Document:

Exhibit
        10.1

      English
        Translation

    

     

    Asset
      Acquisition Agreement

    

    This
      ASSET ACQUISITION AGREEMENT (the “Agreement”) is entered into as of June 29,
      2007 by and between following parties in Deyang City, Sichuan
      Province.

     

    Acquirer:
      Henan Zhongpin Food Share Co., Ltd. (“Party A”), is a limited liability
      corporation duly incorporated and validly existing under the laws of the
      People’s Republic of China, whose address is 21 Changshe Road, Changge City,
      Henan Province, and whose legal representative is Zhu Xianfu.

     

    Acquiree:
      Deyang East China Food Company Limited (“Party B”), is a limited liability
      corporation duly incorporated and validly existing under the laws of the
      People’s Republic of China whose address is 1 Feiwu Village, Zhongjiang City,
      Cangshan County, Sichuan Province, and whose legal representative is Chen
      Kui.

    

    WHEREAS,
      Party B desires to sell, transfer and assign to Party A, and Party A desires
      to
      purchase and acquire from Party B, all of its assets. Now therefore, after
      friendly negotiation, the parties hereto agree as follows:

    

    SECTION
      1  PURCHASE
      OF THE ASSETS

    

    1.1
      Purchase of the Assets

     

    Party
      A
      agrees to purchase and acquire all of the assets from Party B, including the
      real estate of Guoxin Meat Packing Plant located in Deyang City, Cangshan
      County, its manufacturing equipment and facilities, office supplies and other
      materials which are specified in the “Assets List” attached hereto (hereafter
      referred to as the “Transferred Assets”), and Party B agrees to transfer and
      sell all such assets to Party A according to the terms and conditions of this
      Agreement.

     

    1.2
       Asset
      Delivery

     

    Asset
      delivery is carried out in two parts as follows:

     

    (1)
      The
      real
      estate and related facilities specified in the Assets List shall be delivered
      to
      Party A on the effective date of this agreement;

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (2)
      Other
      assets, including the manufacturing equipment and office supplies, among other
      things, shall be delivered to Party A on the same date of Party A’s payment of
      the Purchase Price to Party B pursuant to Section 2 hereunder.

     

    1.3
       Procedures
      for Transferring Possession 

     

    (1)
      Party B
      shall assist and support Party A in transferring possession of the real estate
      with the registration authority department when Party B delivers the real estate
      specified in the Assets List pursuant to Section 1.2 and shall hand in the
      proprietorship certificate under Party B’s name.

     

    (2)
      Party B
      agrees to provide Party A with the invoices, purchase contract and other
      materials related to the purchased assets pursuant to Section 1.2.

     

    1.4
       Release
      of Mortgage

     

    Because
      Party B has mortgaged the Transferred Assets specified in the Assets List to
      Deyang Commercial Bank, Deyang Commercial Bank and Party B agree to terminate
      the Mortgage Contract signed between them within three business days of Party
      A’s payment of the Purchase Price to Party B. Furthermore, Party B shall arrange
      for the termination of the mortgage registration with the local real estate
      administrative organization and the Administration Bureau for Industry and
      Commerce and then shall hand over the property ownership certificates to Party
      A.

    

    SECTION
      2  PAYMENT
      PRICE

    

    2.1
      Purchase Price

     

    In
      consideration for Party B’s sale, transfer and assignment of the Assets, Party A
      shall pay Party B the aggregate sum of RMB 49,950,000 (approximate
      U.S.$6,555,806 based on the currency exchange rate on 06/25/2007 ) (the
“Purchase Price”).

     

    2.2
      Payment Terms

     

    Party
      A
      covenants that the full Purchase Price shall be paid within three business
      days
      upon the execution of this agreement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    SECTION
      3  REPRESENTATIONS
      AND WARRANTIES

     

    3.1
      Representations and Warranties relating to Party A 

     

    Party
      A
      makes following representations and warranties to Party B:

     

    (1)
      Party
      A
      is a limited liability corporation duly incorporated, validly existing and
      in
      good standing under the laws of the People’s Republic of China;

     

    (2)
      Party
      A
      has the requisite corporate power and authority to enter into and perform this
      Agreement and the execution, delivery and performance of this agreement have
      been duly and validly authorized by all necessary corporate actions.

     

    (3)
      When
      executed and delivered,this
      agreement shall constitute a valid and binding obligation of Party A in
      accordance with its terms.

    

    3.2  Representations
      and Warranties relating to Party B

     

    Party
      B
      makes the following representations and warranties to Party A: 

     

    (1)
      Party
      B
      is a limited liability corporation duly incorporated, validly existing and
      in
      good standing under the laws of the People’s Republic of China;

     

    (2)
      Party
      B has the requisite corporate power and authority to enter into and perform
      this
      Agreement and the execution, delivery and performance of this agreement have
      been duly and validly authorized by all necessary corporate and legal actions
      (including all necessary governmental approvals);

     

    (3)
      When
      executed and delivered, this agreement shall constitute a valid and binding
      obligation of Party B in accordance with its terms;

     

    (4)
      The
      execution and performance of this agreement does not violate any existing
      contractual obligations to which Party B is a party; no proceedings,
      arbitrations or administrative procedures are pending that will impact the
      execution and performance of the obligations hereto; 

     

    (5)
      Party
      B has complete ownership of the transferred assets and is entitled to sell,
      transfer or assign all such assets and has no obligations or indebtedness
      including mortgages and guaranties other than those disclosed in the Assets
      List
      attached hereto;

     

    (6)
      As of
      the date of execution of this Agreement until the date of completion of transfer
      of all the assets hereto, Party B shall not place additional obligations and/or
      indebtedness, including guaranties, on the transferred assets; shall not dispose
      of the transferred assets in any way; and guaranties that no event or condition
      has occurred that has had or could reasonably be expected to have a Material
      Adverse Effect on the assets;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (7)
      Necessary property insurance has been obtained for the Transferred Assets and
      such polices shall remain effective before and during the delivery of the
      related assets.

    

    SECTION
      4  DEFAULT
      OBLIGATIONS

    

    4.1
      Party A’s Default Obligations

     

    (1)
      If
      Party
      A fails to pay the amount of the Purchase Price payable according to the
      Agreement, 0.01% of the delayed payment shall be charged for such default,
      which
      on no account shall exceed 10% of the total Purchase Price.

     

    (2)
      If
      Party
      A delays in paying the Purchase Price due and the situation does not improve
      within 20 days after Party A’s receipt of notice from Party B of such default,
      Party B shall be allowed to terminate this agreement after 30 days notice to
      the
      other party in writing; 

     

    (3)
      If
      Party
      A defaults in its representations and warranties or other obligations hereto
      which makes Party B undergo damages or losses, Party B has the right to require
      Party A to indemnify it for any such losses.

     

    4.2
      Party B’s Default Obligations

     

    (1)
      If
      Party
      B defaults in its representations and warranties or other obligations hereto
      and
      such default causes Party A to undergo damages or losses, Party A has the right
      to require Party B to indemnify it for all such losses. Party A is entitled
      to
      deduct the amount of the corresponding loss from the unpaid Purchase
      Price.

     

    (2)
      Party
      B
      is responsible for assuming all obligations, penalties, compensations or tax
      obligations from any Third Party or governmental body which occurred before
      the
      delivery of the acquired assets to Party A. If Party A is exposed to any damages
      or losses, Party B has the obligation to indemnify Party A for such
      losses.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (3)
      If
      Party
      B fails to timely transfer its real estate pursuant to Section 1, Party B shall
      compensate Party A 0.03% of the Purchase Price per day as a penalty, which
      penalty on no account shall exceed 10% of the Purchase Price. If the situation
      does not improve within 20 days after Party B’s receipt of notice from Party A
      requiring the transfer of such real estate, Party A shall be allowed to
      terminate this Agreement after 30 days upon delivering such notice to Party
      B.

    

    SECTION
      5  FORCE
      MAJEURE

    

    5.1
      Force Majeure

     

    If
      either
      Party delays or fails to perform the obligations hereto because of an event
      of
      force majeure such as earthquakes, typhoons, flood, fire and explosions, such
      Party shall notify the other Party immediately and provide documents certifying
      such event(s) within 15 days of such event’s occurrence explaining the reason of
      such delay or failure to perform the corresponding obligations.

     

    5.2
      Exemptions

     

    In
      the
      event of force majeure, neither party shall be responsible for the other Party’s
      damage or loss arising from the delay or failure of performance. The party
      which
      claims to suffer the force majeure shall promptly take the measures to minimize
      the effects or influences arising from such force majeure events.

    

    SECTION
      6  OTHER
      STIPULATIONS

    

    6.1
      Amendments in Writing

     

    This
      Agreement may not be amended or modified in any manner except by a written
      agreement duly authorized and executed by both parties.

     

    6.2
      Effectiveness

     

    The
      agreement shall be effective upon the execution by the respective corporate
      officers of the parties hereto.

     

    6.3
      Settlements of Disputes

     

    The
      parties agree that all actions and proceedings arising out of this Agreement
      or
      any of the transactions contemplated hereby shall be settled through friendly
      negotiations. If any dispute extends for longer than 30 days, either party
      is
      entitled to bring an arbitration action before the Zhengzhou Arbitration
      Commission. In connection with any such action or proceeding, both parties
      agree
      to submit to the jurisdiction of, and venue in, such court in accordance with
      the existing effective arbitration rules. The arbitration judgment will be
      final
      and shall be binding on each party.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    6.4
      Counterparts

     

    This
      Agreement shall be executed in quadruplication, with two copies for each party,
      which copies shall be deemed to be of equal effect.

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed by their respective authorized officers as of the date first written
      above.

    

    

    Party
      A:
      (Seal) 

    Legal
      representative:  /s/
      Zhu Xianfu

    

    

    Party
      B:
      (Seal)

    Legal
      representative: /s/ Chen Kui

    

    Exhibit
      I: Assets List

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

    
      Assets
        List of Deyang East China Food Company Limited

    

    
 

    
      	
              I 
                housing
                and building

            

    

     

    
      	
              No.

            	 	
              purpose

            	 	
              structure

            	 	
              NO.
                of storey

            	 	
              NO.of
                property right certificate

            	 	
              area
                of structure(sq.m.)

            	 	
              replacement
                unit price(yuan/square)

            	 	
              (%)newness
                rate

            	 	
              indicated
                value by cost approach (ten thousand yuan)

            
	
              1

            	 	
              dormitory

            	 	
              mixed

            	 	
              4

            	 	
              01450

            	 	
              965.24

            	 	
              1250

            	 	
              95

            	 	
              114.62
                

            
	
              2

            	 	
              boiler room

            	 	
              mixed

            	 	
              1

            	 	
              01451

            	 	
              145.14

            	 	
              1404.4

            	 	
              92

            	 	
              18.75
                

            
	
              3

            	 	
              workshop(including
                freezer room) 

            	 	
              mixed

            	 	
              1

            	 	
              01452

            	 	
              2940.68

            	 	
              4160

            	 	
              92

            	 	
              1125.46
                

            
	
              4

            	 	
              waiting
                pens

            	 	
              mixed

            	 	
              1

            	 	
              01453

            	 	
              997.32

            	 	
              1099.4

            	 	
              95

            	 	
              104.16
                

            
	
              5

            	 	
              office
                building

            	 	
              mixed

            	 	
              3

            	 	
              01454

            	 	
              943.5

            	 	
              1320

            	 	
              95

            	 	
              118.31
                

            
	
              6

            	 	
              guard

            	 	
              mixed

            	 	
              1

            	 	
              01455

            	 	
              32.04

            	 	
              1243.2

            	 	
              95

            	 	
              3.78
                

            
	
              7

            	 	
              workshop

            	 	
              mixed

            	 	
              1

            	 	
              01456

            	 	
              2039.61

            	 	
              1861.4

            	 	
              92

            	 	
              349.28
                

            
	
              8

            	 	
              dining
                room

            	 	
              mixed

            	 	
              1

            	 	
               

            	 	
              440

            	 	
              750

            	 	
              95
                

            	 	
              31.35
                

            
	
              9

            	 	
              road

            	 	
              mixed

            	 	
               

            	 	 	 	
              8522

            	 	
              160

            	 	
              92
                

            	 	
              125.44
                

            
	
              10

            	 	
              bounding
                wall

            	 	
              brick-and-concrete

            	 	 	 	 	 	
              506

            	 	
              320

            	 	
              91
                

            	 	
              14.73
                

            
	
              11

            	 	
              virescence

            	 	
              lawn
                and tree

            	 	 	 	 	 	
              1334

            	 	
              210

            	 	
              100

            	 	
              28.01
                

            
	
              12

            	 	
              waiting
                pens

            	 	
              mixed

            	 	
              1

            	 	 	 	
              1000

            	 	
              1099.4

            	 	
              100

            	 	
              109.94
                

            
	
              13

            	 	
              materials
                warehouse 

            	 	
              mixed

            	 	
              1

            	 	 	 	
              360

            	 	
              1460

            	 	
              100

            	 	
              52.56
                

            
	
              14

            	 	
              boiler
                room

            	 	
              mixed

            	 	
              1

            	 	 	 	
              216

            	 	
              1404.4

            	 	
              100

            	 	
              30.34
                

            
	
              15

            	 	
              sewage
                treatment room and pool

            	 	
              mixed

            	 	
              1

            	 	 	 	
              745

            	 	
              1390

            	 	
              100

            	 	
              103.56
                

            
	
              16

            	 	
              cold
                store

            	 	
              mixed

            	 	
              1

            	 	 	 	
              500

            	 	
              4160

            	 	
              100

            	 	
              208.00
                

            
	
              total

            	 	 	 	 	 	 	 	 	 	
              21686.53

            	 	 	 	 	 	
              2538.3075
                

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      II.
        machine equipment

    

    

      
        	
                NO.

