Document:

ex416.htm

     

    Exhibit
      4.16

    

    

    

    CONFIDENTIAL

    

    

    

    

    

    

    

    

    

    MANUFACTURING
      SERVICES AGREEMENT

    

    

    between

    

    

    JABIL
      CIRCUIT, INC.

    

    and

    

    PreMD
      Inc. and PreMD International Inc.

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

          CONFIDENTIAL

        

      

    

    

    MANUFACTURING
      SERVICES AGREEMENT

    

    This
      Manufacturing Agreement
      (“Agreement”) is entered into by and between Jabil Circuit,
      Inc., a Delaware corporation (“Jabil”), having offices at 10560
      Dr. M.L. King Jr. Street North St. Petersburg, Florida 33716, on behalf of
      Jabil
      and its Subsidiaries, and PreMD Inc., a Canadian corporation, and PreMD
      International Inc., a Swiss corporation (collectively, the
“Company”), having its principal place of business at 4211
      Yonge Street, Suite 615, Toronto, Ontario, Canada, M2P 2A9. Jabil and Company
      are referred to herein as “Party” or
“Parties”.

     

    RECITALS

    

    A.           Jabil
      is in the business of designing, developing, manufacturing, testing,
      configuring, assembling, packaging and shipping electronic assemblies and
      systems.

    

    B.           Company
      is in the business of designing, developing, distributing, marketing and selling
      medical products, some of which contain electronic assemblies and
      systems.

    

    C.           The
      Parties desire that Jabil manufacture, test, configure, assemble, package and
      ship certain electronic assemblies and systems pursuant to the terms and
      conditions set forth in this Agreement.

    

    NOW,
      THEREFORE, in
      consideration of the foregoing and the mutual covenants contained herein, and
      other good and valuable consideration, the receipt and sufficiency of which
      is
      hereby acknowledged, the Parties agree as follows:

     

    TERMS

     

    1           Definitions.  In
      addition to terms defined elsewhere in this Agreement, the capitalized terms
      set
      forth below shall have the following meaning:

    

    1.1           “Additional
      Services” means services such as, design for manufacturability,
      manufacturing design test support, computer assisted design for
      manufacturability, test development services, volume production and advanced
      packaging technologies all as specified and approved by Company and agreed
      to by
      Jabil in writing.

    

    1.2           “Affiliate”
      means with respect to a Person, any other Person which directly or
      indirectly controls, or is controlled by, or is under common control with,
      the
      specified Person or an officer, director or 10% or more shareholder of the
      specified Person.  For purposes of the preceding sentence, “control”
of a Person shall mean the possession, directly or indirectly, of the power
      to
      direct or cause the direction of the management or policies of such Person,
      or
      direct or indirect ownership (beneficially or of record) of, or direct or
      indirect power to vote, 5% or more of the outstanding shares of any class of
      capital stock of such Person (or in the case of a Person that is not a
      corporation, 5% or more of any class of equity interest).

    

    1.3           “Approved
      Manufacturers’ List” means the list of suppliers approved by Company
      and included in the Device Master Record.

    

    1.4           “Build
      Schedule Forecast” means the monthly forecast provided to Jabil by
      Company, in writing, of quantity requirements of each Product that Company
      anticipates requiring during the twelve (12) calendar month period mentioned
      in
      the forecast.

    

    1.5           “Commercially
      Reasonable Efforts” means those efforts that would be deemed both
      commercially practicable and reasonably financially prudent after having taken
      into account all relevant commercial

    

     

    

    
      
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    considerations.  “Relevant
      commercial considerations” shall be deemed to include (1) all
      pertinent facts and circumstances; (2) financial costs; (3) resource
      availability and impact; (4) probability of success; and (5) other commercial
      practicalities.

    

    1.6           “Company
      Intellectual Property” means all discoveries, inventions, technical
      information, procedures, manufacturing and other processes, software, firmware,
      technology, know-how or other intellectual property rights owned or developed
      by
      the Company both existing and future, including patents and applications
      therefor, trademarks and applications therefor, copyrights and applications
      therefor, trade secrets and the Company’s Proprietary Information and
      Technology.

    

    1.7           “Complaint”
      means any written, electronic, or oral communication that alleges deficiencies
      related to the identity, quality, durability, reliability, safety,
      effectiveness, or performance of a device after it is released for
      distribution.

    

    1.8           “Device
      Master Record” means a compilation of records provided to Jabil by
      Company containing the procedures and specifications for each finished Product,
      including Specifications, Test Procedures, Packaging and Shipping
      Specifications, Product design drawings, the Approved Manufacturers’ List,
      material component descriptions (including approved substitutions) and
      manufacturing process requirements, as more particularly defined in the Quality
      Agreement.  Device Master Record is wholly owned by Company and
      Company shall be responsible for the adequacy and sufficiency of the Device
      Master Record and any procedures or specifications contained
      therein.  Jabil is responsible for maintaining the Device Master
      Record (Document and Data Control).  Any changes to the Device Master
      Record must be approved by Company before they are implemented.

    

    1.9           “EDI”
      shall mean electronic data interchange.

    

    1.10           “Effective
      Date” shall mean the date upon which the terms and conditions of this
      Agreement shall become effective by and between the Parties. The Parties have
      agreed that the Effective Date of this Agreement shall be the first day of
      April
      2007.

    

    1.11           “FDA”
      means U.S. Food and Drug Administration.

    

    1.12           “Fee
      and Price Schedule” shall mean the prices and fees set forth Schedule
“C”

    

    1.13           “FOB”
      shall refer to the place where the Products are to be delivered to
      Company and where possession, title and risk are assumed by the
      Company.

    

    1.14           “including”
      shall be defined to have the meaning “including, without
      limitation.”

    

    1.15           “in
      writing” shall mean written documents, EDI with phone confirmation,
      verified faxes and successfully transmitted e-mails.

    

    1.16           “Jabil
      Circuit, Inc.” and “Jabil” shall be defined to include any Subsidiary
      of Jabil.

    

    1.17           “Jabil
      Created Intellectual Property” means any discoveries, inventions,
      technical information, procedures, manufacturing or other processes, software,
      firmware, technology, know-how or other intellectual property rights created,
      developed or reduced to practice by or for Jabil relating to its Manufacturing
      Services.

    

    1.18           “Jabil
      Existing Intellectual Property” means any discoveries, inventions,
      technical

    

    
      
        
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    information,
      procedures, manufacturing or other processes, software, firmware, technology,
      know-how or other intellectual property rights owned or developed by Jabil
      outside of this Agreement or known and owned by Jabil prior to its relationship
      with the Company.

    

    1.19           “Jabil
      Intellectual Property” shall mean both Jabil Created Intellectual
      Property and Jabil Existing Intellectual Property, collectively.

    

    1.20           “Jabil
      Manufacturing Process” means Jabil’s process employed to manufacture,
      test, configure and assemble Product manufactured for Company pursuant to the
      terms of this Agreement.

    

    1.21           “Loaned
      Equipment” includes all equipment, tools and fixtures purchased by
      Jabil specifically for Company for the purpose of performing the Manufacturing
      Services and that are paid for in full by Company and all equipment, tools
      and
      fixtures loaned by Company to Jabil for such purpose, including any tools
      covered by the Materials Liability Agreement dated June 27, 2006 between the
      Parties.

    

    1.22           “Manufacturing
      Services” means the services performed by Jabil hereunder which shall
      include manufacturing, testing, configuring, assembling, packaging and/or
      shipping of the Product, including any Additional Services, all in accordance
      with the Quality Agreement and the Device Master Record.

    

    1.23           “Materials
      Declaration Requirements” means Directive 2002/95/EC of the European
      Parliament and of the Council of 27 January 2003 on
      the restriction of the use of certain hazardous substances
      in electrical and electronic equipment as amended from time to time
      (“RoHS Directive”), Directive 2002/96/EC of the European
      Parliament and of the Council of 27 January 2003 on waste electrical and
      electronic equipment, as amended from time to time (“WEEE
      Directive”), any European Union Member State implementations thereof,
      and/or other similar environmental and/or materials declaration laws,
      directives, regulations and requirements, including international laws and
      treaties regarding such subject matter, as amended from time to
      time.

    

    1.24           “NRE
      Costs” shall consist of non-recurring expenses incurred by Jabil under
      this Agreement, including costs of design engineering services, testing,
      fixturing and tooling as defined in the Fee and Price Schedule (Schedule
“C”).

    

    1.25           “Packaging
      and Shipping Specifications” means the packaging and shipping
      specifications set forth in the Device Master Record and otherwise supplied
      and/or approved by Company.  Packaging and Shipping Specifications are
      the responsibility and proprietary information of the Company.

    

    1.26           “Person”
      means any corporation, business entity, natural person, firm, joint venture,
      limited or general partnership, limited liability entity, limited liability
      partnership, trust, unincorporated organization, association, government, or
      any
      department or agency of any government.

    

    1.27           “Product(s)”
      shall mean the finished devices per 21 CFR 820 created through the performance
      of the Manufacturing Services on behalf of Company under this Agreement as
      more
      particularly described in Schedule A and the Quality Agreement.

    

    1.28           “Proprietary
      Information and Technology” means software, firmware, hardware,
      technology and know-how and other proprietary information or intellectual
      property embodied therein that is known, owned or licensed by and proprietary
      to
      either Party and not generally available to the public, including plans,
      analyses, trade secrets, patent rights, copyrights, trademarks, inventions,
      fees
      and pricing information, operating procedures, procedure manuals, processes,
      methods, computer applications, programs and designs, and any processed or
      collected data. The failure to label any of the foregoing as “confidential” or
“proprietary” shall not mean it is not Proprietary Information and
      Technology.

    

    
      
        
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    1.29           “Quality
      Agreement” means the standards set out in Schedule “F”.

    

    1.30           “Significant
      Change” has the meaning set out in the Quality Agreement.

    

    1.31           “Specifications”
      means the technical specifications for the finished Product and manufacturing
      set forth in the Device Master Record and otherwise supplied and/or approved
      by
      Company.  Specifications may be amended from time to time by
      amendments in the form of written engineering change orders (ECOs) mutually
      agreed to by the Parties.  Specifications are wholly owned by
      Company.

    

    1.32           “Subsidiary(ies)”
      means any corporation, partnership, joint venture, limited liability entity,
      trust, association or other business entity of which a Party or one or more
      of
      its Subsidiaries, owns or controls more than 50% of the voting power for the
      election of directors, managers, partners, trustees or similar
      parties.

    

    1.33           “Test
      Procedures” means the testing specifications, standards, procedures and
      parameters set forth in the Device Master Record and otherwise supplied and/or
      approved by Company.  Test Procedures are the responsibility and the
      proprietary information of Company.

    

    2           List
      of Schedules.  This Agreement includes the following
      Schedules for each Product to be manufactured hereunder, which are hereby
      incorporated herein and made a part of this Agreement:

    

    Schedule
      “A”                                List
      of Products

    Schedule
      “B”                                Device
      Master Record

    Schedule
      “C”                                Fee
      and Price Schedule

    Schedule
      “D”                                Build
      Schedule Forecast Template

    Schedule
      “E”                                Currency
      Policy

    Schedule
      “F”                                Quality
      Agreement

    

    3           Build
      Schedule Forecasts.  Within ten (10)
      business days following the execution of this Agreement, Company shall provide
      Jabil with a Build Schedule Forecast in the form annexed as Schedule
“D”.  The Build Schedule Forecast shall be updated by Company, in
      writing, on at least a monthly basis and no later than the 15th day of each
      calendar month for the subsequent eleven (11) calendar months.  The
      Company may modify a Build Schedule Forecast by providing a new Build Schedule
      Forecast.  Any rescheduling or cancellation of the Products scheduled
      for Manufacturing Services  of any Build Schedule Forecast shall be
      subject to the terms set forth in Section 11.3, 11.4, 11.5, and
      11.6.

