Document:

ex10-03.htm

    Exhibit
10.03

     

     

    Robert Bowdring Employment
Agreement

    

    

    Effective Date: October
27th, 2008

    

    

    EMPLOYMENT, CONFIDENTIAL
INFORMATION,

    AND INVENTION ASSIGNMENT
AGREEMENT

    

    As a
condition of my employment with INVO Bioscience Inc, its subsidiaries,
affiliates, successors or assigns (together the “Company”), and in consideration
of my further employment with the Company and my receipt of the compensation now
and hereafter paid to me by Company and the Company’s agreement in Section
2(a)(i), I agree to the following terms and conditions of this Employment,
Confidential Information and Invention Assignment Agreement (the
“Agreement”):

    

    1.           At-Will
Employment.  I UNDERSTAND AND ACKNOWLEDGE THAT MY EMPLOYMENT
WITH THE COMPANY IS FOR AN UNSPECIFIED DURATION AND CONSTITUTES “AT-WILL”
EMPLOYMENT.  I ALSO UNDERSTAND THAT ANY REPRESENTATION TO THE CONTRARY
IS UNAUTHORIZED AND NOT VALID UNLESS OBTAINED IN WRITING AND SIGNED BY AN
AUTHORIZED REPRESENTATIVE OF THE COMPANY.  I ACKNOWLEDGE THAT THIS
EMPLOYMENT RELATIONSHIP MAY BE TERMINATED AT ANY TIME, WITH OR WITHOUT GOOD
CAUSE OR FOR ANY OR NO CAUSE, AT THE OPTION EITHER OF THE COMPANY OR MYSELF,
WITH OR WITHOUT NOTICE.

    

    Compensation and Other
Benefits.

    

    (a)           As
consideration for his services hereunder, the Company will pay Robert
Bowdring  a base salary of $135,000 per year (the "Base Salary") for
the position of Corporate Controller. Departmental responsibilities will include
finance, IT Systems, Facilities, HR, Insurance and Contracts.  Payment
of Base Salary shall be made in accordance with the Company's normal payroll
practices.

    

    (b)           Management
will review Employees Base Salary annually.  Upon such review, the
Management may adjust upward Employee’s Base Salary as it deems appropriate,
taking into account Employee’s performance as well as economic conditions,
competitive conditions within the Company's industry, and the financial
condition, operations, and prospects of the Company. The annual review will be
completed prior to the end of each year of the Employment Term and any salary
adjustment shall be effective on the first day of the immediately succeeding
year of the Employment Term.

    

    (c)           Robert Bowdring will be
granted 30,000 shares of INVO Bioscience stock upon employment of post merger
stock and  270,000 shares of INVO Bioscience stock options vesting
equally over a period of 3 years, 90,000 shares at year one anniversary, 90,000
shares at year two anniversary and 90,000s shares at year 3
anniversary.  The strike price will be the price on the day the Option
is granted.

    

    (d)      Employee
will participate in the Company Bonus and Stock Option Program which will
include an individualized plan of performance goals, metrics and stock and/or
cash awards based upon meeting performance goals.  The specifics of
the individualized performance plan will be developed within the firs 45 days of
employment with the company.  All grants of stock to employees must be
approved by the Board of Directors.

     

    
      
        
        

      

      
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    (e)     Employee may
participate in all group health and insurance programs and all other fringe
benefit,  or additional compensation plans for which he qualifies
which the Company now or in the future, in its sole discretion, makes available
to its employees generally.  This paragraph does not obligate the
Company to establish or maintain any such program or otherwise to pay any such
additional compensation.

    

    
      	
                         
      (f)  

            	
              Employee
      will have 4 weeks of vacation per year to be taken in accordance with the
      Company's policies in effect from time to time for senior management of
      the Company.  Employee will be able to carry forward his unused
      vacation time up to an annual maximum of 6 weeks of
    vacation.

            

    

    

    
      	
                        
      (g)  

            	
              INVO
      Bioscience will pay all work related reasonable travel and pocket
      expenses.

            

    

    

    
      	
                        
      (h)  

            	
              If
      employment is terminated by employer, a severance of two months of service
      year.

            

    

     

    
 

    2.           Confidential
Information.

    

    (a)           Company
Information.

    

    (i)           The
Company agrees that upon the commencement of my employment, it will make
available to me that Confidential Information of the Company that will enable me
to optimize the performance of my duties to the Company.  In exchange,
I agree to use such Confidential Information solely for the Company’s
benefit.  Notwithstanding the preceding sentence, I agree that upon
the termination of my employment in accordance with Section 1, the Company shall
have no obligation to provide or otherwise make available to me any of its
Confidential Information.  I understand that “Confidential
Information” means any Company proprietary information, technical data,
trade secrets or know-how, including, but not limited to, research, product
plans, products, services, customer lists and customers (including, but not
limited to, customers of the Company on whom I called or with whom I became
acquainted during the term of my employment), markets, software, developments,
inventions, processes, formulas, technology, designs, drawings, engineering,
hardware configuration information, marketing, finances or other business
information disclosed to me by the Company either directly or indirectly in
writing, orally or by drawings or observation of parts or
equipment.  I further understand that Confidential Information does
not include any of the foregoing items which has become publicly known and made
generally available through no wrongful act or omission of mine or of others who
were under confidentiality obligations as to the item or items involved or
improvements or new versions thereof.

    

    (ii)           I
agree at all times during the term of my employment and thereafter, to hold in
strictest confidence, and not to use, except for the exclusive benefit of the
Company, or to disclose to any person, firm or corporation without written
authorization of the Board of Directors of the Company, any Confidential
Information of the Company.