              	 	
                name

              	 	
                type

              	 	
                quantity

              	 	
                fixed
                  number of year

              	 	
                storage
                  place

              	 	
                unit
                  value (ten thousand yuan0

              	 	
                newness
                  rate

              	 	
                total
                  value (ten thousand yuan)

              
	
                1

              	 	
                freezing
                  machine and equipment

              	 	
                 

              	 	
                1

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                 

              	 	
                 

              	 	
                 

              
	
                1

              	 	
                ammonia
                  compressor

              	 	
                8ASJ-170

              	 	
                3

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                23.4

              	 	
                85%

              	 	
                59.67

              
	
                2

              	 	
                ammonia
                  compressor

              	 	
                8ASJ-125

              	 	
                1

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                18.6

              	 	
                85%

              	 	
                15.81

              
	
                3

              	 	
                suspended
                  suction fan

              	 	
                HLL150-250

              	 	
                8

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                2.4

              	 	
                85%

              	 	
                16.32

              
	
                4

              	 	
                pedestal
                  suction fan

              	 	
                KLL-350

              	 	
                5

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                4.6

              	 	
                85%

              	 	
                19.55

              
	
                2

              	 	
                freezing
                  machine and equipment

              	 	
                 

              	 	
                1

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                 

              	 	
                 

              	 	
                 

              
	
                1

              	 	
                Electrical
                  Control Cabinet

              	 	
                135100-85100

              	 	
                4

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                7.2

              	 	
                85%

              	 	
                24.48

              
	
                2

              	 	
                floating
                  liquid control machine

              	 	
                40

              	 	
                8

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                0.84

              	 	
                85%

              	 	
                5.712

              
	
                3

              	 	
                far-
                  distance indicator

              	 	
                2007/1/4

              	 	
                4

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                0.72

              	 	
                85%

              	 	
                2.448

              
	
                4

              	 	
                ammonia
                  valve

              	 	
                200-8

              	 	
                271

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                0.08

              	 	
                85%

              	 	
                18.428

              
	
                5

              	 	
                axis
                  cooling machine

              	 	
                THO-116-4-35

              	 	
                28

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                0.46

              	 	
                85%

              	 	
                10.948

              
	
                6

              	 	
                upright
                  condenser

              	 	
                HV-200

              	 	
                2

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                9.6

              	 	
                85%

              	 	
                16.32

              
	
                7

              	 	
                ammonia
                  receiver

              	 	
                2A-50

              	 	
                1

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                14.1

              	 	
                85%

              	 	
                11.985

              
	
                8

              	 	
                Low
                  pressure circulation receiver 

              	 	
                DX2-3.5

              	 	
                2

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                12.9

              	 	
                85%

              	 	
                21.93

              
	
                9

              	 	
                intercooler

              	 	
                2L-10

              	 	
                1

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                4.2

              	 	
                85%

              	 	
                3.57

              
	
                10

              	 	
                folding
                  screen pump

              	 	
                409-40

              	 	
                5

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                0.78

              	 	
                85%

              	 	
                3.315

              
	
                3

              	 	
                cutting
                  pipeline

              	 	
                 

              	 	
                1

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                 

              	 	
                 

              	 	
                 

              
	
                1

              	 	
                stainless
                  steel cutting bench 

              	 	
                1/4/2007

              	 	
                2

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                5.2

              	 	
                85%

              	 	
                8.84

              
	
                2

              	 	
                Belts

              	 	
                1-2transmit

              	 	
                2

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                1.6

              	 	
                85%

              	 	
                2.72

              
	
                3

              	 	
                track

              	 	
                125

              	 	
                1

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                36

              	 	
                85%

              	 	
                30.6

              
	
                4

              	 	
                slaughter
                  pipeline

              	 	
                 

              	 	
                1

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                 

              	 	
                 

              	 	
                 

              
	
                1

              	 	
                hogskin
                  preshelled line

              	 	
                B-001
                  strip

              	 	
                1

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                10.2

              	 	
                85%

              	 	
                8.67

              
	
                2

              	 	
                barker

              	 	
                110strip

              	 	
                1

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                0.94

              	 	
                85%

              	 	
                0.799

              
	
                3

              	 	
                upright
                  unhairing machine

              	 	
                001unhair

              	 	
                1

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                5.8

              	 	
                80%

              	 	
                4.64

              
	
                4

              	 	
                upright
                  pig cleaning machine

              	 	
                160
                  cleaning

              	 	
                2

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                3.6

              	 	
                80%

              	 	
                5.76

              
	
                5

              	 	
                track

              	 	
                125

              	 	
                1

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                111

              	 	
                80%

              	 	
                88.8

              
	
                5

              	 	
                switchboard
                  stainless steel fan

              	 	
                135#

              	 	
                5

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                0.12

              	 	
                85%

              	 	
                0.51

              
	
                6

              	 	
                refrigeratory
                  equipment

              	 	
                30×10

              	 	
                345stere

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                0.39

              	 	
                85%

              	 	
                114.3675

              
	
                7

              	 	
                air
                  condition diffuser air supply 

              	 	
                ASJ-010

              	 	
                28

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                1.2

              	 	
                85%

              	 	
                28.56

              
	
                8

              	 	
                air-condition
                  place with a draught

              	 	
                ABL-002

              	 	
                3

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                5.6

              	 	
                85%

              	 	
                14.28

              
	
                9

              	 	
                air-conditioner
                  muffler

              	 	
                AJY-500

              	 	
                6

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                0.2

              	 	
                85%

              	 	
                1.02

              
	
                10

              	 	
                general
                  screen ,main electric screen and split screen

              	 	
                1#
                  2#

              	 	
                6

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                2.8

              	 	
                85%

              	 	
                14.28

              
	
                11

              	 	
                capacitance
                  assistant screen

              	 	
                005#

              	 	
                2

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                13.5

              	 	
                85%

              	 	
                22.95

              
	
                12

              	 	
                control
                  cabinet

              	 	
                21

              	 	
                3

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                5.2

              	 	
                85%

              	 	
                13.26

              
	
                13

              	 	
                suspended
                  controller

              	 	
                50

              	 	
                21

              	 	
                10
                  ten years

              	 	
                inside
                  factory

              	 	
                0.1

              	 	
                85%

              	 	
                1.785

              
	
                14

              	 	
                vacuum
                  machine

              	 	
                600#

              	 	
                2

              	 	
                8
                  eight years

              	 	
                inside
                  factory

              	 	
                0.84

              	 	
                85%

              	 	
                1.428

              
	
                15

              	 	
                sewage
                  treatment equipment

              	 	
                 

              	 	
                1

              	 	
                8
                  eight years

              	 	
                inside
                  factory

              	 	
                126

              	 	
                70%

              	 	
                88.2

              
	
                16

              	 	
                diesel
                  oil electrical machine unit

              	 	
                100KW

              	 	
                1

              	 	
                8
                  eight years

              	 	
                inside
                  factory

              	 	
                5.4

              	 	
                60%

              	 	
                3.24

              
	
                17

              	 	
                water
                  supply

              	 	
                 

              	 	
                1

              	 	
                8
                  eight years

              	 	
                inside
                  factory

              	 	
                65

              	 	
                92%

              	 	
                59.8

              
	
                18

              	 	
                circuit

              	 	
                 

              	 	
                1

              	 	
                8
                  eight years

              	 	
                inside
                  factory

              	 	
                98

              	 	
                92%

              	 	
                90.16

              
	
                19

              	 	
                transformer

              	 	
                315KWA

              	 	
                2

              	 	
                8
                  eight years

              	 	
                inside
                  factory

              	 	
                21.3

              	 	
                92%

              	 	
                39.192

              
	
                20

              	 	
                boiler

              	 	
                a
                  complete set of equipment

              	 	
                1

              	 	
                8
                  eight years

              	 	
                inside
                  factory

              	 	
                150

              	 	
                100%

              	 	
                150

              
	
                21

              	 	
                boiler

              	 	
                2
                  ton chain boiler

              	 	
                1

              	 	
                8
                  eight years

              	 	
                inside
                  factory

              	 	
                31.5

              	 	
                100%

              	 	
                31.5

              
	
              	 	
                
                  total

                

              	 	
                 

              	 	
                 

              	 	
                 

              	 	
                 

              	 	
                801.37

              	 	
                 

              	 	
                1055.8475

              

      

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      III.
        electronic equipment

      
        	
                No.

              	 	
                name

              	 	
                type
                  

              	 	
                quantity

              	 	
                years

              	 	
                storage
                  place

              	 	
                unit
                  value

              	 	
                newness
                  rate

              	 	
                Total
                  Value

              
	
                1

              	 	
                1T
                  Weigh-bridge

              	 	
                HT9800-P

              	 	
                1

              	 	
                eight
                  years

              	 	
                inside
                  factory

              	 	
                0.7

              	 	
                70%

              	 	
                0.49

              
	
                2

              	 	
                5T
                  Weigh-bridge

              	 	
                HT9800-B

              	 	
                1

              	 	
                eight
                  years

              	 	
                inside
                  factory

              	 	
                2.1

              	 	
                70%

              	 	
                1.47

              
	
                3

              	 	
                300KGPrice
                  computing scale

              	 	
                H300-C

              	 	
                2

              	 	
                eight
                  years

              	 	
                inside
                  factory

              	 	
                0.3

              	 	
                85%

              	 	
                0.51

              
	
                4

              	 	
                60KG
                  computing weighing scales

              	 	
                H3205-F

              	 	
                5

              	 	
                eight
                  years

              	 	
                inside
                  factory

              	 	
                0.2

              	 	
                85%

              	 	
                0.85

              
	
                5

              	 	
                1T
                  Weigh-bridge

              	 	
                H3104-E

              	 	
                2

              	 	
                eight
                  years

              	 	
                inside
                  factory

              	 	
                0.3

              	 	
                70%

              	 	
                0.42

              
	
                6

              	 	
                Weigh-bridge

              	 	
                H3114-G

              	 	
                4

              	 	
                eight
                  years

              	 	
                inside
                  factory

              	 	
                0.8

              	 	
                70%

              	 	
                2.24

              
	
                1

              	 	
                Hisence
                  air-condition

              	 	
                KFR-3301GW/D

              	 	
                7

              	 	
                eight
                  years

              	 	
                inside
                  factory

              	 	
                0.26

              	 	
                90%

              	 	
                1.638

              
	
                2

              	 	
                Hisence
                  air-condition

              	 	
                KFR-65LW/D

              	 	
                1

              	 	
                eight
                  years

              	 	
                inside
                  factory

              	 	
                0.2

              	 	
                90%

              	 	
                0.18

              
	
                3

              	 	
                Hisence
                  air-condition

              	 	
                KFR-7208LW/D

              	 	
                2

              	 	
                eight
                  years

              	 	
                inside
                  factory

              	 	
                0.32

              	 	
                90%

              	 	
                0.576

              
	
                4

              	 	
                computer
                  and printer

              	 	
                6C/500
                  LQ-670KT

              	 	
                2

              	 	
                eight
                  years

              	 	
                inside
                  factory

              	 	
                0.48

              	 	
                90%

              	 	
                0.864

              
	
                5

              	 	
                52
                  inch color TV

              	 	
                SONY-52

              	 	
                1

              	 	
                eight
                  years

              	 	
                inside
                  factory

              	 	
                0.47

              	 	
                90%

              	 	
                0.423

              
	
                6

              	 	
                29
                  inch color TV

              	 	
                ZINI9000

              	 	
                1

              	 	
                eight
                  years

              	 	
                inside
                  factory

              	 	
                0.3

              	 	
                90%

              	 	
                0.27

              
	
              	 	
                total

              	 	 	 	 	 	 	 	 	 	
                6.43

              	
                 

              	
                 

              	
                 

              	
                9.931

              

      

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      
        IV.
          Low Value and Easily Consumed Material 

      

       

      (I) materials
        and appliance

      
        
           

          
            	
                    No.

                  	 	
                    name

                  	 	
                    type

                  	 	
                    quantity

                  	 	
                    years

                  	 	
                    storage
                      place

                  	 	
                    unit
                      value (ten thousand yuan)

                  	 	
                    newness
                      rate

                  	 	
                    total
                      value (ten thousand yuan)

                  
	
                    1

                  	 	
                    zinc
                      pipe

                  	 	
                    Ф50

                  	 	
                    114

                  	 	
                    10
                      ten years

                  	 	
                    inside
                      factory

                  	 	
                    0.011

                  	 	
                    85%

                  	 	
                    1.0659

                  
	
                    2

                  	 	
                    steels

                  	 	
                     

                  	 	
                    94.069ton

                  	 	
                    10
                      ten years

                  	 	
                    inside
                      factory

                  	 	
                    0.47162721

                  	 	
                    85%

                  	 	
                    37.7107
                      

                  
	
                    3

                  	 	
                    stainless
                      steel pothook

                  	 	
                    1-300hang

                  	 	
                    300

                  	 	
                    10
                      ten years

                  	 	
                    inside
                      factory

                  	 	
                    0.008

                  	 	
                    95%

                  	 	
                    2.28

                  
	
                    4

                  	 	
                    pushcart

                  	 	
                     

                  	 	
                    7

                  	 	
                    8
                      eight years

                  	 	
                    inside
                      factory

                  	 	
                    0.042

                  	 	
                    80%

                  	 	
                    0.2352

                  
	
                    5

                  	 	
                    warehouse
                      man handbarrow

                  	 	
                     

                  	 	
                    13

                  	 	
                    8
                      eight years

                  	 	
                    inside
                      factory

                  	 	
                    0.036

                  	 	
                    80%

                  	 	
                    0.3744

                  
	
                    6

                  	 	
                    stainless
                      steel pushcart

                  	 	
                     

                  	 	
                    20

                  	 	
                    8
                      eight years

                  	 	
                    inside
                      factory

                  	 	
                    0.045

                  	 	
                    85%

                  	 	
                    0.765

                  
	
                    7

                  	 	
                    stainless
                      steel cutting bench

                  	 	
                     

                  	 	
                    36

                  	 	
                    8
                      eight years

                  	 	
                    inside
                      factory

                  	 	
                    0.012

                  	 	
                    85%

                  	 	
                    0.3672

                  
	
                    8

                  	 	
                    stainless
                      steel prechilled frame

                  	 	
                     

                  	 	
                    32

                  	 	
                    8
                      eight years

                  	 	
                    inside
                      factory

                  	 	
                    0.21

                  	 	
                    85%

                  	 	
                    5.712

                  
	
                    9

                  	 	
                    quarantine
                      and inspection stainless steel vehicle

                  	 	
                     

                  	 	
                    4

                  	 	
                    8
                      eight years

                  	 	
                    inside
                      factory

                  	 	
                    0.03

                  	 	
                    85%

                  	 	
                    0.102

                  
	
                    10

                  	 	
                    freezing
                      tray

                  	 	
                     

                  	 	
                    1800

                  	 	
                    8
                      eight years

                  	 	
                    inside
                      factory

                  	 	
                    0.003

                  	 	
                    85%

                  	 	
                    4.59

                  
	
                    
                    

                  	 	
                    total 

                  	 	
                     

                  	 	
                     

                  	 	
                     

                  	 	
                     

                  	 	
                    0.86862721

                  	 	
                     

                  	 	
                    53.2024
                      

                  

          

           

          
            
              
              

            

            
              10

              
                

              

            

            
              
              

            

          

           

          
            (II)  
              office product

            
              	
                      No.

