Document:

Product Supplier Agr

Exhibit
    10.3
     

     

     

    PRODUCT
      SUPPLIER AGREEMENT

    

    between

    

    340B
      Prime Vendor Program

    

    and

     

    
      
        

      

    

    EarlyDETECT
      Inc.

     

    
      
        
          

        

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    340B
      PRIME VENDOR PROGRAM

    

    PRODUCT
      SUPPLIER AGREEMENT

    

    THIS
      PRODUCT SUPPLIER AGREEMENT (this
      "Agreement") is made and entered effective
      the    3     day
      of     January    2007 (the
      "Effective Date"), by and between HealthCare
      Purchasing Partners International, LLC,
      (herein referred to as "HPPI"), a Delaware
      corporation. having a principal place of business at 125 E. John Carpenter
      Freeway, Irving, Texas 75062. on behalf of the 340B
      Prime Vendor Program, (herein
      referred to as 340B PVP)
      that
      is managed by HPPI, and Ear1yDETECT Inc, a Nevada Corporation ("Supplier").
      HPPI
      and
      Supplier are sometimes referred to herein individually as a "Party" and
      collectively as the "Parties."

    

    WHEREAS,
      340B
      PVP is engaged in providing purchasing opportunities with respect to high
      quality products and services to health care providers (each a "Participant"
      and
      collectively, the "Participants") registered as active "Covered Entities"
      through Health Resources & Services Administration's
      Office of Pharmacy Affairs 340B Drug Pricing Program, and entitled to
participate
      in the 340B Prime Vendor Program. WHEREAS,
      a list
      of Participants is maintained
      by HPPI in an electronic database (the "HPPI Database");

    

    WHEREAS,
      a list
      of Participants is maintained by the 340B PVP in an electronic database
      (the "340B PVP Participant Database");

    

    WHEREAS,
      Supplier is the manufacturer and/or supplier (as appropriate) of the products
      and services listed on Exhibit
      A hereto
      (collectively, the "Products"); the provider of related installation,
      training and maintenance services for the Products; and the provider of any
      specifications
      attached hereto as Exhibit
      B ("Non-Price
      Specifications");

    

    WHEREAS,
      HPPI
      and Supplier wish for Supplier to make the Products available for purchase
      by Participants directly from Supplier at the prices contained in Exhibit
      A.

    

    NOW,
      THEREFORE, in
      consideration of the mutual covenants and conditions hereinafter
      expressed, HPPI and Supplier agree as follows:

    

    
      	
              1.

            	
              Exclusive
                Agent; Limited Liability.  In
                entering into this Agreement, HPPI is acting as an
                agent for the Participants and shall not be responsible or liable
                for the
                actions, inactions,
                or obligations of any Participant, including, but not limited to,
                the
                breach of any
                purchasing commitment or the failure to pay for any
                Products.

            
	 	 
	
              2.

            	
              Authorized
                Distributors.  HPPI
                has entered into arrangements with certain distributors ("Authorized
                Distributors") that have agreed to distribute the Products to
                Participating Covered
                Entities. A current listing of Authorized Distributors is maintained
                by
                HPPI in the HPPI Database. A distributor will become an "Authorized
                Distributor" for purposes of
                this Agreement at the time HPPI adds the distributor to the HPPI
                Database
                and will cease
                to be an "Authorized Distributor" for such purposes at the time HPPI
                deletes the distributor
                from the HPPI Database. Any limitations on the scope of an Authorized
                Distributor's
                authority will also be set forth in the HPPI Database. By reason
                of requirements
                of law, regulation or internal policy of certain Participating Covered
                Entities, from time to time HPPI may identify historically underutilized
                businesses (HUBS)
                as Authorized Distributors.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              3.

            	
              Basic
                Terms.

            
	 	 
	
               

            	
              In
                General.  By
                executing this Agreement, HPPI and Supplier agree that Supplier will
                make
                the Products available for purchase by the Participants directly
                from
                Supplier at the prices contained in Exhibit
                A, for
                the Initial Term and any Renewal Terms (as defined herein). Unless
                otherwise stated, all Products shall be new.

            
	 	 
	
               

            	
              Purchasing
                Commitments.  This
                Agreement shall not constitute a commitment by any Participant (or
                other
                person) to purchase any of the Products from or through Supplier.
                Supplier
                shall not require any Participant to purchase any specific quantity
                (other
                than the smallest available unit) or combination of Products, or
                impose
                any other purchasing commitment on a Participant as a condition to
                the
                Participant's purchase of any Products pursuant to this
                Agreement.

            
	 	 
	
               

            	
              Participant
                Access to Agreement.  Supplier
                shall not restrict any Participant's ability to purchase
                any of the Products from or through Supplier pursuant to this Agreement
                based on
                such Participant's primary group purchasing organization
                designation.

            
	 	 
	
               

            	
              Performance
                Reviews.  Representatives
                of the parties shall meet on a quarterly basis in person
                or by phone to review each party's performance during,
                the past quarter, and to discuss
                objectives and plans for the upcoming quarter.

            
	 	 
	
              4.

            	
              Term
                and Termination.

            
	 	 
	
               

            	
              A.  Term.
                This Agreement shall have an initial term of three (3) years,
                beginning,
                on the
                Effective Date (the "Initial Term"). In HPPI's sole discretion, the
                Initial Term may be renewed
                for up to two (2) additional one-year terms (each, a "Renewal Term").
                In
                the event
                that HPPI opts to renew the Initial Term, then the Parties shall
                execute a
                written agreement
                to that effect. The Initial Term and any Renewal Terms are referred
                to
                collectively
                herein as the "Term."

            
	 	 
	
               

            	
              B.  Termination.
                Except as otherwise specifically provided herein, either Party may
                terminate
                this Agreement at any time for any reason whatsoever by delivering
                not
                less than
                ninety (90) days' prior written notice thereof to the other Party.
                In
                addition, either Party
                may terminate this Agreement immediately by delivering written notice
                thereof to the
                other Party upon the occurrence of either of the following
                events:

            
	 	 
	 	
              (1)  The
                other party
                breaches this Agreement and does not cure such breach within
                thirty (30) days of receiving notice of such breach; provided, however,
                that no cure period shall be permitted for Supplier's breach of its
                financial obligations hereunder or breach of any Legal Requirement
                (as
                defined herein); or

            

    

     

    
      
        
        

      

      
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              (2)  The
                other Party
                becomes bankrupt or insolvent, makes an unauthorized assignment,
                goes into liquidation, has proceedings initiated against it for the
                purpose
                of seeking a receiving order or winding up order, or applies to the
                courts
                for protection from its creditors.

            
	 	 
	
               

            	
              C.  Non-Payment
                or Insolvency of a Participant.  In
                the event that a Participant fails to pay
                Supplier for Products, becomes bankrupt or insolvent, makes an assignment
                for the benefit of creditors or goes into liquidation, or if proceedings
                are initiated for the purpose of
                having a receiving order or winding up order made against a Participant,
                or if a Participant
                applies to the courts for protection from its creditors, then this
                Agreement shall
                not terminate, but Supplier shall have the right, upon prior written
                notice to HPPI and
                the Participant, to discontinue the sale of Products to that
                Participant.

            
	 	 
	
              5.

            	
              Product
                Supply.

            
	 	 
	
               

            	
              A.  Delivery
                and Invoicing.  On
                and after the Effective Date, Supplier agrees to promptly
                deliver Products ordered by Participants to Participants, FOB destination,
                and shall
                direct its invoices to the ordering organization
                in accordance with this Agreement. Payment terms are 2%-30. Net 31
                days.
                Supplier agrees to ship FOB destination/bill third party
                via the carrier of the relevant Participant's choice when Products
                are
                shipped directly
                to that Participant and the Participant is absorbing the charges
                for
                transporting the Products. In that event, Supplier agrees to enter
                the
                Participant purchase order number in the customer reference field
                of the
                carrier bill of lading.

            
	 	 
	
               

            	
              B.  Return
                or Recall of Products.  Any
                Participant, in addition to and not in limitation of
                any other rights and remedies, shall have the right to return Products
                to
                Supplier, in accordance
                with Supplier's return goods policy attached hereto as Exhibit
                C
                and as agreed
                to by HPPI. In addition, Supplier shall reimburse Participants for
                any
                cost associated
                with any Product corrective action, withdrawal or recall requested
                by
                Supplier or
                required by any governmental entity including all reasonable costs
                in
                excess of the prices
                contained in Exhibit
                A
                plus any other damages which Participants may incur. In the
                event a product recall or a court action impacting supply occurs,
                Supplier
                shall notify HPPI in writing within twenty-four (24) hours of any
                such
                recall or action. Supplier's obligations in this Subsection shall
                survive
                the expiration or earlier termination of this
                Agreement.

            
	 	 
	
               

            	
              C.  Pricing;
                Notification of Changes in Pricing Terms.  Prices
                contained in Exhibit
                A
                of
                this Agreement will remain firm for the Initial Term but may be subject
                to
                reduction due
                to market conditions. Prices contained in Exhibit
                A
                will remain firm for any Renewal
                Terms unless noted otherwise but may be subject to reduction due
                to market
                conditions.
                Supplier shall provide not less than thirty (30) days' prior written
                notice to HPPI
                of any change in pricing terms (such as list prices, discounts or
                pricing
                tiers or schedules), provided such change is permitted or required
                by this
                Agreement.

            

    

     

    
      
        
        

      

      
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              6.

            	
              Product
                Quality.  Supplier
                warrants the Products against defects in material, workmanship,
                design and manufacturing. Supplier shall make all necessary arrangements
                to
                assign such warranty to the Participants. Supplier further represents
                and
                warrants that the
                Products shall conform to the specifications, drawings and samples
                furnished by Supplier
                or contained in the Non-Price Specifications and shall be safe for
                their
                intended use. If any Products are defective and a claim is made by
                a
                Participant or an Authorized Distributor
                on account of such defect, Supplier shall, at the option of the
                Participant or the
                Authorized Distributor, either replace the defective Products or
                credit
                the Participant or
                the Authorized Distributor. Supplier shall bear all costs of returning
                and
                replacing the defective
                Products, as well as all risk of loss or damage to the defective
                Products
                from and
                after the time they leave the physical possession of the Participant
                or
                the Authorized Distributor.
                The warranties contained in this Subsection shall survive any inspection,
                delivery,
                acceptance or payment by a Participant or an Authorized Distributor.
                In
                addition,
                if there is at any time widespread failure of the Products, the
                Participant or the Authorized
                Distributor may return all said Products for credit or replacement,
                at its
                option.
                This Subsection and the obligations contained herein shall survive
                the
                expiration or
                earlier termination of this Agreement. The remedies set forth in
                this
                Subsection are in addition
                to, and not a limitation on, any other rights or remedies that may
                be
                available against
                Supplier.

            
	 	 
	
              7.

            	
              New
                Technology.

            
	 	 
	
               

            	
              A.  During the
                Term, Supplier shall disclose to HPPI new technology developed by
                Supplier
                that provides the same function as the Products. Upon introduction
                of the
                new technology by Supplier, each Participant shall have the option
                of
                exchanging any Product purchased hereunder for the new technology,
                upon
                the terms and conditions set forth in Supplier's
                return policy or other applicable policy, attached hereto as Exhibit
                C. In
                the event
                Supplier fails to provide such option to Participants, (a) HPPI shall
                have
                the right to discontinue the offering of any or all of the Products
                that
                have been superceded by such new technology providing the same function
                as
                the Products, or (b) HPPI may elect at its discretion to negotiate
                or
                contract with one or more additional suppliers of similar new technology.
                Participant pricing will not be adversely affected if Participant
                chooses
                to purchase new technology through a HPPI agreement with another
                supplier.

            
	 	 
	
               

            	
              B.  If
                at any time
                during the Term, new technology for a Product becomes available from
                any
                source that provides incremental patient care benefits and/or incremental
                safety benefits over technology currently available under this Agreement,
                HPPI shall provide written
                notice of such information to Supplier and may elect to negotiate
                or
                contract with a
                supplier of such new technology, or terminate the Agreement and re-bid
                the
                category so Participants
                have access to such new technology at all times. Such action shall
                not
                constitute
                a breach of this Agreement by HPPI.

            

    

     

    
      
        
        

      

      
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              8.

            	
              Reports
                and Other Information Requirements.  Supplier
                shall provide to HPPI by the fifteenth (15th) day of each month for
                the
                preceding month during the Term ("Reporting Month"),
                a report in the form attached hereto as Exhibit
                D,
                and containing content reasonably
                satisfactory to HPPI ("Net Sales Report). If no transactions occur
                within
                a relevant reporting period, a report stating that 'no transactions
                occurred' is required. The Report shall contain basic elements such
                as the
                HIN Number (health industry number), if applicable,
                and/or DEA number, 340B ID Number, Prime Vendor Number (MID number),
                full name, street address, city, state, and zip code. The Report
                shall
                also contain for each month, a list of all contract products containing
                the product name, NDC number, units sold, Fee percentage, net sales,
                the
                fee paid for that product, and such additional information
                as HPPI may reasonably request from time to time. Failure to provide
                this
                report
                when due is a material breach of this Agreement.

            
	 	 
	
              9.

            	
              Administrative
                Fees.