    

    

    (b)           Former
Employer Information.  I agree that I will not, during my
employment with the Company, improperly use or disclose any proprietary
information or trade secrets of any former or concurrent employer or other
person or entity and that I will not bring onto the premises of the Company any
unpublished document or proprietary information belonging to any such employer,
person or entity unless consented to in writing by such employer, person or
entity.

    

    

    (c)           Third
Party Information.  I recognize that the Company has received
and in the future will receive from third parties their confidential or
proprietary information subject to a duty on the Company’s part to maintain the
confidentiality of such information and to use it only for certain limited
purposes.  I agree to hold all such confidential or proprietary
information in the strictest confidence and not to disclose it to any person,
firm or corporation or to use it except as necessary in carrying out my work for
the Company consistent with the Company’s agreement with such third
party.

    

    

    
      
        
        

      

      
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    3.           Inventions.

    

    (a)           Assignment
of Inventions.  I agree that I will promptly make full written
disclosure to the Company, will hold in trust for the sole right and benefit of
the Company, and hereby assign to the Company, or its designee, all my right,
title, and interest in and to any and all inventions, original works of
authorship, developments, concepts, improvements, designs, discoveries, ideas,
trademarks or trade secrets, whether or not patentable or registrable under
copyright or similar laws, which I may solely or jointly conceive or develop or
reduce to practice, or cause to be conceived or developed or reduced to
practice, during the period of time I am in the employ of the Company
(collectively referred to as “Inventions”), except as provided in Section 3(f)
below.  I further acknowledge that all original works of authorship
which are made by me (solely or jointly with others) within the scope of and
during the period of my employment with the Company and which are protectible by
copyright are “works made for hire,” as that term is defined in the United
States Copyright Act.  I understand and agree that the decision
whether or not to commercialize or market any Invention developed by me solely
or jointly with others is within the Company’s sole discretion and for the
Company’s sole benefit and that no royalty will be due to me as a result of the
Company’s efforts to commercialize or market any such Invention.

    

                   
(b)           Maintenance
of Records.  I agree to keep and maintain adequate and current
written records of all Inventions made by me (solely or jointly with others)
during the term of my employment with the Company.  The records will
be in the form of notes, sketches, drawings, and any other format that may be
specified by the Company.  The records will be available to and remain
the sole property of the Company at all times.

    

                   
(c)           Patent
and Copyright Registrations.  I agree to assist the Company, or
its designee, at the Company’s expense, in every proper way to secure the
Company’s rights in the Inventions and any copyrights, patents, mask work rights
or other intellectual property rights relating thereto in any and all countries,
including, but not limited to, the disclosure to the Company of all pertinent
information and data with respect thereto, the execution of all applications,
specifications, oaths, assignments and all other instruments which the Company
shall deem necessary in order to apply for and obtain such rights and in order
to assign and convey to the Company, its successors, assigns, and nominees the
sole and exclusive rights, title and interest in and to such Inventions, and any
copyrights, patents, mask work rights or other intellectual property rights
relating thereto.  I further agree that my obligation to execute or
cause to be executed, when it is in my power to do so, any such instrument or
papers shall continue after the termination of this Agreement.  If the
Company is unable because of my mental or physical incapacity or for any other
reason to secure my signature to apply for or to pursue any application for any
United States or foreign patents or copyright registrations covering Inventions
or original works of authorship assigned to the Company as above, then I hereby
irrevocably designate and appoint the Company and its duly authorized officers
and agents as my agent and attorney in fact, to act for and in my behalf and
stead to execute and file any such applications and to do all other lawfully
permitted acts to further the prosecution and issuance of letters patent or
copyright registrations thereon with the same legal force and effect as if
executed by me.

    

                  
(d)           Exception
to Assignments.  I understand that the provisions of this
Agreement requiring assignment of Inventions to the Company shall not apply to
any invention that I have developed entirely on my own time without using the
Company’s equipment, supplies, facilities, trade secret information or
Confidential Information except for those inventions that either (i) relate at
the time of conception or reduction to practice of the invention to the
Company’s business, or actual or demonstrably anticipated research or
development of the Company or (ii) result from any work that I performed for the
Company.

    

    4.           Conflicting
Employment.  I agree that, during the term of my employment
with the Company, I will devote my full time and efforts to the Company and I
will not engage in any other employment, occupation or consulting activity, nor
will I engage in any other activities that conflict with my obligations to the
Company.

    

    5.           Returning
Company Documents, etc.  I agree that, at the time of leaving
the employ of the Company, I will deliver to the Company (and will not keep in
my possession, recreate or deliver to anyone else) any and all devices, records,
data, notes, reports, proposals, lists, correspondence, specifications, drawings
blueprints, sketches, materials, equipment, other documents or property, or
reproductions of any aforementioned items developed by me pursuant to my
employment with the Company or otherwise belonging to the Company, its
successors or assigns, including, but not limited to, those records maintained
pursuant to paragraph 3(b).  In the event of the termination of my
employment.

     

    
      
        
        

      

      
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    6.           Notification
of New Employer.  In the event that I leave the employ of the
Company, I hereby grant consent to notification by the Company to my new
employer about my rights and obligations under this Agreement.

    

    7.           Solicitation
of Employees.  I agree that for a period of eighteen (18)
months immediately following the termination of my relationship with the Company
for any reason, whether with or without good cause or for any or no cause, at
the option either of the Company or myself, with or without notice, I will not
hire any employees of the Company and I will not, either directly or indirectly,
solicit, induce, recruit or encourage any of the Company’s employees to leave
their employment, or take away such employees, or attempt to solicit, induce,
recruit, encourage or take away employees of the Company, either for myself or
for any other person or entity.