                    	 	
                      name

                    	 	
                      type
                        

                    	 	
                      quantity
                        

                    	 	
                      years

                    	 	
                      storage
                        place

                    	 	
                      unit
                        value (ten thousand yuan)

                    	 	
                      newness
                        rate

                    	 	
                      
                        total value(ten thousand
                        yuan)

                    
	
                      1

                    	 	
                      double
                        table

                    	 	
                      1jinheng-1

                    	 	
                      12

                    	 	
                      eight
                        years

                    	 	
                      inside
                        factory

                    	 	
                      0.023

                    	 	
                      80%

                    	 	
                      0.2208

                    
	
                      2

                    	 	
                      single
                        tabke

                    	 	
                      2jinheng-2

                    	 	
                      7

                    	 	
                      eight
                        years

                    	 	
                      inside
                        factory

                    	 	
                      0.015

                    	 	
                      80%

                    	 	
                      0.084

                    
	
                      3

                    	 	
                      office
                        wooden chair

                    	 	
                      3jinheng-3

                    	 	
                      56

                    	 	
                      eight
                        years

                    	 	
                      inside
                        factory

                    	 	
                      0.007

                    	 	
                      80%

                    	 	
                      0.3136

                    
	
                      4

                    	 	
                      big
                        conference table

                    	 	
                      4jinheng-4

                    	 	
                      1

                    	 	
                      eight
                        years

                    	 	
                      inside
                        factory

                    	 	
                      0.4

                    	 	
                      80%

                    	 	
                      0.32

                    
	
                      5

                    	 	
                      leather
                        conference chair

                    	 	
                      5jinheng-5

                    	 	
                      20

                    	 	
                      eight
                        years

                    	 	
                      inside
                        factory

                    	 	
                      0.03

                    	 	
                      80%

                    	 	
                      0.48

                    
	
                      6

                    	 	
                      garerobe
                        cabinet for all workers

                    	 	 	 	
                      50

                    	 	
                      eight
                        years

                    	 	
                      inside
                        factory

                    	 	
                      0.02

                    	 	
                      80%

                    	 	
                      0.8

                    
	
                      7

                    	 	
                      boss
                        table

                    	 	
                      6jinheng-6

                    	 	
                      1

                    	 	
                      eight
                        years

                    	 	
                      inside
                        factory

                    	 	
                      0.2

                    	 	
                      80%

                    	 	
                      0.16

                    
	
                      8

                    	 	
                      boss
                        chair

                    	 	
                      7jinheng-7

                    	 	
                      1

                    	 	
                      eight
                        years

                    	 	
                      inside
                        factory

                    	 	
                      0.2

                    	 	
                      80%

                    	 	
                      0.16

                    
	
                      9

                    	 	
                      leather
                        sofa

                    	 	
                      8jinheng-8

                    	 	
                      2

                    	 	
                      eight
                        years

                    	 	
                      inside
                        factory

                    	 	
                      0.7

                    	 	
                      80%

                    	 	
                      1.12

                    
	
                      10

                    	 	
                      big
                        book cabinet

                    	 	
                      9jinheng-9

                    	 	
                      1

                    	 	
                      eight
                        years

                    	 	
                      inside
                        factory

                    	 	
                      0.04

                    	 	
                      80%

                    	 	
                      0.032

                    
	
                      11

                    	 	
                      double
                        simmous bed 

                    	 	
                      10jinheng-10

                    	 	
                      11

                    	 	
                      eight
                        years

                    	 	
                      inside
                        factory

                    	 	
                      0.12

                    	 	
                      80%

                    	 	
                      1.056

                    
	
                      12

                    	 	
                      quarto
                        door garderobe

                    	 	
                      1jinheng-11

                    	 	
                      1

                    	 	
                      eight
                        years

                    	 	
                      inside
                        factory

                    	 	
                      0.13

                    	 	
                      80%

                    	 	
                      0.104

                    
	
                      13

                    	 	
                      dresser
                        and stool

                    	 	
                      12jinheng-12

                    	 	
                      1

                    	 	
                      eight
                        years

                    	 	
                      inside
                        factory

                    	 	
                      0.03

                    	 	
                      80%

                    	 	
                      0.024

                    
	
                      14

                    	 	
                      Filing
                        cabinet

                    	 	
                      QB1097-1991

                    	 	
                      15

                    	 	
                      eight
                        years

                    	 	
                      inside
                        factory

                    	 	
                      0.02

                    	 	
                      80%

                    	 	
                      0.24

                    
	
                      15

                    	 	
                      telephone

                    	 	 	 	 	 	
                      eight
                        years

                    	 	
                      inside
                        factory

                    	 	
                      0.01

                    	
                       

                    	
                      80%

                    	
                       

                    	
                      0.024

                    
	
                      
                      

                    	
                       

                    	
                      total

                    	
                       

                    	
                       

                    	
                       

                    	
                       

                    	
                       

                    	
                       

                    	
                       

                    	
                       

                    	
                       

                    	
                      1.945

                    	
                       

                    	
                       

                    	
                       

                    	
                      5.1384

                    

            

             

            
              V.
                land

               

            

            
              	
                      No.
                        of parcel Land

                    	 	
                      land
                        value in terms of per unit area (yuan/square)

                    	 	
                      area
                        of structure(sq.m.)

                    	 	
                      No.
                        of certificate

                    	 	
                      land-value
                        amount

                    	 	
                      method

                    	 	
                      term

                    
	
                      01
                        parcel land 01

                    	 	
                      218.5

                    	 	
                      60996.4

                    	 	 	 	
                      1332.7713
                        

                    	 	
                      grant

                    	 	
                      50

                    
	
                      total

                    	 	 	 	 	 	 	 	
                      1332.7713
                        

                    	 	 	 	 

            

          

        

      

       

      
        
          
          

        

        
          11EXHIBIT
      10.17

     

    SCIVANTA
      MEDICAL CORPORATION

     

    PRODUCT
      DEVELOPMENT AGREEMENT

     

    

     

    This
      Product Development Agreement (this “Agreement”) is made by and between Ethox
      International, Inc. (“Ethox”), a New York corporation with a principal place of
      business at 251 Seneca Street, Buffalo, NY 14204, and Scivanta Medical
      Corporation (“Scivanta”) a Nevada corporation with a principal place of business
      at 215 Morris Avenue, Spring Lake, NJ 07762, as follows: 

     

    	1.        
               	
            Objective
              

          

     

    Scivanta
      is hiring Ethox for the purpose of the engineering and development of the Hickey
      Catheter Monitoring System (“HCMS” or the “Product”) as a commercial medical
      device using the licensed intellectual property assigned and/or granted to
      Scivanta. It is the intent of the parties that Ethox shall be responsible for
      engineering of commercial units of the HCMS based upon specifications jointly
      determined by Scivanta and Ethox, creation and maintenance of all documentation,
      files and paperwork necessary for obtaining United States Food and Drug
      Administration (“FDA”) approval, European Medicines Agency (“EMEA”) approval,
      and all other governmental and regulatory agency approvals required for
      Scivanta’s exploitation of the HCMS. 

     

    	2.         
              	
            Scope
              and Term 

          

     

    Scivanta
      hereby appoints Ethox solely and exclusively to perform the work set forth
      below
      (collectively, the “Proposal”).

     

    	2.1        
             	
            Management
              of project costs and schedule (as set forth on Schedule 2.1 attached
              hereto);

          

     

    	2.2        
             	
            Development
              of system functional specifications (“Level I requirements”) based on
              marketing inputs (as set forth on Schedule 2.2 attached hereto);
              

          

     

    	2.3        
             	
            Development
              of disposable catheter specifications (“Level II requirements”) to achieve
              functional requirements (as set forth on Schedule 2.3 attached hereto);
              

          

     

    	2.4        
             	
            Manufacture
              of disposable catheters in accordance with Level I and Level II
              requirements for clinical trials, system integration testing and market
              launch pursuant to a supply agreement in the form set forth on Exhibit
              2.4
              attached hereto;

          

     

    	2.5        
             	
            Provide
              regulatory resources for management of clinical submission of marketing
              approval from FDA and the EMEA;

          

     

    All
      such
      work shall be performed in accordance with this Agreement. Any changes in scope
      will require a written assessment of impact on cost and schedule and written
      approval by both parties in advance of work commencing on such revisions. This
      Agreement shall begin upon the execution date set forth below (the “Effective
      Date”) and unless sooner terminated by the parties as set forth in Section 25
      below, shall remain in effect for two (2) years from Effective Date, unless
      otherwise extended by parties; provided, however, that if the application for
      approval to market the HCMS (i.e., a 510(k) application) is pending at FDA
      at
      the time this Agreement would normally expire, then the expiration date shall
      be
      tolled for that period of time the FDA has such application under review, but
      not for longer than six (6) additional months.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    	3.          
             	
            Device
              / Design Classification

          

     

    The
      device is not yet classified. It is anticipated the device will be classified
      as
      FDA Class II, pre-market approval 510(k) required.

    

    	4.          
             	
            Design
              Control

          

     

    	4.1       
              	
            Design
              control will be in accordance with Ethox standard operating procedure
              151.
              Product and process requirements will be developed in accordance with
              Ethox design control procedures. Ethox represents and warrants that
              Ethox’s standard operating procedures (“SOP’s”), design control
              procedures, and validation procedures for the term of this Agreement
              are
              currently, and shall remain, in compliance with all applicable laws,
              government regulations, government manufacturing standards including
              but
              not limited to FDA requirements, International Organization for
              Standardization (“ISO”) requirements and other applicable certification
              standards. Upon Scivanta’s request, Scivanta or Scivanta’s designee shall
              have the right to audit the SOP’s and related procedures to ensure Ethox’s
              compliance. In the event that Scivanta’s audit reveals a variation that
              renders Ethox’s SOP or other procedures non-compliant, Ethox shall remedy
              the variance within a reasonable time period at Ethox’s
              cost.

          

     

    	4.2        
             	
            A
              design history file (“DHF”) will be compiled to document the design and
              development activities of the Product. Such DHF shall have all of the
              detail necessary for each required FDA filing and all other regulatory
              filings relating to the Product. All such records shall be retained
              and
              maintained by Ethox for a minimum of ten (10) years from the execution
              date of this Agreement. The DHF will include at a minimum a: a) approved
              design and development plan; b) design inputs; c) design outputs; d)
              design verification and validation; e) design transfer; f) design control
              minutes; g) design change control; and h) pertinent
              correspondence.

          

     

    	4.3        
             	
            The
              DHF shall also include laboratory notebooks, engineering study reports,
              interim schedules, or other documents related to the design and
              development plan.

          

     

    	5.          
             	
            Project
              Management

          

     

    Communications
      are the key element to coordination of project schedules. This will be a joint
      effort with Scivanta and Ethox. The initial project timelines (“Design and
      Development Plan”) will be a collaborative effort within the defined scope of
      the project. Progress update meetings, held at least weekly, are required to
      update the project schedules. These may be held at Ethox in person or via
      telephone conference. Ethox's project engineer or project manager will document
      all meetings. 

     

    Ethox
      will, at the discretion of Scivanta, act as the project management agent of
      Scivanta for the hardware and software projects associated with this program.
      Ethox will coordinate and direct the activities of the subcontractors as
      required, including participation in meetings, telephone calls, presentations,
      emails, faxes, or other communications to insure timely completion of project
      and program tasks. 

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    	6.         
              	
            Project
              Budget/Payment Terms 

          

     

    	6.1        
             	
            Scivanta
              shall provide a total of One Hundred Eighty Seven Thousand Five Hundred
              Dollars ($187,500) in cash to Ethox as a “Company Partner” cash
              contribution defined by and in accordance with the Research Agreement
              between the Research Foundation of State University of New York and
              Ethox
              effective as of June 29, 2007 (the “Foundation Agreement”). This cash
              contribution shall be paid by Ethox to the University of Buffalo as
              Company Partner cash pursuant to Section 5 of the Foundation Agreement.
              Ethox will provide services related to the development of the catheter
              component of the HCMS as in-kind company contributions and will pay
              expenses in direct support of the project in accordance with the
              Foundation Agreement. Ethox will direct the reimbursement of project
              costs
              expenditures to Foundation according to the budget developed and submitted
              for the New York State Office of Science and Technology and Academic
              Research Technology Transfer Incentive Program Work Plan. Except as
              otherwise provided for in this Agreement, Scivanta shall have no
              obligation or liability for reimbursement of Ethox’s expenses related to
              this project. Further, unless otherwise agreed, Ethox shall provide
              Scivanta with notice of receipt of payments or funds transfers from
              Scivanta designated for payment to third parties and shall be responsible
              for making Scivanta’s payments to third parties as directed by Scivanta.
              Ethox agrees that it shall wire money intended for third parties within
              twenty-four (24) hours of the availability of funds from Scivanta.
              Further, Ethox shall not have any right to off-set or otherwise reduce
              payments made or funds delivered by Scivanta to Ethox that are intended
              for third parties. 

          

     

    	6.2        
             	
            To
              the extent that other payments are due and owing between the parties,
              the
              parties agree that payment shall be made to the other party within
              thirty
              (30) days of receipt of an invoice detailing the amounts due.
              

          

     

    	7.          
             	
            Design
              Validation

          

     

    Scivanta
      is responsible for determining the product functions required for clinical
      efficacy. Ethox will assist Scivanta to translate and document these product
      requirements into system and device specifications for Ethox’s prototyping and
      manufacturing. Ethox is responsible for engineering, testing and manufacturing
      of prototypes and products to assure functional specifications are met. Ethox
      is
      further responsible for the completion of all tasks necessary to obtain FDA and
      EMEA approval, as well as any other regulatory approval needed for the HCMS.
      Scivanta is responsible for clinical testing of prototypes and products to
      assure market requirements are met.

     

    	8.          
             	
            Process
              Validation 

          

     

    All
      validation activities (installation qualification, operational qualifications
      & process qualifications), as reasonably deemed necessary by Ethox, will be
      performed in accordance with Ethox's existing procedures and work instructions
      and shall be sufficient for FDA and EMEA qualifications. Scivanta shall have
      the
      right to overrule Ethox’s determination that a given validation activity is
      necessary for the project. Scivanta's written approval, where deemed necessary,
      will be required within five (5) business days from Scivanta’s receipt of the
      request for such approval. Any delay will result in possible adjustments to
      current project/purchase order due dates. Scivanta shall be solely responsible
      for any product, equipment, or regulatory non-conformances linked to Scivanta
      specified validations. Ethox’s and Scivanta's written approval will be required
      for all Scivanta specified validations. 

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    	9.          
             	
            Materials

          

     

    Material
      selection and specifications are the responsibility of Scivanta. Ethox will
      assist in this process as required within the scope of this Agreement. Scivanta
      is responsible for all raw material costs. Scivanta approval is required for
      any
      large minimum buy quantities for raw materials. In case of design change or
      project termination, Scivanta is responsible for residual material
      costs.

     

    	10.        
             	
            Tooling
              

          

     

    Any
      such
      tooling and fixtures under this Agreement that are paid for by Scivanta will
      be
      the property of Scivanta. Any tooling and fixtures under this Agreement paid
      for
      by Ethox will remain the property of Ethox. Scivanta shall have the right,
      at
      any time during the term or after expiration or termination of this Agreement,
      to purchase any tooling owned by Ethox and used exclusively to provide the
      services hereunder at a price equal to the greater of fair market value (as
      determined by a third party selected by Scivanta and acceptable to Ethox at
      Ethox’s expense) or book value as recorded by Ethox in its corporate books and
      records, in accordance with accounting principles generally accepted in the
      United States of America. Upon Scivanta’s request, and at Scivanta’s cost and
      expense, Ethox shall pack and ship the purchased tooling and equipment to
      Scivanta. All tooling will be assigned a tool number for control within Ethox's
      tooling control systems. Periodic calibrations, if required, will be the
      responsibility of the owner of the tooling and fixtures. Ethox can provide
      calibration services on an "as quoted" basis. Routine maintenance for all
      tooling and fixtures at Ethox will be the responsibility of Ethox. Repairs,
      refurbishment, or replacement costs due to normal wear and tear will be the
      responsibility of the owner. Such repairs, refurbishment, or replacement that
      is
      due to negligence on the part of Ethox or its employees will be the
      responsibility of Ethox. Storage of tooling is the responsibility of Ethox.
      If
      tooling becomes inactive for a period of twelve (12) months or more, Ethox
      reserves the right to charge for such storage or to ship them to the storage
      location designated by the owner. 

     

    	11.        
             	
            Equipment
              

          

     

    Ethox
      owns and maintains a variety of manufacturing equipment. Ethox personnel will
      determine the suitability for use on the project. Any Ethox-owned equipment
      used
      on the project will remain the property of and responsibility of Ethox
      regardless of termination. If additions or modifications are required to
      Ethox-owned equipment, the cost for such will be the responsibility of Ethox
      and
      Ethox will own such additional parts. Ethox agrees that any equipment
      modification or addition, or process modification made for the project and
      that
      is useful or necessary for manufacturing the Product shall be licensed to
      Scivanta at Scivanta’s request. Such license from Ethox to Scivanta shall be a
      royalty-free, non-exclusive perpetual, worldwide license. Periodic calibrations,
      if required, will be the responsibility of the owner of the equipment. Ethox
      can
      provide calibration services on an "as quoted" basis. Routine maintenance for
      all equipment at Ethox will be the responsibility of Ethox. Repairs,
      refurbishment, or replacement costs due to normal wear and tear will be the
      responsibility of the owner. Such repairs, refurbishment, or replacement that
      is
      due to negligence on the part of Ethox or its employees will be the
      responsibility of Ethox. Storage of equipment is the responsibility of Ethox.
      If
      Scivanta-owned equipment becomes inactive for a period of twelve (12) months
      or
      more, Ethox reserves the right to charge for such storage or to ship them to
      the
      storage location designated by the owner. 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    	12.        
             	