            
	 	 
	
               

            	
              A.  Calculation.  Supplier
                shall pay HPPI fees ("Administrative Fees") equal to 3
                percent (3%) of all Net Sales (as defined herein) of the Products
                sold by
                Supplier to Participants under and as part of this Agreement. For
                purposes
                of this Section, a Net Sale will
                be deemed to be "under and as part of this Agreement" regardless
                of
                whether the pricing
                or terms of the Net Sale are those set forth in this Agreement or
                are
                pursuant to a formal
                or informal arrangement entered into between Supplier and Participant
                directly. The
                Net Sale of such Products shall mean invoiced sales based on the
                purchase
                price, net of
                returns, allowances, credits, rebates, taxes, and freight. The "Agreed
                Percentage" will be
                defined in the Non-Price Specifications, Exhibit B.

            
	 	 
	
               

            	
              B.  Payment.  If
                Supplier elects to pay Administrative Fees via hard copy check, the
                Administrative Fees shall be due no later than the thirtieth day
                proceeding each calendar quarter. On or before that day, Supplier
                shall
                remit to HPPI the quarterly Administrative Fees for the prior quarter's
                purchases. If Supplier elects to pay Administrative Fees via Electronic
                Funds Transfer ("EFT"), then the Administrative Fees shall be due
                no later
                than
                the twentieth day proceeding each calendar quarter. On or before
                that day,
                Supplier shall remit to HPPI the quarterly Administrative Fees for
                the
                prior quarter's purchases.

            
	 	 
	
               

            	
              Administrative
                Fee hard copy checks must be made payable to HPPI, LLC and sent
                to:

            
	 	 
	
               

            	
              If
                Sent By First Class Mail:

            
	 	 
	
               

            	
              HPPI,
                LLC.

            
	
               

            	
              75
                Remittance Dr., Suite 1420 

            
	
               

            	
              Chicago,
                IL 60675-1420

            

    

     

    
      
        
        

      

      
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              If
                Sent Via Courier
                (e.g., Federal Express, United Parcel Service,
                Messenger):

            
	 	 

    

    
      	
               

            	
              The
                Northern Trust Company

            
	
               

            	
              Attn
                : HPPI, LLC., LockBox Number 1420

            
	
               

            	
              350
                North Orleans Street 

            
	
               

            	
              Receipt
                & Dispatch 8th Floor 

            
	
               

            	
              Chicago,
                IL 60654-1855

            
	 	 
	
               

            	
              Telephone
                Number: (312) 444-3576. The air bill must list the bank's telephone
                number, as recipient at this location. Supplier's telephone number,
                as the
                sender, must also be included.

            
	 	 
	
              IMPORTANT
                REMINDER: ALL
                checks
                for Fees should be made payable to HPPI,
                LLC, regardless
                of whether they are sent first-class mail or by courier. Under
                no circumstances should
                checks be made payable to The Northern Trust
                Company.

            
	 	 
	
               

            	
              Account
                information for Administrative Fee wire transfers is as
                follows:

            
	 	 
	
               

            	
              Bank
                Name: The Northern Trust Company, Chicago, IL

            
	
               

            	
              Bank
                Address:          75
                Remittance Drive

            
	
               

            	
              Chicago,
                IL 60675

            
	
               

            	
              Routing
                No: 071 000 152 

            
	
               

            	
              Account
                Name: HPPI LLC 

            
	
               

            	
              Account
                Number: 86665

            
	 	 
	
               

            	
              C.  Payment
                Penalties.  If
                payment of Administrative Fees is not received on the date such
                Administrative Fees are due, any amounts past due shall be subject
                to a
                late charge in
                the amount of the lesser of one and one-half percent (1.5%) interest
                per
                month or the maximum
                rate allowed by law. In the event that HPPI and/or Supplier discovers
                that
                certain
                sales of Products were not properly reported to HPPI in accordance
                with
                this Agreement,
                Supplier shall pay the Administrative Fees related to those sales
                within
                fifteen
                (15) days of discovering the error in reporting, together with a
                late
                charge in the amount
                of the lesser of one and one-half percent (1.5%) interest per month
                or the
                maximum
                rate allowed by law, calculated from the date the sales should have
                been
                reported
                to HPPI.

            
	 	 
	
              10.

            	
              Market
                Competitive Pricing and Terms.

            
	 	 
	
               

            	
              A.  Pricing.  Supplier
                shall lower prices contained in Exhibit
                A
                or
                increase any discount
                applicable to the purchase of the Products as necessary to assure
                340B
                sub-ceiling
                pricing, and, in addition, Supplier agrees to lower the prices contained
                in Exhibit
                A
                or
                increase any discount applicable to the purchase of the Products
                for
                Participants in the
                event Supplier offers a lower price to any competitor of such Participant
                or group of Participants.

            

    

    

    
      
        
        

      

      
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              B.  Non-Price
                Terms.  Supplier
                shall improve non-price terms, such as quality, technology
                or other non-price financial value as necessary to assure market
                competitiveness,
                and, in addition, Supplier agrees to adjust non-price terms for
                Participants
                in the event Supplier offers more favorable non-price terms to any
                competitor of such Participants.

            
	 	 
	
               

            	
              C.  Response
                Duration.  If
                at any time during the Term, HPPI receives information from
                any source that indicates Supplier's pricing or non-price terms are
                not
                market competitive, HPPI may provide written notice of such information
                to
                Supplier, and Supplier
                shall within ten (10) business days for all other Products, advise
                HPPI in
                writing of
                all adjustments necessary to assure market competitiveness. Such
                adjustments will become
                effective no later than ten (10) days after Supplier's written
                notice.

            
	 	 
	
               

            	
              D.  Lowest
                Prices.  The
                prices charged for each product and service sold under this Agreement
                during its term shall be no greater than the lowest price charged
                by
                Company to
                its other customers under similar terms, conditions, and aggregate
                purchase volumes. Company will promptly provide HPPI with written
                notice
                of any applicable comparable lower
                prices available from Company, and this Agreement shall be automatically
                amended
                to include such lower pricing.

            
	 	 
	
              11.

            	
              Minority,
                Women or Veteran Owned Business Enterprises.  HPPI
                may be required by law,
                regulation and/or internal policy to do business with certain minority
                or
                women owned
                businesses ("MWBEs"). Supplier shall assist HPPI in meeting these
                requirements by
                complying with all HPPI policies and programs with respect to such
                businesses. HPPI,
                in its discretion, may make an award or negotiate another agreement
                with a
                MWBE in
                addition to any sole, multi-source, or negotiated contract. Pricing
                will
                not be adversely affected if HPPI adds a MWBE supplier to the product
                category.

            
	 	 
	
              12.

            	
              Information
                to Participants and Authorized
                Distributors.

            
	 	 
	
               

            	
              A.  Participant
                Notification.  Within
                thirty (30) days following the Effective Date, HPPI
                shall deliver a summary of this Agreement to each Participant. Such
                information may
                be furnished, as appropriate, through the use of direct mail and/or
                electronic mail and regional
                and national meetings and conferences. As appropriate, HPPI shall
                involve
                Supplier in these activities by inviting Supplier to participate
                in
                meetings and other activities
                with Participants. At the request of Supplier from time to time,
                and in
                HPPI's sole
                discretion, HPPI also shall deliver to each Participant reasonable
                and
                appropriate amounts and types of materials supplied by Supplier to
                HPPI
                that relate to the purchase of Products.

            
	 	 
	
               

            	
              B.  List
                of Participants for Supplier.  On
                the Effective Date, HPPI shall assign Supplier
                a code/password to access the HPPI membership list on its secured
                website
                or shall
                provide a list of HPPI Participants to Supplier. This membership
                information shall be
                considered "Confidential Information" of HPPI and is subject to the
                non-disclosure requirements set forth in Section 16 of this
                Agreement.

            

    

     

    
      
        
        

      

      
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              C.  HPPI
                Support Activities.  HPPI
                shall engage in administrative and support activities,
                including but not limited to including Supplier on HPPI's list of
                authorized suppliers, publicizing the availability of this Agreement
                and
                distributing Product and /or Service
                information. HPPI agrees to promote the Products and/or Services
                as
                outlined in a
                mutually agreed upon plan that will be developed in conjunction with
                Supplier within sixty (60) days after the Effective Date of this
                Agreement.

            
	 	 
	
              13.

            	
              Compliance
                With Law and Government Program
                Participation.

            
	 	 
	
               

            	
              A.  Compliance
                With Law.  Each
                Party represents and warrants that to the best of its knowledge,
                after due inquiry, it is, and for the Term shall be, in compliance
                with
                all federal
                and state statutes, laws, ordinances and regulations that are material
                to
                the operation
                of its business and the conduct of its affairs ("Legal Requirements"),
                including, but
                not limited to, Legal Requirements pertaining to the safety of the
                Products, occupational
                health and safety, environmental protection, nondiscrimination, antitrust,
                health
                care regulatory, and equal employment opportunity.

            
	 	 
	
               

            	
              B.  Notification
                of Claims.  During
                the Term, Supplier shall promptly notify HPPI of any lawsuits, claims,
                administrative actions or other proceedings asserted or commenced
                against
                it that assert, in whole or in part, that Supplier is in noncompliance
                with any Legal Requirement.

            
	 	 
	
               

            	
              D.  Government
                Program Participation.  Each
                Party represents and warrants that it is not (1) excluded from
                participating in any "Federal health care program" as that phrase
                is
                defined in 42 U.S.C. § 1320a-7b(f) ("Excluded"), or (2) debarred,
                suspended, declared ineligible, or voluntarily excluded by any Federal
                department or agency (collectively, "Debarred"). In the event that
                a
                Party, during the Term of this Agreement, is Excluded or Debarred,
                that Party (the "Excluded Party") shall notify the other Party (the
                "Non-Excluded
                Party") in writing within three (3) days after such event. Upon the
                occurrence of
                such event, whether or not notice is given to the Non-Excluded Party,
                the
                Non-Excluded
                Party may terminate this Agreement immediately upon written notice
                to the
                Excluded Party.

            
	 	 
	
               

            	
              D.  HPPI
                Participant Discount Reporting.  With
                respect to any price reduction (e.g.,
                discount, rebate, credit or any other form of remuneration) that
                is
                provided by Supplier to any
                HPPI Participant, Supplier agrees that it shall (1) fully and accurately
                report such price
                reduction on the invoices or statements it furnishes to the HPPI
                Participant, (2) inform
                the HPPI Participant in a manner reasonably calculated to give notice
                to
                the HPPI Participant
                of its obligations to report (and provide information about) such
                price
                reduction
                to the appropriate government authorities (e.g.,
                in
                HPPI Participant's cost reports)
                and (3) refrain from doing anything that would impede the HPPI Participant
                from meeting its reporting and disclosure obligations under 42 C.F.R.
§
                1001.952(h)(1).

            

    

     

    
      
        
        

      

      
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              14.

            	
              Insurance.

            
	 	 
	
               

            	
              A.  Policy
                Requirements.  Supplier
                shall maintain and keep in force during the Term commercial general
                liability insurance that includes the products-completed operations
                hazard.
                Such insurance shall contain a minimum combined single limit of liability
                for bodily injury and property damage in the amount of not less than
                $2,000,000 per occurrence
                and $10,000,000 in the aggregate and shall name HPPI, the Clients
                and the
                Participants,
                as their interests may appear, as additional insureds. The liability
                limits may be
                satisfied through a combination of primary and excess policies including
                deductibles or
                self-insured retentions. Supplier shall provide a certificate of
                insurance
                to HPPI within thirty (30) days following HPPI's request, indicating
                the
                foregoing coverage, issued by an insurer licensed to do business
                in the
                relevant states; provided, however, that Supplier may
                provide an insurance certificate issued by an insurer not licensed
                to do
                business in the
                relevant states, provided that such insurer has an A.M. Best rating
                of A-7
                or greater.

            
	 	 
	
               

            	
              B.  Self-Insurance.  Notwithstanding
                anything to the contrary in Section A.A. above, Supplier may maintain
                a
                self-insurance program for all or any part of the foregoing liability
                risks, provided that such self-insurance complies with the requirements
                set forth in Section A.A. above.

            
	 	 
	
               

            	
              C.  Amendments,
                Notices and Endorsements.  Supplier
                shall not amend, in any material
                respect that affects the interests of HPPI, the Clients, certain
                of
                Clients' subsidiaries and affiliates, or the Participants, or terminate
                said insurance or self-insurance
                program except after providing thirty (30) days' prior written notice
                to
                HPPI.. In the event that Supplier amends said liability insurance
                or
                self-insurance program in accordance with this Section A.C., Supplier
                shall provide HPPI with copies of all notices and endorsements as
                soon as
                practicable after Supplier receives or gives them.

            
	 	 
	
              15.

            	
              Release
                and Indemnity.