    

    8.           Interference.  I
agree that during the course of my employment and for a period of eighteen (18)
months immediately following the termination of my relationship with the Company
for any reason, whether with or without good cause or for any or no cause, at
the option either of the Company or myself, with or without notice, I will not,
either directly or indirectly, interfere with the Company’s contracts and
relationships, or prospective contracts and relationships, including, but not
limited to, the Company’s customer or client contracts and
relationships.

    

    9.           Covenant
Not to Compete.

    

    (a)           I
agree that during the course of my employment and for a period of eighteen (18)
months immediately following the termination of my relationship with the Company
for any reason, whether with or without good cause or for any or no cause, at
the option either of the Company or myself, with or without notice, I will not,
without the prior written consent of the Company, (i) serve as a partner,
employee, consultant, officer, director, manager, agent, associate, investor, or
otherwise for, (ii) directly or indirectly, own, purchase, organize or take
preparatory steps for the organization of, or (iii) build, design, finance,
acquire, lease, operate, manage, invest in, work or consult for or otherwise
affiliate myself with, any business in competition with or otherwise similar to
the Company’s business.  The foregoing covenant shall cover my
activities in every part of the Territory in which I may conduct business during
the term of such covenant as set forth above.  “Territory” shall mean
(i) all counties in the Commonwealth of Massachusetts, (ii) all other states of
the United States of America and (iii) all other countries of the world;
provided that, with respect to clauses (ii) and (iii), the Company derives at
least five percent (5%) of its gross revenues from such geographic area prior to
the date of the termination of my relationship with the Company.

    

    (b)           I
acknowledge that I will derive significant value from the Company’s agreement in
Section 2(a)(i) to provide me with that Confidential Information of the Company
to enable me to optimize the performance of my duties to the
Company.  I further acknowledge that my fulfillment of the obligations
contained in this Agreement, including, but not limited to, my obligation
neither to disclose nor to use the Company’s Confidential Information other than
for the Company’s exclusive benefit and my obligation not to compete contained
in subsection (a) above, is necessary to protect the Company’s Confidential
Information and, consequently, to preserve the value and goodwill of the
Company.  I further acknowledge the time, geographic and scope
limitations of my obligations under subsection (a) above are reasonable,
especially in light of the Company’s desire to protect its Confidential
Information, and that I will not be precluded from gainful employment if I am
obligated not to compete with the Company during the period and within the
Territory as described above.

    

    (c)           The
covenants contained in subsection (a) above shall be construed as a series of
separate covenants, one for each city, county and state of any geographic area
in the Territory.  Except for geographic coverage, each such separate
covenant shall be deemed identical in terms to the covenant contained in
subsection (a) above.  If, in any judicial proceeding, a court refuses
to enforce any of such separate covenants (or any part thereof), then such
unenforceable covenant (or such part) shall be eliminated from this Agreement to
the extent necessary to permit the remaining separate covenants (or portions
thereof) to be enforced.  In the event the provisions of subsection
(a) above are deemed to exceed the time, geographic or scope limitations
permitted by applicable law, then such provisions shall be reformed to the
maximum time, geographic or scope limitations, as the case may be, then
permitted by such law.

    

    

    
      
        
        

      

      
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    10.           Representations.  I
agree to execute any proper oath or verify any proper document required to carry
out the terms of this Agreement.  I represent that my performance of
all the terms of this Agreement will not breach any agreement to keep in
confidence proprietary information acquired by me in confidence or in trust
prior to my employment by the Company.  I have not entered into, and I
agree I will not enter into, any oral or written agreement in conflict
herewith.

    

    11.           Arbitration
and Equitable Relief.

    

    (a)           Arbitration.  Except
as provided in subsection (b) below, I agree that any dispute, claim or
controversy concerning my employment or the termination of my employment or any
dispute, claim or controversy arising out of or relating to any interpretation,
construction, performance or breach of this Agreement, shall be settled by
arbitration to be held in Beverly, Massachusetts in accordance with the rules
then in effect of the American Arbitration Association.  The
arbitrator may grant injunctions or other relief in such dispute or
controversy.  The decision of the arbitrator shall be final,
conclusive and binding on the parties to the arbitration.  Judgment
may be entered on the arbitrator’s decision in any court having
jurisdiction.  The Company and I shall each pay one-half of the costs
and expenses of such arbitration, and each of us shall separately pay our
counsel fees and expenses.

    

    (b)           Equitable
Remedies.  I agree that it would be impossible or inadequate to
measure and calculate the Company’s damages from any breach of the covenants set
forth in Sections 2, 3, 5, 7 and, 9 herein.  Accordingly, I agree that
if I breach any of such Sections, the Company will have available, in addition
to any other right or remedy available, the right to obtain an injunction from a
court of competent jurisdiction restraining such breach or threatened breach and
to specific performance of any such provision of this Agreement.  I
further agree that no bond or other security shall be required in obtaining such
equitable relief and I hereby consent to the issuance of such injunction and to
the ordering of specific performance.

    

    12.           General
Provisions.

    

      (a)           Governing
Law; Consent to Personal Jurisdiction.  THIS AGREEMENT WILL BE
GOVERNED BY THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS
WITHOUT REGARD FOR CONFLICTS OF LAWS PRINCIPLES.  I HEREBY EXPRESSLY
CONSENT TO THE PERSONAL JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN
THE COMMONWEALTH OF MASSACHUSETTS FOR ANY LAWSUIT FILED THERE AGAINST ME BY THE
COMPANY CONCERNING MY EMPLOYMENT OR THE TERMINATION OF MY EMPLOYMENT OR ARISING
FROM OR RELATING TO THIS AGREEMENT.