    

    Each
      Build Schedule Forecast covers two time periods totaling twelve (12) calendar
      months.  The first three calendar months of a Build Schedule Forecast
      will be treated as a purchase order, that is to say, as a guaranteed minimum
      purchase.  The last nine calendar months of a Build Schedule Forecast
      are the Company’s bona fide estimate of its requirements for Manufacturing
      Services, but do not constitute a binding obligation of Jabil to manufacture
      or
      of the Company to purchase.  Subsequent Build Schedule Forecasts
      replace prior Build Schedule Forecasts, resulting in a twelve month rolling
      forecast of the Company’s requirements for Manufacturing Services.

    

    4           Manufacturing
      Services.  Jabil will manufacture the
      Product in accordance with this Agreement, the Quality Agreement, the Device
      Master Record and the Build Schedule Forecast.  Jabil will confirm the
      receipt  of each proposed Build Schedule Forecast that is submitted in
      accordance with the terms of this Agreement by notifying Company within seven
      (7) business days of receipt of its acceptance or rejection.  If Jabil
      does not communicate its rejection in writing within the said seven (7) business
      days, it shall be deemed to have accepted the

    

    
      
        
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    Build
      Schedule Forecast.  Subject to force majeure, Jabil may not
      subsequently reject an order that complies with the binding portion of an
      accepted Build Schedule Forecast.  When requested by Company, and
      subject to appropriate fee and cost adjustments, Jabil will provide Additional
      Services for existing or, if agreed by Jabil, future Products manufactured
      by
      Jabil.  In the event Jabil rejects a proposed Build Schedule Forecast,
      Jabil’s notice of rejection will specify the reasonable basis for such
      rejection.

    

    4.1           Testing.  Jabil
      will test the Product in accordance with the Test Procedures.

    

    4.2           Packaging
      and Shipping.  Jabil will package and ship the Product in
      accordance with Packaging and Shipping Specifications.

    

    4.3           Items
      to be Supplied by Company.  Company
      shall supply to Jabil, according to the terms and conditions specified herein,
      Company Proprietary Information and the Device Master Record for each Product
      to
      be manufactured hereunder.  Device Master Record is proprietary
      information of the Company and Company shall be responsible for the adequacy
      and
      sufficiency of the Device Master Record and any procedures or specifications
      contained therein.

    

    4.4           Items
      to be Supplied by Jabil.  Jabil
      will employ the Jabil Manufacturing Process, any required
      manufacturing technology, manufacturing capacity, labor, transportation
      logistics, systems and facilities necessary for Jabil to perform the
      Manufacturing Services.  Jabil will maintain Loaned Equipment in good
      operating condition in the same manner as it maintains its own equipment and
      will return same to Company in good operating condition when it is no longer
      needed for the Manufacturing Services, reasonable wear and tear excepted, having
      due regard to the age and use of the equipment.

     

    4.5           Company
      Inspection.  Company shall have the
      right, upon reasonable advance notice, during normal business hours and at its
      expense and either personally or through its agents, to inspect, review, monitor
      and oversee the Manufacturing Services and the Loaned Equipment, provided that
      such inspection shall not disrupt Jabil’s normal business
      operations.  Company shall cause each of its employees, agents and
      representatives who have access to Jabil’s facilities, to maintain, preserve and
      protect all Proprietary Information and Technology of Jabil and the confidential
      or proprietary information and technology of Jabil’s other customers to the same
      extent as is required of Company in this Agreement.

    

    4.6           Materials
      Procurement. Jabil will use Commercially
      Reasonable Efforts to procure materials, parts and components from suppliers
      on
      the Company’s Approved Manufacturers’ List, as necessary to fulfill Build
      Schedule Forecasts.  Materials to support Build Schedule Forecast will
      be purchased at suppliers’ lead time plus 3 weeks (manufacturing lead
      time).  For long lead time materials, Jabil will use Commercially
      Reasonable Efforts to reduce such lead times below four months and will in
      any
      event notify Company at quarterly intervals when orders have been placed for
      such materials.  Jabil will make Commercially Reasonable Efforts to
      suggest alternative sources of supply to add to Company’s Approved Manufacturers
      List in order to optimize both cost and delivery time of the
      Products.  Subject to the foregoing sentence, for long lead time
      materials, Jabil may place material orders to support non-binding Company orders
      as defined in section 3.  In event of cancellation or reschedule of
      these non-binding orders by Company, Company agrees to reimburse Jabil according
      to section 11.6.  Jabil will publish a list of materials used in
      Company Products along with the corresponding material lead times and material
      non-cancellable/non-returnable status.  Company shall be responsible
      for the performance of suppliers and quality of the components.

    

    4.7           Materials
      Declaration.  Company shall notify Jabil
      in writing, in reasonable detail, with respect to each Product, certifying
      whether or not the Product is exempt from Materials Declaration Requirements
      and
      specifically identifying the basis for any such exemption.  For
      Products which have been identified in writing to

    

    
      
        
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    Jabil
      as subject to Materials Declaration Requirements, Jabil will use Commercially
      Reasonable Efforts to identify parts, components and/or materials, as necessary,
      that are compliant with Materials Declaration Requirements.  Upon
      written request by Company, Jabil shall use Commercially Reasonable Efforts
      to
      collect documentation from suppliers certifying compliance with Materials
      Declaration Requirements with respect to its components, parts or materials,
      the
      form of which has been provided, or approved in writing, by Company
      (“Compliance Certification”).  Upon written request
      of Company, Jabil shall make such Compliance Certification available to
      Company.  In the event any supplier does not provide such Compliance
      Certification, Jabil shall notify Company and cooperate with Company to remove
      such Supplier from the Approved Manufacturers’ List or take such other action
      which the parties mutually agree upon in writing. In the event that Supplier
      fails to provide Compliance Certification and Company still chooses to accept
      components or materials from such Supplier, Jabil shall bear no responsibility
      or liability for the lack of such Compliance Certification.  Company
      understands and agrees that:

    

    4.7.1              Company
      is responsible for notifying Jabil in writing of the specific Materials
      Declaration Requirements and any exemptions thereto that Company determines
      to
      be applicable to the Product and shall be solely liable for the adequacy and
      sufficiency of such determination and information;

    

    4.7.2              Any
      information or certification regarding Materials Declaration Requirements of
      a
      Product as well as components, materials or parts used in the Product shall
      come
      from the relevant supplier.  Jabil does not test, certify or otherwise
      warrant component, material or part compliance with Materials Declaration
      Requirements;

    

    4.7.3              Company
      is ultimately and solely responsible for compliance with, including ensuring
      that any components, materials or parts used in the Product, as well as the
      Product itself, are compliant with applicable  Materials Declaration
      Requirements;

    

    4.7.4              In
      the event Jabil becomes aware of any Material Declaration Requirements that
      may
      be applicable to the Product, Jabil will use Commercially Reasonable Efforts
      to
      notify Company of those Material Declaration Requirements.

     

    Notwithstanding
      any other provision set forth in this Agreement, this Section 4.7 sets forth
      Jabil’s sole responsibility and liability with respect to Materials Declaration
      Requirements and any third party claims against Company related to the Materials
      Declaration Requirements. Company’s entire remedy with respect to Materials
      Declaration Requirements and any third party claims against Company related
      to
      the Materials Declaration Requirements are contained within Section 5 of this
      Agreement.  Absent this provision, Jabil would not enter this
      Agreement.

     

    4.8           Release
      of Products.  Jabil acknowledges that third party
      distributors of the Products may be taking delivery of the Products directly
      and
      that, under such circumstances, Company will not have the opportunity to inspect
      the Products before they are delivered.  Accordingly, Jabil shall
      evaluate the Products, using a reasonable, industry standard statistical
      sampling technique, in accordance with the final release test criteria outlined
      in the Device Master Record prior to making the Products available for release
      to Company’s distributors.  Jabil shall provide Company with the
      Product Document File, which includes a signed certificate of conformity
      (contents outlined in section 4.3 of the Quality Agreement), List of
      non-conformances (if applicable) and the Bill of Lading, within 2 days of
      Product release.  Subject to Section 5 below and the Company’s
      inspection rights, the Product will be deemed to be accepted by Company upon
      receipt by Company of a valid Certificate of Conformance for the
      Product.

    

    

    
      
        
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    5           Warranty
      & RMA Procedure

    

    5.1           Jabil
      Warranty. Subject to the limitations set forth in Section 5.5
      below, Jabil warrants (i) that it will manufacture the Product in accordance
      with the Specifications and all applicable quality and regulatory requirements
      including those that are identified in the Quality Agreement, and (ii) that
      at
      the time of manufacture, the Product will conform, in all material respects,
      to
      the Device Master Record, and will meet all applicable test
      criteria.  The above warranty shall remain in effect for a period of
      fifteen (15) months from the date any Product is initially delivered to Company
      or to Company’s designated carrier (“Warranty
      Period”).  This warranty is extended to, and may only be
      enforced by, Company.

    

    5.2           Repair
      or Replacement of Defective Product. In accordance
      with Jabil’s standard return material authorization process and procedure
      (“RMA”), Jabil will either repair or replace, in its sole
      discretion and cost, any Product that does not conform to the warranty set
      out
      in Section 5.1 provided that the Product is received within thirty (30) days
      following the end of any applicable Warranty Period (“RMA
      Product”) . If Company desires to return a Product based on a claim of
      breach of the warranty set forth in this Section 5, Company or its agent shall
      request an RMA number from Jabil.  Company shall then consign the
      alleged defective Product, FOB Jabil’s designated repair facility, and specify
      the Jabil assigned RMA number.  Jabil will analyze any such RMA
      Product and, if a breach of warranty is found (“Defect”), then
      Jabil will repair or replace the RMA Product within fifteen (15) business days
      of receipt by Jabil of the RMA Product and all required associated
      documentation.  In the event a Defect is found, Jabil will reimburse
      Company for the reasonable cost of transporting the RMA Product to Jabil’s
      designated repair facility and Jabil will deliver the repaired RMA Product
      or
      its replacement, at Jabil’s own expense to Company’s designated
      destination.  If no such Defect is found, Company shall reimburse
      Jabil for all fees, costs and expenses incurred to analyze and, if requested
      by
      Company, repair or replace the alleged RMA Product and Company shall bear
      responsibility for all transportation costs to and from Jabil’s designated
      repair facility.

    

    5.3           Rework
      and non-warranty repair.  Jabil agrees to perform rework
      and non-warranty repair on mutually agreed to items. Rework and non-warranty
      repair items may consist of: Products set forth on Schedule A, assemblies
      produced by another supplier, or assemblies produced by
      Company.  Rework and non-warranty repair cost shall be established and
      mutually agreed to by both Parties.  All items for rework or
      non-warranty repair will be handled in accordance with the RMA procedure set
      forth in section 5.2.