            Facilities
              

          

     

    Ethox
      is
      responsible to maintain its facilities in compliance with applicable quality,
      statutory and regulatory standards. Costs for facilities maintenance and
      repairs, refurbishment, or replacement of equipment necessary to maintain such
      compliance are the responsibility of Ethox. In the event that the project
      requires additional controls, or supplemental equipment to achieve such
      standards, the associated costs will be the responsibility of Scivanta; provided
      however, that no additional controls or supplemental equipment will be
      implemented without the prior written consent of Scivanta. 

     

    	13.       
              	
            Packaging
              / Labeling 

          

     

    Scivanta
      shall be responsible for the packaging design and integrity of all Scivanta
      specified packaging. Scivanta shall be responsible for all labeling content,
      adequacy, accuracy, design, integrity, legibility, location/placement, and
      claims made in all labeling. Ethox shall provide guidance and assistance to
      Scivanta regarding the FDA packaging and labeling requirements and work with
      Scivanta to comply with same. Scivanta shall provide written approval for all
      artwork masters used to inspect and accept labeling at Ethox. All labeling
      will
      be inspected and accepted based upon Scivanta approved artwork master. Shipment
      of "non-sterile” Product labeled as "sterile" will be in accordance with a
      separate non-sterile shipping agreement. Separate non-sterile shipping
      agreements will be executed between Ethox and a sterilizer, and sterilizer
      and
      Scivanta. Ethox to be responsible for storage and inspection of raw materials,
      packaging and labeling, unless otherwise specified. Any labeling and/or
      packaging deviations, such as over-labeling, shall require Scivanta's written
      approval.

     

    	14.        
             	
            Testing
              

          

     

    “Testing”
      means any inspection or laboratory service required for the approval, acceptance
      and release of raw materials or finished goods, up to and including testing
      relating to design validation, incoming inspections, quality assurance, quality
      control and sterility / packaging assurance. 

     

    Ethox
      provides a range of testing services for the purpose of incoming acceptance,
      shelf-life expiration dating, sterility assurance and biocompatibility of
      medical devices. So long as such testing services are available through the
      Ethox Laboratory Services Department or Quality Control Department, Ethox will
      provide such services to the Scivanta in accordance with the terms and
      conditions of this Agreement. It shall be the responsibility of the Ethox to
      organize and execute all requested testing service(s) that are offered to
      Scivanta. If a laboratory test is unavailable through Ethox Laboratory Services
      Department or Quality Control Department, Scivanta may direct Ethox to utilize
      an outside vendor. However, it is the sole responsibility of Scivanta to
      identify the vendor for such services and to accept all related charges
      associated with testing. Scivanta may also choose an Ethox pre-approved vendor
      for such services. Scivanta will be responsible for the reimbursement of all
      costs to Ethox for the coordination and execution of such testing services.
      Ethox, if contracted to do so, will execute the applicable requested testing
      services at the assigned price to Scivanta and to the applicable industry
      guidelines, standards, requirements and regulations. Scivanta agrees to make
      available the required material and/or finished goods to complete the requested
      testing and all cost shall be the responsibility of Scivanta, unless otherwise
      agreed to. 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    Testing
      requiring the preparation of a study protocol and final report will require
      written approval by Scivanta, confirming review, understanding and acceptance
      of
      the conditions provided. Ethox will not execute any studies without Scivanta's
      approval. Samples submitted for testing purposes will be destroyed by Ethox
      at
      the conclusion of the test, unless Scivanta provides Ethox with written
      instructions for special disposal. Costs of disposal beyond general landfill
      will also be the responsibility of Scivanta in addition to all associated costs.
      Samples requiring the return to Scivanta following the completion of all testing
      must be done so by written request. Scivanta shall incur all costs associated
      with sample return including but not limited to disinfecting, sterilization,
      packaging and shipping. 

    
       

      	15.       
                	
              Sterilization

            

    

     

    “Sterilization”
      means the process by which all viable forms of microorganisms are destroyed.
      Processes include ethylene oxide (“EO”, “ETO”), gamma, electron beam (“E-beam”),
      steam, dry heat, and chemical sterilization. 

     

    Ethox
      provides EO sterilization services for the purpose of applying a sterility
      assurance level as required for the release and sale of medical devices. Ethox
      will provide such services at the request of Scivanta. It shall be the
      responsibility of Ethox to organize and execute all requested sterilization
      service(s) that are offered to Scivanta. If the method of process is unavailable
      through Ethox, Scivanta may direct Ethox to utilize an outside vendor. However,
      it is the sole responsibility of Scivanta to identify the vendor for such
      services and to accept all related charges associated with sterilization
      processing. Scivanta will be responsible for the reimbursement of all costs
      to
      Ethox for the coordination and execution of such services. Where undertaken
      by
      Ethox, Ethox will execute the applicable requested sterilization services at
      the
      assigned price to Scivanta and to the applicable industry guidelines, standards,
      requirements and regulations (See Equipment for ownership and responsibilities).
      Scivanta agrees to make available the required material and/or finished goods
      to
      complete required validation and routine sterilization, and all cost shall
      be
      the responsibility of Scivanta. 

     

    Sterilization
      validations require the preparation of a study protocol and final report and
      require written approval by Scivanta, confirming review, understanding and
      acceptance of the conditions provided. Ethox will not execute any validation
      studies without Scivanta's approval. It shall be the responsibility of Scivanta
      to initiate and maintain all annual or quarterly (if applicable) required
      validation activity. 

     

    	16.       
              	
            Prototypes

          

     

    A
      prototype or sample will be labeled as "Non-Sterile Sample, Not for Human Use"
      on the unit package. Clinical use prototypes will be manufactured and labeled
      in
      accordance with applicable regulations regarding the manufacture, use, and
      traceability of such devices.

     

    	17.       
              	
            Quality
              System And Regulatory Audits 

          

     

    Ethox
      agrees to manufacture products in accordance with applicable laws and
      regulations, including but not limited to FDA Quality System Requirements,
      ISO
      13485, and other applicable quality system requirements Ethox deems necessary
      to
      hold and/or certify. 

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    Scivanta
      has the right to conduct audits of Ethox’s related facilities and systems from
      time to time to ensure compliance. Such audits must be scheduled with Ethox's
      personnel with reasonable notice (twenty (20) days requested). An advance copy
      of the audit checklist is also requested to facilitate a timely audit.

     

    	18.        
             	
            Regulatory
              / Marketing Compliance

          

     

    The
      parties agree and acknowledge that Scivanta is hiring Ethox for the purpose
      of
      engineering the Product to Scivanta’s specifications and assisting Scivanta in
      obtaining FDA and EMEA approvals as well as any other necessary regulatory
      approval for the Product. Scivanta is legally responsible for each and all
      regulatory applications, filings, submittals, and documentation required to
      legally market, advertise, or otherwise sell or distribute the Product. Ethox
      shall be contractually responsible for the preparation and filing of all such
      regulatory documentation on behalf of Scivanta in accordance with the terms
      and
      conditions of this Agreement. 

     

    Ethox
      provides regulatory services for the purpose of applying for the release and
      sale of medical devices. Ethox will provide such services in accordance with the
      terms and conditions of this Agreement. It shall be the responsibility of Ethox
      to organize and execute such service(s) that are offered to Scivanta as set
      forth in this Agreement or otherwise offered to Scivanta by Ethox hereunder.
      If
      the method of process is unavailable through Ethox, Scivanta may direct Ethox
      to
      utilize an outside vendor. Scivanta may also choose an Ethox pre-approved vendor
      for such services. However, it is the sole responsibility of Scivanta to
      identify the vendor for such services and to accept all related charges
      associated with the outside vendor. Scivanta will be responsible for the
      reimbursement of all costs to Ethox for the coordination and execution of such
      services. If undertaken by Ethox, Ethox will execute the applicable services
      at
      the assigned price to Scivanta pursuant to a quote or contract, and to the
      applicable industry guidelines, standards, requirements and regulations.
      Scivanta agrees to make available the required material and/or finished goods
      to
      complete required testing, and all cost shall be the responsibility of Scivanta,
      unless otherwise agreed to.

     

    	19.       
              	
            Change
              Control 

          

     

    “Change
      Control” means procedures for identification, documentation, review, validation
      and/or verification, and approval of changes to documents, processes, or designs
      so as to establish and document the applicable development
      activities.

     

    	a.  	
            General.
              All changes to product, processes, components, labeling & packaging,
              equipment, and all associated documentation, such as specifications,
              drawings, Device Master Records, artwork masters, shop travelers and
              work
              instructions, will be processed in accordance with Ethox's current
              change
              control procedures and work instructions.

          

     

    Scivanta
      is responsible for reviewing and evaluating impact of change(s) on the
      following: regulatory submissions/pre-market notification (510K impact); sales
      literature; Product in the field; safety & effectiveness; biocompatibility.
      All drafts and proposals submitted to Scivanta pursuant to this Section 18
      shall
      be deemed “Information” subject to the limitations regarding disclosure and use
      set forth in Section 26 hereof. 

     

    Ethox
      is
      responsible to review and evaluate each change's impact on validation or
      re-validation. Refer to the Design Validation and Process Validation sections
      of
      this Agreement if a determination that validation or re-validation is required.
      

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    	b.  	
            Scivanta
              Request for Change. Scivanta's change request shall be signed by an
              officer of Scivanta and submitted to the Ethox Project Manager. Ethox's
              Engineering Department will evaluate Scivanta's change requests and
              determine Ethox Requirements and provide approval for each proposed
              Scivanta change. Ethox will provide Scivanta with an implementation
              schedule, plan, costs and any additional items required to implement
              change. If requested by Scivanta, Ethox will provide a copy of the
              approved change document after implementation at Ethox.
              

          

     

    	c.  	
            Temporary
              Changes. Temporary changes will be processed in accordance with Ethox’s
              current non-conforming material/process procedures and work instructions.
              Scivanta’s written approval is required for all temporary changes prior to
              implementation. 

          

     

    	d.  	
            Cost
              Impact. Ethox will provide quotes to Scivanta for any changes impacting
              unit price (change to process, material, sterilization, etc.), and/or
              residual charges (obsolescence), and/or purchase order cancellations.
              Scivanta will provide a revised/new purchase order within five (5)
              business days from receipt of quote. Any delay will result in production
              and/or project stoppage until receipt of the purchase order.
              

          

     

    	e.  	
            Change
              Approval. Changes initiated by Ethox affecting form, fit, or function,
              require Scivanta's prior written approval. Scivanta will provide written
              approval within five (5) business days from receipt. Any delay in
              Scivanta’s approval may result in possible adjustments to project or
              applicable purchase order completion dates.

          

     

    	f.  	
            Schedule
              Impact. Ethox will review each change's impact on current orders and
              provide Scivanta with an effective date for the implementation of each
              change. If Scivanta requires an immediate change, Ethox will evaluate
              the
              impact on project/manufacturing schedule and provide Scivanta with
              revised
              due dates accordingly. 

          

     

    	20.        
             	
            Force
              Majeure 

          

     

    No
      liability shall result to either party from delay in performance or from
      non-performance caused by circumstances beyond the control of the affected
      party, including, but not limited to, acts of God, fire, flood, explosion,
      war,
      acts of terrorism, governmental action or inaction or request of governmental
      authority, accident, strike, lockout; but each of the parties shall be diligent
      in attempting to remove such cause or causes and shall promptly notify the
      other
      party of its intent and probable duration. If the non-performing party who
      has
      delayed performance or not performed because of circumstances beyond its control
      is unable to remove the cause within thirty (30) days or if removal of the
      cause
      cannot reasonably be accomplished in thirty (30) days, has not commenced removal
      and diligently thereafter pursued such removal, and such cause has not been
      removed within ninety (90) days, the other party shall have the right to
      terminate this Agreement or any portion of it without penalty, except for any
      provisions which survive the termination of this Agreement pursuant to Section
      29 hereof, but subject to both parties’ obligations as a Recipient set forth in
      subsection 27. 

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    	21.       
             	
            Indemnification
              

          

     

    	a.  	
            Ethox
              shall indemnify, defend and hold harmless Scivanta and its affiliates
              and
              their officers, directors and employees from and against any and all
              claims, losses, damages, judgments, costs, awards, settlements, expenses
              (including reasonable attorneys’ fees) and liabilities of every kind
              (collectively, "Losses") arising directly out of or resulting directly
              from: (a) any breach by Ethox of any of its warranties, guarantees,
              representations, obligations or covenants contained herein; (b) any
              negligence or intentional acts or omissions by Ethox or its employees,
              and/or agents; (c) any actual or alleged infringement by Ethox of any
              patent, copyright, trade secret or other intellectual property right
              or
              other proprietary right of any third party in connection with the
              provision of services to Scivanta under this Agreement; (d) any product
              liability claim arising out of or relating to defects in Ethox’s or its
              employees and/or agents, workmanship, engineering or DHF documentation
              in
              regard to the Products and (e) any claim arising out of or relating
              to
              federal, state and local taxes or contributions imposed or required
              under
              unemployment insurance, social security and income tax laws with respect
              to the performance of services by Ethox under this Agreement. Scivanta
              will give Ethox prompt notice of any such claim and will cooperate
              with
              Ethox, at Ethox’s expense, in the defense of the claim. While Ethox will
              have sole control over the defense, Ethox may not settle the claim
              in the
              name of Scivanta without Scivanta’s prior written consent, which Scivanta
              will not unreasonably withhold.

          

     

    	b.  	
            Scivanta
              shall indemnify and hold harmless Ethox and its Affiliate and their
              officers, directors and employees from and against any and all Losses
              arising directly out of or resulting directly from (a) any breach by
              Scivanta of any of its obligations or covenants contained herein; (b)
              any
              negligence or intentional acts or omissions by Scivanta or its employees,
              and/or agents; (c) any actual or alleged infringement by Scivanta of
              any
              patent, copyright, trade secret or other intellectual property right
              or
              other proprietary right of any third party in connection with the
              Products; and (d) any product liability claim arising out of or relating
              to defects in the design or function of the Products hereunder.
              

          

     

    	c.  	
            At
              Scivanta’s expense, Scivanta will defend, indemnify and hold harmless
              Ethox and its Affiliates and their officers, directors and employees
              from
              any Losses arising directly out of or resulting directly from any claim
              that (a) the design or manufacture of any of the Products using the
              intellectual property assigned and/or granted to Scivanta, other than
              the
              use of any intellectual property provided to Scivanta by Ethox (b)
              any
              engineering or manufacturing processes Scivanta directs Ethox to use,
              or
              (c) any materials or components required by Scivanta to be used in
              or with
              the Products, infringes any third party’s patent, copyright, trade secret
              or any other intellectual property right. Ethox will give Scivanta
              prompt
              notice of any such claim after Ethox learns of it and will cooperate
              with
              Scivanta, at Scivanta’s expense, in the defense of the claim. While
              Scivanta will have sole control over the defense, Scivanta may not
              settle
              the claim in the name of Ethox without Ethox’s prior written consent,
              which Ethox will not unreasonably withhold.

          

     

    	d.  	
            In
              the event of an infringement claim described above, Ethox may stop
              production of the applicable Products immediately pending adequate
              assurances from Scivanta of Scivanta’s ability to meet the on-going
              indemnity outlined above.

