it in accordance with its terms (except as such enforceability may be limited by laws affecting creditor's rights generally) .

 

(c) Canceling Party represents and warrants that it has the requisite authority and capacity to enter into this Agreement, as well as carry out the terms/conditions referenced herein. Additionally, Canceling Party represents and warrants that its compliance with the terms and conditions of this Agreement and will not violate any instrument relating to the conduct of its business, or any other agreement which it may be a party, or any federal and state rules or regulations applicable to either Party.

 

5. Further Assurances . Each Party to this Agreement will use its best efforts to take all action and to do all things necessary, proper, or advisable in order to consummate and make effective the transactions contemplated by this Agreement (including the execution and delivery of such other documents and agreements as may be necessary to effectuate the cancellation of the Subject Shares) .

 

6. Entire Agreement; Amendments . This Agreement contains the entire understanding of the Parties with respect to the matters covered herein and therein and, except as specifically set forth herein, neither the Company nor the Canceling Party makes any representation, warranty, covenant or undertaking with respect to such matters. No amendment, modification, termination or waiver of any provision of this Agreement, and no consent to any departure therefrom, shall in any event be effective unless the same shall be in writing and signed by both Parties. Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given.

 

7. Survival of Agreements, Representations and Warranties, etc . All representations and warranties contained herein shall survive the execution and delivery of this Agreement. 

 

8. Successors and Assigns . This Agreement shall bind and inure to the benefit of and be enforceable by the Parties and their respective successors and assigns. 

 

9. Governing Law . This Agreement and the obligations, rights and remedies of the Parties hereto are to be construed in accordance with and governed by the laws of the State of Nevada, with any action/dispute concerning this Agreement to be venued in the County of Clark.

 

10. Severability . In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.

 

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11. Miscellaneous . This Agreement embodies the entire agreement and understanding between the Parties hereto and supersedes all prior agreements and understandings relating to the subject matter hereof. If any provision of this Agreement shall be held invalid or unenforceable for whatever reason, the remainder of this Agreement shall not be affected thereby and every remaining provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. This Agreement may be executed in any number of counterparts and by the Parties hereto on separate counterparts but all such counterparts shall together constitute but one and the same instrument.

 

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

 

  UNIQUE GROWING SOLUTIONS, INC.
  (F/K/A ALTERNATIVE ENERGY & ENVIRONMENTAL SOLUTIONS, INC.)
     
  By: /s/ Peter Coker
  Name: Peter Coker
  Title: Sole Officer
     
  By: /s/ Linda Hiatt
  LINDA HIATT,  Individually

 

 

 

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Exhibit 10.4

 

Employment Agreement

 

This Employment Agreement (the “ Agreement ”) is made and entered into as of February 25, 2015, by and between Dr. Raouf Guirguis (the “ Executive ”) and Unique Growing Solutions, Inc. (f/k/a Alternative Energy & Environmental Solutions, Inc.), a Nevada corporation (the “ Company ”).

 

WHEREAS, the Company desires to employ the Executive on the terms and conditions set forth herein; and

 

WHEREAS, the Executive desires to be employed by the Company on such terms and conditions.

 

NOW, THEREFORE, in consideration of the mutual covenants, promises and obligations set forth herein, the parties agree as follows:

  

1.   Term   The Executive’s employment hereunder shall be effective as of February 26, 2015 (the “ Effective Date ”) and shall continue until the third anniversary thereof, unless terminated earlier pursuant to Section 4 of this Agreement; provided that, on such third anniversary of the Effective Date and each annual anniversary thereafter (such date and each annual anniversary thereof, a “ Renewal Date ”), the Agreement shall be deemed to be automatically extended, upon the same terms and conditions, for successive periods of one year, unless either party provides written notice of its intention not to extend the term of the Agreement at least sixty (60) days prior to the applicable Renewal Date. The period during which the Executive is employed by the Company hereunder is hereinafter referred to as the “ Employment Term ”.

 

2.   Position and Duties   

  

2.1.   Position   During the Employment Term, the Executive shall serve as the Chief Executive Officer of the Company. In such position, the Executive shall have such duties, authority and responsibility as shall be determined from time to time by the board of directors of the Company (the “ Board ”), which duties, authority and responsibility are consistent with the Executive’s position. One of the duties of the Executive shall be to continue his ongoing research and development of the technology that enables diagnosing illness in humans via a saliva test. The Executive shall also serve as a member of the Board for no additional compensation.