            
	 	 
	
               

            	
              A.  In
                General.  SUPPLIER
                SHALL RELEASE, INDEMNIFY, HOLD HARMLESS, AND, IF
                REQUESTED, DEFEND HPPI AND THE PARTICIPANTS, AND THEIR RESPECTIVE
                OFFICERS, DIRECTORS, REGENTS, AGENTS, SUBSIDIARIES, AFFILIATES AND
                EMPLOYEES
                (COLLECTIVELY, THE "INDEMNITEES"), FROM AND AGAINST ANY CLAIMS,
                LIABILITIES, DAMAGES, ACTIONS, COSTS AND EXPENSES (INCLUDING, WITHOUT
                LIMITATION, REASONABLE ATTORNEYS' FEES AND EXPENSES, EXPERT FEES
                AND COURT COSTS) OF ANY KIND OR NATURE, WHETHER AT LAW OR IN EQUITY,
                ARISING FROM OR CAUSED IN ANY PART BY (1) THE BREACH OF ANY REPRESENTATION,
                WARRANTY, COVENANT OR AGREEMENT OF SUPPLIER CONTAINED
                IN THIS AGREEMENT; (2) THE CONDITION OF ANY PRODUCT CAUSED BY
                THE ACTIONS OR OMISSIONS OF SUPPLIER, INCLUDING, WITHOUT LIMITATION,
                IMPROPER STORAGE OF ANY PRODUCT, OR ANY DEFECT IN MATERIAL,
                WORKMANSHIP, DESIGN OR MANUFACTURING; OR (3) THE WARNINGS AND INSTRUCTIONS
                ASSOCIATED WITH ANY PRODUCT. SUCH INDEMNIFICATION, HOLD HARMLESS
                AND RIGHT
                TO DEFENSE SHALL NOT BE APPLICABLE TO THE EXTENT
                THE CLAIM, LIABILITY, DAMAGE, ACTION, COST OR EXPENSE ARISES AS
                A
                RESULT OF AN ACT OR FAILURE TO ACT OF
                INDEMNITEES.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              B.  Intellectual
                Property.  IN
                ADDITION, SUPPLIER REPRESENTS AND WARRANTS THAT
                SALE OR USE OF THE PRODUCTS SHALL NOT INFRINGE ANY UNITED STATES
                PATENT, COPYRIGHT OR TRADEMARK AND SHALL, AT ITS OWN EXPENSE, DEFEND
                EVERY SUIT WHICH SHALL BE BROUGHT AGAINST HPPI OR A PARTICIPANT
                FOR ANY ALLEGED INFRINGEMENT OF ANY PATENT, COPYRIGHT OR
                TRADEMARK BY REASON OF THE SALE OR USE OF THE PRODUCTS AND SHALL
                PAY ALL
                COSTS, DAMAGES AND PROFITS RECOVERABLE IN ANY SUCH
                SUIT.

            
	 	 
	
               

            	
              C.  Survival.  THIS
                SECTION ERROR!
                REFERENCE SOURCE NOT FOUND. AND
                THE
                OBLIGATIONS CONTAINED HEREIN SHALL SURVIVE THE EXPIRATION OR EARLIER
                TERMINATION OF THIS AGREEMENT. THE REMEDIES SET FORTH IN THIS SECTION
                ARE IN ADDITION TO AND NOT A LIMITATION ON ANY OTHER RIGHTS OR
                REMEDIES THAT MAY BE AVAILABLE AGAINST SUPPLIER.

            
	 	 
	
              16.

            	
              Books
                and Records.  Supplier
                shall keep, maintain and preserve complete, current and accurate
                books,
                records and accounts of the transactions contemplated by this Agreement
                and such additional books, records and accounts as are necessary
                to
                establish and verify Supplier's
                compliance with this Agreement. All such books, records and accounts
                shall
                be
                available for inspection and audit by HPPI representatives at any
                time
                during the Term and for two (2) years thereafter, but only during
                reasonable business hours and upon reasonable
                notice. HPPI agrees that its routine audits shall not be conducted
                more
                frequently
                than twice in any consecutive twelve (12) month period, subject to
                HPPI's
                right
                to conduct special audits whenever it deems it to be necessary. The
                exercise by HPPI
                of the right to inspect and audit Supplier's books and records is
                without
                prejudice to any other or additional rights or remedies of either
                Party.

            
	 	 
	
              17.

            	
              Confidential
                Information.

            
	 	 
	
               

            	
              A.  Nondisclosure.  Supplier
                agrees that, during the term of this Agreement and following the
                expiration or termination of this Agreement for any reason, it
                shall:

            
	 	 
	
               

            	
              (1)  Keep
                strictly
                confidential and hold in trust all Confidential Information, as
                defined
                in Section O.B. below, of HPPI and the Participants;

            
	 	 
	
               

            	
              (2)  Not
                use the
                Confidential Information for any purpose other than the performance
                of its obligations under this Agreement, without the prior written
                consent
                of HPPI;

            
	 	 
	
               

            	
              (3)  Not
                disclose the
                Confidential Information to any third party (unless required
                by law) without the prior written consent of HPPI; and

            
	 	 
	
               

            	
              (4)  Not
                later than
                thirty (30) days after the expiration or earlier termination of
                this
                Agreement, return to HPPI or the Participant, as the case may be,
                the
                Confidential Information.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              B.  Definition.  "Confidential
                Information," as used in Section 0.A. above, shall consist
                of the terms of this Agreement, and all information relating to the
                prices
                and usage
                of the Products (including all information contained in the reports
                produced by Supplier pursuant to Section 0 above) and all documents
                and
                other materials of HPPI and the
                Participants containing information relating to the programs of HPPI
                or
                the Participants
                of a proprietary or sensitive nature not readily available through
                sources
                in the
                public domain. In no event shall Supplier provide to any person any
                information relating
                to the prices it charges the Participants for Products ordered pursuant
                to
                this Agreement without HPPI's prior written consent.

            
	 	 
	
               

            	
              C.  Remedies.  The
                Parties acknowledge that, in the event of a violation of any restrictions
                set forth in Section 0.A. above, or in the event such a violation
                is
                likely to occur,
                HPPI shall be entitled to preliminary and permanent injunctive relief
                without having
                to prove actual damages or immediate or irreparable harm or post
                a bond.
                Notwithstanding
                the foregoing, if the restrictions contained herein are judged
                unreasonable
                by any court of competent jurisdiction, the Parties agree to the
                reformation of
                such restrictions by the court to limits that may reasonably grant
                HPPI
                the maximum protection
                permitted by applicable law in such circumstances, and Supplier shall
                not
                assert
                that such restrictions should be eliminated in their entirety by
                such
                court.

            
	 	 
	
               

            	
              D.  HIPAA.  To
                the extent that Supplier is or becomes subject to, directly or
                indirectly,
                the privacy and security rules promulgated pursuant to the Health
                Insurance Portability
                and Accountability Act of 1996 ("HIPAA"), codified at 45 C.F.R. Parts
                160
                and
                164, and/or other relevant administrative simplification rules promulgated
                pursuant to HIPAA, then Supplier shall comply with such rules and,
                upon
                HPPI's request, shall agree to amend this Agreement accordingly and/or
                enter into any additional agreement between or among Supplier, HPPI
                and/or
                any Participant, as appropriate.

            
	 	 
	
               

            	
              E.  Use
                of Names, etc.  Supplier
                agrees that it shall not use in any way in its promotional,
                informational or marketing activities or materials (i) the names,
                trademarks, logos, symbols or a description of the business or activities
                of HPPI or any Participant without
                in each instance obtaining the prior written consent of the person
                owning
                the rights
                thereto; or (ii) the existence or the content of this Agreement without
                in
                each instance
                obtaining the prior written consent of HPPI.

            
	 	 
	
              18.

            	
              Miscellaneous.

            
	 	 
	
               

            	
              A.  Third
                Party Beneficiary.  All
                Participants are intended third party beneficiaries of this
                Agreement.

            
	 	 
	
               

            	
              B.  Choice
                of Law.  This
                Agreement shall be governed by and construed in accordance
                with the internal substantive laws of the State of Texas and the
                Texas
                courts shall have jurisdiction over all matters relating to this
                Agreement. Notwithstanding the above,
                Participants are not subject to Texas law or the jurisdiction of
                Texas
                courts by virtue
                of this Agreement and any disputes between Participants and Suppliers
                will
                be governed by and construed in accordance with the choice of law
                and
                venue provisions set forth
                in any agreement between Participant and Supplier or the laws of
                the state
                of Participant's
                principal place of business if Participant and Supplier have no separate
                agreement or if choice of law and venue are not addressed in such
                agreement.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              C.  No
                Assignment.  This
                Agreement may not be assigned in whole or in part by either
                Party without the prior written consent of the other Party; provided,
                however, that HPPI may assign its rights and obligations to any affiliate
                of HPPI. Any assignment of all or
                any part of this Agreement by either Party shall not relieve that
                Party of
                the responsibility
                for performing its obligations hereunder to the extent that such
                obligations are not satisfied in full by the assignee.

            
	 	 
	
               

            	
              D.  Binding
                Effect.  This
                Agreement shall be binding upon, inure to the benefit of, and
                be enforceable by the Parties and Participants, as well as their
                respective successors and assigns.

            
	 	 
	
               

            	
              E.  Notices.  Except
                as otherwise expressly provided herein, all notices or other
                communications required or permitted under this Agreement shall be
                in
                writing and shall be
                deemed sufficient when mailed by United States mail, or delivered
                in
                person to the Party
                to which it is to be given, at the address of such party set forth
                below,
                or to such other
                address as the Party shall have furnished in writing in accordance
                with
                the provisions
                of this Section:

            
	 	 
	
               

            	
              If
                to Supplier:

            
	 	 
	
               

            	
              [Insert
                Address]

            
	 	 
	
               

            	
              If
                to HPPI:

            
	 	 
	
               

            	
              HPPI,
                LLC

            
	
               

            	
              Attn:
                General Counsel

            
	
               

            	
              125
                East John Carpenter Freeway 

            
	
               

            	
              Irving,
                TX 75062-2324

            
	 	 
	
               

            	
              With
                a copy to:

            
	
               

            	
              Attn:
                Mark Talbert

            
	
               

            	
              340B
                Prime Vendor Program 

            
	
               

            	
              125
                E. John Carpenter Freeway 

            
	
               

            	
              Irving,
                TX 75062

            
	 	 
	
               

            	
              F.  Severability.  Whenever
                possible, each provision of this Agreement shall be interpreted
                in such a manner as to be effective and valid under applicable law.
                However, in
                the event that any provision of this Agreement becomes prohibited
                or
                invalid under applicable law, or is otherwise held unenforceable,
                then
                such provision, upon the mutual agreement of the Parties, shall be
                modified to reflect the Parties' intent, consistent with applicable
                law.
                The Parties shall work together in good faith in an effort to agree
                on an
                appropriate
                modification within a commercially reasonable period of time. Absent
                such
                agreement,
                such provision shall be ineffective to the extent of such prohibition
                or
                invalidity
                without invalidating the remainder of such provision or the remaining
                provisions
                of this Agreement.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              G.  Independent
                Contractors.  It
                is expressly understood and agreed that HPPI and Supplier
                shall at all times be independent contractors of one another. It
                is
                expressly understood
                and agreed by the Parties that nothing contained in this Agreement
                shall
                be construed
                to create a joint venture, partnership, association or like relationship
                between the
                Parties with respect to the subject matter hereof. In no event shall
                either Party be liable
                for the debts or obligations of the other Party.

            
	 	 
	
               

            	
              H.  Entire
                Agreement.  This
                Agreement, together with the exhibits listed below, shall constitute
                the entire agreement between HPPI and Supplier. In the event of any
                inconsistency
                between this Agreement and any one or more of the exhibits hereto,
                the
                terms
                of this Agreement shall control. No other terms and conditions in
                any
                document, acceptance, or acknowledgment shall be effective or binding
                unless expressly agreed to in writing. The following exhibits are
                incorporated by reference in this Agreement:

            
	 	 
	
               

            	
              Exhibit
                A    Product and
                Service Description and Pricing

            
	 	 
	
               

            	
              Exhibit
                B    Non-Price
                Specifications

            
	 	 
	
               

            	
              Exhibit
                C    Supplier Return
                Policy

            
	 	 
	
               

            	
              Exhibit
                D    Form of Net
                Sales Report

            

    

    

    IN
      WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their
      duly authorized officers as of the day and year first above
      written.

    

    
      	
              HPPI

            	
              [SUPPLIER]

            
	 	 
	
              By:   
                /s/ Russell
                Hall                                                  
                      

            	
              By:  
                /s/ Charles
                Strongo                                                   
                

            
	 	 
	
              Name: 
                Russell
                Hall                                                           
                

            	
              Name:  Charles
                Strongo                                                     
                

            
	 	 
	
              Title: 
                VP,
                Operations                                                       
                

            	
              Title: 
                CEO/President                                                          
                

            
	 	 
	
              Date: 
                1/29/07                                                                    
                

            	
              Date: 
                1/3/07                                                                         
                

            

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    PRODUCT
      AND SERVICE DESCRIPTION AND PRICING

    

    [Final
      listing of products and/or services and prices covered by the
      Agreement]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      B 

    

    NON-PRICE
      SPECIFICATIONS 

    

    AGREEMENT
      TERM:

    

    Effective
      Date:    February 15,
      2007

    

    End
      Date:                   
February 28, 2010

    

    

    RENEWAL
      OPTIONS: Two
      additional one year renewal Terms

    

    

    FEES:

    

    Agreed
      Percentage: 3% of Net Purchases

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      C

    

    SUPPLIER'S
      RETURN POLICY

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    FORM
      OF NET SALES REPORT

    EXHIBIT
      D

    

    
      	
              Contract
                Compliance &
                Research

            	 
	
              Susan
                Thomsen

            	 
	
              Manager,
                Contract Administration

            	
              SEND
                REPORTS TO:

            
	
              972-581-5162

            	
              novslsrptHPPIco.com

            

    

    

    

    
      	
              Contract

              ID

            	
              Month

            	
              Hospital

              LIC

            	
              Hospital
                Name

            	
              Street
                Address

            	
              City

            	
              State

            	
              Sales

            	
              Revenue

              Rate

            	
              Revenue

            
	
              MS20050

            	
              Jun-03

            	
              JKIU

            	
              ABC
                Hospital

            	
              125
                State Street

            	
              Dallas

            	
              TX

            	
              10,000.00

            	
              0.03

            	
              300

            
	
              MS20050

            	
              Jun-03

            	
              LOIOP

            	
              DEF
                Hospital

            	
              10250
                James Street

            	
              Abilene

            	
              TX

            	
              5,000.00

            	
              0.03

            	
              150

            
	 	 	 	 	 	 	
              Totals:

            	
              15,000.00

            	 	
              450

            

    

    

    Administrative
      fee checks must be made payable to HPPI, LLC and sent to:

    

    
      	
              If
                sent by First Class Mail:

            	
              If
                sent via courier (FedEx, UPS, Messenger)

            
	 	 
	
              HPPI,
                LLC

            	
              The
                Northern Trust Company

            
	
              75
                Remittance Drive., Suite 1420

            	
              350
                North Orleans Street

            
	
              Chicago,
                IL 60675-1420

            	
              Receipt
                & Dispatch 8th Floor

            
	 	
              Chicago,
                IL 60654

            
	 	 
	 	
              Attn:
                HPPI, LLC, Lockbox Number 1420

            
	 	
              Telephone
                No. 312-444-3576

            

    

    

    Questions
      on payments:

    Jeff
      Betts

    972-830-7865

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               FDA
                510K APPROVAL LIST

              FOR
                PROFESSIONAL USE

               

            
	
              Description

            	
              510K
                No.