    

      
(b)           Entire
Agreement.  This Agreement sets forth the entire agreement and
understanding between the Company and me relating to the subject matter herein
and supersedes all prior discussions between us.  No modification of
or amendment to this Agreement, nor any waiver of any rights under this
Agreement, will be effective unless in writing signed by the party to be
charged.  Any subsequent change or changes in my duties, salary or
compensation will not affect the validity or scope of this
Agreement.

    

    (c)           Severability.  If
one or more of the provisions in this Agreement are deemed void by law,
including, but not limited to, the covenant not to compete in Section 9, then
the remaining provisions will continue in full force and effect.

    

    (d)           Successors
and Assigns.  This Agreement will be binding upon my heirs,
executors, administrators and other legal representatives and will be for the
benefit of the Company, its successors, and its assigns.

    

    (e)           Construction.  The
language used in this Agreement will be deemed the language chosen by the
parties to express their mutual intent, and no rules of strict construction will
be applied against either party.

    

    (f)           Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
enforceable, and all of which together shall constitute one
agreement.

    

    

    
      
        
        

      

      
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    13.           Acknowledgements

    

    I
acknowledge and agree to each of the following items:

    

    
      	
               
      

            	
              (a)

            	
              I
      am executing this Agreement voluntarily and without any duress or undue
      influence by the Company or anyone else;
and

            

    

    

    
      	
               
      

            	
              (b)

            	
              I
      have carefully read this Agreement.  I have asked any questions
      needed for me to understand the terms, consequences and binding effect of
      this Agreement and fully understand them;
and

            

    

    

    
      	
               
      

            	
              (c)

            	
              I
      sought the advice of an attorney of my choice if I wanted to do so prior
      to the signing of this Agreement.

            

    

    

    

    IN
WITNESS WHEREOF, the parties have executed this Agreement on the day, month and
year first set forth below; provided, however, that the Company executed this
Agreement solely for the purpose of entering into the covenants contained in
Section 2(a)(i).

    

    

    Date:
October 17, 2008

    

    

    INVO
Bioscience:

    

    

    /s/
Kathleen Karloff

    Company
Representative’s Signature

    

    Kathleen
Karloff

    Company
Representative’s Printed Name

    

    

    Robert
Bowdring:

    

    

    /s/
Robert J Bowdring

    Employee’s
Signature

    

    Robert
J. Bowdring

    Employee’s
Printed Name

    

    

    
      
        
        

      

      
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6ex10-04.htm

Exhibit
10.04 

    
       

       

      DISTRIBUTOR
AGREEMENT

      

      TERMS AND
CONDITIONS

      

       

      This
Distributor Agreement (“Agreement”) is made and entered as of August Eighteenth
Two Thousand and Eight (the “Effective Date”),
by and between BioXcell, Incorporated, a Massachusetts corporation located at
100 Cummings Center, Ste 421E Beverly, MA 01915 “COMPANY”) and MediTech 1st. Canada Inc., located
at,  100 boul. Alexis-Nihon, Suite 460 Montreal, Que., Canada H4M
2N9  (“Distributor”). In consideration of the promises and
mutual covenants contained herein, the parties agree

      as
follows:

      

      

      1.
DISTRIBUTION

      

      1.1
Distribution. Subject to the terms and conditions of this Agreement and, if
applicable, a written addendum signed by COMPANY (“Addendum”), COMPANY
hereby
grants Distributor a exclusive, non-transferable right during this Agreement to
distribute certain products and services offered by COMPANY in the territory of
Canada(the “Products”).

      

      1.2
Exclusive Distribution. Except as set forth on an Addendum, Distributor agrees
that the right of distribution granted herein is exclusive. COMPANY reserves
the right to distribute outside the territory of Canada, whether directly or
indirectly, any and all Products worldwide without restriction. COMPANY may
grant the same, similar and/or any other distribution
rights to any other entity outside the territory of Canada, including without
limitation to other distributors outside the territory of Canada, dealers and
original equipment manufacturers.

      

      2.
PRICES, ORDERS, DELIVERIES AND PAYMENT

      

      2.1
Prices. COMPANY shall offer the Products to Distributor based on a written or
electronic price list (the “Price List”) supplied by COMPANY. Distributor agrees
to purchase the Products in accordance with the terms and conditions noted on
the Price List. COMPANY may amend the Price List to add or delete Products and
may adjust the pricing with thirty (30) days advance notice to Distributor.
Price List revisions shall apply to all orders received after the effective date
of such revision. Product price increases shall not apply to unfulfilled
purchase orders prior to the effective date of the Purchase Price increase. At
its sole discretion, COMPANY may apply Product price decreases to pending
purchase orders accepted by COMPANY prior to the effective date of the decrease
but not yet shipped. In addition to the applicable prices and fees, Distributor
shall pay, or at COMPANY’S option reimburse COMPANY, for any and all taxes,
customs, duties, freight, insurance, shipping and related expenses associated
with the Products.

      

      2.2
Taxes. All prices, fees and charges covered by this Agreement do not include any
federal, state, local, or foreign taxes that may be applicable to the Products,
including all non-resident withholding tax, wholesale sales taxes, value-added
taxes, goods and services tax, excise, sales, use and similar taxes and customs
duties. Distributor shall pay or reimburse COMPANY for all such taxes and other
charges. When COMPANY has the legal obligation to collect such taxes, the
appropriate amount shall be added to Distributor’s invoice and paid by
Distributor, unless and until Distributor provides COMPANY with a valid tax
exemption certificate.