          

     

    	e.  	
            Scivanta
              shall also indemnify and hold harmless Ethox and its Affiliates and
              their
              officers, directors and employees from and against any and all Losses
              arising directly out of or resulting directly from any claim regarding
              the
              claims and clinical efficacy of the device in any of its instructions
              or
              literature, and any injury or claim as a result of the realization
              of
              product design for the purposes of clinical use, except to the extent
              that
              such product design was based on intellectual property provided to
              Scivanta by Ethox. 

          

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    	f.  	
            Each
              indemnified party agrees to give the indemnifying party prompt written
              notice of any matter upon which such indemnified party intends to base
              a
              claim for indemnification (an "Indemnity Claim"). The indemnifying
              party
              shall have the right to participate jointly with the indemnified party's
              defense, settlement or other disposition of any Indemnity Claim. With
              respect to any Indemnity Claim relating solely to the payment of money
              damages and which could not result in the indemnified party's becoming
              subject to injunctive or other equitable relief or otherwise adversely
              affect the business of the indemnified party in any manner, and as
              to
              which the indemnifying party shall have acknowledged in writing the
              obligation to indemnify the indemnified party hereunder, the indemnifying
              party shall have the sole right to defend, settle or otherwise dispose
              of
              such Indemnity Claim, on such terms as the indemnifying party, in its
              sole
              discretion, shall deem appropriate, provided that the indemnifying
              party
              shall provide reasonable evidence of its ability to pay any damages
              claimed and with respect to any such settlement shall have obtained
              the
              written release of the indemnified party from the Indemnity Claim.
              The
              indemnifying party shall obtain the written consent of the indemnified
              party, which shall not be unreasonably withheld, prior to ceasing to
              defend, settling or otherwise disposing of any Indemnity Claim if as
              a
              result thereof the indemnified party would become subject to injunctive
              or
              other equitable relief or the business of the indemnified party would
              be
              adversely affected in any manner. 

          

     

    	22.        
             	
            Representations
              And Warranties

          

     

    	a.  	
            Ethox
              warrants that the Products engineered, manufactured and/or assembled
              for
              Scivanta under this Agreement will be, at the time of delivery to
              Scivanta, free from any liens or other defects in title, will conform
              to
              Scivanta’s specifications, and will be free from material defects in
              workmanship (and materials, if Ethox is responsible for procuring
              materials from its own sources) under normal use and service. Ethox
              warrants that the work shall be in accordance with Scivanta specifications
              and work instructions. Ethox represents and warrants that it is duly
              organized, validly existing and in good standing under the laws of
              the
              State of incorporation and that this Agreement has been duly authorized,
              executed and delivered by Ethox. Ethox represents and warrants that
              the
              terms of this Agreement and its performance of the services hereunder
              will
              not breach or conflict with any agreement or other obligation by which
              Ethox is bound. Ethox will not, however, be responsible for, and this
              warranty will not apply to, any defects in the Products arising out
              of
              design or specification or the use of materials or components that
              Scivanta furnished to Ethox or directed Ethox to use. A claim under
              this
              warranty must be made by Scivanta in writing within twelve (12) months
              from the date of delivery of the applicable unit(s) of Product. Ethox
              may
              fulfill its obligation to Scivanta under this warranty, and Scivanta’s
              sole remedy hereunder shall be, as
              follows:

          

     

    	i.  	
            Ethox
              will repair or replace without charge to Scivanta any unit of the Products
              found to be defective within the terms of this warranty if Scivanta
              returns it, freight prepaid, to Ethox. Repaired or replaced Product
              will
              carry this same warranty for the balance of the warranty
              period.

          

     

    	ii.  	
            Ethox
              will not be required to ship replacement Products until Ethox has
              confirmed through examination that the returned unit(s) is defective
              within the terms of this warranty. Such examination shall be completed
              by
              Ethox within fourteen (14) days of receipt of the returned unit(s).
              If
              such examination is not completed within fourteen (14) days, returned
              product shall be deemed defective and Ethox must repair or replace
              the
              unit(s) without charge to Scivanta in accordance with Section 21.1.1,
              above. Ethox will pay freight costs to ship any repaired or replacement
              unit(s) to Scivanta. 

          

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    	iii.  	
            This
              warranty does not apply to any defect attributed to purchased components
              specified by Scivanta, or to any unit(s) of Product which Ethox reasonably
              determines has been subjected by a party other than Ethox to (i) operating
              or environmental conditions beyond those normally expected for the
              Product
              based upon the materials specified; or (ii) improper application, improper
              maintenance or repair, improper installation, alteration, accident
              or any
              other negligent act or omission in use or
              handling.

          

     

    	iv.  	
            Units
              of Product returned to Ethox which Ethox reasonably determines are
              not
              defective within the terms of this warranty will be returned to Scivanta,
              and Scivanta will reimburse Ethox upon invoice for return transportation
              charges and Ethox’s normal hourly charge applicable to inspection of the
              unit.

          

     

    	v.  	
            Purchased
              components of the Products specified by Scivanta are warranted only
              to the
              extent, and subject to the terms of the original warranty given by
              the
              manufacturer to Ethox. To the extent assignable Ethox shall assign
              such
              warranties to Scivanta. Ethox’s sole obligation with respect to such
              components shall be, at Scivanta’s expense, to prosecute on behalf of
              Scivanta all warranty claims against such component manufacturers upon
              receipt of written authorization of
              Scivanta.

          

     

    REMEDIAL
      ACTION AS PROVIDED HEREIN SHALL CONSTITUTE FULFILLMENT OF ALL LIABILITIES OF
      ETHOX TO SCIVANTA AND SCIVANTA’S SOLE REMEDY HEREUNDER, WHETHER BASED ON
      CONTRACT, TORT, OR OTHERWISE. UNDER NO CIRCUMSTANCES WILL ETHOX BE LIABLE FOR
      REPROCUREMENT COSTS, LOST REVENUES OR PROFITS, OR FOR ANY INDIRECT, SPECIAL,
      INCIDENTAL, ECONOMIC OR CONSEQUENTIAL DAMAGES, EVEN IF THEY WERE FORESEEABLE
      OR
      SCIVANTA HAD INFORMED ETHOX OF THEIR POTENTIAL. 

     

    	b.  	
            EXCEPT
              FOR THE WARRANTIES SET FORTH IN THIS SECTION 21, ETHOX MAKES NO OTHER
              WARRANTY OR REPRESENTATION OR ANY OTHER STATEMENT, PROMISE, WARRANTY.
              EXCEPT FOR FDA AND EMEA COMPLIANCE, SCIVANTA ACKNOWLEDGES IT HAS NOT
              RELIED UPON ANY STATEMENT OF ETHOX OR ANY EMPLOYEE, AGENT, OR
              REPRESENTATIVE THEREOF IN RESPECT OF THE PRODUCTS HEREUNDER. COMPLIANCE
              WITH THE LAW, CODES, AND REGULATIONS RELATING TO THE USE OF THE PRODUCTS
              REMAINS THE SOLE RESPONSIBILITY OF
              SCIVANTA.

          

     

    	c.  	
            Scivanta’s
              exclusive remedies with respect to Ethox’s performance or non-performance
              under this Agreement are those expressly stated in this Agreement and
              except as expressly stated in this Agreement, Ethox will not be liable
              for
              any damages claimed by Scivanta based upon any third party claim.
               

          

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    	23.        
             	
            Limitation
              Of Liability 

          

     

    Scivanta
      will be solely responsible for all third party intellectual property
      infringement claims and liability claims related to the design, specifications,
      use, functionality, and safety of the Products manufactured and/or assembled
      by
      Ethox hereunder, except for personal injury claims based upon defects in Ethox’s
      workmanship, engineering, manufacture and/or FDA, EMEA and other regulatory
      compliance tasks under this Agreement. In this regard, Scivanta will defend
      Ethox from any and all such claims, and indemnify and hold Ethox, its
      affiliates, directors, officers and employees harmless from all Losses arising
      from or as a result of such claims. The indemnifying party’s liability under
      this Section is further subject to the provisions of Section 21
      hereof.

     

    	24.        
             	
            Non
              Assignability 

          

     

    Ethox
      may
      not assign this Agreement nor delegate performance of its duties or obligations
      hereunder without the written approval of Scivanta, except to an individual
      or
      entity purchasing all or substantially all of its assets used in the performance
      of its obligations hereunder; provided, however, that no such assignment may
      be
      made by Ethox to any party that is or controls or is under common control with
      a
      distributor or wholesaler of cardiac monitoring equipment without the written
      consent of Scivanta. Sale or issuance of shares of Ethox shall not be considered
      an assignment hereof to the purchaser of such shares, unless the proposed sale
      or issuance of shares of Ethox in any amount of shares exceeding 25% of the
      then
      outstanding shares of Ethox is to be made to a party or parties controlling
      or
      under common control with a business distributing cardiac monitoring equipment.
      Any attempted assignment or delegations in violation of this Section shall
      be
      deemed null and void and of no force and effect. Scivanta may assign this
      Agreement, in whole or in part, without limitation.

     

    	25.        
             	
            Restrictive
              Covenants 

          

     

    	a.  	
            No
              Solicitation. During the term of this Agreement and for a period of
              twelve
              (12) months thereafter, each party agrees that it shall not, directly
              or
              indirectly, hire, employ, recruit or solicit for employment any person
              who
              is now an employee of the other or hereafter becomes an employee of
              the
              other for a period of one hundred-eighty (180) days following the
              termination of employment of such person.

          

     

    	b.  	
            No
              Competition. During the term of this Agreement and for a period of
              twelve
              (12) months thereafter, Ethox shall not on its own or on the behalf
              of
              others, design, develop, create, produce or assist in the design,
              development, creation or production of a double-balloon catheter to
              be
              used as part of a cardiac monitoring system.

          

     

    	26.        
             	
            Termination

          

     

    	a.  	
            Either
              party shall be in default of this Agreement if such party:
              

          

     

    	i.  	
            fails
              to perform any provision of this Agreement in any material respect;
              or

          

     

    	ii.  	
            becomes
              insolvent or makes an assignment for the benefit of creditors, or a
              receiver or similar officer is appointed to take charge of all or part
              of
              that party’s assets.

          

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    In
      the
      event of a default, the non-defaulting party may terminate the Agreement and
      any
      outstanding orders if the other party has failed to cure such default within
      thirty (30) calendar days after its receipt of a notice of default and intent
      to
      terminate (or fifteen (15) calendar days in the case of non-payment of money
      due
      and owing). Notwithstanding the previous sentence (except with respect to
      non-payment), if a cure is not possible within such thirty (30) days, and if
      the
      defaulting party diligently pursues a cure of such default during such thirty
      (30) day period and thereafter, then the cure period shall extend up to a total
      of ninety (90) calendar days. Notwithstanding the foregoing, in the event that
      a
      defaulting party commits an additional default during the extended cure period,
      the non-defaulting party may terminate this Agreement upon the defaulting
      party’s receipt of notice of the subsequent default. 

     

    	b.  	
            If
              Ethox terminates this Agreement due to Scivanta’s default, Scivanta
              will:

          

     

    	i.  	
            Remove,
              and pay for in advance that portion of, all unused raw material that
              Ethox
              has ordered pursuant to this Agreement and which cannot be returned
              to its
              manufacturer for a refund of Ethox’s
              costs;

          

     

    	ii.  	
            Hold
              Ethox harmless from all vendor commitments Ethox has made pursuant
              to this
              Agreement;

          

     

    	iii.  	
            Remove
              and pay for all work in process as of the date of termination;
              and

          

     

    	iv.  	
            Pay
              Ethox all its costs associated with its performance of its obligations
              under this Agreement, including its “in-kind” contribution made in
              accordance with the Foundation Agreement, prior to such termination.
              

          

     

    	c.  	
            If
              Scivanta terminates this Agreement due to Ethox’s default, Scivanta
              will:

          

     

    	i.  	
            Remove,
              and pay for in advance that portion of, all unused raw material that
              Ethox
              has ordered pursuant to this Agreement and which cannot be returned
              to its
              manufacturer for a refund of Ethox’s
              costs;

          

     

    	ii.  	
            Remove
              all conforming finished Product inventory manufactured to Scivanta
              purchase orders and pay the price
              therefor.

          

     

    	d.  	
            Scivanta
              shall have the right to terminate this agreement upon written notice
              to
              Ethox at any time after two (2) years from the date hereof. In the
              event
              of such termination by Scivanta, Scivanta shall be obligated as set
              forth
              above in a and b of this Section.

          

     

    	e.  	
            During
              the term of this Agreement, either party may terminate this Agreement
              upon
              twenty-one (21) days prior written notice to the other party. In the
              event
              of such a termination by Scivanta, Scivanta shall be obligated as set
              forth above in a and b of this Section.

          

     

    	f.  	
            Except
              as expressly stated in this Agreement, neither party will be liable
              to the
              other for any damages or compensation due to the termination of this
              Agreement.

          

     

    	27.        
             	
            Confidential
              Information

          

     

    It
      is
      anticipated that the parties may be required to exchange certain confidential
      information (hereafter called “Information”) to the other in the course of
      performing this Agreement. From the date of disclosure, and until ten (10)
      years
      following the expiration or earlier termination of this Agreement, the recipient
      of Information (hereafter called “Recipient”) shall maintain the Information in
      confidence and limit its use to the purposes contemplated under this Agreement,
      using at least the same degree of care as it employs to protect its own
      confidential information of a similar nature, but not less than a reasonable
      standard of care, provided the Information is identified in writing as
      confidential at the time of disclosure or, if orally disclosed, is identified
      as
      confidential at the time of disclosure and confirmed in writing within twenty
      (20) days after the oral disclosure. Recipient shall have no obligation
      hereunder with respect to any Information that is:

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    	a.  	
            generally
              known to the public at the time of disclosure, or becomes known to
              the
              public without breach of this Agreement;

          

     

    	b.  	
            known
              to the Recipient prior to the disclosure, or is independently developed
              by
              the Recipient without reference to or use of any other portion of the
              Information; 

          

     

    	c.  	
            obtained
              by the Recipient in good faith from a third party not under obligation
              of
              secrecy to the disclosing party (hereafter called “Discloser”);
              or

          

     

    	d.  	
            the
              subject of a court or government agency order to disclose, provided
              the
              Recipient gives prompt notice to the Discloser to allow the Discloser
              to
              contest such order.

          

     

    The
      Recipient shall have the burden of proving that any of the above exceptions
      apply by means of documentary evidence available at the time Recipient claims
      the exception first became applicable.

     

    Title
      to
      all tangible forms of the Information, and all copies thereof, shall be and
      remain with Discloser. Recipient shall not copy or otherwise reproduce, in
      whole
      or in part, any Information without the prior written authorization of
      Discloser, except as may be reasonably necessary to fulfill the purpose of
      this
      Agreement. Recipient shall use reasonable efforts promptly to return or destroy
      all tangible forms of the Information, and copies thereof, upon Discloser’s
      request or termination of this Agreement, except that Recipient may retain
      one
      archival copy of the Information to be used solely for compliance with
      Recipient’s obligations under this Agreement.

     

    It
      is
      understood, however, that Ethox has performed substantial development relating
      to the design, engineering and manufacture of tooling and equipment and medical
      devices and that Ethox has relationships with other companies, which may be
      Scivanta’s competitors. Except as set forth in Section 25b, above, neither this
      Agreement, nor receipt of Information under this Agreement, shall limit Ethox’s
      independent development, manufacture, or marketing of products, systems or
      processes involving technology or ideas similar to those disclosed in the
      Information. In addition, this Agreement shall not limit Ethox’s use of general
      ideas, concepts, or techniques contained in the Information in connection with
      its development, manufacture, and other businesses.

     

    Ethox
      shall not reference its performance of services for Scivanta under this
      Agreement in any advertising, promotional materials, press releases and the
      like, without Scivanta’s prior written approval.