            
	
              Pregnancy
                Dipstick Test

            	
              K961099

            
	
              Pregnancy
                Cassette Test

            	
              K912316

            
	
              Pregnancy
                Wand Test

            	
              K963341

            
	
              Ovulation
                Cassette

            	
              K951538

            
	
              Ovulation
                Wand Test

            	
              K012252

            
	
              Menopause
                Cassette

            	
              K043599

            
	
              Menopause
                Wand Test

            	
              K030058

            
	
              Cholesterol
                Card Test

            	
              K905405

            
	
              Glucose
                Cassette Fasting Test

            	
              K943503

            
	
              Strep
                A Swab Cassette Test

            	
              K031784

            
	
              H-pylori
                Cassette Test

            	
              K024350

            
	
              Mononucleosis
                Cassette Test

            	
              K042272

            
	
              Drugs
                of Abuse 6 Panel Dipstick

            	
              K050050

            
	
              Drugs
                of Abuse 10 Panel Dipstick

            	
              K041685

            
	
              Colon
                Screening Tissue Test

            	
              K860028

            
	
              Fecal
                Occult Blood Cassette Test

            	
              K041202

            

    

    

    

    
      	
               FDA
                510K APPROVAL LIST

              FOR
                OVER-THE-COUNTER (OTC) USE

               

            
	
              Description

            	
              510K
                No.

            
	
              OTC
                Pregnancy 1 Test Kit - Wand

            	
              K963341

            
	
              OTC
                Pregnancy 2 Test Kit - Wand

            	
              K963341

            
	
              OTC
                Ovulation 5 Test Kit - Wand

            	
              K983113

            
	
              OTC
                Menopause 2 Test Kit - Wand

            	
              K030058

            
	
              OTC
                Colorectal 1 Test Kit - Tissue

            	
              K860028

            
	
              OTC
                Glucose 2 Test Kit - Card

            	
              K943503

            
	
              OTC
                Cholesterol 1 Test Kit - Cassette

            	
              K905405

            
	
              OTC
                Urinary Tract Infection 3 T/Kit - Dipstick

            	
              K990873

            
	
              OTC
                Blood Alcohol 3 Test Kit - Dipstick

            	
              Not
                Applicable

            
	
              OTC
                Breast Self-Exam Kit - Pad

            	
              Not
                Applicable

            
	
              OTC
                DNA Paternity Test Kit - Swab

            	
              Not
                ApplicableUnassociated Document

    Exhibit
      10.4

     

    SUPPLIER
      AGRREMENT

     

    
      	Supplier
              Number: 5051-38-0 	
              Effective
                Date: 06/'13/2007

            

    

    
       

    

    
      
        This
          Supplier Agreement ("Agreement") between the party listed below ("Supplier")
          and
          Wal-Mart Stores, Inc., Wal-Mart StoresEast,
          LP,
          Wal-Mart Stores East, Inc., Wal-Mart Stores Texas, LP, Sam's West, Inc.,
          Sam's
          East, Inc. and affiliates (hereinafter referred to collectively
          as "Company") sets forth Supplier's qualifications and the general terms
          of the
          business relationship between Company and Supplier.
          The parties agree that all sales and deliveries of all Merchandise (as
          defined
          below) by Supplier to Company and al I Orders
          (as
          defined below) by Company will be covered by and subject to the terms of
          this
          Agreement, the Standards for Suppliers (which is attached and Incorporated
          by
          reference) and any Order signed or Initialed (electronically or otherwise)
          by an
          Authorized Buyer (as defined
          below) for Company. This Agreement becomes effective on the date shown
          above and
          remains effective for the term set forth
          herein.
          The execution and submission of this Agreement does not impose upon Company
          any
          obligation to purchase Merchandise.

      

      
        

      

    General
      Supplier
      Information

    

    Supplier's
      Business
      Classification: (Please
      disregard this
      section if Supplier
      Is
      not
a
      female
or
      minority-owned
      business)

     

    __Woman-Owned?        __Minority
      Owned?

    __BLACK  
      __ASIAN-PACIFIC AMERICAN  __INDIAN   __ESKIMO  
__HISPANIC   __NATIVE AMERICAN   __ALEUT  
__NATIVE HAWAIIAN

     

    If
      Supplier falls within any of the above classes, and has been certified as
      minority-owned by a government agency or purchasing council, Supplier is
      qualified for the first step in the Wal-Mart Minority/Female Owned Business
      Development Program (the "Supplier Development Program"). Supplier agrees to
      provide to Company a copy of its certification as a prerequisite to
      qualification in the Supplier Development Program. For further information,
      please contact the Wal-Mart Supplier Development Office at
      1-800-604-4555.

    
      
        

      

    

    Enter
      the
      Federal Taxpayer Identification Number (TIN) of the Supplier Named
      Below.

    If
      a TIN
      has not been issued, enter the Employer's Social Security Number.

    TIN:
      *****8729

    Type
      of
      Payee (Check Only One):  __Individual/Sole
      Proprietorship    X  Corporation  
__Partnership   __Other

     

    
      	Supplier Information:   	EARLY DETECT INC 	President
              : CHARLES STRONGO	Phone:
              9495531127 
	Address: 	2082 MICHELSON DRIVE
              212   	
              Acct, Executive or V.P. Sales:
                MARIO

            	Phone:
              9495531127 
	Address 2: 	 	
              ADAME

            	
            
	City/State/Zip:  	IRVINE, CA 92612 	Acct. Contact: JOCELYN
              THOMAS 	Phone:
              9495531127  
	 	 	 	 
	ADDRESS TO
              MAIL PAYMENT: 	 	ADDRESS
              TO SEND ORDERS: 	 
	Supplier Name: 	EARLY DETECT INC 	Supplier
              Name:      	EARLY DETECT INC  
	Address: 	2082 MICHELSON DRIVE 2121 	Attention:              
              	JOCELYN THOMAS  
	Address 2: 	 	Address:         	2082 MICHELSON DRIVE
              212  
	City/State/Zip: 	IRVINE, CA 92612 	City/State/Zip: 	IRVINE, CA 92612 
	Factor Name: 	 	
              Street
                Address for use by delivery services other than the U.S. Mail,
                if not already shown   

            
	Supplier Also Doing Business
              As:
              (Attach a list to Agreement If space below is
              insufficient): 	in the Purchase Order address
              above.:
              Room:

            
	Supplier Number: 	 	Expedite Orders: Phone: 9495531127	
              Extension
                #: 

            
	 	 	 	 
	ADDRESS TO MAIL
              CLAIM
              DOCUMENTATION: 	ADDRESS TO
              SEND 	 
	Attention: 	 	PRICING
              TICKETS: 	 
	Address: 	2082 MICHELSON DRIVE 212 	Supplier Name: 	EARLY DETECT INC 
	City/State/Zip: 	IRVINE, CA 92612 	Attention: 	 
	Accounting Phone Number:
              9495531127 	
              Extension
                #: 0 

            	
              Address:

              City/State/Zip:

            	
              2082 MICHELSON DRIVE 212 

              IRVINE, CA 92612

            
	Toll Free Number: 	
              Fax
                Number: 

            	 	 
	Has Supplier or any related
              entity
              previously conducted business with Company? Yes __ No  X
               If so, under what
              name(s)? 

    

     

    STANDARD
      TERMS AND CONDITIONS

     

    1.
      DEFINITIONS.  As used In this
      Agreement or any Company issued Order, the following capitalized words shall
      have the fallowing meanings:

    (a)  "Account"
      shall mean any right to receive payments arising under this
      Agreement.

    (b)  "Anticipation"
      shall mean the intentional or unintentional payment of obligations prior to
      the
      due date which results in a monetary adjustment in amounts payable to
      Supplier.

    (c)  "Authorized
      Buyer" shall mean any General Merchandise Manager, Divisional Merchandise
      Manager, Buyer 1, 2 or 3 and replenishment manager assigned to the Wal-Mart
      category/department corresponding to the purchased Merchandise.

    (d)  "Merchandise"
      shall mean all products, goods, materials, equipment, articles, and tangible
      items supplied by Supplier to Company and all packaging, instructions, warnings,
      warranties, advertising and other services included therewith.

    (e)  "Electronic
      Data Interchange" ("EDI") shall mean the moving of information regarding
      specific business processes (invoicing, ordering, reporting, etc.)
      electronically between two or more businesses. The information is transmitted
      electronically structured according to standards mandated by
      Company.

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (f)  "End
      of
      Month Dating" shall mean payment terms beginning at the first of the following
      month rather than from the receipt of merchandise, if the merchandise is
      received on or after the 24th of the month.

    (g)    
      "High
      Risk Supplier" shall mean a Supplier identified as such by Company in view
      of
      the nature of the Supplier's products, the severity of claims made against
      Supplier's products, the frequency of claims made, past litigation involving
      the
      Supplier's products and other factors deemed relevant by Company.

    (h)    
      "Order"
      shall mean any written or electronic purchase order issued by
      Company.

    (i)  "Recall"
      shall mean any removal of Merchandise from the stream of commerce initiated
      by
      Supplier, a government entity or Company.

    (j)  "Standards"
      shall mean the Wal-Mart Stores, Inc. Standards for Suppliers, attached
      hereto.

    (k)  "Vendor
      Master" shall mean the accounting department of Company responsible for control
      and processing of new supplier agreements and updates to existing
      agreements.

    

    2.
      ORDERS;
      CANCELLATION.  Supplier
      may ship only
      after receipt of an Order. Acceptance of an Order may be made only by shipment
      of the Merchandise in accordance herewith. Acceptance is expressly limited
      to
      all of the terms and conditions of such order, including,
      all shipping, routing and billing instructions and all attachments and
      supplemental instructions delivered therewith. Sh ipments
      made
      contrary to Company's routing instructions will be deemed F.O.B. Destination
      (either store, club or warehouse). Supplier's invoice, confirmation memorandum
      or other writing may not vary the terms of any Order. Supplier's failure to
      comply with one or more terms of an Order shall constitute an event of default
      and shall be grounds for the exercise by Company of any of the remedies provided
      for in this Agreement or by applicable law. Projections, past purchasing history
      and representations about quantities to be purchased are not binding, and
      Company shall not be liable for any act or expenditure (including but not
      limited to expenditures for equipment, materials, packaging or other capital
      expenditures) by Supplier in reliance on them. Company may cancel all or any
      part of an Order at any time prior to shipment.

    

    3.
      SUPPLIER
      FINANCIAL
      INFORMATION;
      SALES TO COMPANY.  Supplier
      shall
      submit to Company with this Agreement one of the following: (1) a complete
      set
      of audited current financial statements, (2) a current Dun & Bradstreet
      financial report, or (3) if publicly held, Supplier's most recent annual report
      to shareholders and management proxy information. If Company's purchases from
      supplier are anticipated by Supplier to constitute twenty percent (20%) or
      more
      of Supplier's gross annual sales on a calendar year basis, Supplier agrees
      to
      notify Company of this fact, in writing, within thirty (30) days of Supplier
      becoming aware of such possibility.

    

    4.
      PAYMENT
      TERMS; CASH
      DISCOUNT;
      ANTICIPATION.  Supplier
      shall transmit invoices on the same day Merchandise is shipped, but payment
      terms shall date from Company's receipt of the Merchandise. If Supplier selects
      End of Month Dating on Appendix 1 hereto, Merchandise received after the 24th
      of
      any month shall be payable as if received on the first day of the following
      month.
      Any cash discount selected by Supplier on Appendix 1 will be calculated on
      the
      gross amount of Supplier's invoice. Anticipation
      may be
      taken upon the mutual consent of the parties.