       

      
        
          
          

        

        
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2.3
Orders and Acceptance. For any purchase order, Distributor shall place the order
and corresponding payment to COMPANY. Distributor shall comply with all COMPANY
minimum purchase order requirements. Orders shall not be deemed accepted or
binding without written notification thereof by COMPANY. This Agreement shall
govern all Distributor orders, and nothing contained in Distributor’s purchase
orders, confirming memos or other communications shall supersede or modify this
Agreement.

      

      2.4
Delivery and Shipping. COMPANY shall not be liable to Distributor or any third
party if COMPANY fails to deliver an order, delivers an order incorrectly and/or
fails to meet a delivery date. If any order exceeds COMPANY’s inventory, COMPANY
shall allocate available inventory according to and in its sole discretion.
Returns are at the discretion of BioXcell.

      

      2.5
Quarterly Forecasts. Purchase Orders Fifteen Days in Advance. On or before the
10th day of every third calendar month, Distributor shall submit to COMPANY a
forecast of all of the Distributor’s purchases of the Products for the next
quarter. Distributor shall submit to COMPANY an amendment of purchase Order at
least fifteen (15) days in advance of the requested ship date for any and all
Products.

      

      2.6
Payment. All credit terms and terms of payment are to be determined by BioXcell,
based upon competed credit application and credit verification. Once credit
terms have been established, payments may be sent via check, credit card or wire
transfer only as follows:

      

      (a).
Checks should be made to “BioXcell” and mailed to:

      

      BioXcell,
Inc.

      Attn:
Accounts Receivable

      100
Cummings Center, Suite 421E

      Beverly,
MA 01915, USA

      

      (b).
BioXcell accepts the following credit cards: Visa, Mastercard.

      

       (c).
For wire transfer, payments shall be wired to: Centrury Bank,428 Rantoul Street,
Beverly, Massachusetts,01915; Transit ABA# 011301390;

      Account
number: 21541655; SWIFT CODE: XXXXXXXX; Beneficiary: BioXcell, Inc.

      

      3.
OWNERSHIP

      

      3.1
Ownership. All right, title and interest in and with respect to the Products,
including without limitation all intellectual property rights therein, are
solely owned by and shall
remain with COMPANY, its licensors and suppliers. Distributor shall not copy,
make copies of, translate, localize, disassemble, decompile, reverse engineer,
attempt
to discover the source code of, modify, create derivative works from and/or in
any way change any part of the Products, including without limitation the
documentation,
packaging and trademarks.  Registration and payment for registering
the Invocell product (up to $500.00 u.s.) will be the responsibility of
COMPANY.

       

      4.
MARKETING OBLIGATIONS OF DISTRIBUTOR

      

      4.1
Marketing and Support. Distributor shall maintain a staff of qualified sales and
training personnel to perform its obligations hereunder and shall actively
promote and
market the Products. Distributor shall provide first and second level support
for the Products and shall directly support its resellers and end users. 
COMPANY
will provide telephone support to Distributor during COMPANY’s normal business
hours in accordance with COMPANY’S then current support program. Company will
provide adequate training for distributor sales personnel at Company’s premises,
at no cost for the first year.  Distributor will cover his travel and
accommodation expenses.  During first year, company may accompany
distributor during one or more of his visits to key customers.  All
company travel and accommodation expenses will be covered by company. Any
further training by company shall be chargeable. Distributor shall provide its
resellers and end users with sufficient and reasonable assistance in training,
service and customer support with respect to the Products.

       

      
        
          
          

        

        
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      4.2
Representations and Third Party Agreements. Distributor agrees that all
representations and warranties it makes with respect to the Products shall be
consistent With and
not exceed and those made by COMPANY herein. Distributor agrees that all third
party agreements and arrangements with respect to the Products, including
without limitation
agreements with resellers and end users, shall have terms and conditions equal
to and consistent with the terms and conditions of this Agreement and shall
state that
COMPANY is the intended beneficiary of these obligations and that COMPANY is
entitled to enforce its rights against both Distributor and such third
party.

      

      5.
TRADEMARKS AND NOTICES.

      

      5.1
Trademarks. COMPANY grants Distributor a exclusive, non-transferable, limited
license to use the Product trademarks, service marks and trade names
(“Trademarks”) solely in connection with the marketing and sales of the Products
in accordance with and during this Agreement. Distributor shall use the
Trademarks in accordance with instructions from COMPANY, which COMPANY may
revise in its discretion. Distributor agrees to cooperate with COMPANY in
facilitating COMPANY’s monitoring and control of the nature and quality of the
Products and related marketing materials and to supply COMPANY with specimens of
use of the Trademarks upon request. Distributor acknowledges the validity of the
Trademarks and the ownership of the Trademarks by COMPANY and its suppliers and
licensors. All such Trademarks shall bear the designation “TM” or the designation
“®”, as specified by COMPANY. Distributor shall not challenge the rights of
COMPANY and its suppliers and licensors in any Trademarks. All goodwill and
reputation which accrues to any Trademarks in the course of Distributor’s
business shall automatically vest in COMPANY and its suppliers and licensors
without any separate or additional consideration of any kind to Distributor, and
Distributor agrees to take all such reasonable actions necessary to effect such
vesting.