 

2.2.   Duties   During the Employment Term, the Executive shall devote substantially all of his business time and attention to the performance of the Executive’s duties hereunder and will not engage in any other business, profession or occupation for compensation or otherwise which would conflict or interfere with the performance of such services either directly or indirectly without the prior unanimous written consent of the Board. Notwithstanding the foregoing, the Executive will be permitted to purchase or own less than five percent (5%) of the publicly traded securities of any corporation; provided that, such ownership represents a passive investment and that the Executive is not a controlling person of, or a member of a group that controls, such corporation; provided further that such ownership does not interfere with the performance of the Executive’s duties and responsibilities to the Company as provided hereunder, including, but not limited to, the obligations set forth in Section 2 hereof.

 

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3.   Compensation   

 

3.1.   Base Salary   The Company shall pay the Executive an annual rate of base salary of $350,000 in periodic installments in accordance with the Company’s customary payroll practices. The Executive’s annual base salary, as in effect from time to time, is hereinafter referred to as “ Base Salary ”.

 

3.2.   Stock Issuance Signing Bonus  The Company shall issue to the Executive thirty seven million, five hundred thousand shares (37,500,000) of common stock of the Company (the “ Stock Issuance Signing Bonus ”) within twenty (20) days following the Effective Date.

 

3.3.   Business Expenses   The Executive shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment, and travel expenses incurred by the Executive in connection with the performance of the Executive’s duties hereunder in accordance with the Company’s expense reimbursement policies and procedures.

 

3.4.   Indemnification   

  

(a)  In the event that the Executive is made a party or threatened to be made a party to any action, suit, or proceeding, whether civil, criminal, administrative or investigative (a “ Proceeding ”), other than any Proceeding initiated by the Executive or the Company related to any contest or dispute between the Executive and the Company or any of its affiliates with respect to this Agreement or the Executive’s employment hereunder, by reason of the fact that the Executive is or was a director or officer of the Company, or any affiliate of the Company, or is or was serving at the request of the Company as a director, officer, member, employee or agent of another corporation or a partnership, joint venture, trust or other enterprise, the Executive shall be indemnified and held harmless by the Company to the maximum extent permitted under applicable law and the Company’s bylaws from and against any liabilities, costs, claims and expenses, including all costs and expenses incurred in defense of any Proceeding (including attorneys’ fees). 

 

(b)  During the Employment Term, the Company or any successor to the Company shall purchase and maintain, at its own expense, directors’ and officers’ liability insurance providing coverage to the Executive on terms that are no less favorable than the coverage provided to other directors and similarly situated executives of the Company.

 

4.   Termination of Employment   

 

The Employment Term and the Executive’s employment hereunder may be terminated by either the Company or the Executive at any time and for any reason; provided that, unless otherwise provided herein, either party shall be required to give the other party at least thirty (30) days advance written notice of any termination of the Executive’s employment. Upon termination of the Executive’s employment during the Employment Term, the Executive shall be entitled to the compensation and benefits described in this Section 4 and shall have no further rights to any compensation or any other benefits from the Company or any of its affiliates.

 

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4.1.   Expiration of the Term, for Cause, or Without Good Reason   

 

(a)  The Executive’s employment hereunder may be terminated upon either party’s failure to renew the Agreement in accordance with Section 1, by the Company for Cause (as defined below), or by the Executive without Good Reason (as defined below). If the Executive’s employment is terminated upon either party’s failure to renew the Agreement, by the Company for Cause or by the Executive without Good Reason, the Executive shall be entitled to receive:

 

(i) any accrued but unpaid Base Salary which shall be paid within twenty (20) days following the Termination Date (as defined below); and

 

(ii) reimbursement for unreimbursed business expenses properly incurred by the Executive, which shall be subject to and paid in accordance with the Company’s expense reimbursement policy

 

Items 4.1(a)(i) through 4.1(a)(iiv) are referred to herein collectively as the “ Accrued Amounts ”.