    

    5. SET-OFF;
      RESERVATION OF ACCOUNT; CREDIT
      BALANCE.  Company
      may set off against amounts payable under any Order all present and future
      indebtedness of Supplier to Company arising from this or any other transaction
      whether or not related hereto. If Company determines that Supplier's performance
      under an Order and/or this Agreement is likely to be impaired, Company may
      establish a reserve on Supplier's Account to satisfy Supplier's actual or
      anticipated obligations to Company arising from any such Order or this
      Agreement, by withholding payment of Supplier's invoices. Supplier agrees that
      any credit balance will be paid in cash to Company upon written
      request.

    

    IMPORTANT
      NOTICE: ALL PAYMENTS OF MONIES OWED PURSUANT TO THIS SUPPLIER AGREEMENT AND
      PURCHASE ORDERS MUST BE MAILED TO THE FOLLOWING ADDRESS:

    WAL-MART
      STORES, INC./SAM'S CLUB, C/O CORPORATE ACCOUNTING, P.O. BOX 500787, ST. LOUIS,
      MISSOURI 63150-0787.

    

    Note:
      Any payments on your Wal-Mart or SAM'S CLUB Credit Card should be mailed to
      the
      billing address indicated on yourcredit
      card statement, not the address above.

    

    6.
      NOTICE
      REGARDING ASSIGNMENT OF ACCOUNTS; ACCOUNT DISPUTES.  Supplier
      shall provide Company written notice of
      an
      assignment, factoring, or other transfer of
      its
      Account at least 30 days prior to such assignment, factoring, or other transfer
      taking legal
      effect. Such written notice shall include the name and address of the
      assignee/transferee, the date the assignment is to begin, and
      terms of
      the assignment, and shall be considered delivered upon receipt of such written
      notice by Vendor Master. Supplier may have only
      one
      assignment, factoring or transfer of its Account effective at any time. The
      assignment of any Account hereunder shall not affect
      Company's rights set forth in Section 5 of this Agreement. Supplier shall defend
      indemnify and hold Company harmless from any and all lawsuits, claims, demands,
      actions, damages (including reasonable attorney fees, court costs, obligations,
      liabilities or liens) arising from or related to the assignment, transfer or
      factoring of its Account. Supplier releases and waives any right, claim or
      action against Company for amounts due and owing under this Agreement where
      Supplier has not complied with the notice requirements of this provision.
      Notices required pursuant to this Section shall be mailed to: Wal-Mart Stores,
      Inc., Attn: Vendor Master, 1108 S.E. 10th St. Bentonville, AR
      72716-0680.

    

    Notwithstanding
      the foregoing, any dispute or any other circumstance, Company reserves the
      right
      to remit payment to Supplier,

    

    7.
      TAXES.  The
      prices set
      forth in any Order are deemed to include all taxes. If any manufacturer's excise
      or other similar or different taxes are paid on the Merchandise described in
      any
      Order and If such tax, or any part thereof, is refunded to Supplier, then
      supplier shall immediately pay Company the amount of such refund.

    

    8.
      PRICE
      PROTECTION; PRICE GUARANTEE
      AND
      NOTICE OF PRICE INCREASES.  Supplier
      guarantees its prices against manufacturer's or Supplier's own price decline.
      If
      Supplier reduces its price on any Merchandise sold to Company, which Merchandise
      has not yet been delivered to Company by Supplier or, if consistent with
      Supplier's practice, which Merchandise is currently in Company's
      inventory (including Merchandise on hand, in warehouses and in transit),
      Supplier shall at Company's discretion either issue a
      check
      or give Company a credit equal to the price difference for such Merchandise,
      multiplied by the units of such Merchandise to be
      delivered by Supplier and/or currently in Company's inventory. For all
      Merchandise not yet shipped to Company, Supplier agrees to meet the price of
      any
      of its competitors selling comparable merchandise. If a court, regulatory agency
      or other government entity with jurisdiction finds that the prices on an Order
      are in excess of that allowed by any law or regulation of any governmental
      agency, the prices shall be automatically revised to equal a price which Is
      not
      in violation of said law or regulation. If Company shall have made payment
      before it is determined that there has been a violation of this section,

     

    
      
        
        

      

      
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    Supplier
      shall promptly refund an amount of money equal to
      the
      difference between the price paid for the Merchandise and the price which is
      not
      in violation of this section. If contemporaneously
      with
      Supplier's sale of Merchandise to the Company, Supplier sells or offers to
      any
      competitor of Company any merchandise of like grade and quality at lower prices
      and/or on terms more favorable than those stated on the Order, the prices and/or
      terms of the Order shall be deemed automatically revised to equal the lowest
      prices and most favorable terms at which Supplier shall have solci or shall
      have
      offered such merchandise and payment shall be made accordingly. If Company
      shall
      become entitled to such lower prices, but shall
      have made payment at any prices In excess-thereof, Supplier shall promptly
      refund the difference in price to Company. If there Is a price
      increase, Supplier shall give Company written notice of any such increase at
      least sixty (60) days prior to the effective da to of the
      increase.

    

    9.
      SUPPLIER EDI RESPONSIBILITIES.

    (a)  Supplier
      shall electronically receive Orders and send Company invoices via EDI unless
      otherwise agreed to by Company in writing,

    (b)  Supplier
      shall assure that access by its employees to the EDI interchange is restricted
      by password to those persons authorized to contractually bind
      Supplier.

    (c)  Supplier's
      use of the EDI interchange acknowledges Supplier's review and acceptance of
      the
      terms and requirements for tssing the EDI system to contract
      electronically.

    (d)  Supplier
      will establish a user I.D. to identify itself, and the presence of this user
      I.D. in the EDI interchange will be sufficient to verify the source of the
      data
      and the authenticity of the document.

    (e)  Documents
      containing the user I.D. will constitute a signed writing, and neither party
      shall contest the validity or enforceability of the document on the basis of
      lack of a signature or sufficient identification of the parties.

    (f)  EDI
      documents or printouts thereof shall constitute originals.

    (g)    
      EDI
      documents will be retained by both Company and Supplier in a form that is
      accessible and reproducible.

    (h)   
      If
      Company agrees to waive the EDI requirements of this section of this Agreement,
      Orders may be sent via overnight mail at Supplier's expense.

     

    10.
      PURCHASE COSTS AND CONDITIONS.  Supplier
      is responsible for verifying the accuracy of costs, discounts, allowances and
      all other terms of sale on all Orders. If incorrect information exists, Supplier
      shall notify Company not less than twenty-four (24) hours prior
      to
      shipment. If a change is necessary, no shipment is to commence without written
      confirmation of the change from an authorized
      member
      of Company's merchandising department. If Merchandise ships prior to discovery
      of an error on the Order, the parties shall confer within forty-eight (46)
      hours
      of such discovery to determine the actions to be taken regarding the erroneous
      Order.

    

    11.
      SHIPPER LOAD AND COUNT RESPONSIBILITIES.  Supplier
      who is shipping a full truckload collect, or full truckload under Company
      control, to Company will be responsible for monitoring its shipping process.
      Supplier is required to close the trailer, seal it with
      a
      Supplier-provided seal, and document the seal number on all copies of the Bill
      of Lading. All such shipments wlll be considered Shipper
      Load and Shipper Count, whether or not so notated. If Supplier fails to seal
      the
      trailer, or fails to reference and identify the seal on
      all
      copies of the Bill of Lading, and shortages occur, Supplier shall be liable
      for
      such shortage. The Shipper expressly agrees that the
      contractual provision herein shall supersede any contrary Bill of Lading tens,
      clause, notation, other provision, or any other writing.

    

    12.
      DELIVERY
      TIME.  THE
      TIME
      SPECIFIED IN AN ORDER FOR SHIPMENT OF MERCHANDISE IS OF THE ESSENCE OF
THIS
      AGREEMENT AND IF SUCH MERCHANDISE IS NOT SHIPPED WITHIN THE TIME SPECIFIED,
      COMPANY RESERVES THE
      RIGHT,
      AT ITS OPTION AND WITHOUT LIMITATION, TO CANCEL THE ORDER AND/OR REJECT ANY
      MERCHANDISE DELIVERED AFTER THE TIME SPECIFIED. In addition to the
      aforementioned remedy, Company may exercise any other remedies provided for
      in
      this Agreement or provided by applicable law, including but not limited to
      those
      remedies provided by the Uniform Commercial Code. Notwithstanding Company's
      right to cancel shipment, or to reject or revoke acceptance of Merchandise,
      Supplier agrees
      to
      inform Company immediately of any actual or anticipated failure to ship all
      or
      any part of an Order or the exact Merchandise
      called
      for in an Order on the shipment date specified. Acceptance of any Merchandise
      shipped after the specified shipment date shall not be construed as a waiver
      of
      any of Company's rights or remedies resulting from the late
      shipment.

    

    13.
      REPRESENTATIONS,
      WARRANTIES AND
      GUARANTEES.  By
      acceptance of an Order, Supplier represents, warrants and guarantees
      that:

    (a)  The
      Merchandise will be new and not used, remanufactured, reconditioned or
      refurbished, and will comply with all specifications contained In such Order
      and
      will be of equal or better quality as all samples delivered to
      Company;

    (b)  The
      Merchandise Is genuine and is not counterfeit, adulterated, misbranded, falsely
      labeled or advertised or falsely invoiced within the meaning of any applicable
      local, state or federal laws or regulations;

    (c)  The
      Merchandise has been labeled, advertised and invoiced in accordance with the
      requirements (if applicable) of the Wool Products Labeling Act of 1939, the
      Fur
      Products Labeling Act, the Textile Fiber Products Identification Act and any
      other applicable local, state or federal laws or regulations, and the sale
      of
      the Merchandise by Company does not and will not violate any such
      laws;

    (d)  Reasonable
      and representative tests made in accordance with the requirements of the
      Flammable Fabrics Act (if applicable) show that the Merchandise is not so highly
      flammable as to be dangerous when worn by individuals;

    (e)  The
      Merchandise is properly labeled as to content as required by applicable Federal
      Trade Commission Trade Practice Rules, the Fair Labor Standards Act, the Federal
      Food, Drug and Cosmetics Act and similar local, state or federal laws, rules
      or
      regulations;

    (f)  The
      Merchandise shall be delivered in good and undamaged condition and shall, when
      delivered, be merchantable and fit and safe for the purposes for which the
      same
      are intended to be used, including but not limited to consumer use;

    (g)  The
      Merchandise does not infringe upon or violate any patent, copyright, trademark,
      trade name, trade dress, trade secret or, without limitation, any other rights
      belonging to others, and all royalties owed by Supplier, if any, have been
      paid
      to the appropriate licensor;

    (h)  All
      weights, measures, sizes, legends or descriptions printed, stamped, attached
      or
      otherwise indicated with regard to the Merchandise are true and correct, and
      conform and comply with all laws, rules, regulations, ordinances, codes and/or
      standards of federal, state and local governments relating to said
      Merchandise;

    (i)  The
      Merchandise Is not In violation of any other laws, ordinances, statutes, rules
      or regulations of the United States or any state or local government or any
      subdivision or agency thereof, including but not limited to all laws and
      regulations relating to health, safety, environment, serial and identification
      numbers, labeling and country of origin designation, toxic substances, OSHA
      and
      EPA regulations,
      Federal Meat Inspection Act or Poultry Products Inspections Act (or any other
      food safety statute) and the requirements of
      California Proposition 65, and such Merchandise or the sale thereof by Company
      do not and will not violate any such laws; Q) All Merchandise shall have an
      accurate twelve (12) digit manufacturer-assigned UPC number that complies with
      Companys UPC requirements, as amended from time to time;

    (k)  There
      is no other
      impediment or restriction, legal or otherwise, that limits, prohibits or
      prevents Supplier from selling and delivering the Merchandise to Company or
      limits, prohibits or prevents Company from reselling the Merchandise to its
      customers; 

    (1)  The
      Merchandise is mined,
      produced, manufactured, assembled and packaged in compliance with the Standards;
      and

    

    
      
        
        

      

      
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    (m)  The
      Merchandise is not
      transshipped for the purpose of mislabeling, evading quota or country of origin
      restrictions or avoiding compliance
      with the Standards. Where applicable, Supplier agrees to provide Company with
      a
      current,
      complete and accurate Material
      Safety
      Data Sheet ("MSDS") for said Merchandise;

    (n)  if
      any particular item of
      Merchandise under this Agreement contains a powder, liquid, gel or paste that
      is
      not intended for
      human
      consumption; a compressed gas or propellant (such as an aerosol); or a flammable
      solid (such as matches), Supplier shall notify Company. If the item Merchandise
      contains such properties, Companys Chemicals Return Policy shall govern all
      returns of such Merchandise and Supplier shall promptly elect return options
      under that policy.

    

    It
      shall
      be within the sole discretion of Company to determine if Supplier has breached
      the above-mentioned representations, warranties and guarantees. In addition
      to
      the representations, warranties and guarantees contained in this paragraph,
      all
      other
      representations, warranties and guarantees provided by law, including but not
      limited to any warranties provided by the Uniform Commercial Code, are
      specifically incorporated herein. Nothing contained in this Agreement or an
      Order shall be deemed a waiver of any representations, warranties or guarantees
      implied by law.