      

      5.2
Notices. Distributor shall not remove, alter or obscure any patent, trademark,
copyright or other notice or marking in or on any Product.

      

      5.3
Prohibition of Similar Trademarks. Distributor shall not adopt, use, register,
make application for or attempt to register any acronym, trademark, trade name
or other marketing name of COMPANY or any confusingly similar mark, uniform
resource locator (URL), Internet domain name, or symbol as part of Distributor’s
own name or the name of any of its affiliates or as the name of any product it
markets.

      

      6.
WARRANTY AND DISCLAIMER 6.1 Limited Warranties. COMPANY warrants to the original
end user only for 30 days from such end user’s purchase date of the Products, if
used as authorized in accordance with COMPANY specifications, will perform in
material accordance with the specifications. COMPANY warrants to the end user
only for 24 months from such end user’s purchase date that the hardware portion
of the Products, if used as authorized in accordance with COMPANY
specifications, will not have significant defects in materials or workmanship
that make the Products unusable. COMPANY makes no warranty or representation
that the Products will meet any end user’s specific requirements, that the
operation of the Products will be secure, uninterrupted or error free, or that
all defects in the Products will be corrected. COMPANY makes no warranty,
implied or otherwise, regarding the performance or reliability of any third
party products (hardware or software). Installation of any third party products
other than as authorized by COMPANY will void all warranties. In addition, use,
modification and/or repair of the Products other than as authorized by COMPANY
voids all warranties. 6.2 Warranty Return Procedures. Distributor shall be
responsible for and shall coordinate all communication with its resellers and
end users concerning warranty claims, maintenance and support requests,
including without limitation obtaining proof of purchase from the end user.
After being notified in writing, distributor shall comply with COMPANY’s current
latest standard Product return procedures, which COMPANY may change from time to
time. Unless Distributor returns a Product in accordance with COMPANY’s limited
warranty and latest current standard product return procedures, Distributor
shall not return any Product. At its option, COMPANY shall repair or replace
defective Products that are covered by COMPANY’s limited warranty and returned
in accordance with COMPANY’s standard procedures by using new or like-new parts
or Products, or provide a refund of the price paid to COMPANY for such Product.
Distributor shall pay for all shipping charges, insurance, taxes, duties, and
others charges for all RMA shipments. COMPANY shall pay freight charges on
shipments to and from Distributor of Product repaired or replaced under
warranty; however, Distributor shall pay all duties, customs, taxes and
other charges on such shipments. Products that COMPANY determines are not
defective, not under warranty or not returned in compliance with COMPANY’s
return procedures shall be returned to Distributor and Distributor shall pay all
freight, insurance, duty, taxes and others charges related to these Products. A
company generated authorization number shall accompany all returns or will not
be accepted.

       

      
        
          
          

        

        
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      6.3
DISCLAIMER. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EXCEPT FOR THE
EXPRESS LIMITED WARRANTIES SET FORTH IN THIS SECTION, COMPANY MAKES NO
REPRESENTATIONS OR WARRANTIES TO ANY PERSON OR ENTITY WITH RESPECT TO ANY OF THE
PRODUCTS, WHETHER EXPRESS, IMPLIED, STATUTORY, OR IN ANY OTHER PROVISION OF THIS
AGREEMENT OR ANY OTHER COMMUNICATION, AND THEY SPECIFICALLY DISCLAIM ANY IMPLIED
WARRANTY OR CONDITION OF SECURITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, TITLE AND/OR NONINFRINGEMENT OF THIRD PARTY RIGHTS. THERE IS NO
WARRANTY OR REPRESENTATION THAT THE OPERATION OF THE PRODUCTS WILL BE
UNINTERRUPTED, FAULT-TOLERANT, SECURE OR ERROR-FREE. TO THE MAXIMUM EXTENT
PERMITTED BY APPLICABLE LAW, THE SOLE LIABILITY OF COMPANY, AND THE SOLE REMEDY,
RELATING TO ANY AND ALL APPLICABLE WARRANTIES SHALL BE, AT COMPANY’S OR OPTION,
TO REPAIR THE PRODUCT, REPLACE THE PRODUCT, OR PROVIDE A REFUND FOR THE PRICE
PAID TO COMPANY FOR THE PRODUCT.

      

      7. TERM
AND TERMINATION

      

      7.1 Term
and Termination. This Agreement shall become effective on the Effective Date and
shall expire one (1) year thereafter unless earlier terminated in accordance
with this Agreement. This Agreement may be renewed for additional one (1) year
periods by mutual agreement of the parties. This Agreement is not an “evergreen”
contract or of indefinite duration. Any party may terminate this Agreement, with
cause, by giving 90 days written notice.

      

      7.2
Termination for Insolvency. This Agreement shall terminate, without notice, (i)
upon the institution by or against Distributor of insolvency, receivership or
bankruptcy proceedings or any other proceedings for the settlement of
Distributor’s debts, (ii) upon Distributor’s making an assignment for the
benefit of creditors, or (iii) upon Distributor’s dissolution or ceasing to
function as an on going business concern.

      

      7.3 No
Damages or Other Rights Upon Termination. In making this Agreement, all parties
have considered that they will make expenditures in preparing for performance
under this Agreement and will possibly sustain losses and damages in the event
of its termination. However, the parties expressly agree that the rights of
termination in this Agreement are absolute. The parties agree that no party
shall be liable to any other party for any damages, compensation, payments,
costs or other types of losses arising out of termination of this Agreement, and
the parties expressly waive all such damages, compensation, payments, costs and
losses, including without limitation those related to goodwill, prospective
profits, anticipated sales, and amounts spent on training, advertising, market
development, leases and other investments. Distributor agrees that any contracts
or other arrangements it enters into with any third parties relating to the
Products will be consistent with and subject and subordinate to the rights of
termination in this Agreement. Distributor will indemnify and hold COMPANY
harmless against any and all liability, loss, damages, costs and expenses
incurred in connection with claims by any such third party.