     

    5.4           Refurbished
      Product.  Jabil agrees to refurbish previously used
      Product incorporated into mutually agreed to items.  Refurbished items
      may consist of: Products set forth on Schedule A, assemblies produced by another
      supplier, or assemblies produced by Company.  Refurbished Product cost
      shall be established and mutually agreed to by both Parties.  All
      items for refurbishment will be handled in accordance with the RMA procedure
      set
      forth in Section 5.2

    

    5.5           Limitation
      of Warranty. THE REMEDY SET FORTH IN SECTION 5.2 SHALL CONSTITUTE
      COMPANY’S SOLE AND EXCLUSIVE REMEDY FOR A BREACH OF THE WARRANTY MADE BY JABIL
      IN SECTION 5.  THE WARRANTY SET FORTH IN THIS SECTION 5 IS IN LIEU OF,
      AND JABIL EXPRESSLY DISCLAIMS, AND COMPANY EXPRESSLY WAIVES, ALL OTHER
      WARRANTIES AND REPRESENTATIONS OF ANY KIND WHATSOEVER WHETHER EXPRESS, IMPLIED,
      STATUTORY, ARISING BY COURSE OF DEALING OR PERFORMANCE, CUSTOM, USAGE IN THE
      TRADE OR OTHERWISE, INCLUDING ANY WARRANTY OF MERCHANTABILITY, MERCHANTABLE
      QUALITY, OR FITNESS FOR A PARTICULAR PURPOSE OR INFRINGEMENT OR MISAPPROPRIATION
      OF ANY RIGHT, TITLE OR INTEREST OF COMPANY OR ANY THIRD PARTY OR COMPLIANCE
      WITH
      MATERIALS DECLARATION REQUIREMENTS.  COMPANY UNDERSTANDS AND AGREES
      THAT IT SHALL HAVE FULL AND EXCLUSIVE LIABILITY WITH RESPECT TO ANY PRODUCT
      FOR
      PRODUCT DESIGN LIABILITY, PRODUCT LIABILITY, DAMAGE TO PERSON OR PROPERTY AND/OR
      INFRINGEMENT OR MISAPPROPRIATION OF THIRD PARTY RIGHTS BY THE
      PRODUCT.  NO ORAL OR WRITTEN STATEMENT OR REPRESENTATION BY JABIL, ITS
      AGENTS OR EMPLOYEES SHALL CONSTITUTE OR CREATE A WARRANTY OR EXPAND THE SCOPE
      OF
      ANY WARRANTY HEREUNDER.

    

    
      
        
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    JABIL’S
      WARRANTY IN SECTION 5 SHALL NOT APPLY TO ANY PRODUCT JABIL DETERMINES TO HAVE
      BEEN SUBJECTED TO TESTING FOR OTHER THAN SPECIFIED ELECTRICAL CHARACTERISTICS
      OR
      TO STORAGE, SHIPPING, OPERATING AND/OR ENVIRONMENTAL CONDITIONS IN EXCESS OF
      THE
      MAXIMUM VALUES ESTABLISHED IN APPLICABLE SPECIFICATIONS, OR TO HAVE BEEN THE
      SUBJECT OF MISHANDLING, ACCIDENT, MISUSE, NEGLECT, IMPROPER TESTING, IMPROPER
      OR
      UNAUTHORIZED REPAIR, ALTERATION, DAMAGE, ASSEMBLY, PROCESSING OR ANY OTHER
      INAPPROPRIATE OR UNAUTHORIZED ACTION OR INACTION THAT ALTERS PHYSICAL OR
      ELECTRICAL PROPERTIES.  THIS WARRANTY SHALL NOT APPLY TO ANY DEFECT IN
      THE PRODUCT ARISING FROM ANY DRAWING, DESIGN, SPECIFICATION, PROCESS, TESTING
      OR
      OTHER PROCEDURE, ADJUSTMENT OR MODIFICATION SUPPLIED AND/OR APPROVED BY
      COMPANY.

     

    5.4           ECO
      Upgrade.  RMAs for engineering change
      order (ECO) upgrades will also be subject to the RMA process.  Jabil
      will analyze each engineering change order and provide a per unit upgrade cost
      and expected completion and delivery date and if the Parties are in agreement,
      the proposed ECO will become final.  Company is responsible for
      determining whether any ECO upgrades require FDA clearance or approval or
      otherwise must be reported to FDA.

    

    6           Limitation
      of Damages

    

    EXCEPT
      WITH REGARD TO ANY INDEMNITIES SET FORTH HEREIN, UNDER NO CIRCUMSTANCES SHALL
      EITHER PARTY BE LIABLE TO THE OTHER PARTY OR TO ANY OTHER PERSON OR ENTITY
      UNDER
      ANY CONTRACT, TORT, STRICT LIABILITY, NEGLIGENCE, OR OTHER LEGAL OR EQUITABLE
      CLAIM OR THEORY FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR INDIRECT DAMAGES,
      LOSS OF GOODWILL OR BUSINESS PROFITS, LOST REVENUE, WORK STOPPAGE, DATA LOSS,
      COMPUTER FAILURE OR MALFUNCTION, OR FOR ANY AND ALL OTHER DAMAGES, LOSS OR
      EXEMPLARY OR PUNITIVE DAMAGES WHETHER SUCH PARTY WAS INFORMED OR WAS AWARE
      OF
      THE POSSIBILITY OF SUCH LOSS OR DAMAGE.  THE FOREGOING SHALL NOT
      EXCLUDE OR LIMIT EITHER PARTY’S LIABILITY FOR DEATH OR PERSONAL INJURY RESULTING
      FROM ITS NEGLIGENCE TO THE EXTENT THAT SUCH LIABILITY CANNOT BY LAW BE LIMITED
      OR EXCLUDED.

    

    7           Delivery,
      Risk of Loss and Payment Terms. For purposes of this Agreement
      delivery shall be FOB Jabil’s facility and deemed to have occurred, and all risk
      of loss shall be transferred to Company, when Products (or any other items)
      are
      tendered to the carrier approved by Company.  The Bill of Lading will
      be prepared by Jabil for each shipment, a copy of which will be provided to
      Company.  The Fee and Price Schedule (Schedule ”C”) will be reviewed
      by the Parties annually and will be revised consistent with increases or
      decreases in materials, components, equipment and other costs and expenses
      applicable to the manufacture of the Products.

    

    7.1           Payment.
      Company shall pay Jabil all monies when due, including all NRE Costs associated
      with this Agreement.  Payment of all invoices shall be net thirty (30)
      days from date of invoice.    Payment to Jabil shall be in
      U.S. dollars and in immediately available funds.  In the event any
      amounts are invoiced or paid in a different currency, the process in the
      Currency Policy (Schedule “E”) will apply.  Any equipment, tooling,
      component, material or other goods or property which are purchased by Jabil
      in
      order to perform its obligations under this Agreement, shall become the property
      of Company once Jabil is reimbursed for the NRE Costs thereof.  Jabil
      shall invoice Company for actual outstanding NRE Costs and other monies due,
      as
      per the Fee

    

    
      
        
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    and
      Price Schedule (Schedule “C”), at monthly intervals (or such other intervals as
      the Parties deem appropriate) during the term of this Agreement and upon
      cancellation, termination or expiration of this Agreement.  Jabil
      agrees to request advance written approval from Company should resource
      requirements, and thereby NRE Costs, increase relative to estimated NRE Costs
      initially agreed by the Parties as indicated in the Fee and Price Schedule
      (Schedule “C”).  Jabil shall provide to Company reasonably detailed
      supporting documentation and/or descriptions of the increased NRE Costs for
      which Jabil seeks payment from Company prior to incurring any such expenses.
      

    

    7.2           Taxes.  Company
      shall be responsible for all federal, foreign, state and local sales, use,
      excise and other taxes (except taxes based on Jabil’s income), all delivery,
      shipping, and transportation charges and all foreign agent or brokerage fees,
      document fees, custom charges and duties.

    

    8           Import
      and Export. Company shall be responsible for obtaining any required
      import or export licenses necessary for Jabil to ship Product, including
      certificates of origin, manufacturers’ affidavits, and U.S. Federal
      Communications Commission’s identifier, if applicable and any other licenses
      required under US or foreign law and Company shall be the importer of
      record.  Company agrees that it shall not export, re-export, resell or
      transfer, or otherwise require Jabil to ship or deliver any Product, assembly,
      component or any technical data or software which violate any export controls
      or
      limitations imposed by the United States or any other governmental authority,
      or
      to any country for which an export license or other governmental approval is
      required at the time of export without first obtaining all necessary licenses
      and approvals and paying all duties and fees. Company shall provide Jabil with
      all licenses, certifications, approvals and authorizations in order to permit
      Jabil to comply with all import and export laws, rules and regulations for
      the
      shipment and delivery of the Product. Company shall also be responsible for
      complying with any legislation or regulations governing the importation of
      the
      Product into the country of destination and for payment of any duties
      thereon.

    

    9           Design
      Services.  In the event that the Parties agree that Jabil
      will provide design services for Company, the terms and conditions of such
      services shall be set forth in a mutually agreed upon design services agreement
      prior to the commencement of any design services.

    

    10           Maintenance
      of Product Records.

    

    10.1  Product
      Clearance.  Company will be responsible for obtaining and
      maintaining appropriate clearances or approvals required by the Federal Food,
      Drug and Cosmetic Act and implementing regulations with respect to all Products
      regulated as finished devices by FDA.  Prior to Jabil’s development
      and conduct of manufacturing and production processes and controls for a
      Product, Company will provide to Jabil: (a) a device master record (“DMR”) for
      the Product that includes the information required in 21 CFR 820.181, and that
      has been prepared and approved by Company in accordance with 21 CFR 820.181;
      and
      (b) a design history file (“DHF”) for the Product containing the records
      necessary to demonstrate that the device design was developed in accordance
      with
      the approved design plan the requirements of 21 CFR 820.30.

    

    10.2
      Manufacturing and
      Quality System Records.  Except as provided below, Jabil
      will be responsible for establishing and maintaining all manufacturing records
      required by 21 CFR 820, the FDA’s Quality System Regulation, and similar
      provisions for Canada and Europe, applicable to the operations it performs
      as a
      manufacturer of the Product as specified in Section 4 of this Agreement and
      set
      forth in the Quality Agreement.

    

    Company
      will designate an individual to review for adequacy and approve prior to
      issuance all procedures, work instructions, or other documents, and any
      amendments thereto, established by Jabil acting reasonably applicable to Jabil’s
      provision of manufacturing services under the Agreement.

    

    

    
      
        
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    Jabil
      will retain all such records for a period of time equivalent to the design
      and
      expected life of the device plus 2 years, as designated in writing by Company,
      but in no case less than two years from the date of release for commercial
      distribution by Jabil.

    

    Company
      will be responsible for establishing the DMR and DHF in accordance with 21
      CFR
      820.130 and 820.181 for the Product as cleared or approved by the
      FDA.  Company has the right to propose or introduce changes to the
      Product, the DHF, or the DMR.  From time to time, Jabil may propose
      changes to the DHF or DMR.  Upon the request of Company and upon
      agreement by Jabil, Jabil will provide design services and/or testing in support
      of such changes.  The terms and conditions of such design related
      services shall be set forth in a mutually agreed upon Design Services
      Agreement.  Upon written approval by Company, and at Company’s
      expense, Jabil shall amend the DHF or DMR in accordance with the terms of the
      agreed upon Design Services Agreement.  Company at all times will be
      responsible for determining whether any such change requires FDA clearance
      or
      approval, and for obtaining such clearance or approval prior to implementation
      of the change.  Company will be responsible for the adequacy and
      sufficiency of all contents of the DMR at all times.  Company will
      consider and approve or disapprove all modifications to the DMR and be solely
      responsible for the changes it requires Jabil to make.  Jabil will
      administratively maintain and update the Company DMR as an additional billable
      service but in no way is responsible for the adequacy and sufficiency of the
      DMR, but covenants to make the changes therein required by the
      Company.  Company will be solely responsible for establishing and
      maintaining Complaint files in accordance with 21 CFR 820.198.