     

    	28.        
             	
            Intellectual
              Property Rights

          

     

    28.1  All
      intellectual property created by Ethox for Scivanta, jointly or independently,
      in connection with Ethox’s services hereunder, shall be owned exclusively by
      Scivanta. Scivanta shall have the absolute right to assign or transfer or
      sublicense to any third party any intellectual property owned by Scivanta
      hereunder and any intellectual property owned by or licensed to Scivanta
      necessary for the use of any of the devices created pursuant to this Agreement.
      

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    28.2  Ethox
      agrees: (a) to disclose and assign to Scivanta as its exclusive property all
      discoveries, inventions and improvements which Ethox or its employees or
      contractors develop or conceive, solely or in conjunction with others that
      are
      based on or involve or relate to or affect the use of Scivanta’s intellectual
      property; (b) to the extent legally able to do so, assign or sublicense to
      Scivanta Ethox’s licensed rights to any and all third party intellectual
      property utilized by Ethox solely in connection with the project or its services
      for Scivanta hereunder; (c) to execute all necessary documents, including,
      without limitation, confirmatory documents of assignment, and to provide
      Scivanta (at Scivanta’s expense) sufficient assistance to confirm, secure and
      obtain patent, copyright and other legal protections for any such inventions,
      discoveries and improvements, and to make and maintain reasonably detailed
      accurate records of any such inventions, discoveries and improvements necessary
      to accomplish said purpose; and (d) to deliver to Scivanta upon termination
      or
      expiration of this Agreement all materials which relate to the business of,
      or
      belong to, Scivanta or its clients, or by which their nature are for use of
      Scivanta’s employees, contractors or consultants.

     

    28.3  Ethox
      hereby assigns to Scivanta all of its right, title and interest in and to any
      and all “New Technology” (as such terms is defined in the Foundation Agreement)
      made in part by any person using the State University of New York facilities
      and
      in part by Ethox employees, agents, consultants or collaborators without use
      of
      the State University of New York facilities.

     

    28.4  Nothing
      in this Section 28 shall diminish Scivanta’s rights to intellectual property as
      set forth in Section 11 of this Agreement.

     

    	29.        
             	
            Insurance.
              

          

     

    Each
      party agrees that it will keep in force and effect the following insurance
      naming the other as an insured and loss payee during the term of this Agreement:
      (a) statutory required workers’ compensation insurance, (b) general liability
      insurance in the amount of $2 Million for each occurrence.

     

    	30.        
             	
            Survival.
              

          

     

    Sections
      4.2, 20, 21, 22, 24, 25, 26, 27, 29 and 30 shall survive the termination,
      expiration or cancellation of this Agreement.

     

    	31.       
              	
            General

          

     

    	a.  	
            This
              Agreement, including all of its referenced Schedules attached hereto,
              constitutes the entire agreement between Scivanta and Ethox with respect
              to the activities described in the scope of this Agreement. Any terms
              or
              conditions contrary hereto contained on printed forms submitted as
              part of
              a purchase order, sales acknowledgment or invoice are hereby rejected.
              It
              also supersedes all previous oral or written communications between
              Scivanta and Ethox regarding the development of Products and services
              described in this Agreement. This Agreement may not be modified except
              by
              a written document signed by the party against whom enforcement is
              sought.
              If any provision of this Agreement is held invalid, all other provisions
              will remain valid, unless such invalidity would frustrate the purpose
              of
              this Agreement.

          

     

    	b.  	
            No
              provision of this Agreement shall be deemed waived and no breach excused
              unless such waiver is made in writing signed by a duly authorized
              representative of the party making such waiver or
              consent.

          

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    	c.  	
            The
              parties acknowledge and agree that they have thoroughly reviewed this
              Agreement and bargained over its terms. Accordingly, this Agreement
              shall
              be construed without regard to the party responsible for its preparation
              or form, and shall be deemed to have been prepared jointly by the
              parties.

          

     

    	d.  	
            This
              Agreement will be governed by and construed in accordance with the
              laws of
              the State of New York without regard to its conflict of laws rules.
              The
              parties specifically agree that the United Nations Convention on the
              International Sale of Goods shall not apply to this
              Agreement.

          

     

    	e.  	
            This
              Agreement shall be binding on each party’s respective successors and
              permitted assigns. 

          

     

    	f.  	
            The
              parties agree that in the event of a dispute between them arising out
              of,
              concerning or in any way relating to this Agreement, including its
              interpretation, which cannot be settled by a good faith effort by the
              parties to resolve such issue, will be submitted to binding arbitration
              under the Federal Arbitration Act as amended and in accordance with
              the
              Commercial Arbitration Rules then prevailing of the American Arbitration
              Association (“AAA”). The arbitration will be held in New York County, New
              York by a panel of three (3) arbitrators appointed pursuant to the
              AAA
              rules and judgment upon the award rendered by the arbitrators may be
              entered into any court having jurisdiction thereof.
              

          

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      by
      their duly authorized representatives, all intending to be legally bound
      hereby.

     

    
       

      
        	
                ETHOX
                  INTERNATIONAL, INC.

              	
                SCIVANTA
                  MEDICAL CORPORATION

              
	 	 
	
                By:
                  /s/ Thomas J.
                  Bienias                                      

              	
                By:
                  /s/ Thomas S.
                  Gifford                            
                  

              
	 	 
	
                Name:
                  Thomas J.
                  Bienias                                       

              	
                Name:
                  Thomas S.
                  Gifford                             
                  

              
	 	 
	
                Title:
                  President &
                  CEO                                         
                   

              	
                Title:
                  Executive Vice President & CFO      
                  

              
	 	 
	
                Date:
                  June 29,
                  2007                                               
                   

              	
                Date:
                  June 29,
                  2007                                       
                  

              

      

      

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

Schedule
      2.4

    

    Form
      of Agreement to Manufacture Disposable Catheters

    

    SCIVANTA
      MEDICAL CORPORATION

     

    SUPPLY
      AGREEMENT

     

    

    This
      Supply Agreement (this “Agreement”) is made by and between Ethox International,
      Inc., (“Ethox”), a New York corporation having a place of business at 251 Seneca
      Street, Buffalo, NY 14204, and Scivanta Medical Corporation (“Scivanta”), a
      Nevada corporation having a place of business at 215 Morris Avenue, Spring
      Lake,
      New Jersey 07762, as follows: 

    

    Section
      1 Scope
      of Work

    

    1.1 Ethox
      and
      Scivanta agree that the following terms and conditions will govern the purchase
      by Scivanta of the disposable two balloon esophageal catheter (“Products) to be
      used as part of the Hickey Cardiac Monitoring System developed under the Product
      Development Agreement entered into by the parties on June 29, 2007 and the
      manufacture of certain tooling and equipment (“Tooling and Equipment”) required
      to manufacture and/or assemble the Products by Ethox hereunder. All Attachments
      referenced in this Agreement are an integral part of this Agreement. Only the
      terms of this Agreement will apply to orders for Products or Tooling and
      Equipment. Pre-printed or other terms and conditions contained in either party’s
      purchase orders shall not bind the other party and Ethox and Scivanta each
      objects to and rejects all such provisions therein. 

    

    1.2 This
      Agreement is for Scivanta’s requirements for Products and Scivanta agrees that
      it shall obtain and purchase Products solely and exclusively from Ethox during
      the initial term and any renewal term hereof provided that Ethox is able to
      complete Scivanta’s orders for products in a timely and commercially viable
      manner. 

    

    1.3  All
      changes to Products, processes, components, labeling and packaging, equipment
      and all associated documentation, including, but not limited to, specifications,
      drawings, Device Master Records, art work masters, shop travelers and work
      instruction and the impact of any such changes on regulatory
      submissions/premarket notification, sales literature, Product in the field,
      safety and effectiveness and bio compatibility shall be subject to the review
      and approval of Scivanta. Any Scivanta request for change shall be in writing
      signed by an officer of Scivanta. Upon receipt of the requested change, Ethox
      will provide Scivanta with an implementation schedule, plan, costs and any
      additional items required to implement the change. 

    

    1.4  The
      parties acknowledge and agree that the Products will be subject to the
      regulatory requirements of the United States Food and Drug Administration (the
      “FDA”) and other governmental agencies in all territories in which the Products
      may be sold or are manufactured, which potentially includes the entire world.
      Scivanta, as the owner of the Products, shall have certain responsibilities
      prescribed by such regulatory agencies concerning the Products. Scivanta agrees
      to establish and maintain such systems, methods and practices as are required
      to
      conform 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    to
      such
      regulations concerning the Products. Ethox, as the manufacturer of the Products
      pursuant to this Agreement, agrees to be bound by and comply with all applicable
      governmental regulations, including, without limitation, FDA regulations and
      the
      regulations of foreign governmental agencies, concerning the manufacture,
      record-keeping, quality control and similar regulations. To the extent it is
      reasonably possible to do so, the parties will accept the systems, methods
      and
      practices of Ethox in meeting the respective regulatory obligations, it being
      understood and agreed that if Scivanta confronts a regulatory issue that is
      not
      adequately resolved by the systems, methods and practices then employed by
      Ethox, the parties will meet and agree as soon as reasonably possible on an
      alternative course of action to be compliant with the prevailing regulation
      and
      will implement such action in a reasonable and timely fashion. The parties
      further agree that with respect to actions concerning patient safety, product
      reliability, adverse events and similar events that may occur during the course
      of the Products’ commercial availability, they will devise and agree upon
      mutually acceptable, timely and compliant methods and procedures for addressing
      such matters.

    

    Section
      2 Tooling
      and Equipment - Procurement and Transfer

    

    2.1  Tooling
      and Equipment manufactured by Ethox in connection with the manufacture of the
      Product shall have an expected useful life of at least five hundred thousand
      (500,000) operations or five (5) years, whichever expires first (“Useful Life
      Period”) and shall meet the specifications of the project. During the Useful
      Life Period, Ethox shall be responsible for all refurbishment and preventative
      maintenance of such tooling and equipment. After the expiration of the Useful
      Life Period, Scivanta shall be responsible for refurbishment of such Tooling
      and
      Equipment, as set forth in Section 9 below. Except as specifically set forth
      above, the Tooling and Equipment are furnished “as is” and Ethox shall have no
      additional responsibility or liability with respect to the Tooling and
      Equipment. 

    

    2.2 
      Upon
      expiration or termination of this Agreement, for any reason by either party
      hereto, Scivanta shall promptly remove the Tooling and Equipment from Ethox
      facilities. 

    

    2.3 Upon
      expiration or termination of this Agreement for any reason by either party
      hereto, Scivanta shall purchase any tooling owned by Ethox and used exclusively
      to provide Products hereunder at a price equal to the greater of fair market
      value (as determined by a third party selected by Scivanta and acceptable to
      Ethox at Ethox’s expense) or book value as recorded by Ethox in its corporate
      books and records, in accordance with accounting principles generally accepted
      in the United States of America. All handling, storage, crating, rigging, and
      labor for the preparation and shipment of the Tooling and Equipment and Ethox’s
      tooling and equipment used solely in connection with the Products shall be
      the
      full responsibility of the Scivanta.

    

    2.4 Except
      as
      provided in Section 2.3, any Ethox-owned equipment used on the project will
      remain the property of and responsibility of Ethox regardless of expiration
      or
      termination. If additions or modifications are required to Ethox-owned
      equipment, the cost for such will be the responsibility of Ethox and Ethox
      will
      own such additional parts. Ethox agrees that any equipment modification or
      addition, or process modification made for the Project and that is useful or
      necessary for manufacturing only the Product shall be licensed to Scivanta
      upon
      termination or expiration of this Agreement and at Scivanta’s request. Such
      license from Ethox to Scivanta shall be a royalty-free, perpetual, worldwide
      license. 

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Section
      3 Forecasts
      and Orders 

    

    3.1  Commencing
      on the date of this Agreement, and at the beginning of each month thereafter
      during the term of this Agreement, including any extensions thereof, Scivanta
      shall deliver to Ethox a rolling twelve-month forecast of Scivanta’s
      requirements for the Products beginning on the first day of each month
      thereafter.1 
      The
      requirements for the first three-month period of each rolling forecast shall
      constitute a firm and binding purchase order for that quantity of Products.
      The
      requirements for the subsequent periods of each rolling forecast shall
      constitute non-binding forecasts of Product requirements for the period
      described. Any increase in firm and binding purchase order quantities over
      forecasted quantities for a given month shall be at Ethox’s reasonable
      discretion. At the time of initial order, delivery schedules shall be mutually
      agreed, but shall not be less than ninety (90) days from the date of order,
      nor
      more than one hundred-twenty (120) days from the date of order.

    

    Section
      4 Pricing

    

    4.1  Subject
      to adjustments due to changes in design, specifications, or quality standards,
      and
      adjustments described in this Section 4 hereof, the prices for the Products
      shall be determined as set forth in Attachment A and will be based on the Fully
      Burdened Cost of Ethox to manufacture the Products, as agreed to by the parties,
      plus 30%. Fully Burdened Cost shall include: (a) direct material cost (direct
      material rollup from bill of materials); 

    (b)
      direct labor (direct labor rate x labor hours); (c) premium labor (premium
      labor
      for some operations such as molding labor to be calculated as premium labor
      hours x premium labor rate); (d) overhead allocation (a portion of the overhead
      will be allocated as a percentage of direct labor while the remaining amount
      of
      overhead will be allocated on a per release basis utilizing activity based
      costing); (e) scrap as a percentage of direct material and labor cost; (f)
      inbound freight for raw materials, as a percentage of material costs; (g)
      sterilization cost; (h) freight to sterilizer; and (i) selling, general and
      administration cost allocation (selling, general and administrative cost as
      a
      percentage of direct cost).

    

    4.2. The
      prices set forth in Attachment A do not include taxes, duties and other
      governmental charges, and Scivanta will pay such taxes, duties and other charges
      or reimburse Ethox for any thereof imposed upon Ethox in connection with the
      performance or manufacture of the Products.

    

    4.3 The
      prices for Products are based upon production and provisions for the minimum
      of
      number of units per month of each of the Products as set forth in Attachment
      A,
      and Scivanta will pay Ethox the full price of such minimum quantities, less
      avoidable costs, plus any incremental costs associated with Scivanta’s failure
      to take delivery of the minimum number of units in any month. 

     

    _______________________

      1
        For
        example, the twelve month forecast to be provided in the beginning of January
        of
        any year during the term hereof shall forecast Scivanta’s requirements for the
        twelve month period commencing April 1 of that year.

    

     

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    4.4 Prices
      will be adjusted up or down semi-annually each year to reflect changes in those
      raw materials or purchased component prices, during the immediately preceding
      six (6) month period. Ethox will produce invoices for raw material and purchased
      components if requested by Scivanta to support pricing. Ethox will use all
      reasonable efforts to secure the best raw material and component
      prices.

    

    4.5
       Ethox
      will keep complete, true and accurate books of account containing reasonable
      particulars that may be necessary for the purpose of showing the amounts payable
      by Scivanta hereunder and for the purpose of showing compliance with all other
      obligations under this Agreement. Said books and the supporting data will be
      available at all reasonable times for five (5) years following the end of the
      calendar year to which they pertain, to confidential inspection by Scivanta
      or
      its agents, upon reasonable notice to Ethox, for the purpose of verifying
      amounts due or compliance in other respects with this Agreement. Scivanta and
      its agents may make copies of relevant information during the course of an
      inspection. In addition, Ethox agrees to provide copies to Scivanta of relevant
      records upon request of Scivanta. Each party will promptly pay or credit the
      other for any underpayment or overpayment discovered during an inspection.
      Should such inspection lead to the discovery of a greater than 5% discrepancy
      in
      reporting to Scivanta’s detriment, Ethox will pay (a) the full cost of the
      inspection, and (b) accrued interest at the lesser of the maximum rate allowed
      by law or 1 1⁄2 % per month.