      

      7.4
Effect of Termination and Survival of Certain Terms. In the event that this
Agreement expires or is terminated, Distributor shall immediately pay all
outstanding amounts payable hereunder. Upon expiration or termination of this
Agreement, in case distributor is in possession of inventory with a reasonable
expiry date, the COMPANY should allow Distributor to sell inventory within 90
days or if it chooses not to, Company will be under obligation to buy back such
inventory at Distributor landed cost.. All provisions concerning termination,
ownership of intellectual property rights and trademarks, indemnification,
limitation of liability, disclaimer of warranties, governing law, jurisdiction
and venue shall survive the termination and expiration of this
Agreement.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      8.
LIMITATION OF TOTAL LIABILITY

      

      THE
COMPANY SHALL INDEMNIFY THE DISTRIBUTOR AGAINST ANY LIABILITY INCURRED BY THE
DISTRIBUTOR IN RESPECT OF DAMAGE TO PROPERTY, DEATH, OR PERSONAL INJURY ARISING
FROM ANY FAULT OR DEFECT IN THE MATERIALS OR WORKMANSHIP OF THE PRODUCTS AND ANY
REASONABLE COSTS ARISING IN CONNECTION WITH THE LIABILITY (A “RELEVANT
CLAIN”).TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, DISTRIBUTOR AGREES
THAT THE AGGREGATE, CUMULATIVE LIABILITY OF COMPANY FOR ALL CLAIMS RELATED TO
THIS AGREEMENT AND/OR THE PRODUCTS, REGARDLESS OF THE FORM OF ACTION (WHETHER IN
CONTRACT, TORT, UNDER STATUTE OR OTHERWISE), SHALL BE LIMITED TO THE AMOUNT PAID
BY DISTRIBUTOR FOR THE PRODUCTS GIVING RISE TO SUCH LIABILITY. DISTRIBUTOR
AGREES THAT SUCH AMOUNT IS SUFFICIENT TO SATISFY THE ESSENTIAL PURPOSE OF THE
PROVISIONS OF THIS AGREEMENT AND THAT SUCH A LIABILITY IS A FAIR AND REASONABLE
ESTIMATE OF ANY LOSS AND DAMAGE LIKELY TO BE SUFFERED IN THE EVENT OF ANY
WRONGFUL ACT OR OMISSION BY COMPANY. TO THE MAXIMUM EXTENT PERMITTED BY
APPLICABLE LAW, IN NO EVENT SHALL COMPANY BE LIABLE FOR COST OF PROCUREMENT OF
SUBSTITUTE PRODUCTS OR SERVICES, LOST PROFITS, OR ANY SPECIAL, INDIRECT,
RELIANCE, CONSEQUENTIAL OR INCIDENTAL DAMAGES, HOWEVER CAUSED AND ON ANY THEORY
OF LIABILITY, RELATED TO THIS AGREEMENT OR THE PRODUCTS. THIS LIMITATION SHALL
APPLY EVEN IF COMPANY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
DISTRIBUTOR AGREES THAT THE PRICE OF THE PRODUCTS REFLECTS THIS ALLOCATION OF
RISK. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, COMPANY. SHALL HAVE NO
LIABILITY WITH RESPECT TO DISTRIBUTOR’S END USERS, RESELLERS AND/OR ANY OTHER
THIRD PARTIES. NOTWITHSTANDING THE TERMS OF THIS SECTION, COMPANY DOES NOT
EXCLUDE LIABILITY IN RESPECT OF PERSONAL INJURY OR DEATH EXCEPT TO THE MAXIMUM
EXTENT THAT IT CAN BE EXCLUDED OR LIMITED BY LAW.

      

      9.
CONFIDENTIAL INFORMATION. “Confidential Information” means any information,
technical data, or know-how that, if disclosed in written form, is designated in
writing to be confidential or proprietary, or if disclosed orally, is summarized
and confirmed in writing within thirty (30) days as being confidential or
proprietary. Notwithstanding the foregoing, all Price Lists, Product
information, the terms and conditions of this Agreement and any Addendum are
deemed Confidential Information. Confidential Information does not include
information, technical data or know-how that (i) is in the possession of the
receiving party at the time of disclosure as shown by the receiving party’s
files and records in existence prior to the time of disclosure, or (ii) prior to
or after the time of disclosure becomes part of the public knowledge or
literature, not as a result of any wrongful inaction or action of the receiving
party, or (iii) is developed independently by the receiving party without use of
or reference to the Confidential Information of the disclosing party, or (iv) is
properly acquired from a third party having the right to disclose such
information, (v) is approved in writing for release by the disclosing party; or
(vi) is required to be disclosed by administrative or judicial action, provided
that the disclosing party is afforded sufficient time in advance to oppose or
limit such disclosure. Each party agrees not to use Confidential Information
disclosed to it by the other party for its own use or for any purpose except to
perform as required under this Agreement. Neither party shall disclose the
Confidential Information of the other party to third parties or to its own
employees except employees who are required to have the information in order to
carry out the contemplated business discussions. Each party has had or shall
have employees to whom Confidential Information of the other is disclosed sign a
non-disclosure agreement in content substantially similar to this Agreement.
Each party agrees that it shall take all reasonable efforts to avoid disclosure
of Confidential Information of the other including efforts at least as great as
those used to protect its own confidential information. Each party agrees to
notify the other party in writing of any misuse or misappropriation of any
Confidential Information of the other which may come to its
attention.