    

    Company
      will be solely responsible for initial receipt and handling of potential
      Complaints Jabil or Company receives related to the Product.  Upon
      receipt of such Complaint information, the party receiving same shall record
      the
      identity of complainant, including name, address, and telephone number, a
      description of the nature of the Complaint, and take all reasonable efforts
      to
      obtain all other available information associated with the
      Complaint  and promptly provide same to the other party in
      writing.  To the extent Company requires additional information to
      enable it to perform the Complaint investigation, Company shall notify Jabil
      and
      Jabil shall cooperate fully in assisting with the conduct of the
      investigation.

    

    Company
      will be solely responsible for establishing and maintaining all records required
      under FDA law and regulations applicable to any and all of the operations it
      performs as a manufacturer, distributor, and marketer of the Product, including
      (a) handling, storage, distribution, and installation of finished devices
      received from Jabil, in accordance with 21 CFR 820; (b) establishment
      registration and device listing in accordance with 21 CFR 807; (c) records
      and
      reports concerning corrections and removal actions taken under 21 CFR 806;
      (d)
      medical device reports and related records concerning adverse events associated
      with the Product under 21 CFR 803.

    

    Company
      shall be entitled to perform on site quality control audits of records, at
      Company’s expense, at reasonable times and upon reasonable notice to
      Jabil.    Jabil agrees to furnish, at Company’s sole
      expense, quality system records and assistance reasonably needed to facilitate
      any such audit and to ensure the safety and convenience of each
      inspection.

    

    11           Change
      Orders, Rescheduling and Cancellation.

    

    11.1           Changes
      to Product Configuration, Manufacturing Services, Packaging and Shipping
      Specifications, and Test Procedures.  Company may, in
      writing, request a change to the Product Configuration, Manufacturing Services,
      Packaging and Shipping Specifications and Test Procedures, as outlined in the
      Device Master Record, at any time.  Jabil will analyze the requested
      change according to the Quality Agreement and if Jabil can satisfy the requested
      change it will provide Company within five (5) business days after receipt
      of
      the request, a notice of acceptance of the requested changes along with a
      statement of any additional costs and expected changes to delivery schedules.
      Jabil will review with Company all planned Significant Changes and will be
      responsible for revalidation according to the Quality Agreement. Any such change
      shall be documented in writing

    

    
      
        
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    and
      shall become effective only upon mutual written agreement of both Parties of
      the
      terms and conditions of such change, including changes in time required for
      performance, cost and applicable delivery schedules. Company will be responsible
      for all costs associated with any accepted changes.  If Jabil is
      unable to satisfy or comply with Company’s requested changes within the
      requested time frame for delivery, Jabil will provide the reasons preventing
      Jabil from satisfying the requested increase within five (5) business days
      after
      receipt of Company’s request.

    

    11.2           Production
      Increases.  Deliberately removed.

    

    11.3           Treatment
      of Obsolete/End-of-Life Material. Upon receiving notice from
      Company of an engineering change or that any Product, component or assembly
      has
      become obsolete or has reached end-of-life Jabil will, within a reasonable
      period after receiving such notice, provide Company with an analysis of
      Company's liability to Jabil for components and materials acquired or scheduled
      to be acquired to manufacture such Product.  Company's liability shall
      include the price of finished Product and Jabil’s costs (including cancellation
      fees and charges), plus applicable margin, of work in progress, safety stock
      components and materials and components and materials on hand or on order within
      applicable Lead-times.  Jabil will use Commercially Reasonable Efforts
      to assist Company in minimizing Company's liability by taking the following
      steps:

     

    
      	
               

            	
              •

            	
              As
                soon as is commercially practical reduce or cancel component and
                material
                orders to the extent contractually
                permitted.

            

    

     

    •              
      Return all components and materials to the extent contractually
      permitted.

     

    •              
      Make all Commercially Reasonable Efforts to sell components and materials to
      third parties.

     

    
      	
               

            	
              •

            	
              Assist
                Company to determine whether current work
                in progress should be completed, scrapped or shipped
                "as is".

            

    

    

    11.4           Rescheduled
      Delivery and Cancellation of Orders.  Company may not
      reschedule or cancel orders within 60 days of delivery.  Company shall
      be responsible for all inventory costs resulting from a reschedule or
      cancellation of Manufacturing Services in the binding period of the Build
      Schedule Forecast, i.e. the first three (3) calendar months
      thereof.  If Jabil, acting reasonably, demonstrates to Company that
      the reschedule or cancellation will result in increased production costs, Jabil
      and Company will agree on a new price and the Fee & Price Schedule will be
      revised accordingly to allow Jabil to recover such increased production
      costs.  Such inventory costs shall be billed on a monthly basis plus
      an interest rate calculated as follows: two percent (2%) per annum plus the
      prime rate, as announced in The Wall Street Journal as of the date of reschedule
      (said interest rate shall be adjusted on the first business day of each calendar
      month thereafter for as long as the rescheduled order is maintained in
      inventory) and shall be applied to the inventory applicable to the rescheduled
      or cancelled order.  Orders may be rescheduled up to a maximum of 90
      days in total (considering multiple reschedules) from the original order
      delivery date unless excess inventory generated by order reschedule is purchased
      by Company within 90 days of the original order delivery date.  In
      addition to the charges and costs set forth above, Company shall also be liable
      for the depreciation (determined in accordance with U.S. Generally Accepted
      Accounting Principles) for the period of time any piece of equipment (except
      Loaned Equipment) is idle as a result of the reschedule or cancellation for
      up
      to six months from the date of termination or cancellation.

    

    11.5           Termination
      Charges.  Upon termination, expiration
      or cancellation of this Agreement for any reason, Jabil shall submit to Company
      Jabil’s invoices for termination/cancellation charges pertaining to the binding
      portion of the Build Schedule Forecast and for depreciation expense on idle
      equipment, as follows.  Jabil’s invoice for such charges shall be
      equal to the unrecovered costs pertaining to the binding portion of the
      Build

    

    
      
        
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    Schedule
      Forecast incurred by Jabil up to the date of termination, expiration or
      cancellation (“Termination Effective Date”) together with (i)
      costs incurred after the Termination Effective Date but resulting directly
      and
      solely from such termination, expiration or cancellation; (ii) a margin of
      7.4
      percent of all such costs; (iii) the cost of long lead time materials that
      are
      on order and non-cancellable and (iv) the depreciation expense (except in the
      event of termination due to Jabil’s default hereunder) on all equipment used to
      manufacture Product (except Loaned Equipment) that remains idle due to such
      termination, expiration or cancellation for up to three months from the date
      of
      the Termination Effective Date in accordance with U.S. Generally Accepted
      Accounting Principles.  Jabil will provide to Company all information
      reasonably necessary to confirm the costs, expenses, and depreciation expenses
      on idle equipment sustained by Jabil due to termination, expiration or
      cancellation.  To the extent that Jabil cannot mitigate its costs,
      upon cancellation, expiration or termination for any reason, Company’s
      obligation shall be to pay the charges claimed by Jabil as follows:

    

    11.5.1                      The
      applicable price for the Product of which Jabil has completed manufacture prior
      to the Termination Effective Date pursuant to the binding portion of the most
      recent Build Schedule Forecast for which payment has not been made;

    

    11.5.2                      Reimbursements
      for material acquisition costs, components, subassemblies and work-in-process
      at
      the time of Termination Effective Date which were purchased or ordered pursuant
      to the most recent Build Schedule Forecast plus the applicable margin set out
      in
      Section 11.4(b)(ii);

    

    11.5.3                      Jabil’s
      reasonable cancellation costs incurred for components, materials and
      subcontracted items that Jabil had on order on behalf of Company on the
      Termination Effective Date pursuant to the most recent Build Schedule Forecast
      plus applicable margin;

    

    11.5.4                      Except
      in the event of termination due to Jabil’s default hereunder, depreciation on
      equipment idle up to six months after the Termination Effective Date;
      and

    

    11.5.5                      Jabil’s
      cost of equipment or tooling purchased by Jabil specifically for the
      manufacture, test, design, or packaging of Product and any other services
      rendered or costs incurred by Jabil under this Agreement, for which Company has
      not fully paid. All goods for which Company shall have paid 100% of Jabil’s
      incurred cost or more shall be held by Jabil for Company’s account and the
      Parties will arrange for its delivery to Company in good working condition
      subject to reasonable wear and tear.

    

    11.6           Duty
      to Mitigate Costs and Liability.  Both
      Parties shall, in good faith, undertake Commercially Reasonable Efforts to
      mitigate the costs of termination, expiration or cancellation.  In the
      event that termination, order cancellation, reschedule, or an engineering change
      to the design results in unused components Jabil will use Commercially
      Reasonable Efforts to assist Company in minimizing Company’s liability by taking
      the following steps:

    

    11.6.1                      As
      soon as is commercially practical, reduce or cancel component and material
      orders to the extent contractually permitted.

    

    11.6.2                      Return
      all components and materials to the extent contractually permitted.

    

    11.6.3                      Use
      Commercially Reasonable Efforts to sell components and materials to third
      parties.

    11.6.4                      Assist
      Company to determine whether current work in progress should be completed,
      scrapped or shipped “as is”.

    

    

    
      
        
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    11.6.5                      Allocate
      such components and materials for alternate Company programs if applicable,
      or
      other customer orders provided the same can be used within thirty (30) days
      of
      the termination date.

    

    Jabil
      will monitor the material list and report to the Company when necessary in
      writing, listing the dates when any Products, components or assemblies will
      become obsolete or reach end-of-life.

    

    If
      components cannot be returned because they are non-cancellable, non-returnable,
      excess components, custom component tooling and custom raw material, or residual
      inventory driven by component order increment, Company will reimburse Jabil
      for
      its third party costs plus a 7.4% mark-up on these unused components to cover
      inventory and procurement costs.  Jabil will invoice these obsolete or
      excess components at their actual purchased unit price multiplied by the
      quantity to be sold to Company plus the 7.4% mark-up.

    

    12           Term.  The
      term of this Agreement shall begin on the Effective Date and will continue
      for a
      period of five years.   This agreement will be extended
      automatically on a year-to-year basis unless at least ninety (90) days prior
      to
      the expiration of the initial term or any succeeding one (1) year extension,
      one
      of the parties notifies the other party in writing that it does not wish to
      extend the Agreement, and in such case, the Agreement will expire at the end
      of
      the term or extension term in question. Notwithstanding the foregoing, Sections
      4.1, 4.2, 4.3, 4.6, 5, 6, 7, 8, 11.3, 11.4, 11.6, 11.7, 12, 13.4, 14, 15, 16,
      17, 18, 20 and 22 herein shall survive the expiration, cancellation or
      termination of this Agreement.