 

(b)  For purposes of this Agreement, “ Cause ” shall mean:

 

(i) the Executive’s failure to perform his duties (other than any such failure resulting from incapacity due to physical or mental illness);

 

(ii) the Executive’s engagement in dishonesty, illegal conduct or gross misconduct, which is, in each case, injurious to the Company or its affiliates;

 

(iii) the Executive’s embezzlement, misappropriation or fraud, whether or not related to the Executive’s employment with the Company;

 

(iv) the Executive’s conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony (or state law equivalent);

 

(v) the Executive’s willful unauthorized disclosure of Confidential Information (as defined below); or

 

(vi) the Executive’s material breach of any material obligation under this Agreement or any other written agreement between the Executive and the Company.

 

Termination of the Executive’s employment shall not be deemed to be for Cause unless and until the Company delivers to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the Board (not including the Executive if he is a member of the Board), finding that the Executive has engaged in the conduct described in any of (i)-(vi) above.

 

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(c)  For purposes of this Agreement, “ Good Reason ” shall mean the occurrence of any of the following, in each case during the Employment Term without the Executive’s written consent:

 

(i) a material reduction in the Executive’s Base Salary other than a general reduction in Base Salary that affects all similarly situated executives in substantially the same proportions; or

 

(ii) the Company’s failure to obtain an agreement from any successor to the Company to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no succession had taken place, except where such assumption occurs by operation of law;

 

The Executive cannot terminate his employment for Good Reason unless he has provided written notice to the Company of the existence of the circumstances providing grounds for termination for Good Reason within five (5) days of the initial existence of such grounds and the Company has had at least ten (10) days from the date on which such notice is provided to cure such circumstances. If the Executive does not terminate his employment for Good Reason within fifteen (15) days after the first occurrence of the applicable grounds, then the Executive will be deemed to have waived his right to terminate for Good Reason with respect to such grounds.

 

4.2.   Without Cause or for Good Reason   

 

The Employment Term and the Executive’s employment hereunder may be terminated by the Executive for Good Reason or by the Company without Cause. In the event of such termination, the Executive shall be entitled to receive the Accrued Amounts and subject to the Executive’s compliance with Sections 5 and 6 of this Agreement and his execution of a release of claims in favor of the Company, its affiliates and their respective officers and directors in a form provided by the Company (the “ Release ”) and such Release becoming effective within five (5) days following the Termination Date (such five-day period, the “ Release Execution Period ”), the Executive shall be entitled to receive continued Base Salary for one year following the Termination Date payable in equal installments in accordance with the Company’s normal payroll practices, but no less frequently than monthly, which shall commence within sixty (60) days following the Termination Date; provided that, the first installment payment shall include all amounts of Base Salary that would otherwise have been paid to the Executive during the period beginning on the Termination Date and ending on the first payment date if no delay had been imposed;

 

4.3.   Death or Disability   

 

(a)  The Executive’s employment hereunder shall terminate automatically upon the Executive’s death during the Employment Term, and the Company may terminate the Executive’s employment on account of the Executive’s Disability.

 

(b)  If the Executive’s employment is terminated during the Employment Term on account of the Executive’s death or Disability, the Executive (or the Executive’s estate and/or beneficiaries, as the case may be) shall be entitled to receive the Accrued Amounts. Notwithstanding any other provision contained herein, all payments made in connection with the Executive’s Disability shall be provided in a manner which is consistent with federal and state law.

 

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(c)  For purposes of this Agreement, Disability shall mean the Executive’s inability, due to physical or mental incapacity, to substantially perform his duties and responsibilities under this Agreement for one hundred twenty (120) days out of any three hundred sixty-five (365) day period; provided however, in the event the Company temporarily replaces the Executive, or transfers the Executive’s duties or responsibilities to another individual on account of the Executive’s inability to perform such duties due to a mental or physical incapacity which is, or is reasonably expected to become, a Disability, then the Executive’s employment shall not be deemed terminated by the Company. Any question as to the existence of the Executive’s Disability as to which the Executive and the Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to the Executive and the Company. If the Executive and the Company cannot agree as to a qualified independent physician, each shall appoint such a physician and those two physicians shall select a third who shall make such determination in writing. The determination of Disability made in writing to the Company and the Executive shall be final and conclusive for all purposes of this Agreement.

 

4.4.   Notice of Termination   Any termination of the Executive’s employment hereunder by the Company or by the Executive during the Employment Term (other than termination pursuant to Section 4.3(a) on account of the Executive’s death) shall be communicated by written notice of termination (“ Notice of Termination ”) to the other party hereto in accordance with Section 14. The Notice of Termination shall specify:

 

(a)  The termination provision of this Agreement relied upon;

 

(b)  To the extent applicable, the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated; and

 

(c)  The applicable Termination Date.