    

    4.6 As
      an
      additional incentive to Ethox, Scivanta agrees to pay to Ethox during the
      original term of this Agreement a “Development Surcharge” as
      follows:

    

    	a.  	
            The
              Development Surcharge will be paid as an additional charge per unit
              added
              to the selling price of the Products from Ethox to
              Scivanta.

          

    	 	 

    	b.  
            	
            The
              Development Surcharge will be equal to the Ethox in-kind contribution
              of
              up to $535,000, as described in Section 6 of the Product Development
              Agreement between Scivanta and Ethox, divided equally by the total
              minimum
              of number of units to be produced during the term of this Contract
              as set
              forth in Attachment A.

          

    	 	 

    	c.   	
            To
              the extent that the sales of the minimum quantities are not achieved,
              Scivanta will make an annual payment to Ethox equal to the Development
              Surcharge times the shortfall for the annual sales
              period.

          

    	 	 

    	d.   	
            The
              obligation of Scivanta to pay a Development Surcharge to Ethox shall
              cease
              upon Scvianta’s payment to Ethox of up to an aggregate of five hundred
              thirty-five thousand dollars ($535,000) of Development
              Surcharge.

          

     

    Section
      5 Payment

    

    5.1 Within
      thirty (30) calendar days after the date of Ethox’s invoice, Scivanta shall pay
      to Ethox all amounts due under the invoice, without deduction or offset, in
      United States dollars delivered to Ethox at the address stated on the
      invoice.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    5.2 Scivanta
      shall pay all reasonable costs, including, without limitation, attorneys’ fees
      and disbursements, incurred by Ethox to collect any amounts not paid when due
      including amounts payable pursuant to Section 4.5 hereof.

    

    Section
      6 Inspection,
      Delivery and Risk of Loss

    

    6.1 Products
      will be subject to inspection and acceptance by Scivanta prior to
      being placed
      into distribution. Acceptance shall be in accordance with mutually agreed
      acceptance criteria set forth in Attachment C.

    

    6.2 Before
      delivering Products to Scivanta, Ethox will perform the factory
      inspection and
      quality assurance tests on the Products as prescribed and as set forth in
      Attachment C. If Scivanta requests, Ethox will either certify that Ethox has
      completed those tests or permit Scivanta’s representatives to witness them.
      Scivanta’s acceptance of the Products will not waive any of Scivanta’s warranty
      rights under this Agreement.

    

    6.3 Unless
      Scivanta furnishes Ethox with special written instructions regarding shipment,
      Ethox will choose the method of shipment and carrier to be used. Ethox may
      make
      partial shipments to Scivanta and invoice Scivanta for them. All shipments
      shall
      be freight on board Ethox’s shipping point and risk of any loss or damage shall
      pass to Scivanta upon delivery to the carrier. Costs of delivery shall be paid
      by Scivanta.

    

    6.4 Ethox
      will use reasonable commercial efforts to meet the delivery dates Scivanta
      requests. Under no circumstances shall Ethox be responsible for delays in or
      failure to deliver the Products due to acts beyond its control, such as, but
      not
      limited to, fires, floods, riots, strikes, freight embargos, transportation
      delays, shortage of labor, inability to secure fuel, materials, supplies or
      power at current prices or as a result of shortages of any thereof or other
      circumstances included in Section 15 hereof. (“Force
      Majeure”)

    

    6.5 Scivanta
      shall be responsible for the design and integrity of all Product packaging.
      Scivanta shall be responsible for all labeling content, adequacy, accuracy,
      design, integrity, legibility, location/placement, and claims made in all
      labeling. Ethox shall provide guidance and assistance to Scivanta regarding
      the
      FDA packaging and labeling requirements and work with Scivanta to comply with
      same. Scivanta shall provide written approval for all artwork masters used
      to
      inspect and accept labeling at Ethox. All labeling will be inspected and
      accepted based upon Scivanta approved artwork master. Shipment of "non-sterile”
Product labeled as "sterile" will be in accordance with a separate non-sterile
      shipping agreement. Separate non-sterile shipping agreements will be executed
      between Ethox and sterilizer, and sterilizer and Scivanta. Any labeling and/or
      packaging deviations, such as over-labeling, shall require Scivanta's written
      approval.

    

    Section
      7 Warranty
      

    

    7.1 
      Ethox
      warrants only that the Products manufactured and/or assembled for Scivanta
      under
      this Agreement will be, at the time of delivery to Scivanta, free from any
      liens
      or other defects in title, will conform to the applicable specifications set
      forth in Attachment B, and will be free 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    from
      material defects in workmanship (and materials, if Ethox is responsible for
      procuring materials from its own sources) under normal use and service. Ethox
      will not, however, be responsible for, and this warranty will not apply to,
      any
      defects in the Products arising out of Scivanta’s design or the use of materials
      or components that Scivanta furnished to Ethox or directed Ethox to use. A
      claim
      under this warranty must be made by Scivanta in writing within fifteen (15)
      months from the date of delivery of the affected unit(s) of Product to
      Scivanta’s customer. In no case shall the warranty extend beyond the labeled
      shelf life/expiration date of the Product. Additionally, such warranty period
      shall be extended by the time period that the Products are repaired or replaced
      by Ethox.

     

    7.2 
      Ethox’s
      sole obligation to Scivanta and Scivanta’s exclusive remedies under this
      warranty is as follows:

    

    	a.  	
            Ethox
              will, at its option, repair or replace without charge to Scivanta any
              unit
              of the Products found to be defective within the terms of this warranty
              if
              Scivanta returns it, freight prepaid, to Ethox. At Ethox’s option,
              however, Ethox may also elect to accept return of the unit and refund
              to
              Scivanta the purchase price Scivanta paid for it. Repaired or replaced
              Product will carry this same warranty for the balance of the warranty
              period, such warranty period shall be extended by the time required
              for
              repair or replacement. Prepaid freight on Product found to be defective
              or
              replaced under warranty shall be reimbursed to
              Scivanta.

          

    

    	b.  	
            Ethox
              will not be required to ship replacement Products until Ethox has
              confirmed through examination that the returned unit(s) is defective
              within the terms of this warranty. Ethox will pay freight costs to
              ship
              any repaired or replacement unit(s) to Scivanta. Ethox shall have ten
              (10)
              days to inspect the Products and determine that each Product is defective.
              If Ethox is unable to repair or replace the returned unit(s) within
              thirty
              (30) days of its determination that the Product is defective, then
              Scivanta will be entitled to the refund of its purchase price for that
              unit(s).

          

    

    	c.  	
            This
              warranty does not apply to any defect attributed to purchased components
              specified by Scivanta, or to any unit(s) of Product which Ethox determines
              has been subjected by a party other than Ethox to (i) operating or
              environmental conditions beyond those normally expected for the Product
              based upon the materials specified; or (ii) improper application, improper
              maintenance or repair, improper installation, alteration, accident,
              use of
              Product inconsistent with approved labeling or any other negligent
              act or
              omission in use or handling.

          

    

    	d.  	
            Units
              of Products returned to Ethox which Ethox determines are not defective
              within the terms of this warranty will be returned to Scivanta, and
              Scivanta will reimburse Ethox upon invoice for return transportation
              charges and Ethox’s normal hourly charge applicable to inspection of the
              unit.

          

    

    	e.  	
            Purchased
              components of the Products specified by Scivanta are warranted only
              to the
              extent, and subject to the terms of the original warranty given by
              the
              manufacturer to Ethox. Ethox’s sole obligation with respect to such
              components shall be, at Scivanta’s expense, to prosecute on behalf of
              Scivanta all warranty claims against such component manufacturers upon
              receipt of written authorization of
              Scivanta.

          

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
 

    	f.  	
            The
              inability of Ethox to repair or replace returned units resulting in
              refunds of purchase price as per 7.2 (b) above without consent of Scivanta
              is a substantial failure to perform a material provision of this Agreement
              as described in section 13.1, entitling Scivanta to invoke its rights
              under section 13 of this Agreement.

          

    

    FOR
      PURPOSES OF THIS SUPPLY AGREEMENT ONLY, REMEDIAL ACTION AS PROVIDED HEREIN
      SHALL
      CONSTITUTE FULFILLMENT OF ALL LIABILITIES OF ETHOX TO SCIVANTA AND SCIVANTA’S
      SOLE REMEDIES HEREUNDER, WHETHER BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE)
      OR OTHERWISE. Under no circumstances will Ethox be liable for reprocurement
      costs, lost revenues or profits, or for any indirect, special, incidental,
      economic or consequential damages, even if they were foreseeable or Scivanta
      had
      informed Ethox of their potential.

    

    7.3 
      FOR THE
      PURPOSES OF THIS SUPPLY AGREEMENT ONLY, EXCEPT FOR THE WARRANTY SET FORTH IN
      SECTION 7.1 HEREOF, SELLER MAKES NO WARRANTY OR REPRESENTATION THAT THE PRODUCTS
      ARE SUITABLE FOR THE PURPOSES AND USES INTENDED OR ANY OTHER STATEMENT, PROMISE
      OR WARRANTY, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR
      A
      PARTICULAR PURPOSE, AND SCIVANTA ACKNOWLEDGES IT HAS NOT RELIED UPON ANY
      STATEMENT OF ETHOX OR ANY EMPLOYEE, AGENT OR REPRESENTATIVE THEREOF IN RESPECT
      OF THE PRODUCTS. COMPLIANCE WITH LAW, CODES AND REGULATIONS RELATING TO THE
      USE
      OF THE PRODUCTS REMAINS THE SOLE RESPONSIBILITY OF SCIVANTA. 

    

    7.4 Ethox’s
      total liability to Scivanta for damages under this Agreement shall not exceed
      the total price Scivanta paid Ethox for the affected Products or Tooling and
      Equipment at issue. This limitation will apply regardless of the form of the
      action (i.e. whether the lawsuit is in contract, tort (including negligence)
      or
      otherwise).

    

    Section
      8 Product
      Liability and Indemnity

    

    Subject
      to only the warranties set forth in Section 7.1 hereof, Scivanta will be solely
      responsible for all third party liability claims related to the design,
      specifications, manufacture, assembly, use, functionality, and safety of the
      Products manufactured and/or assembled by a third party, In this regard,
      Scivanta will defend Ethox from any and all such claims, and indemnify and
      hold
      Ethox harmless from all judgments or awards, and any related costs (including
      attorneys’ fees and other expenses associated with litigation or dispute
      resolution proceedings) arising out of such claims. 

    

    Section
      9 Tooling
      and Equipment Maintenance

    

    9.1 Tooling

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    9.1.1 Except
      as
      set forth in Section 2.3 hereof, all tooling and fixtures paid for by Ethox
      will
      remain the property of Ethox regardless of termination by Scivanta or expiration
      hereof.

    

    9.1.2 All
      tooling will be assigned a tool number for control within Ethox’s tooling
 control
      systems.

    

    9.1.3 Periodic
      calibrations, if required, will be the responsibility of the owner of the
 tooling
      and fixtures. Ethox can provide calibration services on an “as quoted”
basis.

    

    9.1.4 Routine
      maintenance for all tooling and fixtures at Ethox will be the  responsibility
      of Ethox.

    

    9.1.5 Repairs,
      refurbishment, or replacement costs due to normal wear and tear will
 be
      the
      responsibility of the owner. Such repairs, refurbishment, or replacement that
      is
 due
      to
      negligence on the part of Ethox or its employees will be the responsibility
      of
 Ethox.

    

    9.1.6 Storage
      of tooling is the responsibility of Ethox. If tooling becomes inactive for
      a
      period of twelve (12) months or more, Ethox reserves the right to charge for
      such storage or to ship them to the storage location designated by the
      owner.

    

    9.2         
      Equipment

     

    9.2.1 Any
      Ethox
      owned equipment used on the project will remain the property  of
      and
      responsibility of Ethox regardless of termination by Scivanta or expiration
      hereof.

    

    9.2.2 
      If
      additions or modifications are required to Ethox  owned
      equipment, the  cost
      for
      such will be the responsibility of Ethox and Ethox will own such additional
       parts.

    

    9.2.3 Periodic
      calibrations, if required, will be the responsibility of the owner of the
 equipment.
      Ethox can provide calibration services on an “as quoted” basis. Routine
 maintenance
      for all equipment at Ethox will be the responsibility of Ethox.

    

    9.2.4 Repairs,
      refurbishment, or replacement costs due to normal wear and tear will
 be
      the
      responsibility of the owner. Such repairs, refurbishment, or replacement that
      is
 due
      to
      negligence on the part of Ethox or its employees will be the responsibility
      of
 Ethox.

    

    9.2.5 Storage
      of equipment is the responsibility of Ethox. If Scivanta owned equipment becomes
      inactive for a period of twelve (12) months or more, Ethox reserves the right
      to
      charge for such storage or to ship them to the storage location designated
      by
      the owner.

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    Section
      10 Non-Recurring
      Engineering 

    

    If
      required, Ethox will furnish non-recurring engineering services required in
      connection with the manufacture of the Products or the Tooling and Equipment
      and
      related charges as outlined in Attachment E. 

    

    Section
      11 Indemnity

    

    11.1 Scivanta
      will defend, indemnify and hold Ethox harmless from any claim that (a) the
      design or manufacture of any of the Products using the intellectual property
      of
      or licensed to Scivanta, (b) any engineering or manufacturing processes Scivanta
      directs Ethox to use, or (c) any materials or components required by Scivanta
      to
      be used in or with the Products, infringes any third party patent, copyright,
      trade secret or any other intellectual property right. Scivanta will pay all
      judgments, warrants, losses, damages, costs, awards, settlements, expenses,
      (including reasonable attorneys’ fees), and liabilities of every kind (such
      judgments, warrants, losses, damages, costs, awards, settlements, expenses,
      (including reasonable attorneys’ fees), and liabilities of every kind,
      collectively, “Losses”) awarded against Ethox which result directly from or
      arise directly out of any such claim. Ethox will give Scivanta prompt notice
      of
      any such claim after Ethox learns of it and will cooperate with Scivanta, at
      Scivanta’s expense, in the defense of the claim. While Scivanta will have sole
      control over the defense, Scivanta may not settle the claim in the name of
      Ethox
      without Ethox’s prior written consent.

     

    11.2  In
      the
      event of any claim described in Paragraph 11.1, Ethox may stop production of
      the
      applicable Products immediately pending adequate assurances from Scivanta of
      Scivanta’s ability to meet the on-going indemnity outlined in Paragraph 11.1
      above or a license from the claimant.

    

    11.3  Ethox
      will indemnify, defend and hold harmless Scivanta and its Affiliates and their
      officers, directors and employees from and against Losses arising directly
      out
      of or resulting directly from: (a) any breach by Ethox of any of its warranties,
      guarantees, representations, obligations or covenants contained herein; (b)
      any
      negligence or intentional acts or omissions by Ethox or its employees and (c)
      any claim arising out of or relating to federal, state and local taxes or
      contributions imposed or required under unemployment insurance, social security
      and income tax laws with respect to the performance of services by Ethox under
      this Agreement. Scivanta will give Ethox prompt notice of any such claim
      and will
      cooperate with Ethox, at Ethox’s expense, in the defense of the claim. While
      Ethox will have sole control over the defense, Ethox may not settle the claim
      in
      the name of Scivanta without Scivanta’s prior written consent, which Scivanta
      will not unreasonably withhold.