    

    13           Termination.
      This Agreement may be terminated as follows:

    

    13.1           Termination
      for Convenience.  This Agreement may be terminated at any
      time upon the mutual written consent of the Parties or upon the date for
      termination set forth in a written notice given by one Party to the other not
      less than 12 months prior to such date.

    

    13.2           Termination
      for Cause.  Either Party may terminate this Agreement
      based on the material breach by the other Party of the terms of this Agreement,
      provided that the Party alleged to be in material breach receives written notice
      setting forth the nature of the breach at least sixty (60) days prior to the
      intended termination date. During such time the Party in material breach may
      cure the alleged breach and if such breach is cured within such sixty (60)
      day
      period, or a period mutually agreed upon by both Parties, no termination will
      occur and this Agreement will continue in accordance with its
      terms.  If such breach shall not have been cured, termination shall
      occur upon the termination date set forth in such notice.

    

    13.3           Termination
      for Bankruptcy/Insolvency. Upon the happening of any of the
      following events with respect to a Party, this Agreement may be terminated
      immediately:

    

    13.3.1                      The
      appointment of a receiver or custodian to take possession of any or all of
      the
      assets of a Party, or should a Party make an assignment for the benefit of
      creditors, or should there be an attachment, execution, or other judicial
      seizure of all or a substantial portion of a Party’s assets, and such
      attachment, execution or seizure is not discharged within thirty (30)
      days.

    

    13.3.2                      A
      Party becomes a debtor, either voluntarily or involuntarily, under Title 11
      of
      the United States Code or any other similar law and, in the case of an
      involuntary proceeding, such proceeding is not dismissed within thirty (30)
      days
      of the date of filing.

    

    13.3.3                      The
      dissolution or termination of the existence of a Party whether voluntarily,
      by
      operation of law or otherwise.

    

    
      
        
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    13.4           Termination
      Consequences.  If this Agreement is terminated for any
      reason, neither party shall be excused after the effective date of termination
      from performing its obligations under this Agreement that are intended to
      survive such termination, and Company shall continue after termination to be
      responsible for all monies due to Jabil hereunder including fees, costs and
      expenses incurred by Jabil up to and including the Termination Effective
      Date.

    

    14           Confidentiality.

    

    14.1           Confidentiality
      Obligations.  In order to protect both Parties’
Proprietary Information and Technology the Parties agree that
      each Party shall
      use the same degree of care, but no less than a reasonable degree of care,
      as
      such Party uses with respect to its own similar information to protect the
      Proprietary Information and Technology of the other Party and to prevent any
      use
      of Proprietary Information and Technology other than for the purposes of this
      Agreement.  This Section 14 imposes no obligation upon a Party with
      respect to Proprietary Information and Technology which (a) was known to such
      Party before receipt from the disclosing Party; (b) is or becomes publicly
      available through no fault of the receiving Party; (c) is rightfully received
      by
      the receiving Party from a third party without a duty of confidentiality; (d)
      is
      disclosed by the disclosing Party to a third party without imposing a duty
      of
      confidentiality on the third party; (e) is independently developed by the
      receiving Party without a breach of this Agreement; or (f) is disclosed by
      the
      receiving Party with the disclosing Party’s prior written
      approval.  If a Party is required by a government body or court of law
      to disclose Proprietary Information and Technology, this Agreement or any
      portion hereof, then such Party agrees to give the other Party reasonable
      advance notice so that the other Party may seek a protective order or otherwise
      contest the disclosure.  This Section 14 is not intended to cancel,
      but is rather intended to supplement, the existing Confidential Disclosure
      Agreement between the Parties dated December 5, 2005.

    

    14.2           Employees,
      Agents and Representatives.  Each Party
      represents and warrants to the other that it has adopted policies and procedures
      with respect to the receipt and disclosure of confidential or proprietary
      information, such as the Proprietary Information and Technology with its
      employees, agents and representatives.  Each Party represents and
      warrants to the other Party that it will cause each of its employees, agents
      and
      representatives to maintain and protect the confidentiality of the other Party’s
      Proprietary Information and Technology.

    

    14.3           Term
      and Enforcement. The confidentiality obligation set forth in this
      Agreement shall be observed both during the term of the Agreement and for a
      period of four years following the termination of this agreement. Each Party
      acknowledges that a breach of any of the terms of this Section 14 may cause
      the
      non-breaching Party irreparable damage, for which the award of damages would
      not
      be adequate compensation. Consequently, the non-breaching Party may institute
      an
      action to enjoin the breaching Party from any and all acts in violation of
      those
      provisions, which remedy shall be cumulative and not exclusive, and shall be
      in
      addition to any other relief to which the non-breaching Party may be entitled
      at
      law or in equity.  Such remedy shall not be subject to the arbitration
      provisions set forth in Section 22.13.

    

    14.4           Return
      of Proprietary Information and
      Technology.  Upon the termination,
      cancellation or expiration of this Agreement all Proprietary Information and
      Technology shall, upon written request, be returned to the respective Party,
      or
      at the respective Party’s discretion, destroyed by the receiving
      Party.

    

    
      
        
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              15

            	
              Intellectual
                Property Rights

            

    

    

    15.1                      Jabil
      Existing Intellectual Property.  Jabil
      shall retain all right, title and ownership to any Jabil Existing Intellectual
      Property that is incorporated into any Product that is prepared as part of
      the
      Manufacturing Services or as part of any other work provided pursuant to this
      Agreement or the Quality Agreement or any other related agreement executed
      by
      the Parties.  Upon full payment of all monies due and owing under this
      Agreement, and all other monies due and owing to Jabil pursuant to any other
      related agreement executed by the Parties, Jabil will grant to Company a
      worldwide, non-exclusive, fully paid-up, royalty free right and license to
      the
      Jabil Existing Intellectual Property only insofar as is required for Company
      to
      use, sell or distribute the Product provided as part of the Manufacturing
      Services performed by Jabil pursuant to this Agreement; provided however, that
      no license to manufacturing processes and/or manufacturing process improvements
      shall be granted hereunder.

    

    15.2                      Jabil
      Created Intellectual Property.  Jabil
      shall retain all right, title and ownership to any Jabil Created Intellectual
      Property until such time as (i) this Agreement expires or is terminated for
      any
      reason other than breach by the Company and (ii) the Company has paid to Jabil
      all monies due to Jabil under this Agreement and all other monies due and owing
      to Jabil pursuant to any other related agreement executed by the
      Parties.  Upon the occurrence of (i) and (ii) above, Jabil will assign
      to Company all right, title and interest in and to the Jabil Created
      Intellectual Property subject to the reservation of a non-exclusive, worldwide,
      fully paid up, royalty-free right and license in Jabil to use the Jabil Created
      Intellectual Property anywhere in the world to carry on its own
      business.

    

    15.3                    
      Company Intellectual Property.  Company shall
      retain all right, title and ownership to any Company Intellectual Property
      and
      no provision of this Agreement including the Quality Agreement shall be deemed
      to transfer any Company Intellectual Property to Jabil, provided that the
      provision of the Manufacturing Services shall not be deemed to be a breach
      of
      this Section 15.3.

    

    
      
        
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    16           Company
      Warranty and Indemnification. Company represents and warrants that
      it has used Reasonable Commercial Efforts to conduct patent, trademark and
      copyright searches for the purpose of identifying and evaluating any potential
      infringement claims with respect to the Product.  Company agrees to
      indemnify, defend and hold Jabil and its employees, Subsidiaries, Affiliates,
      successors and assigns harmless from and against all claims, damages, losses,
      costs and expenses, including attorneys’ fees, arising from any recall,
      replacement or impoundment or seizure of any Product and any third party claims
      asserted against Jabil and its employees, Subsidiaries, Affiliates, successors
      and assigns, that are based in part or in whole on any of the following: (a)
      Specifications, Company Proprietary Information and Technology, any Product,
      or
      any information, technology and processes supplied and/or approved by Company
      or
      otherwise required by Company of Jabil; (b) actual or alleged non-compliance
      with Materials Declaration Requirements; (c) an allegation that any item in
      subsection (a) infringes or violates any patent, copyright or other intellectual
      property right of a third party, and (d) design or product liability alleging
      that any item in subsection (a)  has caused or will in the future
      cause damages of any kind.  Jabil may employ counsel, at its own
      expense, to assist Company with respect to any such claims, provided that if
      such counsel is necessary because Company does not assume control of the defense
      of a claim for which Company is obligated to indemnify Jabil hereunder, Company
      shall bear such expense. Neither Party shall enter into any settlement that
      affects the other Party’s rights or interests without the other Party’s prior
      written approval, which shall not be unreasonably withheld.  Each
      Party will provide such assistance and cooperation as is reasonably requested
      by
      the other Party or its counsel in connection with such indemnified
      claims.  Company further agrees to indemnify, defend and hold Jabil
      and its Affiliates and their respective officers, directors, employees,
      successors and assigns harmless from and against all claims, penalties, fines,
      judgments, obligations, damages, losses, costs and expenses (including
      reasonable attorneys’ fees) incurred or imposed on Jabil by any governmental
      authority, including in connection with any investigation or proceeding, to
      the
      extent arising from the Products, Product Specifications, Company’s
      non-compliance with applicable laws or regulations, Company Confidential
      Information, Company Proprietary Rights incorporated into Products, or any
      information, technology and processes required or supplied by Company to Jabil
      to perform its obligations under this Agreement.  The Company shall
      have no obligation to indemnify Jabil to the extent that any such claim,
      damages, losses, costs or expenses arise from Jabil’s Proprietary Information
      and Technology, the Jabil Intellectual Property or the Jabil Manufacturing
      Process.

    

    17           Relationship
      of Parties. Jabil shall perform its obligations hereunder as an
      independent contractor.  Nothing contained herein shall be construed
      to imply a partnership or joint venture relationship between the Parties. The
      Parties shall not be entitled to create any obligations on behalf of the other
      Party, except as expressly contemplated by this Agreement.  The
      Parties will not enter into any contracts with third parties in the name of
      the
      other Party without the prior written consent of the other Party.

    

    18           Insurance.
      Each Party will keep its business and properties insured at all times
      against such risks for which insurance is usually maintained by reasonably
      prudent Persons engaged in a similar business (including insurance for hazards
      and insurance against liability on account of damage to Persons or property
      and
      insurance under all applicable workers’ compensation laws). The insurance
      maintained shall be in such monies and with such limits and deductibles usually
      carried by Persons engaged in the same or a similar business.

    

    19           Publicity.
      Without the consent of the other Party, neither Party shall refer to this
      Agreement in any publicity or advertising or disclose to any third party any
      of
      the terms of this Agreement. Notwithstanding the foregoing, neither Party will
      be prevented from, at any time, furnishing any information to any governmental
      or regulatory authority, or otherwise publishing any notice of this Agreement
      required by applicable laws and regulations, including the United States
      Securities and Exchange Commission or any other foreign stock exchange
      regulatory authority, that it is by law, regulation, rule or other legal process
      obligated to disclose, so long as the other Party is given advance written
      notice of such disclosure pursuant to Section 14.1.  A Party may
      disclose the existence of this Agreement and its terms to its attorneys and
      accountants, suppliers, customers and others only to the extent necessary to
      perform its obligations and enforce its rights hereunder.