     

    14.
      INDEMNIFICATION.  Supplier shall
      protect,
      defend, hold harmless and indemnify Company, including its officers, directors,
      employees and agents, from and against any and all lawsuits, claims, demands,
      actions, liabilities, losses, damages, costs and expenses
      (including attorneys' fees and court costs), regardless of the cause or alleged
      cause thereof, and regardless of whether such
      matters
      are groundless, fraudulent or false, arising out of any actual or
      alleged:

    (a)  Misappropriation
      or infringement of any patent, trademark, trade dress, trade secret, copyright
      or other right relating to any Merchandise;

    (b)  Death
      of
      or injury to any person, damage to any property, or any other damage or loss,
      by
      whomsoever suffered, resulting or claimed
      to result in whole or in part from any actual or alleged use of or latent or
      patent defect in, such Merchandise, including but not
      limited
      to (1) any actual or alleged failure to provide adequate warnings, labelings
      or
      instructions, (ii) any actual or alleged improper construction
      or design of said Merchandise, or (iii) any actual or alleged failure of said
      merchandise to comply with specifications or with
      any
      express or implied warranties of Supplier;

    (c)  Violation
      of any law, statute, ordinance, governmental administrative order, rule or
      regulation relating to the merchandise, or to any of its components or
      ingredients, or to its manufacture, shipment, labeling, use or sale, or to
      any
      failure to provide a Material Safety Data Sheet or certification;

    (d)  Act,
      activity or omission of Supplier or any of its employees, representatives or
      agents, including but not limited to activities on Company's
      premises and the use of any vehicle, equipment, fixture or material of Supplier
      in connection with any sale to or se rvice for
      the
      Company; and

    (e)  Any
      installation by Supplier of Merchandise covered by this Agreement.

    

    Supplier
      shall promptly notify Company of the assertion, filing or service of any
      lawsuit, claim, demand, action, liability or other matter that
      is
      or may be covered by this indemnity, and shall immediately take such action
      as
      may be necessary or appropriate to protect the interests
      of Company, its officers, directors, employees and agents. Any and all counsel
      selected or provided by Supplier to represent or
      defend
      Company or any of its officers, directors, employees or agents shall accept
      and
      acknowledge receipt of Company's Indemnity
      Counsel
      Guidelines, and shall conduct such representation or defense strictly in
      accordance with such Guidelines. If Company in Its sole
      discretion shall determine that such counsel has not done so, or appears
      unwilling or unable to do so. Company may replace such
      counsel
      with other counsel of Company's own choosing. In such event, any and all fees
      and expenses of Company's new counsel, together with any and all expenses or
      costs incurred on account of the change of counsel, shall be paid or reimbursed
      by Supplier as part
      of
      its indemnity obligation hereunder. Company shall at all times have the right
      to
      direct the defense of, and to accept or reject any
      offer to
      compromise or settle, any lawsuit, claim, demand or liability asserted against
      Company or any of its officers, directors, employees or agents. The duties
      and
      obligations of Supplier created hereby shall not be affected or limited in
      any
      way by Company's extension of express or implied warranties to its
      customers.

    

    15.
      RECALLS.  If
      Merchandise is the subject of a Recall, whether initiated by Supplier, Company
      or a government entity (including the issuance of safety notices), Supplier
      shall be responsible for all matters and costs associated with the Recall,
      including but not limited to:

    (a)  Consumer
      notification and contact;

    (b)  All
      expenses and losses incurred by Company in connection with such Recall (and
      where applicable, any products with which the Recalled
      Merchandise has been packaged, consolidated or commingled), including but not
      limited to refunds to customers, lost profits,
      transportation costs and all other costs associated therewith; and

    (c)  Initial
      contact and reporting of the Recall to any government agency having jurisdiction
      over the affected Merchandise.

    

    If
      a
      government agency initiates any inquiry or investigation relating to the
      Merchandise or similar goods manufactured or supplied by Supplier, Supplier
      shall notify Company immediately thereof and take reasonable steps to resolve
      the matter without exposing Company to any liability or risk.

    

    16.
      LIMITATION OF
      DAMAGES.  In
      no
      event shall Company be liable for any punitive, special, incidental or
      consequential damages of
      any
      kind (including but not limited to loss of profits, business revenues, business
      interruption and the like), arising from or relating to
      the
      relationship between Supplier and Company, including all prior dealings and
      agreements, or the conduct of business under or breach of this Agreement or
      any
      Order, Company's cancellation of any Order or Orders or the termination of
      business relations with Supplier,
      regardless of whether the claim under which such damages are sought is based
      upon breach of warranty, breach of contract, negligence,
      tort, strict liability, statute, regulation or any other legal theory or law,
      even if Company has been advised by Supplier of the
      possibility of such damages.

    

    17.
      REMEDIES.  Supplier's failure
      to
      comply with any of the terms and conditions of this Agreement or any Order
      shall
      be grounds for the exercise by Company of any one or more of the following
      remedies:

    (a)  Cancellation
      of all or any part of any undelivered Order without notice, including but not
      limited to the balance of any remaining installments on a multiple-shipment
      Order;

    (b)  Rejection
      (or revocation of acceptance) of all or any part of any delivered shipment.
      Upon
      rejection or revocation of acceptance of any
      part
      of or all of a shipment, Company may return the Merchandise or hold It at
      Supplier's risk and expense. Payment of any invoice
      shall
      not limit Company's right to reject or revoke acceptance. Company's right to
      reject and return or hold Merchandise at Supplier's expense and risk shall
      also
      extend to Merchandise which is returned by Company's customers. Company may,
      at
      its option, require Supplier to grant a full refund or credit to Company of
      the
      price actually paid by any customer of Company for any such item in lieu of
      replacement with respect to any item. Company shall be under no duty to inspect
      the Merchandise, and notice to Supplier of rejection shall
      be
      deemed given within a reasonable time if given within a reasonable time after
      notice of defects or 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    deficiencies
      has been given to
      Company by Its customers. In respect of any Merchandise rejected (or acceptance
      revoked) by Company, there shall be ch arged to Supplier
      all expenses Incurred by Company in (1) unpacking, examining, repacking and
      storing such Merchandise (It being agreed that In
      the
      absence of proof of a higher expense that the Company shall claim an allowance
      for each rejection at the rate
      of
      10% of
      the price for
      each
      rejection made by Company) and (Ii) landing and reshipping such Merchandise.
      Unless Company otherwise agrees in
      writing,
      Supplier
      shall not have the right to make
      a conforming
      delivery within the contract time;

    (c)  Termination
      of all current and future business relationships;

    (d)  Assessment
      of monetary fines as determined In Company's reasonable discretion;

    (e)  Recovery
      from Supplier of any damages sustained by Company as a result of Supplier's
      breach or default; and

    (f)  Buyer's
      remedies under the Uniform Commercial Code and such other remedies as are
      provided under applicable law.

    

    These
      remedies are not exclusive and are In addition to all other remedies available
      to Company at law or in equity.

    

    18.
      INSURANCE REQUIREMENTS.  Supplier
      is required to obtain and maintain the following insurance coverage from a
      carrier acceptable to Company in the amounts and with the conditions listed
      below:

    a)  Commercial
      General Liability, including Contractual, Personal & Advertising Injury,
      Products and Completed Operations coverage, with certificate holder named as
      Additional Insured as evidenced by attached endorsement or blanket additional
      insured coverage provided
      by the policy. Policy shall be occurrence based with limits of no less than
      $5,000,000 per occurrence, without any aggregate
      limits
      or $50,000,000 in the aggregate. Defense costs shall not apply against coverage
      limits. High Risk Suppliers (as defined by Company)
      shall maintain policy limits of not less than $10,000,000 per occurrence without
      any aggregate limits or $100,000,000 In the
      aggregate.

    b)  Statutory
      Workers' Compensation Coverage for a Supplier whose employees will be entering
      Company's premises, with $1, 000,000 in employers' liability coverage and a
      waiver of subrogation where Permitted By Law.

    c)  Automobile
      Coverage, with certificate holder named as Additional Insured as evidenced
      by
      attached endorsement or blanket additional
      insured coverage provided by the policy, for a Supplier whose employees or
      agents will be driving on Company's premises or making
      delivery to Company's premises shall be occurrence based with limits of no
      less
      than $5,000,000 per occurrence, without any
      aggregate limits or $50,000,000 in the aggregate. Defense costs shall not apply
      against coverage limits.

    d)  Supplier
      shall provide at least thirty (30) days' written notice prior to any
      cancellation of any policy of insurance maintained hereunder,
      and each such policy shall obligate the Insurer to provide at least thirty
      (30)
      days' written notice to Company In advance of
      any
      contemplated cancellation or termination thereof.

    e)  Supplier's
      insurance shall be considered primary, non-contributory and not excess
      coverage.

    

    A
      copy of
      Suppliers current Certificate of Insurance with the following requirements
      must
      be submitted with this Agreement:

    l 
Certificate
      Holder should read: WAL-MART STORES, INC., ITS SUBSIDIARIES & ITS
      AFFILIATES, 702 SW 8th Street, Bentonville,
      AR
      72716-0145, Attn: Risk Management

    l 
Renewals
      of Certificates of Insurance must be submitted prior to expiration of insurance
      coverage

    l 
Existing
      Suppliers must
      include Supplier Number on Certificate of Insurance.

    l 
Please
      direct any questions
      regarding your insurance to Risk Management at (479) 277-1658 or (479)
      277-2890.

    

    SUPPLIER
      CONTACT FOR PRODUCT LIABILITY CLAIMS:

     

    
      	
              Name: 

            	
              EARLY
                DETECT INC 

            	Insuring Company: GENERAL
              STAR 
	
              Address: 

            	
              2082
                MICHELSON DRIVE 212 

            	Telephone: 9497272025    Extension
              #: 0 
	
              City/State/Zip: 

            	IRVINE,
              CA 92612	 
	
              Telephone: 

            	94
              95531127	Extension #: 0 
	
              Fax
                Number: 

            	9495531160	e-mail: 

    

     

    19.
      FORCE
      MAJEURE.  If
      anyplace of buslness or other premises of Company shall be affected by lockouts,
      strikes, riots, war, acts of
      terrorism, fire, civil insurrection, flood, earthquake or any other casualty
      or
      cause beyond Company's control, which might reasonably
      tend to
      impede or delay the reception, handling, inspecting, processing or marketing
      of
      the Merchandise covered by this Agreement, Company
      may, at its option, cancel all or any part of the undelivered Order hereunder
      by
      giving written notice to Supplierwhich notice
      shall be
      effective upon mailing.

     

    20.
      ASSIGNMENT.  Except
      as
      specifically set forth In Section 6, no part of this Agreement or of any Order
      shall be assignable by Supplier without the written consent of Company, and
      Company shall not be obligated to accept a tender of performance by any
      assignee, unless Company shall have previously expressly consented In writing
      to
      such an assignment.

     

    21.
      PUBLICITY;
      USE OF NAME
      AND
INTELLECTUAL
      PROPERTY.  Supplier
      shall not refer to Company in any advertising or published
      communication without the prior written approval of Company. Supplier shall
      not
      use, or allow to be used, Company's name, logo,
      trademarks, service marks, patents, copyrights or trade dress without the prior
      written approval of Company. Company may use Supplier's
      name, logo, trademarks, service marks, patents, copyrights and trade dress
      In
      connection with Company's marketing of the
      Merchandise.

     

    22.
      COMPLIANCE
      WITH STANDARDS FOR SUPPLIER.  Supplier
      warrants that It has read and understands and will comply with the
      requirements set forth in the Standards located at http://www.walmartstores.com/Files/SupplierStandards.pdf,
      or
      attached, as may
      be
      reasonably amended from time to time by Company, If the Supplier Is not able
      to
      view the Standards on-line they may request a current
      copy from Supplier Development, their local Global Procurement office or from
      the Direct Imports Division. Company reserves
      the
      right to cancel any outstanding Order, refuse any shipments and otherwise cease
      to do business with Supplier If Supplier fails to comply with any terms of
      the
      Standards or If Company reasonably believes Supplier has failed to do
      so.

     

    23.
      SEVERABILITY;
      WAIVER.  At
      the
      option of Company, no finding that a part of this Agreement is invalid or
      unenforceable shall affect the validity of any other part hereof. Company's
      failure to enforce at any time any provision of this Agreement will not be
      construed as a waiver of such provision or of any rights thereafter to enforce
      such provision. Any waiver by Company of any of the terms and conditions of
      thls
      Agreement or any Order must be in writing signed by an authorized representative
      of Company.

     

    24.
      FORUM
      SELECTION; CHOICE OF LAW;
      STATUTE
      OF LIMITATIONS.  This
      Agreement, any and all Orders, and any and all disputes
      arising thereunder or relating thereto, whether sounding in contract or tort,
      shall be govemed by and construed In accordance with
      the
      laws of the State of Arkansas without regard to the internal law of Arkansas
      regarding conflicts
      of law, and the federal and/or state courts of Benton and Washington County,
      Arkansas, shall have exclusive jurisdiction over any actions or suits relating
      thereto. The parties mutually acknowledge and agree that they shall not raise,
      and hereby waive, any defenses based upon venue, inconvenience of forum or
      lack
      of personal jurisdiction in any action or suit brought in accordance with the
      foregoing. Any legal action brought by Supplier against Company with respect
      to
      this Agreement or any Orders shall be filed in one of the above referenced
      jurisdictions within two (2) years after the cause of action arises or It shall
      be deemed forever waived. The
      parties acknowlecige that they have read and understand this clause and agree
      willingly to its terms.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    25.
      ATTORNEY
      FEES AND INTEREST OBLIGATIONS.  Company
      reserves the right to charge Supplier interest at the rate of 12% per annum
      or
      such lower rate as may be permitted under applicable law for any obligations
      owed by Supplier to Company, including debit
      balances not paid within thirty (30) days after due, until such amounts are
      paid
      in full, and Company will be entitled to recover from
      Supplier
      its attorneys' fees and costs incurred in collecting any past-due
      obligation.