 

4.5.   Termination Date   The Executive’s Termination Date shall be:

 

(a)  If the Executive’s employment hereunder terminates on account of the Executive’s death, the date of the Executive’s death;

 

(b)  If the Executive’s employment hereunder is terminated on account of the Executive’s Disability, the date that it is determined that the Executive has a Disability;

 

(c)  If the Company terminates the Executive’s employment hereunder for Cause, the date the Notice of Termination is delivered to the Executive;

 

(d)  If the Company terminates the Executive’s employment hereunder without Cause, the date specified in the Notice of Termination, which shall be no less than five (5) days following the date on which the Notice of Termination is delivered;

 

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(e)  If the Executive terminates his employment hereunder with or without Good Reason, the date specified in the Executive’s Notice of Termination, which shall be no less than five (5) days following the date on which the Notice of Termination is delivered; and

 

(f)  If the Executive’s employment hereunder terminates because either party provides notice of non-renewal pursuant to Section 1, the Renewal Date immediately following the date on which the applicable party delivers notice of non-renewal.

 

4.6.   Resignation of All Other Positions   Upon termination of the Executive’s employment hereunder for any reason, the Executive shall be deemed to have resigned from all positions that the Executive holds as an officer or member of the Board (or a committee thereof) of the Company or any of its affiliates.

 

5.   Cooperation   The parties agree that certain matters in which the Executive will be involved during the Employment Term may necessitate the Executive’s cooperation in the future. Accordingly, following the termination of the Executive’s employment for any reason, to the extent reasonably requested by the Board, the Executive shall cooperate with the Company in connection with matters arising out of the Executive’s service to the Company; provided that, the Company shall make reasonable efforts to minimize disruption of the Executive’s other activities. The Company shall reimburse the Executive for reasonable expenses incurred in connection with such cooperation and, to the extent that the Executive is required to spend substantial time on such matters, the Company shall compensate the Executive at an hourly rate based on the Executive’s Base Salary on the Termination Date.

 

6.   Confidential Information   The Executive understands and acknowledges that during the Employment Term, he will have access to and learn about Confidential Information, as defined below.

 

6.1.   Confidential Information Defined   

 

(a)   Definition .

 

For purposes of this Agreement, ”Confidential Information” includes, but is not limited to, all information not generally known to the public, in spoken, printed, electronic or any other form or medium, relating directly or indirectly to: business processes, practices, methods, documents, research, operations, agreements, contracts, terms of agreements, transactions, potential transactions, negotiations, pending negotiations, know-how, trade secrets, manuals, records, articles, supplier information, vendor information, financial information, results, accounting information, accounting records, legal information, payroll information, staffing information, personnel information, employee lists, supplier lists, vendor lists, internal controls, sales information, revenue, costs, of the Company or its businesses or any existing or prospective customer, supplier, investor or other associated third party, or of any other person or entity that has entrusted information to the Company in confidence.

 

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The Executive understands that the above list is not exhaustive, and that Confidential Information also includes other information that is marked or otherwise identified as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary in the context and circumstances in which the information is known or used.

 

The Executive understands and agrees that Confidential Information includes information developed by him in the course of his employment by the Company as if the Company furnished the same Confidential Information to the Executive in the first instance. Confidential Information shall not include information that is generally available to and known by the public at the time of disclosure to the Executive; provided that, such disclosure is through no direct or indirect fault of the Executive or person(s) acting on the Executive’s behalf.

 

(b)   Disclosure and Use Restrictions .

 

The Executive agrees and covenants: (i) to treat all Confidential Information as strictly confidential; (ii) not to directly or indirectly disclose, publish, communicate or make available Confidential Information, or allow it to be disclosed, published, communicated or made available, in whole or part, to any entity or person whatsoever (including other employees of the Company) not having a need to know and authority to know and use the Confidential Information in connection with the business of the Company and, in any event, not to anyone outside of the direct employ of the Company except as required in the performance of the Executive’s authorized employment duties to the Company acting on behalf of the Company in each instance (and then, such disclosure shall be made only within the limits and to the extent of such duties); and (iii) not to access or use any Confidential Information, and not to copy any documents, records, files, media or other resources containing any Confidential Information, or remove any such documents, records, files, media or other resources from the premises or control of the Company, except as required in the performance of the Executive’s authorized employment duties to the Company acting on behalf of the Company in each instance (and then, such disclosure shall be made only within the limits and to the extent of such duties). Nothing herein shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation or order.