    

    

    
      
        
          Manufacturing
            Services Agreement

           

        

        
          Page
            16

          
            

          

        

        
           

          CONFIDENTIAL

        

      

    

    

    20           Force
      Majeure. Neither Party will be liable for any
      delay in performing, or for failing to perform, its obligations under this
      Agreement (other than the payment of money) resulting from any cause beyond
      its
      reasonable control including, acts of God; blackouts; power failures; inclement
      weather; fire; explosions; floods; hurricanes;  typhoons; tornadoes;
      earthquakes; epidemics; strikes; work stoppages; component or material
      shortages; slow-downs; industrial disputes; sabotage; accidents; destruction
      of
      production facilities; riots or civil disturbances; acts of government or
      governmental agencies, including changes in law or regulations that materially
      and adversely impact the Party; provided that the Party affected by such event
      promptly notifies (in no event more than ten (10) business days of discovery
      of
      the event) the other Party of the event.  If the delays caused by the
      force majeure conditions are not cured within thirty (30) days of the force
      majeure event, then either Party may immediately terminate this Agreement.
      Termination of this Agreement pursuant to this Section 20 shall not affect
      Company’s obligation to pay Jabil, as set forth herein.  Jabil
      represents that it maintains an industry standard business continuity plan
      but
      does not guarantee that such plan will prevent events of force majeure from
      affecting the Company.

    

    21           Miscellaneous.

    

    21.1           Notices.  All
      notices, demands and other communications made hereunder shall be in writing
      and
      shall be given either by personal delivery, by nationally recognized overnight
      courier (with charges prepaid), by facsimile or EDI (with telephone
      confirmation) addressed to the respective Parties at the following
      addresses:

    

    
      	 	
              Notice
                to Jabil:

            	
              Jabil
                Circuit, Inc.

            
	 	 	
              10560
                Dr. M.L. King Jr. Street North

            
	 	 	
              St.
                Petersburg, FL 33716

            
	 	 	
              Facsimile:
                (727) 803-3415

            
	 	 	
              Attn:
                General Counsel

            
	 	 	 
	 	
              with
                a copy to:

            	
              Jabil
                Circuit, Inc.

            
	 	 	
              10560
                Dr. M.L. King Jr. Street North

            
	 	 	
              St.
                Petersburg, FL 33716

            
	 	 	
              Attn:
                General Counsel

            
	 	 	 
	 	
              Notice
                to Company:

            	
              PreMD
                Inc.

            
	 	 	
              4211
                Yonge Street, Suite 615

            
	 	 	
              Toronto,
                ON, Canada

            
	 	 	
              M2P2A9

            
	 	 	
              Facsimile:
                (415) 222-4533

            
	 	 	
              Attn:
                Chief Financial Officer

            
	 	 	 
	 	
              with
                a copy to:

            	
              Aird
                & Berlis LLP

            
	 	 	
              1800-181
                Bay Street

            
	 	 	
              Box
                754

            
	 	 	
              Toronto,
                Canada

            
	 	 	
              M5J
                2T9

            
	 	 	
              Facsimile:
                (416) 863-1515

            
	 	 	
              Attn:
                Jay Lefton

            

    

    

    21.2           Attorneys’
      Fees and Costs. In the event that attorneys’ fees or other costs
      are incurred to enforce payment or performance of any obligation, agreement
      or
      covenant between the Parties or to establish damages for the breach of any
      obligation, agreement or covenant under this Agreement, or to obtain any other
      appropriate relief under this Agreement, whether by way of prosecution or
      defense, the prevailing Party shall be entitled to recover from the other Party
      its reasonable attorneys’ fees and costs, including any appellate fees and the
      costs, fees and expenses incurred to enforce or collect such judgment or award
      and any other relief granted.

    

    

    
      
        
          Manufacturing
            Services Agreement

           

        

        
          Page
            17

          
            

          

        

        
           

          CONFIDENTIAL

        

      

    

    

    21.3           Amendment.
      No course of dealing between the Parties hereto shall be effective
      to
      amend, modify, or change any provision of this Agreement.  This
      Agreement may not be amended, modified, or changed in any respect except by
      an
      agreement in writing signed by the Party against whom such change is to be
      enforced.  The Parties may, subject to the provisions of this Section
      21.3, from time to time, enter into supplemental written agreements for the
      purpose of adding any provisions to this Agreement or changing in any manner
      the
      rights and obligations of the Parties under this Agreement or any Schedule
      hereto.  Any such supplemental written agreement executed by the
      Parties shall be binding upon the Parties. The Parties
      agree that Company has the option to add other Products to this Agreement,
      including Products that are considered finished medical devices by the FDA,
      which will be added to Schedule 1.  Company will notify Jabil in
      writing in advance of any finished medical device that Company desires to add
      to
      Schedule 1.  The Parties shall mutually agree in writing on any
      amendments or supplemental terms and conditions for the manufacture and supply
      of such finished medical device that are necessary to this
      Agreement.  Upon such agreement by the Parties, this Agreement will be
      amended in writing to add such terms and conditions as well as modify any other
      provisions as appropriate for each finished medical device when it is added
      to
      this Agreement (e.g., inter alia, warranties, medical device reporting
      procedures, compliance with applicable regulations and ISO standards,
      appropriate terms on liability, etc.).  Company has no obligation to
      add any finished medical devices to this Agreement and Jabil has no obligation
      to accept the addition of any such finished medical devices.

    

    21.4           Partial
      Invalidity. Whenever possible, each provision
      of this Agreement shall be interpreted in such a way as to be effective and
      valid under applicable law.  If a provision is prohibited by or
      invalid under applicable law, it shall be ineffective only to the extent of
      such
      prohibition or invalidity, without invalidating the remainder of such provision
      or the remaining provisions of this Agreement.

    

    21.5           Monies.  All
      references to monies in this Agreement shall be deemed to mean lawful monies
      of
      the United States of America.

    

    21.6           Entire
      Agreement.  This Agreement, the Quality Agreement, the
      Schedules and any addenda attached hereto or referenced herein, constitute
      the
      complete and exclusive statement of the agreement of the Parties with respect
      to
      the subject matter of this Agreement, and replace and supersede all prior
      agreements and negotiations by and between the Parties. Each Party acknowledges
      and agrees that no agreements, representations, warranties or collateral
      promises or inducements have been made by any Party to this Agreement except
      as
      expressly set forth herein or in the Schedules and any addenda attached hereto
      or referenced herein, and that it has not relied upon any other agreement or
      document, or any verbal statement or act in executing this
      Agreement.  These acknowledgments and agreements are contractual and
      not mere recitals.  In the event of any inconsistency between the
      provisions of this Agreement and any Schedule and any addenda attached hereto
      or
      referenced herein, the provisions of this Agreement shall prevail unless
      expressly stipulated otherwise, in writing executed by the Parties. Pre-printed
      language on each Party’s forms, including purchase orders, shall not constitute
      part of this Agreement and shall be deemed unenforceable.

    

    21.7           Binding
      Effect. This Agreement shall be binding on the
      Parties and their successors and assigns; provided, however, that neither Party
      shall assign, delegate or transfer, in whole or in part, this Agreement or
      any
      of its rights or obligations arising hereunder without the prior written consent
      of the other Party.  Any purported assignment without such consent
      shall be null and void.  Notwithstanding the foregoing, Jabil shall
      have the right to assign its rights to receive monies hereunder without the
      prior written consent of Company.

    

    

    
      
        
          Manufacturing
            Services Agreement

           

        

        
          Page
            18

          
            

          

        

        
           

          CONFIDENTIAL

        

      

    

    

    21.8           Waiver.
      Waiver by either Party of any breach of any provision of this Agreement
      shall not be considered as or constitute a continuing waiver or a waiver of
      any
      other breach of the same or any other provision of this Agreement.

    

    21.9           Captions.
      The captions contained in this Agreement are inserted only as a matter
      of convenience or reference and in no way define, limit, extend or describe
      the
      scope of this Agreement or the intent of any of its provisions.

    

    21.10           Construction.
      Since both Parties have engaged in the drafting of this Agreement,
      no
      presumption of construction against any Party shall apply.

    

    21.11           Section
      References. All references to Sections or
      Schedules shall be deemed to be references to Sections of this Agreement and
      Schedules attached to this Agreement, except to the extent that any such
      reference specifically refers to another document.  All references to
      Sections shall be deemed to also refer to all subsections of such Sections,
      if
      any.

    

    21.12           Business
      Day. If any time period set forth in this
      Agreement expires upon a Saturday, Sunday or U.S. or Canadian national, legal
      or
      bank holiday, such period shall be extended to and through the next succeeding
      business day.

    

    21.13           Dispute
      Resolution

    

    21.13.1                 The
      Parties shall use good faith efforts to resolve disputes, within twenty (20)
      business days of notice of such dispute.  Such efforts shall include
      escalation of such dispute to the corporate officer level of each
      Party.

    

    21.13.2                 If
      the Parties cannot resolve any such dispute within said twenty (20) business
      day
      period, the matter shall be submitted to arbitration for
      resolution.  Arbitration will be initiated by filing a demand at the
      New York, New York regional office of the American Arbitration Association
      (“AAA”).  The arbitration will be held in Buffalo,
      New York, or Albany, New York, at the option of the party filing the
      demand.

    

    21.13.3                 Disputes
      will be heard and determined by a panel of three arbitrators. Each Party will
      appoint one arbitrator to serve on the panel. A neutral arbitrator will be
      appointed by the AAA. All arbitrators must have significant experience in
      resolving disputes involving electronic manufacturing and design
      services.

    

    21.13.4                 Within
      fifteen (15) business days following the selection of the arbitrator, the
      Parties shall present their claims to the arbitrator for determination. Within
      ten (10) business days of the presentation of the claims of the Parties to
      the
      arbitrator, the arbitrator shall issue a written opinion. To the extent the
      matters in dispute are provided for in whole or in part in this Agreement,
      the
      arbitrator shall be bound to follow such provisions to the extent applicable.
      In
      the absence of fraud, gross misconduct or an error in law appearing on the
      face
      of the determination, order or award issued by the arbitrator, the written
      decision of the arbitrator shall be final and binding upon the Parties. The
      prevailing Party in the arbitration proceeding shall be entitled to recover
      its
      reasonable attorneys’ fees, costs and expenses including travel-related
      expenses.

    

    21.14           Other
      Documents. The Parties shall take all such actions
      and execute all such documents that may be necessary to carry out the purposes
      of this Agreement, whether or not specifically provided for in this
      Agreement.

    

    21.15           Counterparts.
      This Agreement may be executed by facsimile and delivered in one or
      more counterparts, each of which shall be deemed to be an original and all
      of
      which, taken together, shall be deemed to be one agreement.

    

    
      
        
          Manufacturing
            Services Agreement

           

        

        
          Page
            19

          
            

          

        

        
           

          CONFIDENTIAL

        

      

    

    

    

    21.16           Governing
      Law and Jurisdiction. This Agreement and the interpretation of its
      terms shall be governed by the laws of the State of New York, without
      application of conflicts of law principles. The provisions of the United Nations
      Convention on Contracts for the International Sale of Goods shall not apply
      to
      this Agreement. Subject to Section 21.13, the Parties hereby agree that the
      Courts sitting in Buffalo, New York, USA shall have exclusive jurisdiction
      over
      any litigation hereunder.

    

    IN
      WITNESS WHEREOF, the Parties have caused this Agreement to be executed
      by their duly authorized representatives.

    

    
      	
              PreMD
                INC.

            	 	
              JABIL
                CIRCUIT, INC.