    

    26.
      NOTICES.  Unless
      otherwise
      specifically provided for herein, any notice or demand which under the terms
      of
      this Agreement or under
      any
      statute must or may be given or made shall be in writing and shall be given
      or
      made by overnight express service addressed
      as
      follows: if to Company, Wal-Mart Stores, Inc., Attn: General Merchandise Manager
      (identify department or category), 702 SW 8th Street, Bentonville, AR 72716.
      If
      to Supplier: to Supplier's address set forth above. Such notice or demand shall
      be deemed given on the
      second (2nd) business day after deposit of such notice or demand with the
      overnight express service. The above addresses may be
      changed
      at any time by giving prior written notice as provided above.

     

    27.
      TERM
      OF
      AGREEMENT.  This
      Agreement ends one year after the Effective Date. This Agreement may only be
      renewed or extended
      by an agreement signed by an authorized officer of Company and Supplier.
      Supplier and Company are under no obligation to
      extend
      the term of this Agreement or to renew this Agreement. Neither Supplier nor
      Company should take any actions in reliance upon this Agreement being extended
      or renewed. Neither party shall be responsible for any costs incurred by the
      other in anticipation of the extension or renewal of this
      Agreement.

    

    28.
      INFORMATION
      SECURITY.  Supplier
      represents that it currently follows industry best practices as a means to
      prevent any compromise of its information systems, computer networks, or data
      files ("Systems") by unauthorized users, viruses, or malicious computer programs
      which could in turn be propagated via computer networks, email, magnetic media
      or other means to Company. Supplier agrees to immediately give Company notice
      if
      the security of its Systems are breached or compromised in any way.

     

    Supplier
      agrees to apply appropriate internal information security practices, including,
      but not limited to, using appropriate frewall and anti-virus software;
      maintaining said countermeasures, operating systems, and other applications
      with
      up-to-date virus definitions and security patches; installing and operation
      security mechanisms in the manner in which they were intended sufficient to
      ensure the Company will not be impacted nor operations disrupted; and permitting
      only authorized users access to computer systems, applications, and Retail
      Link.

    

    Supplier
      specifically agrees to: use up-to-date anti-virus tools to remove known viruses
      and malware from any email message or data transmitted to Company; prevent
      the
      transmission of attacks on Company via the network connections between Company
      and the Supplier; and prevent unauthorized access to Company systems via the
      Supplier's networks and access codes.

    

    In
      accordance with all applicable US and International privacy laws, Supplier
      agrees to safeguard confidential protected individually identifiable personal
      information (health, financial, identity) which are received, transmitted,
      managed, processed, etc. and to require subcontractor or agent to meet these
      same security agreements.

     

    Financial
      service suppliers, who handle personally identifiable financial information
      of
      our customers agree to maintain a current SAS70
      Type II
audit.

     

    29.
      SURVIVAL
      OF PROVISIONS.  The
      provisions ofthis
      Agreement which by their nature are intended to survive termination of this
      Agreement (including but not limited to representations, warranties, guarantees,
      indemnifications, payment of obligations, remedies forum selection and statute
      of limitations) shall survive its termination.

     

    The
      parties hereto agree that this Agreement, the Standards and any Order constitute
      the full understanding of the parties, a complete allocation of risks between
      them and a complete and exclusive statement of the terms and conditions of
      their
      agreement. All prior agreements, negotiations, dealings and understandings,
      whether written (including any electronic record) or oral, regarding the subject
      matter hereof, are superseded by this Agreement. Any changes in this Agreement
      shall be in writing and executed by both parties. Furthermore, if there is
      a
      conflict of terms between this Agreement and an Order, this Agreement shall
      be
      the controlling document.

    

    We
      (Company) will never assume that you (Supplier) will be willing to extend or
      renew this Agreement or to accept any specific volume
      of
      Orders. Conversely, we urge you never to assume that this Agreement will be
      renewed or extended by us or that we will issue Orders for specific volume
      of
      Merchandise, even if your impression is based on discussions you may have had
      with Company representatives. No Company representative has authority to renew
      or extend this Agreement except in a writing signed by an authorized officer
      of
      Company, and no Company representative has authority to order Merchandise except
      an Authorized Buyer through an Order Issued pursuant to and subject to the
      terms
      of this Agreement.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    
      
        	Supplier No.
                5051 	
                Department
                  No.
                  38

              	
                Effective
                  Date:
                  06/13/2007 

              

      

    

     

     WAL-MART
      STORES, INC.

     

    STANDARDS
      FOR SUPPLIERS

     

    Wal-Mart
      Stores, Inc. ("Wal-Mart") has enjoyed success by adhering to three basic beliefs
      since its founding In 1962:

    

    1.  Respect
      for the Individual

    2.  Service
      to our Customers

    3.  Strive
      for Excellence

    

    Wal-Mart
      strives to conduct Its business in a manner that reflects these three basic
      beliefs. Our suppliers are expected to conform to these
      beliefs and the values inherent therein and to assure these beliefs and values
      are reflected in their contracting, subcontracting or
      other
      relationships.

     

    Since
      Wal-Mart believes that the conduct of Its suppliers can be attributed to
      Wal-Mart and affect its reputation, Wal-Mart requires Its suppliers
      to conform to standards of business practices which are consistent with the
      three beliefs described above. More specifically,
      Wal-Mart
      requires conformity from its suppliers with the following standards, and hereby
      reserves the right to make periodic, unannounced inspections of supplier's
      facilities to satisfy Itself of supplier's compliance with these
      standards:

     

    1.
      COMPLIANCE
      WITH APPLICABLE LAWS.  All
      Suppliers shall comply with the legal requirements and standards of their
      industry under the national laws of the countries in which the Suppliers are
      doing business, including the labor and employment laws of those countries,
      and
      any applicable U.S. laws. Should the legal requirements and standards of the
      industry conflict, Suppliers must, at a minimum,
      be in compliance with the legal requirements of the country in which the
      products are manufactured. If, however, the industry
      standards exceed the country's legal requirements, Wal-Mart will favor Suppliers
      who meet such industry standards. Suppliers shall comply with all requirements
      of all applicable governmental agencies. Necessary invoices and required
      documentation must be provided
      in compliance with the applicable law. Suppliers shall warrant to Wal-Mart
      that
      no merchandise sold to Wal-Mart infringes the
      patents,
      trademarks or copyrights of others and shall provide to Wal-Mart all necessary
      licenses for selling merchandise sold to Wal-Mart, which is under license from
      a
      third party. All merchandise shall be accurately marked or labeled with its
      country of origin in compliance
      with applicable laws and including those of the country of manufacture. All
      shipments of merchandise will be accompanied
      by the
      requisite documentation issued by the proper governmental authorities, Including
      but not limited to Form A's, import licenses, quota allocations and visas and
      shall comply with orderly marketing agreements, voluntary restraint agreements
      and other such agreements in accordance with applicable law. The commercial
      invoice shall, in English and in any other language deemed appropriate,
      accurately describe all the merchandise contained in the shipment, identify
      the
      country of origin of each article contained in
      the
      shipment, and shall list all payments, whether direct or indirect, to be made
      for the merchandise, including, but not limited to any assists, selling
      commissions or royalty payments. Backup documentation, and any Wal-Mart required
      changes to any documentation, will
      be
      provided by Suppliers promptly. Failure to supply complete and accurate
      information may result in cancellation or rejection of the
      goods.

    

    2.
      EMPLOYMENT.  At
      a minimum,
      Wal-Mart expects its "suppliers" to meet the following terms and conditions
      of
      employment:

    

    Compensation.  Suppliers
      shall fairly compensate their employees by providing wages and benefits, which
      are in compliance with the
      local
      and national laws of the jurisdictions in which the suppliers are doing business
      or which are consistent with the prevailing local
      standards in the jurisdictions in which the suppliers are doing business, if
      the
      prevailing local standards are higher.

    

    Hours
      of
Labor.  Suppliers
      shall maintain reasonable employee work hours In compliance with local standards
      and applicable laws of the jurisdictions in which the suppliers are doing
      business. Employees shall not work more than 72 hours per 6 days or work more
      than a maximum total working hours of 14 hours per calendar day (midnight to
      midnight). The factory should be working toward achieving a 60-hour work week.
      Wal-Mart will not use suppliers who, on a regularly scheduled basis, require
      employees to work in excess of the statutory requirements without proper
      compensation as required by applicable law. Employees should be permitted
      reasonable days off (at least one day off for every seven-day period) and leave
      privileges.

    

    Forced
      Labor/Prison Labor.  Forced
      or
      prison labor will not be tolerated by Wal-Mart. Suppliers shall maintain
      employment on a voluntary basis. Wal-Mart will not accept products from
      suppliers who utilize in any manner forced labor or prison labor in the
      manufacture or in their contracting, subcontracting or other relationships
      for
      the manufacture of their products.

    

    Child
      Labor.  Wal-Mart will
      not
      tolerate the use of child labor. Wal-Mart will not accept products from
      suppliers who utilize in any manner
      child labor in the manufacture or in the contracting, subcontracting or other
      relationships for the manufacture of their products.
      No
      person shall be employed at an age younger than the law of the jurisdiction
      of
      manufacture allows. Where country laws allow children
      below the age of 14 years to work, Wal-Mart will only recognize the minimum
      working age of 14 years, regardless of the law of
      the
      jurisdiction.

    

    Discrimination/Human
      Rights.  Wal-Mart recognizes
      that
      cultural differences exist and different standards apply in various
      jurisdictions, however, we believe that all terms and conditions of employment
      should be based on an individual's ability to do the job, not on the basis
      of
      personal characteristics or beliefs. Wal-Mart favors suppliers who have a social
      and political commitment to basic principles of human rights and who do not
      discriminate against their employees in hiring practices or any other term
      or
      condition of work, on the basis of race, color, national origin, gender, sexual
      orientation, religion, disability, or other similar factors.

    

    3.
      WORKPLACE
      ENVIRONMENT.  Wal-Mart
      expects its suppliers to maintain a safe, clean, healthy and productive
      environment for its employees. Factories producing merchandise to be sold by
      Wal-Mart shall provide adequate medical facilities, fire exits and safety
equipment,
      well-lighted and comfortable workstations, clean restrooms, and adequate living
      quarters where necessary. Workers should
      be
      adequately trained to perform their jobs safely. Wal-Mart will not do business
      with any supplier that provides an unhealthy or hazardous work environment
      or
which
      utilizes
      mental or physical
      disciplinary
      practices.

     

    4.
      CONCERN FOR THE ENVIRONMENT.  We believe it
      is our
      role to be a leader in protecting our environment. We encourage our customers
      and associates to always reduce, reuse, and recycle. We also encourage our
      suppliers to reduce excess packaging and to
      use
      recycled and non-toxic materials whenever possible. We will favor suppliers
      who
      share our commitment to the environment.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    5. FACTORY
      INSPECTION REQUIREMENTS.  Scheduled
      Inspections should typically be conducted a maximum of three tlrnes per year
      to
      ensure compliance with the standards, terms, and conditions set forth herein.
      Wal-Mart reserves the right to conduct unannounced factory
      inspections.

     

    In
      the
      case of domestic suppliers, factory audits shall typically be conducted by
      Wal-Mart approved third party audit firms. All charges related
      to the third party Inspection and certification of such facilities shall be
      paid
      fully by the supplier. Any supplier who fails or
      refuses to
      comply
      with these standards is subject to Immediate cancellation of any and all
      outstanding orders, refusal or return of any shipment, and
      termination of its business relationship with Wal-Mart. In the case of suppliers
      working through Global Procurement Direct Imports,
      audits
      should be conducted by Wal-Mart's Internal auditors. Once a factory has been
      audited and assessed either green or yellow by either Wal-Mart's internal
      auditors or an approved third party audit firm, the factory is valid for any
      supplier to use for Wal-Mart business.

     

    6.
      RIGHT
      OF INSPECTION.  To
      further assure proper Implementation of and compliance with the standards set
      forth herein, Wal-Mart or a third party designated by Wal-Mart will undertake
      affirmative measures, such as on-site inspection of production facilities,
      to Implement and monitor said standards. Any supplier which fails or refuses
      to
      comply with these standards or does not allow inspection
      of production facilities is subject to immediate cancellation of any and all
      outstanding orders, refuse or return any shipment,
      and
      otherwise cease doing business with Wal-Mart.

     

    7.
      CONFIDENTIALITY.  Supplier
      shall not at any time, during or after the term of this Agreement, disclose
      to
      others and will n of take or use for its own purposes or the purpose of others
      any trade secrets, confidential information, knowledge, designs, data, know-how,
      or any other information reasonably considered "confidential." Supplier
      recognizes that this obligation applies not only to technical information,
      designs and marketing, but also to any business information that Wal-Mart treats
      as confidential. Any information that Is not
      readily available to the public shall be considered to be a trade secret and
      confidential. Upon termination of this Agreement, for any
      cause,
      supplier shall return all Items belonging to Wal-Mart and all copies of
      documents containing Wal-Mart's trade secrets, confidential information,
      knowledge, data or know-how In supplier's possession or under suppliers
      control.