      

       10.
MISCELLANEOUS

      

      10.1
Independent Relationship. The relationship of COMPANY and Distributor is
independent and only that of a vendor and vendee. Nothing contained in this
Agreement shall create any agency, employment, partnership, joint venture or
similar relationship between COMPANY and Distributor for any purpose. No party
shall have any right whatsoever to incur any liabilities or obligations or to
make any warranties on behalf of or binding upon another party.

      

      10.2
Indemnification. Distributor agrees to indemnify and hold COMPANY harmless
against any claim, liability, expenses, judgments, attorney fees and damages
that COMPANY becomes liable for by reason of Distributor’s breach of this
Agreement or Addendum, or by reason of any act or omission of Distributor in
marketing, selling or supporting the Products. Company agrees to the same
indemnification to Distributor.

       

      
        
          
          

        

        
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      10.3
Force Majeure. Except for payment of monies, no party shall be liable for its
failure to perform any obligations on account of strikes, shortages, failure or
acts of suppliers, riots, insurrection, fires, flood, storm, explosions, acts of
God, war, acts of terrorism whether actual or threatened, acts of a public
enemy, epidemics, quarantines, Governmental action, labor conditions,
earthquakes, material shortages or any cause which is similar to those
enumerated or beyond the reasonable control of such party.

      

      10.4
Non-assign ability and Binding Effect. The parties shall not assign or transfer
this Agreement, except that COMPANY may assign and transfer its rights and
obligations under this Agreement to an affiliate, parent or subsidiary of
COMPANY. Subject to the foregoing sentence, this Agreement shall be binding upon
and inure to the benefit of the parties hereto and their successors and
permitted assigns.

      

      10.5
Notices. Any notice to be given under this Agreement shall be delivered to the
address specified above postage prepaid, and if to COMPANY to its Legal
Department (i) by registered or certified mail, (ii) by overnight courier, (iii)
by fax, or (iv) by first class mail. Notice so given shall be deemed effective
when first sent.

      

      10.6
Governing Law; Jurisdiction; Venue. This Agreement shall not be governed by the
1980 UN Convention on Contracts for the International Sales of Goods; rather,
this Agreement shall be governed by and construed under the laws of the State of
Massachusetts without regard to conflicts of laws principles. The state and
federal courts in and for Beverly, MA shall have exclusive jurisdiction for any
disputes related to this Agreement, an Addendum or the Products, and the parties
consent to the personal jurisdiction and venue of these courts.

      

      10.7
Export Law Compliance. Distributor understands and recognizes that the Products
and other materials made available under this Agreement are subject to the
export administration regulations of the United States Department of Commerce,
other United States government laws and regulations related to the export of
technical data and equipment and products, and applicable foreign laws and
regulations. Distributor shall be solely responsible for compliance with all
such laws and regulations, and agrees to comply, and to ensure that its
resellers comply, with all such laws and regulations, including any future
modifications thereof. Distributor and its resellers shall be solely responsible
for obtaining any necessary export licenses and exemptions. All Products and
related information and materials are prohibited for export or re-export to a
number of countries and persons, including without limitation Cuba, Iran, Iraq,
Libya, North Korea, Sudan, and Syria, and to any person or entity on the U.S.
Department of Treasury’s list of Specially Designated Nationals, Specially
Designated Narcotics Traffickers and Specially Designated
Terrorists.

      

      10.8
Compliance With Law. Distributor shall provide, pay for, be responsible for, and
keep in good standing all licenses, permits or other applicable approvals
pertaining to activities engaged in by Distributor that may be required.
Distributor shall comply in all respects with all applicable laws and
regulations, including without limitation federal, state, local and foreign laws
and regulations, pertaining to the distribution of the Products and its
obligations and activities under this Agreement.

      

      10.9
Severability. If any provision of this Agreement is found to be invalid,
unlawful or unenforceable by a court of competent jurisdiction, such invalid
term shall be severed from the remaining portion of this Agreement, which will
continue to be valid and enforceable to the fullest extent permitted by
law.

      

      10.10
Entire Agreement. This Agreement consists of the terms and conditions herein and
constitutes the entire Agreement between the parties which supersedes all prior
agreements, discussions and understandings, whether oral or written, between the
parties hereto with respect to the subject matter hereof. This Agreement may be
executed in faxed counterparts, each of which shall be deemed an original and
all of which together shall constitute one instrument. This Agreement may be
modified only by a written Amendment hereto executed by duly authorized
representatives of all the parties.

      

      10.11
Language. This Agreement is in English only, which shall be controlling in all
respects. All communications and notices shall be in English.

      

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

      IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
duly authorized representatives on the dates set forth below.

      

      

      DISTRIBUTOR:

      Meditech
1st.Canada,Incorporated                               

      

      By: s/Vivian Chebli                                                          

      

      Printed
Name: Vivian
Chebli,B.Sc.,
M.Sc.                                                                                                                            

      

      Title:
President                                                                 

      

      Date:
August 19,
2008                                                     

      
 

      

      

      BioXcell,
Incorporated

      

      By: s/Sean M
Paradis                                                       

                                               

      Printed
Name: Sean Michael
Paradis                            

      

      Title: Vice President, Sales &
Mktg.                             

      

      Date:
August 21,
2008                                                     

       

      
        
          
          

        

        
          7

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