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	 	 	
              By:

            	 
	 	
              Signature

            	 	 	
              Signature

            
	 	 	 	 	 
	
              Name:

            	 	 	
              Name:

            	 
	 	
              (Print)

            	 	 	
              (Print)

            
	 	 	 	 	 
	
              Title:

            	 	 	
              Title:

            	 
	 	 	 	 	 
	
              Date:

            	 	 	
              Date:

            	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
              PreMD
                INTERNATIONAL INC.

            	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	 	 	 	 
	 	
              Signature

            	 	 	 
	 	 	 	 	 
	
              Name:

            	 	 	 	 
	 	
              (Print)

            	 	 	 
	 	 	 	 	 
	
              Title:

            	 	 	 	 
	 	 	 	 	 
	
              Date:

            	
               

            	 	 	 

    

    

    

    
      
        
          Manufacturing
            Services Agreement

           

        

        
          Page
            20Unassociated Document

    ====================================================================

    

    

    

    

    

    PURCHASE
      AND SALE AGREEMENT

    

    

    

    BETWEEN

    

    

    

    SOAM
      OIL & GAS INVESTMENTS, LLC

    

    AS
      SELLER

    

    

    

    AND

    

    

    INFORM
      WORLDWIDE HOLDINGS, INC.

    

    

    AS
      PURCHASER

    

    

    

    

    

    DATED
      AS OF JUNE 14, 2007

    

    

    

    

    

    

    

    

    

    

    ====================================================================

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    PURCHASE
      AND SALE AGREEMENT

    

    

    THIS
      PURCHASE AND SALE AGREEMENT (the "Agreement"), dated as of June 14,
      2007, is made and entered into by and between Soam Oil & Gas Investments,
      LLC, a Texas limited liability company ("Seller"), whose address is 1101 Scott
      Avenue, Wichita Falls, TX 76301, and Inform Worldwide Holdings, Inc., a Florida
      corporation ("Purchaser"), whose address is 2501 North Green Valley Parkway,
      Suite 110, Henderson, NY 89014.

    

    RECITALS:

    

    

    
      	
              A.  

            	
              Seller
                owns certain Assets (as defined
                below);

            

    

    

    
      	
              B.  

            	
              Certain
                of the Assets are owned by Seller pursuant to a certain definitive
                agreement (the “Roark Definitive Agreement”). Such Assets are referred to
                hereinafter as the “Roark Assets”;

            

    

    

    
      	
              C.  

            	
              Certain
                of the Assets are owned by Seller pursuant to a certain letter of
                intent
                (the “Cornelius Letter of Intent”). Such Assets are referred to
                hereinafter as the “Cornelius
                Assets”;

            

    

    

    
      	
              D.  

            	
              Seller
                desires to sell to Purchaser and Purchaser desires to purchase from
                Seller
                the assets, properties, and rights of Seller hereinafter described,
                in the
                manner and upon the terms and conditions hereinafter set forth;
                and

            

    

    

    
      	
              E.  

            	
              Following
                the Effective Time (as defined below), Purchaser intends to enter
                into a
                definitive agreement (the “Cornelius Definitive Agreement”) with respect
                to the Cornelius Assets as contemplated by the Cornelius Letter of
                Intent.

            

    

    

    

    NOW,
      THEREFORE, in
      consideration of the premises and of the mutual promises, representations,
      warranties, covenants, conditions and agreements contained herein, and for
      other
      valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the parties hereto, intending to be legally bound by the terms
      hereof, agree as follows:

    

    ARTICLE
      I

    PURCHASE
      AND SALE

    

    1.1           PURCHASE
      AND SALE.   Subject to the terms and conditions of this
      Agreement, Seller agrees to sell and convey to Purchaser and Purchaser agrees
      to
      purchase and accept the Assets.

    

    1.2           ASSETS.  As
      used herein, the term "Assets" means the following:

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (a)           All
      of Seller's right, title and interest in and to (i) the estates and mineral
      rights created by the oil and gas leases and mineral estates (the "Leases"),
      described in Exhibit "A", and (ii) all oil, gas, water disposal and other wells
      located on the Leases or on lands pooled therewith (the "Wells"), including,
      but
      not limited to, the wells set forth in Exhibit "A", together with all of
      Seller's interest in the rights and appurtenances incident thereto;

    

    (b)           All
      of Seller's rights in, to and under, and obligations arising from, all
      agreements relating to the Leases or Wells (including, without limitation,
      the
      Roark Definitive Agreement and the Cornelius Letter of Intent); and

    

    (c)           All
      of Seller's interest in fixtures, personal property, facilities and equipment,
      used or held for use or charged to the Leases or Wells for the production,
      treatment, transportation, sale or disposal of hydrocarbons or water produced
      therefrom or attributable thereto.

    

    1.3           EFFECTIVE
      TIME.  This agreement shall be effective as of 7:00 A.M.
      (local time where the Assets are located) on June 14, 2007 (the "Effective
      Time").

    

    1.4           LIABILITIES.  Upon
      Closing, the Seller shall remain liable for and obligated by all of its
      liabilities and their related duties and obligations outstanding as of the
      Effective Time except for the Accrued Expenses (defined herein).

    

    ARTICLE
      II

    CONSIDERATION

    

    2.1  ACCRUED
      EXPENSES.  Purchaser shall reimburse Seller for all of
      Seller’s accrued expenses attributable to the Assets prior to the Effective Time
      as set forth on Exhibit B attached hereto (the “Accrued Expenses”).

    

    2.2  LEASE
      OPERATOR.  Purchaser agrees that, as of the Effective Time,
      Seller shall be retained as the operator of the Leases and the Wells relating
      to
      the Roark Assets.  Purchaser agrees that, upon the effective date of
      the Cornelius Definitive Agreement, Seller shall be retained as the operator
      of
      the Leases and the Wells relating to the Cornelius Assets.

    

    2.3  NET
      PRODUCTION REVENUES.  Purchaser agrees that, as of the
      Effective Time, Seller shall be entitled to 2% net revenue interest from and
      accruing to the Roark Assets.  Purchaser agrees that, upon the
      effective date of the Cornelius Definitive Agreement, Seller shall be entitled
      to 2% net revenue interest from and accruing to the Cornelius
      Assets.

    

    ARTICLE
      III

    TITLE
      MATTERS

    

    3.1           SELLER'S
      TITLE.

    

    Seller
      owns good and marketable title
      to the Assets, and the Assets are free, clear and unencumbered.

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    ARTICLE
      IV

    PRE-CLOSING,
      AND CLOSING ACTIONS

    

    4.1           TIME
      AND PLACE OF CLOSING.

    

    (a)           The
      parties hereto shall use their best efforts to consummate the purchase and
      sale
      transaction as contemplated by this Agreement (the "Closing") at the offices
      of
      Sichenzia Ross Friedman Ference LLP, 61 Broadway, New York, NY 10006, on June
      14, 2007 or as soon thereafter that the conditions to Closing set forth in
      this
      Agreement are satisfied, but in no event shall Closing occur after June 14,
      2007
      unless otherwise agreed to in writing by Purchaser and Seller.

    

    (b)           The
      date on which the Closing occurs is herein referred to as the "Closing
      Date".

    

    4.2           PUBLIC
      ANNOUNCEMENTS. Each party hereto shall consult with the other party
      hereto prior to any public announcement by such party regarding the existence
      of
      this Agreement, the contents hereof or the transactions contemplated
      hereby.

    

    ARTICLE
      V

    REPRESENTATIONS
      AND WARRANTIES OF SELLER

    

    5.1           DISCLAIMERS.
      Except as specifically set forth in this Article V and Section 3.1,
      Seller makes no warranties or representations, express or implied, in connection
      with the Assets, and expressly disclaims any warranties or representations
      with
      regard to any information or data disclosed or provided by them, their agents,
      representatives, employees or advisors to Purchaser or Purchaser's agents,
      representatives, employees, or advisors.  Subject to this Section 5.1,
      Seller makes the warranties and representations set forth in Sections 5.2
      through 5.12.

    

    SELLER
      EXPRESSLY DISCLAIMS ANY WARRANTY AS TO THE CONDITION OF ANY PERSONAL PROPERTY,
      FIXTURES AND ITEMS OF MOVABLE PROPERTY COMPRISING ANY PART OF THE ASSETS
      INCLUDING (a) ANY IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY, (b) ANY
      IMPLIED OR EXPRESS WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, (c) ANY IMPLIED
      OR EXPRESS WARRANTY OF CONFORMITY TO MODELS OR SAMPLES OF MATERIALS, (d) ANY
      RIGHTS OF PURCHASER UNDER APPLICABLE STATUTES TO CLAIM DIMINUTION OF
      CONSIDERATION, AND (e) ANY CLAIM BY PURCHASER FOR DAMAGES BECAUSE OF DEFECTS,
      WHETHER KNOWN OR UNKNOWN, IT BEING EXPRESSLY UNDERSTOOD BY PURCHASER THAT THE
      PERSONAL PROPERTY, FIXTURES AND ITEMS ARE BEING CONVEYED TO PURCHASER AS IS,
      WHERE IS, WITH ALL FAULTS, AND IN THEIR PRESENT CONDITION AND STATE OF REPAIR
      AND THAT PURCHASER HAS MADE OR

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     CAUSED
      TO BE MADE SUCH INSPECTIONS AS PURCHASER DEEMS
      APPROPRIATE.

    

    5.2           EXISTENCE.
      Seller is a limited liability company duly formed, validly existing
      and
      in good standing under the laws of the State of Texas and is duly
      registered  to do business as a foreign limited liability company in
      the States where the Assets are located.

    

    5.3           POWER.  Seller
      has the power to enter into and perform this Agreement and the transactions
      contemplated by this Agreement.  Subject to preferential purchase
      rights and restrictions on assignment of the type generally found in the oil
      and
      gas industry, and to rights to consent by, required notices to, and filings
      with
      or other actions by governmental entities where the same are customarily
      obtained subsequent to the assignment of oil and gas interests, the execution,
      delivery and performance of this Agreement by Seller, and the transactions
      contemplated by this Agreement, will not violate (a) any provision of the
      certificate or agreement of formation of Seller, (b) any material agreement
      or
      instrument to which Seller is a party or by which Seller or any of the Assets
      are bound, (c) any judgment, order, ruling, or decree applicable to Seller
      as a
      party in interest, or (d) any law, rule or regulation applicable to Seller
      relating to the Assets other than a violation which would not have a material
      adverse effect on Seller or the Assets.

    

    5.4           AUTHORIZATION
      AND ENFORCEABILITY.  The execution, delivery and performance
      of this Agreement, and the transaction contemplated hereby, have been duly
      and
      validly authorized by all necessary action on the part of Seller. This Agreement
      constitutes the valid and binding obligation of Seller, enforceable in
      accordance with its terms except as such enforceability may be limited by
      applicable bankruptcy or other similar laws affecting the rights and remedies
      of
      creditors generally as well as to general principles of equity (regardless
      of
      whether such enforceability is considered in a proceeding in equity or at
      law).

    

    5.5           LIABILITY
      FOR BROKERS' FEES.  Purchaser shall not directly or
      indirectly incur any liability or expense, as a result of undertakings or
      agreements of Seller, for brokerage fees, finder's fees, agent's commissions
      or
      other similar forms of compensation in connection with this Agreement or any
      agreement or transaction contemplated hereby.

    

    5.6           CLAIMS
      AND LITIGATION.  There are no claims, actions, suits or
      proceedings pending or threatened against Seller which, if determined adversely
      to Seller, would have a material adverse affect on the Assets or which would
      materially and adversely affect Seller's ability to perform its obligations
      under this Agreement.