 

The Executive understands and acknowledges that his obligations under this Agreement with regard to any particular Confidential Information shall commence immediately upon the Executive first having access to such Confidential Information (whether before or after he begins employment by the Company) and shall continue during and after his employment by the Company until such time as such Confidential Information has become public knowledge other than as a result of the Executive’s breach of this Agreement or breach by those acting in concert with the Executive or on the Executive’s behalf.

 

7.   Governing Law: Jurisdiction and Venue   This Agreement, for all purposes, shall be construed in accordance with the laws of Nevada without regard to conflicts of law principles. Any action or proceeding by either of the parties to enforce this Agreement shall be brought only in a state or federal court located in the state of Nevada, city of Las Vegas. The parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue.

 

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8.   Entire Agreement   Unless specifically provided herein, this Agreement contains all of the understandings and representations between the Executive and the Company pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter. The parties mutually agree that the Agreement can be specifically enforced in court and can be cited as evidence in legal proceedings alleging breach of the Agreement.

 

9.   Modification and Waiver   No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in writing and signed by the Executive and by the Chief Financial Officer of the Company, or, if the Executive is the Chief Financial Officer of the Company, a member of the Board of the Company whose only personal or business relationship to the Executive is via working together in the affairs of the Company. No waiver by either of the parties of any breach by the other party hereto of any condition or provision of this Agreement to be performed by the other party hereto shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay by either of the parties in exercising any right, power or privilege hereunder operate as a waiver thereof to preclude any other or further exercise thereof or the exercise of any other such right, power or privilege.

 

10.   Severability   Should any provision of this Agreement be held by a court of competent jurisdiction to be enforceable only if modified, or if any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the parties with any such modification to become a part hereof and treated as though originally set forth in this Agreement.

 

The parties further agree that any such court is expressly authorized to modify any such unenforceable provision of this Agreement in lieu of severing such unenforceable provision from this Agreement in its entirety, whether by rewriting the offending provision, deleting any or all of the offending provision, adding additional language to this Agreement or by making such other modifications as it deems warranted to carry out the intent and agreement of the parties as embodied herein to the maximum extent permitted by law.

 

The parties expressly agree that this Agreement as so modified by the court shall be binding upon and enforceable against each of them. In any event, should one or more of the provisions of this Agreement be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions hereof, and if such provision or provisions are not modified as provided above, this Agreement shall be construed as if such invalid, illegal or unenforceable provisions had not been set forth herein.

 

11.   Captions   Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

 

12.   Counterparts   This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.

 

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13.   Successors and Assigns   This Agreement is personal to the Executive and shall not be assigned by the Executive. Any purported assignment by the Executive shall be null and void from the initial date of the purported assignment. The Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and permitted successors and assigns.

 

14.   Notice   Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent by registered or certified mail, return receipt requested, or by overnight carrier to the parties at addresses to be determined by the parties

 

15.   Representations of the Executive   The Executive represents and warrants to the Company that:

 

15.1.  The Executive’s acceptance of employment with the Company and the performance of his duties hereunder will not conflict with or result in a violation of, a breach of, or a default under any contract, agreement or understanding to which he is a party or is otherwise bound.

 

15.2.  The Executive’s acceptance of employment with the Company and the performance of his duties hereunder will not violate any non-solicitation, non-competition or other similar covenant or agreement of a prior employer.

 

16.   Withholding   The Company shall have the right to withhold from any amount payable hereunder any Federal, state and local taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.

 

17.   Survival   Upon the expiration or other termination of this Agreement, the respective rights and obligations of the parties hereto shall survive such expiration or other termination to the extent necessary to carry out the intentions of the parties under this Agreement.

 

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18.   Acknowledgment of Full Understanding   THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT.

 

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

 

 

UNIQUE GROWING SOLUTIONS, INC.

(F/K/A ALTERNATIVE ENERGY &
ENVIRONMENTAL SOLUTIONS, INC.) 

     
  By /s/ Peter Coker
  Name: Peter Coker  
  Title: Sole Officer

 

 

DR. RAOUF GUIRGUIS
 

 

Signature: /s/ Raouf Guirguis                           

 

 

 

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