    

    11.4  Scivanta
      shall indemnify and hold harmless Ethox and its Affiliate and their officers,
      directors and employees from and against any and all Losses arising directly
      out
      of or resulting directly from (a) any breach by Scivanta of any of its
      obligations or covenants contained herein; and (b) any negligence or intentional
      acts or omissions by Scivanta or its employees, and/or agents. Notwithstanding
      the foregoing, under no circumstance shall Scivanta defend, indemnify and hold
      harmless Ethox from any Losses arising out of or relating to engineering
      defects. 

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    11.5  Each
      indemnified party agrees to give the indemnifying party prompt written notice
      of
      any matter upon which such indemnified party intends to base a claim for
      indemnification (an "Indemnity Claim"). The indemnifying party shall have the
      right to participate jointly with the indemnified party's defense, settlement
      or
      other disposition of any Indemnity Claim. With respect to any Indemnity Claim
      relating solely to the payment of money damages and which could not result
      in
      the indemnified party's becoming subject to injunctive or other equitable relief
      or otherwise adversely affect the business of the indemnified party in any
      manner, and as to which the indemnifying party shall have acknowledged in
      writing the obligation to indemnify the indemnified party hereunder, the
      indemnifying party shall have the sole right to defend, settle or otherwise
      dispose of such Indemnity Claim, on such terms as the indemnifying party, in
      its
      sole discretion, shall deem appropriate, provided that the indemnifying party
      shall provide reasonable evidence of its ability to pay any damages claimed
      and
      with respect to any such settlement shall have obtained the written release
      of
      the indemnified party from the Indemnity Claim. The indemnifying party shall
      obtain the written consent of the indemnified party, which shall not be
      unreasonably withheld, prior to ceasing to defend, settling or otherwise
      disposing of any Indemnity Claim if as a result thereof the indemnified party
      would become subject to injunctive or other equitable relief or the business
      of
      the indemnified party would be adversely affected in any manner. 

     

    Section
      12 Term/Renewal

    

    This
      Agreement shall commence on the date set forth above, and shall continue for
      an
      initial period of four (4) years from the date of commencement of the first
      commercial production of the Products hereunder and shall continue on a year
      to
      year basis thereafter until terminated by either party by written notice of
      termination given to the other at least 180 days prior to the end of the initial
      four (4) year term or any one (1) year renewal term hereof. 

    

    Section
      13 Termination

    

    	13.1  	
            Either
              party shall be in default of this Agreement if such
              party:

          

    

    
      	
            	a.	
              substantially
                fails to perform any material provision of this Agreement; or
                

            

    

    

    
      	
            	b.	
              becomes
                insolvent or makes an assignment for the benefit of creditors, or
                a
                receiver or similar officer is appointed to take charge of all or
                part of
                that party’s assets 

            

    

    

    In
      the
      event either party shall fail to pay accounts due hereunder within fifteen
      (15)
      days of the date when due, the non-defaulting party may terminate this Agreement
      upon written notice to the defaulting party. In the event of a default other
      than non-payment, the non-defaulting party may terminate the Agreement and
      any
      outstanding orders if the other party has failed to cure such default within
      thirty (30) calendar days after its receipt of a written notice of default
      and
      intent to terminate. Except with respect to non-payment, if a cure is not
      possible within such thirty (30) days, and if the defaulting party commences
      a
      cure of such default during such thirty (30) day period and thereafter
      diligently pursues such cure, then the cure period shall extend up to a total
      of
      one hundred-twenty (120) calendar days after receipt of notice of default.
      The
      failure to manufacture or deliver Product in accordance with the Product
      forecast shall constitute a substantial failure to perform a material provision
      of this Agreement, and should such an event occur a second time during the
      term
      of this Agreement after Scivanta has once given notice of default under this
      paragraph, then such second default must be cured within thirty (30) days of
      such second notice, with no ability of the defaulting party to extend the cure
      period for up to an additional one hundred-twenty (120) days.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
 

    	13.2      
             	
              
              Upon expiration or termination of this Agreement due to Scivanta’s
              default, Scivanta will:

          

     

    	a.  	
            pay
              for and remove all conforming finished Product inventory manufactured
              to
              Scivanta purchase orders and pay the price
              therefor;

          

    

    	b.  	
            pay
              for and remove all unused raw material that Ethox has ordered in
              reasonable anticipation of its performance under this Agreement and
              which
              cannot be returned to its manufacturer for a refund of Ethox’s
              costs;

          

    

    	c.  	
            hold
              Ethox harmless from all vendor commitments Ethox has made inaccordance
              with Ethox’s obligations to Scivanta and upon Scivanta’s approval under
              this Agreement;

          

    

    	d.  	
            remove
              all work in process as of the date of termination;
              and

          

    

    	e.  	
            subject
              to minimum quantities required to be purchased hereunder, pay Ethox
              all
              its reasonable unrecovered costs associated with its performance of
              its
              obligations under this Agreement prior to such termination, including
              costs associated with materials and inventory obtained or produced
              in
              furtherance of manufacturing for the then existent Product forecast
              which
              has been authorized by Scivanta. Ethox shall eliminate all costs that
              can
              be avoided after notice of termination or upon
              expiration.

          

    

    	13.3      
             	
              
              If Scivanta terminates this Agreement due to Ethox’s default, Scivanta
              will:

          

    

    	a.  	
            pay
              for and remove all conforming finished Product inventory manufactured
              to
              Scivanta purchase orders and pay the price
              therefor;

          

    

    	b.  	
            pay
              for and remove all unused raw material that Ethox has ordered in
              reasonable anticipation of its performance under this Agreement and
              which
              cannot be returned to its manufacturer for a refund of Ethox’s
              costs;

          

    

    	c.  	
            hold
              Ethox harmless from all vendor commitments Ethox has made in accordance
              with Ethox’s obligations made upon Scivanta’s approval under this
              Agreement or incurred in furtherance of the then existent Product forecast
              authorized by Scivanta;

          

     

    	d.  	
            remove
              all work in process as of the date of termination;
              and

          

    

    	e.  	
            subject
              to minimum quantities required to be purchased hereunder, pay Ethox
              all
              its reasonable unrecovered costs associated with its performance of
              its
              obligations under this Agreement prior to such termination, including
              costs associated with materials and inventory obtained or produced
              in
              furtherance of manufacturing for the then existent Product forecast
              which
              has been authorized by Scivanta. Ethox shall eliminate all costs that
              can
              be avoided after notice of termination or upon
              expiration.

          

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    13.4  Upon
      expiration or termination of this Agreement by either party, for any reason,
      all
      existing vendor commitments shall be assigned by Ethox to Scivanta upon request,
      along with any rights and warranties with respect thereto.

    

    13.5  Except
      as
      expressly stated in this Agreement, neither party will be liable to the other
      

    for
      any
      damages or compensation due to the termination of this Agreement.

    

    Section
      14 Confidential
      Information

    

    14.1    
      It
      is anticipated that the parties may be required to exchange certain
      confidential information
      (hereafter called “Information”) to the other in the course of performing this
      Agreement. From the date of disclosure, and until five (5) years following
      the
      expiration or earlier termination of this Agreement, the recipient of
      Information (hereafter called “Recipient”) shall maintain the Information in
      confidence and limit its use to the purposes contemplated under this Agreement,
      using at least the same degree of care as it employs to protect its own
      confidential information of a similar nature, but not less than a reasonable
      standard of care, provided the Information is identified in writing as
      confidential at the time of disclosure or, if orally disclosed, is identified
      as
      confidential at the time of disclosure and confirmed in writing within twenty
      (20) days after the oral disclosure. Recipient shall have no obligation
      hereunder with respect to any Information that is:

    

    	a.  	
            generally
              known to the public at the time of disclosure, or becomes known to
              the
              public without breach of this Agreement;

          

    

    	b.  	
            known
              to the Recipient prior to the disclosure, or is independently developed
              by
              the Recipient without reference to or use of any other portion of the
              Information;

          

    

    	c.  	
            obtained
              by the Recipient in good faith from a third party not under obligation
              of
              secrecy to the disclosing party; or

          

    

    	d.  	
            the
              subject of a court or government agency order to disclose, provided
              the
              Recipient gives prompt notice to the party disclosing such information
              to
              allow the other party to contest such
              order.

          

    

    The
      Recipient shall have the burden of proving that any of the above exceptions
      apply by means of documentary evidence available at the time Recipient claims
      the exception first became applicable.

    

    14.2  Title
      to
      all tangible forms of the Information, and all copies thereof, shall be
      and remain
      with the other party disclosing such information. Recipient shall not copy
      or
      otherwise reproduce, in whole or in part, any Information without the prior
      written authorization of the party disclosing such information, except as may
      be
      reasonably necessary to fulfill the purpose of this Agreement. Recipient shall
      use reasonable efforts promptly to return or destroy all tangible forms of
      the
      Information, and copies thereof, upon request by the party disclosing such
      information or termination of this Agreement, except that Recipient may retain
      one archival copy of the Information to be used solely for compliance with
      Recipient’s obligations under this Agreement.

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    14.3     
      It
      is understood, however, that Ethox has performed substantial development
      relating to
      the
      design, engineering and manufacture of tooling and equipment and medical devices
      and that Ethox has relationships with other companies which may be Scivanta’s
      competitors. Neither this Agreement, nor receipt of Information under this
      Agreement, shall limit Ethox’s independent development, engineering,
      manufacture, or marketing of products, systems or processes involving technology
      or ideas similar to those disclosed in the Information. In addition, this
      Agreement shall not limit Ethox’s use of general ideas, concepts, or techniques
      contained in the Information in connection with its development, engineering,
      manufacture, and other businesses.

    

    Section
      15 Force
      Majeure

    

    Neither
      party shall be liable for any delay or failure to perform under this Agreement
      if the delay or failure is caused by acts of God or other causes beyond the
      reasonable control of and without fault or negligence by the delayed or failing
      party.

    

    Section
      16 Notices

    

    Any
      notice required under this Agreement will be in writing and will be hand
      delivered, or sent by prepaid registered or certified mail, postage prepaid,
      return receipt requested (if available), or sent by facsimile and confirmed
      by
      such mail, addressed to the other party at the address shown at the beginning
      of
      this Agreement. The notice address may be changed by proper notice as set forth
      above.

    

    Section
      17 Intellectual
      Property 

    

    Scivanta
      shall have the absolute right to assign or transfer or sublicense to any third
      party any intellectual property owned by Scivanta hereunder and any intellectual
      property owned by or licensed to Scivanta necessary for the design, use,
      manufacture or sale of any of the devices created pursuant to this Agreement.
      Ethox agrees: (a) to disclose and assign to Scivanta as its exclusive property
      all discoveries, inventions, technical and business innovations and improvements
      which Ethox or its employees or contractors develop or conceive, solely or
      in
      conjunction with others: (i) that are based solely on or involve solely
      Scivanta’s intellectual property, or (ii) that relate to, constitute, result
      from or include work in which Ethox will be engaged solely on behalf of Scivanta
      or its clients; (b) assign or sublicense to Scivanta Ethox’s licensed rights to
      any and all third party intellectual property utilized by Ethox in connection
      with the Project or its services to Scivanta hereunder; and (c) to execute
      all
      necessary documents, including, without limitation, confirmatory documents
      of
      assignment, and to provide Scivanta (at Scivanta’s expense) sufficient
      assistance to confirm, secure and obtain patent, copyright and other legal
      protections for any such inventions, discoveries and improvements, and to make
      and maintain reasonably detailed accurate records of any such inventions,
      discoveries and improvements necessary to accomplish said purpose; and (d)
      to
      deliver to Scivanta upon termination or expiration of this Agreement all
      materials which related to the business of, or belong to, Scivanta or its
      clients, or by which their nature are for use of Scivanta’s employees,
      contractors or consultants. 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Section
      18 Independent
      Contractors

    

    Each
      party is an independent contractor and not an agent, joint venture, or
      representative of the other, and neither party may create any obligation or
      responsibility on behalf of, or in the name of, the other without expressed
      written agreement.

    

    Section
      19 General

    

    19.1 
      This
      Agreement, including all of its referenced Attachments, constitutes the entire
      

    agreement
      between Scivanta and Ethox with respect to Ethox’s manufacture and/or assembly
      of Scivanta’s requirements for Products or Tooling and Equipment and any
      previous oral or written communications between Scivanta and Ethox regarding
      the
      manufacture and/or assembly of Products or Tooling and Equipment are merged
      herein. No waiver, alteration or modification of any of the provisions hereof
      shall be binding on Ethox unless made in writing and the provisions hereof
      may
      not be explained or supplemented by course of dealing, usage of trade or course
      of performance or varied or contradicted by parole evidence without the written
      consent of Ethox. This Agreement may not be modified except by a written
      document signed by the party against whom enforcement is sought. If any
      provision of this Agreement is held invalid, all other provisions will remain
      valid, unless such invalidity would frustrate the purpose of this
      Agreement.

    

    19.2 This
      Agreement will be governed by and construed in accordance with the laws of
      the

    State
      of
      New York without regard to its conflict of laws rules and in the event of any
      dispute hereunder, including disputes that may arise following termination
      hereof, Scivanta acknowledges and agrees that this paragraph serves as a
      material inducement for Ethox to enter into this Agreement. 

    

    19.3 The
      parties specifically agree that the United Nations Convention on the
      International Sale of Goods shall not apply to this Agreement. 

    

    19.4  Ethox
      may
      not assign this Agreement nor delegate performance of its duties or obligations
      hereunder without the written approval of Scivanta, except to an individual
      or
      entity purchasing all or substantially all of its assets used in the performance
      of its obligations hereunder; provided, however, that no such assignment may
      be
      made by Ethox to any party that is or controls or is under common control with
      a
      distributor or wholesaler of cardiac monitoring equipment without the written
      consent of Scivanta. Sale or issuance of shares of Ethox shall not be considered
      an assignment hereof to the purchaser of such shares, unless the proposed sale
      or issuance of shares of Ethox in any amount of shares exceeding 25% of the
      then
      outstanding shares of Ethox is to be made to a party or parties controlling
      or
      under common control with a business distributing cardiac monitoring equipment.
      Any attempted assignment or delegations in violation of this Section shall
      be
      deemed null and void and of no force and effect. Scivanta may assign this
      Agreement, in whole or in part, without limitation.. This Agreement shall be
      binding on each party’s respective successors and permitted
      assigns.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    19.5  The
      parties agree that in the event of a dispute between them arising out of,
      concerning or in any way relating to this Agreement, including its
      interpretation, which cannot be settled by a good faith effort by the parties
      to
      resolve such issue, will be submitted to binding arbitration under the Federal
      Arbitration Act as amended and in accordance with the Commercial Arbitration
      Rules then prevailing of the American Arbitration Association (“AAA”). The
      arbitration will be held in New York County, New York by a panel of three (3)
      arbitrators appointed pursuant to the AAA rules and judgment upon the award
      rendered by the arbitrators may be entered into any court having jurisdiction
      thereof. 

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      by
      their duly authorized representatives, all intending to be legally bound
      hereby.

     

    

      
        	
                ETHOX
                  INTERNATIONAL, INC.

              	
                SCIVANTA
                  MEDICAL CORPORATION

              
	 	 
	
                By:
                  ______________________________

              	
                By:
                  ______________________________

              
	 	 
	
                Name:
                  ____________________________

              	
                Name:
                  ____________________________

              
	 	 
	
                Title:
                  _____________________________

              	
                Title:
                  _____________________________

              
	 	 
	
                Date:
                  _____________________________

              	
                Date:
                  _____________________________

              

      

    

     

    
 

    
      
         

      

      
        15

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