    

    5.7           TAXES
      AND ASSESSMENTS.  All material ad valorem, production,
      severance, excise, and similar taxes and assessments based upon or measured
      by
      the ownership of or the production of hydrocarbons from the Assets which have
      become due and payable have been properly paid or are being challenged in good
      faith by Seller, all applicable tax returns have been filed, and Seller knows
      of
      no claim by any applicable taxing authority against Seller in connection with
      the payment of such taxes.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.8           ENVIRONMENTAL
      LAWS.  To the actual knowledge of Seller and as to that
      portion of the Assets not operated by Purchaser, (i) such Assets are in
      compliance in all material respects with all Environmental Laws (as hereinafter
      defined) and all orders or requirements of any court or federal, state, or
      local
      governmental authority, and possess and are in compliance with all required
      permits, licenses, or similar authorizations, (ii) such Assets and related
      operations are not subject to any existing or threatened suit, investigation,
      or
      proceeding related to any obligation under any Environmental Law, and (iii)
      there is no liability (contingent or otherwise) in connection with the release
      or threatened release into the environment of any Hazardous Substance (as
      defined below) as a result of or in connection with such Assets or the
      operations related thereto. As used in this Agreement, the term "Environmental
      Laws" shall mean any and all laws, regulations, ordinances and judicial
      interpretations pertaining the prevention, abatement or elimination of pollution
      or to the protection of public health or the environment that are in effect
      in
      all jurisdictions in which any of the Assets or related operations are located
      or conducted, including, without limitation, the federal Comprehensive
      Environmental Response, Compensation and Liability Act ("CERCLA"), the Resource
      Conservation and Recovery Act, the Clean Water Act, the Safe Drinking Water
      Act,
      the Toxic Substance Control Act, the Hazardous Materials Act and the Clean
      Air
      Act and the term "Hazardous Substance" shall have the meaning described under
      Section 101 of CERCLA at 42 U.S.C. Section 9601(14), except that it shall also
      include petroleum, natural gas, natural gas liquids, nitrous oxide, carbon
      monoxide and sulphur oxide.

    

    5.9           LEASES.  The
      Leases are in full force and effect and are valid and existing documents
      covering the entire estates which they purport to cover; all royalties, rentals
      and other payments due under the Leases which are the responsibility of Seller
      to pay have been fully, properly and timely paid; no party to any Lease is
      in
      breach of any provision  thereof; no such breach has been alleged by
      any lessor; the Leases, other than federal Leases, do not contain express
      development obligations; and all conditions necessary to keep the Leases in
      force have been performed.

    

    5.10           FURTHER
      ASSURANCES.  From the date of execution of this Agreement,
      without the prior written consent of Purchaser, Seller will not: (i) enter
      into
      any new agreements or commitments with respect to the Assets; (ii) incur any
      liabilities other than in the ordinary course for normal operating
      expenses  associated with individual Wells; (iii) abandon, or consent
      to abandonment of, any producing or shut-in Well or any injection well located
      on the premises associated with the Assets, nor release or abandon all or any
      portion of the Leases; (iv) modify or terminate any of the agreements relating
      to the Assets or waive any right thereunder; (v) encumber, sell or otherwise
      dispose of any of the Assets other than personal property which is replaced
      with
      equivalent property or consumed in the ordinary course of operation of the
      Assets  and other than hydrocarbons sold in the ordinary course of
      business; and (vi) purchase any additional interests..

    

    5.11           Seller
      represents that the sale of the Assets does not constitute the sale of
      substantially all of the business assets owned by the Seller and that Seller
      will be continuing to operate in the same business enterprise as prior to the
      Closing of this Agreement.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
      VI

    REPRESENTATIONS
      AND WARRANTIES OF PURCHASER

    

    Purchaser
      represents and warrants to
      Seller the following:

    

    6.1           EXISTENCE.  Purchaser
      is a corporation duly organized, validly existing and in good standing under
      the
      laws of the State of Florida, and is duly qualified to do business as a foreign
      corporation in the State(s) where the Assets are located, except where the
      failure to so qualify would not have a material adverse effect on Purchaser
      or
      its properties.

    

    6.2           POWER.  Purchaser
      has the corporate power to enter into and perform this Agreement and the
      transactions contemplated by this Agreement. Subject to preferential purchase
      rights and restrictions on assignment of the type generally found in the oil
      and
      gas industry, and to rights to consent by, required notices to, and filings
      with
      or other actions by governmental entities where the same are customarily
      obtained subsequent to the assignment of oil and gas interests, the execution,
      delivery and performance of this Agreement by Purchaser, and the transactions
      contemplated by this Agreement, will not violate (a) any provision of the
      articles of incorporation or bylaws of Purchaser, (b) any material agreement
      or
      instrument to which Purchaser is a party or by which Purchaser or any of the
      Assets are bound, (c) any judgment, order, ruling, or decree applicable to
      Purchaser as a party in interest, or (d) any law, rule or regulation applicable
      to Purchaser relating to the Assets other than a violation which would not
      have
      a material adverse effect on Purchaser.

    

    6.3           AUTHORIZATION
      AND ENFORCEABILITY.  The execution, delivery and performance
      of this Agreement, and the transaction contemplated hereby, have been duly
      and
      validly authorized by all necessary action on the part of
      Purchaser.  This Agreement constitutes the valid and binding
      obligation of Purchaser, enforceable in accordance with its terms except as
      such
      enforceability may be limited by applicable bankruptcy or other similar laws
      affecting the rights and remedies of creditors generally as well as to general
      principles of equity (regardless of whether such enforceability is considered
      in
      a proceeding in equity or at law).

    

    6.4           LIABILITY
      FOR BROKERS' FEES.  Seller shall not directly or indirectly
      incur any liability or expense, as a result of undertakings or agreements of
      Purchaser, for brokerage fees, finder's fees, agent's commissions or other
      similar forms of compensation in connection with this Agreement or any agreement
      or transaction contemplated hereby.

    

    6.5           CLAIMS
      AND LITIGATION.  To the actual knowledge of Purchaser, there
      are no claims, actions, suits, or proceedings pending or threatened against
      Purchaser which, if determined adversely to Purchaser, would materially and
      adversely affect Purchaser's ability to perform its obligations under this
      Agreement.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
      VII

    MISCELLANEOUS

    

    7.1           COUNTERPARTS.  This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original instrument, but all such counterparts together shall
      constitute but one agreement.

    

    7.2           NOTICE.  All
      notices which are required or may be given pursuant to this Agreement shall
      be
      sufficient in all respects if given in writing and delivered personally, by
      overnight courier, by telecopy or by registered or certified mail, postage
      prepaid, as follows:

    

    If
      to Seller:

    

    Soam
      Oil & Gas Investments,
      LLC

    1101
      Scott Avenue

    Wichita
      Falls, TX 76301

    

    Attention:          Richard
      Coody

    Telephone:         940-766-1670

    Telecopy:           940-766-1870

    

    If
      to Purchaser:

    

    Inform
      Worldwide Holdings,
      Inc.

    2501
      North Green Valley Parkway, Suite
      110

    Henderson,
      NY 89014

    Attention:             Ashvin
      Mascarenhas

    Telephone:            702-317-2300

    Telecopy:              702-317-2301

    

    All
      notices shall be deemed to have been duly given at the time of receipt by the
      party to which such notice is addressed.

    

    7.3           SALES
      TAX, RECORDING FEES AND SIMILAR COSTS.  Purchaser shall bear
      any tax, recording fees and similar costs incurred and imposed upon, or with
      respect to, the property transfers contemplated hereby.

    

    7.4           AD
      VALOREM TAXES.  All unpaid ad valorem and similar taxes that
      are payable with respect to the Assets for all periods ending on or prior to
      the
      Effective Time shall be as estimated by the parties and shall be an adjustment
      to the Purchase Price.  In the case of tax periods that included but
      did not end on the Effective Time, taxes shall be prorated to the Effective
      Time
      and be an adjustment to the Purchase Price.  Purchaser shall pay all
      such taxes payable for all such periods which are adjusted or
      prorated.

    

    7.5           EXPENSES.  All
      expenses incurred by Seller in connection with or related to the authorization,
      preparation or execution of this Agreement, and all other matters related to
      the

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Closing,
      including without limitation, all fees and expenses of counsel, accountants
      and
      financial advisers employed by Seller, shall be borne solely and entirely by
      Seller; and all such expenses incurred by Purchaser shall be borne solely and
      entirely by Purchaser.

    

    7.6           GOVERNING
      LAW.  This Agreement and the legal relations between the
      parties shall be governed by and construed in accordance with the laws of the
      State of New York without regard to principles of conflicts of laws otherwise
      applicable to such determinations.  In the event any dispute arises
      with respect to this Agreement, the parties hereby consent to jurisdiction
      and
      litigation of such disputes in the State of New York.

    

    7.7           CAPTIONS.  The
      captions in this Agreement are for convenience only and shall not be considered
      a part of or affect the construction or interpretation of any provision of
      this
      Agreement.

    

    7.8           WAIVERS.  Any
      failure by any party or parties to comply with any of its or their obligations,
      agreements or conditions herein contained may be waived in writing, but not
      in
      any other manner, by the party or parties to whom such compliance is
      owed.  No waiver of, or consent to a change in, any of the provisions
      of this Agreement shall be deemed or shall constitute a waiver of, or consent
      to
      a change in, other provisions hereof (whether or not similar) nor shall such
      waiver constitute a continuing waiver unless otherwise expressly
      provided

    

    7.9           ASSIGNMENT.  No
      party shall assign all or any part of this Agreement, nor shall any party assign
      or delegate any of its rights or duties hereunder, without the prior written
      consent of the other party and any assignment made without such consent shall
      be
      void except as otherwise provided in this Section.

    

    7.10   ENTIRE
      AGREEMENT.  This Agreement and the documents to be executed
      hereunder and Exhibit A attached hereto constitute the entire agreement between
      the parties pertaining to the subject matter hereof, and supersede all prior
      agreements, understandings, negotiations and discussions, whether oral or
      written, of the parties pertaining to the subject matter hereof.

    

    7.11   SURVIVAL.  The
      representations and warranties of Seller and Purchaser set forth in Articles
      V
      and VI of this Agreement shall survive the Closing and shall only be applicable
      for one hundred eighty (180) days thereafter.

    

    7.12   AMENDMENT.

    

    (a)           At
      any time prior to the Closing Date this Agreement may be amended or modified
      in
      any respect by the parties by an agreement in writing executed in the same
      manner as this Agreement.

    

    (b)           No
      supplement, modification, waiver or termination of this Agreement shall be
      binding unless executed in writing by the party to be bound
      thereby.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.13   EXHIBIT.
      “Exhibit A” attached to or referred to in this Agreement is
      incorporated into and made a part of this Agreement.

    

    IN
      WITNESS WHEREOF,
      this Agreement has been signed by each of the parties hereto, all as of the
      date
      above written.

    

    

    Soam
      Oil & Gas Investments, LLC

    

    /s/
      Richard Coody

    By:  ________________________

    Name:
      Richard Coody

    Title:
      Manager

    

    

    

    

    Inform
      Worldwide Holdings, Inc.

    

    /s/
      Ashvin Mascarenhas

    By:  _______________________

    Name:
      Ashvin Mascarenhas

    Title:
      CEO

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