    

    8.
      WAL-MART
      GIFT AND GRATUITY
      POLICY.  Wal-Mart
      Stores, Inc. has a very strict policy which forbids and prohibits the
solicitation,
      offering or acceptance of any gifts, gratuities or any form of "pay off" or
      facilitation fee as a condition of doing business with
      Wal-Mart; as a form of gratitude, or as an attempt to gain favor or accept
      merchandise or services at a lesser degree than what was agreed. Wal-Mart
      believes in delivering and receiving only the total quantity
      agreed.

    

    Any
      supplier, factory or manufacturer who violates this policy by offering or
      accepting any form of gift or gratuity to/from any associate, employee,
      agent or affiliate of Wal-Mart Stores, Inc. will be subject to all loss of
      existing and future business, regardless of whether the gift
      or
      gratuity was accepted. In addition, a supplier, factory or manufacturer who
      violates this policy, will be reported to the appropriate
      governmental authorities of the supplier's respective and affiliated
      jurisdictions.

     

    Failure
      to report such information will result in severe action against such supplier,
      trading company or factory including but not limited
      to
      termination of all existing and future business relationships and monetary
      damages.

     

    STANDARDS
      FOR SUPPLIERS  A copy
      of these Standards for Suppliers shall be posted in a location visible to all
      employees
      at all facilities that manufacture products for Wal-Mart
      Stores,
      Inc.
      and Its
      affiliates. Any person
      with knowledge
      of
      a
      violation of any of these standards
      by a Supplier
      or
      a
      Wal-Mart associate should
      call 1-800-WM-ETHIC
      (1-800-963-8442). (In
      countries other than the United
      States, dial AT&T's U.S.A.
      Direct
      Number first) or write to: Wal-Mart Ethics Committee, 702 SW 8th St., Bentonville, AR 72716-8095.

     

    9.
      ACKNOWLEDGMENT
      OF STANDARDS.  As
      an officer or
      duly authorized representative of my company, a Supplier of Wal-Mart, I have
      read the principles and terms described in this document and understand my
      company's business relationship with Wal-Mart is based upon said company being
      in full compliance with these principles and terms. I further understand that
      failure by a Supplier to abide by any of the terms and conditions stated herein
      may result in the immediate cancellation by Wal-Mart of all outstanding orders
      with that Supplier and refusal by Wal-Mart to continue to do business in any
      manner with said Supplier. I am signing this Supplier Agreement as a corporate
      representative of my company, to acknowledge, accept and agree to abide by
      the
      standards, terms and conditions set forth herein between my company and
      Wal-Mart. I hereby affirm that all actions, legal and corporate, to make this
      Standards for Suppliers binding and enforceable against my company have been
      completed.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      
        
          	Supplier No.
                  5051 	
                  Department
                    No.
                    38

                	
                  Effective
                    Date:
                    06/13/2007 

                

        

      

    

     

    APPENDIX

     

    This
      Appendix constitutes and is part and parcel of the Supplier Agreement. The
      terms
      of the Supplier Agreement are binding and enforceable as to this
      Appendix.

     

    STANDARD
      PURCHASE ORDER ALLOWANCE

     

    These
      allowances
      apply
      to
      each
      Purchase
      Order issued, unless otherwise agreed to by the parties.

     

    
      	 	
              DISC.

            	 	
              HOW
                PAID

            	
              WHEN
                PAID 

            
	
              CODE
                ALLOWANCE 

            	
              % 

            	
              SPECIAL
                INSTRUCTIONS

            	
              OI

            	
               CM

            	
               CK

            	
               EI

            	
              M

            	
              Q

            	
              S

            	
              A

            
	 	 	 	 	 	 	 	 	 	 	 	 
	
              SA

            	
              
                New
                  Store/Club Discount (%
Applied to each line item for

                each
                  new store P.O.) 

              

            	
              10

            	 	
              X

            	 	 	
              X

            	 	 	 	 
	
              OL

            	
              
                
                  New
                    Store/Club Discount (%
Represents contribution of
                  total
business to New Store

              
                Program.)

              

            	 	 	 	 	 	 	 	 	 	 
	
              NW 

            	
              New
                Distribution Center 

            	 	 	 	 	 	 	 	 	 	 
	
              WA 

            	
              Warehouse
                Allowance 

            	 	 	 	 	 	 	 	 	 	 
	
              OD 

            	
              Warehouse
                Distribution 
                Allowance 

              

            	 	 	 	 	 	 	 	 	 	 
	
              DM 

            	
              
                
                  Defective/Returned
                    Mdse.
Allowance - Not applicable in
Puerto Rico. (When
                selected

                must
                  mark option 3 under 
                  warranty
                    policy.) 

                

              

            	 	 	 	 	 	 	 	 	 	 
	
              SD 

            	
              Soft
                Goods Defective Allow 

            	 	 	 	 	 	 	 	 	 	 
	
              PA 

            	
              Promotional
                Allowance 

            	 	 	 	 	 	 	 	 	 	 
	
              VD 

            	
              Volume
                Discount 

            	 	 	 	 	 	 	 	 	 	 
	
              FA 

            	
              Freight
                Allowance 

            	 	 	 	 	 	 	 	 	 	 
	
              AA 

            	
              Advertising
                Allowance 

            	 	 	 	 	 	 	 	 	 	 
	
              TR 

            	
              TV/Radio
                Media Allowance 

            	 	 	 	 	 	 	 	 	 	 
	
              DA 

            	
              Display/Endcap
                Allowance 

            	 	 	 	 	 	 	 	 	 	 
	
              E5 

            	
              Early
                BuyAllowance 

            	 	 	 	 	 	 	 	 	 	 
	
              HA 

            	
              Handling
                Allowance 

            	 	 	 	 	 	 	 	 	 	 

    

     OI-Off
      Invoice; CM-Credit Memo; CK-Check; EI-Each Invoice; M-Monthly; Q-Quarterly;
      S-Semi-Annually; A-Annually;

     

    IMPORTANT
      NOTICE: ALL PAYMENTS OF MONIES
      OWED PURSUANT
      TO THIS SUPPLIER
      AGREEMENT AND PURCHASE

    ORDERS
      MUST BE MAILED TO THE FOLLOWING ADDRESS:WAL-MART STORES, INC./SAWS CLUB, C/O
      CORPORATE

    ACCOUNTING,
      P.O. BOX 500787,
      ST.
      LOUIS,
      MISSOURI 63150-0787. Note:
      Any
      payments on your Wal-Mart or SAM'S CLUB

    Credit
      Card should be malled to the billing address
      indicated
      on your credit card statement, not the address above.

     

    PAYMENT
      TERMS

     

    
      	
              2

            	Cash Discount --Enter whole
              percents 	NEW STOREIWHSE TERMS IF DIFFERENT THAN
              REGULAR TERMS: 
	
              30

            	
              Cash Discount Days Available(Must be

              filled in if a Cash Discount is
                used) 

            	 
	
              60

            	
              Net
                Payment Days Available (Must be at

              least
                one day more than Cash Discount 

              Days
                Available)

              End
                Of Month Dating X Yes _No

            	 

    

     

    SHIPPING
      TERMS

     

    
      	FREIGHT TERMS  	
              MINIMUM
                FOR PREPAID FREIGHT
                TERMS

            
	___   Collect - F.O.B
              Supplier 	
              _0_  
                Pounds 

            
	_X_  Prepaid - F.O.B
              Company  	
              _0_ 
                Cases/Units

            
	___  Prepaid To
              consolidator - F.O.B. Company's Consolidator	
              _0_ 
                Whole Dollars

            

    

     

    No
      freight charges are to be added to invoices. Refer to the current Routing Guide
      for detailed instructions.

     

    CONDITION
      OF SALE

     

    __
      Guaranteed Sales        __
      Consignment        __
      Preticketing       __
      Prepricing        __
      Stock
      Balancing         __ Shelf
      Labeis

    __
      Point
      of Sale (Pay from Scan)                   __
Other

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    Product
      Chemical
      Information

    

    Does
      Supplier currently sell, or anticipate
      selling, to Company under this Agreement any item of Merchandise that is or
      contains a powder, liquid, gel or paste that is not intended for human
      consumption; a compressed gas or propellant (such as an aerosol); or a flammable
      solid (such asmatches)?

    __Yes 
      X  NO

    

    RETURN
      POLICY. (SUPPLIER MUST CHOOSE ONE OPTION BELOW AND
      COMPLETE
      THE
      NECESSARY
      INFORMATION.) Supplier
      will oe charged current merchandise costs plus a 10%
      handling
      charge for all returned merchandise. Returned merchandise will be shipped with
      return freight charges billed back to Supplier. Returns are F.O.B.
      Purchaser.

    

     
      X   SUPPLIER OPTION #1: SUPPLIER, WANTS RETURNED MERCHANDISE SENT
      TO THEM:

     
      X   A. Returned merchandise will be sent to Supplier direct from
      each store,

    Permanent
      return authorization #: RA
      WAL
      4001,
      if
      required for shipment. If automatic return is not possible, a toll frees
      number
      should
      be provided or Supplier must accept Purchaser's
      collect
      calls to secure return authorization over the phone. Phone: 94P5531127
      Extension #: Contact JOSEPH
      MARIN

    ___
      B.
      Returned merchandise will be sent from store locations to the Return Center
      and
      sent to Supplier.

    Permanent
      return authorization #:___________ ,
      if
      required for shipment. If automatic return is not possible, a toll free numoer
      must be provided or Supplier must provide a fax number and a contact
      name.

    Phone:__________
      Extension
      #:__________ Contact:
      __________

    

    RETURN
      SHIPPING ADDRESS: Address: 739E
      TRADE
      STREET
      City: SAN DIEGO
      State:
CA Zip: 92121 

     

    Special
      instructions:

     

    ___SUPPLIER
      OPTION #2: SUPPLIER DOES NOT WANT RETURNED MERCHANDISE SENT TO
      THEM.

    ___
      A. Returned merchandise must be disposed of by the individual store;
      OR

    ___
      B. 
      Returned merchandise will be sent from store locations to the Return Center
      for
      disposal. [Choose one of the following
      three.]

    ___
      i.     Return
      Center may dispose of returned merchandise through salvage outlets or recycling
      operations,
      without accounting for the proceeds of such disposal;

    ___
      ii.    Return
      Center must destroy returned merchandise. (Supplier may be charged for any
      additional costs of destruction.);

    ___
      iii.   Return
      Center may donate returned merchandise to charity.

     

    Special
      Instructions:

    

    

    ___SUPPLIER
      OPTION#3: CUSTOMER SATISFACTION MERCHANDISEALLOWANCE:

    Supplier
      will allow the Customer Satisfaction Merchandise Allowance stated in this
      agreement. The percentage must be adequate to cover all costs associated with
      returned merchandise, including but not limited to defective/returned
      merchandise and handling costs, or additional claims will be filed by the Return
      Center at our fiscal year end.

    ___ A. Return
      Center may dispose of returned merchandise through salvage outlets or recycling
      operations, without accounting for the proceeds of such disposal;

    ___
B. 
      Return
      Center must destroy returned merchandise. (Supplier may incur additional
      handling charges to cover costs of destruction.);

    ___
      C. Returned merchandise will be sent from store locations to the Return
      Center and sent to Supplier. If Supplier requests the returned merchandise
      be
      sent to them, in addition to the Customer Satisfaction Allowance, the
      merchandise will be shipped with return freight
      charges billed back to Supplier; OR

    ___ D.
      Return Center may donate Return Merchandise to charity.

     

    Permanent
      return authorization #:____________

    RETURN
      SHIPPING ADDRESS: Address:___________ City:___________
      State:___
      Zip:_________

     

    Special
      Instructions:

    

    In
      electing SUPPLIER
      OPTION
      2.13.iii.
      or
SUPPLIER
      OPTION
      3.D,
      above,
      Supplier acknowledges and agrees that not all returned merchandise is suitable
      for donation. If the returned merchandise is deemed by Company to be unsuitable
      for donation, Supplier agrees that Company may either (i) destroy such returned
      merchandise (and Supplier may be charged for any additional costs of
      destruction) or (ii) dispose of such returned merchandise through recycling
      operations, without accounting for the proceeds of such disposal. Provided
      however, Company agrees to retain documentation of returned merchandise for
      a
      period of one (1) year after the date on such documentation. Supplier shall
      have
      the right, upon reasonable prior notice to Company, to examine and make copies
      of such documentation related to Supplier's returned merchandise. Supplier
      shall
      be responsible for any and al expenses related to the examination or copies
      of
      such records.

     

    SHIPPING
      INSTRUCTIONS

    

    Supplier
      will ship all merchandise in accordance with the then current Shipping and
      Routing Instructions, Wal-Mart Stores, Inc. (the "Routing Instructions").
      Supplier acknowledges it has received a copy of the Routing Instructions. The
      current Routing Instructions, as may
      be
      reasonably amended by Company from time to time, shall be available on Retail
      Link. Each purchase order will show a routing,
      which is
      determined by Company's
      Traffic
      Department. Supplier is liable for the excess transportation cost if the
      designated routing is not followed. If Supplier has a question concerning the
      routing selected, Supplier must call Company's Traffic Departmen; before
      releasing the shipment at the following number: (479) 273-6359.

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    SHIPPING
      POINT SHIPPING STATE 

    SAN
      DIEGO                                       
CA

     

    
      	Adame, Mario 	Knight, Cheryl  	Kinsey,
              Sandra 
	Supplier  	Buyer  	Divisional Merchandise
              Manager 

    

     

     

    11

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