Document:

Supply Agreement between Bio Tec Films, LLC and AXM Pharma (Shenyang) Inc

 Exhibit 4.48 
  
 Supply Agreement 
  
 between 
  
 Bio Tec Films, LLC 
  
 and 
  
 AXM Pharma
(Shenyang) Inc., 
  
 Date: October 15, 2004 

 

 1 

  
 Table of Contents

  

			
	 Whereas
	  	1
		
	 1. Definitions
	  	1
		
	 2. Term
	  	3
		
	 3. Relationship
	  	3
		
	 4. Distribution Rights
	  	4
		
	 5. Distributor’s Responsibilities
	  	5
		
	 6. Supplier’s Rights and Responsibilities
	  	6
		
	 7. Purchase Orders
	  	7
		
	 8. Prices, Discounts and Payments
	  	9
		
	 9. Shipment, Risk of Loss and Delivery
	  	10
		
	 10. Warranty
	  	11
		
	 11. Representations and Warranties and Indemnification
	  	12
		
	 12. Termination
	  	13
		
	 13. Confidentiality, Proprietary Information and Infringement
	  	14
		
	 14. General Provisions
	  	16
		
	 Exhibit A—Territory
	  	20
		
	 Exhibit B—Product List
	  	21
		
	 Exhibit C—Trademarks
	  	23
		
	 Exhibit D—Price Schedule
	  	24
		
	 Exhibit E—Initial Order
	  	25

  

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 Supply Agreement

  
 This Supply Agreement (“Agreement”) is entered into as of the
15th day of October, 2004 between Bio Tec Films, LLC, a company organized and existing under the laws of
Delaware, USA with its principal place of business at 7455 Adamo Drive, Tampa FL 33619 (“Supplier”) and AXM Pharma (Shenyang) Inc., a company organized and existing under the laws of the People’s Republic of China
(“PRC” or “China”), and having its principal office at No. F3004 Sankei Torch Bldg., 262A Shifu Road, Shenyang City, Liaoning Province, P. R. China 110013 and wholly owned by AXM Pharma, a U.S. Corporation
(“Distributor”) and, with solely for the purposes of Section 14.16 hereof, AXM Pharma, Inc., a company organized and existing under the laws of Nevada, USA with its principal place of business at 7251 West Lake Mead Boulevard, Las
Vegas, NV 89128 (“Parent”). References to a Party herein shall refer to Supplier or Distributor, as applicable, and Parties to both Supplier and Distributor. 
  
 Whereas 
  

	1)	The Supplier is in the business of developing, manufacturing, marketing and supporting certain Products (defined below). The Distributor wishes to repackage the Products, and
distribute them to dealers, remarketers and consumers in the Territory (defined below), and assures the Supplier that it has the facilities, personnel, and technical expertise necessary to market and sell the Products in the Territory.

  

	2)	The Distributor wishes to obtain from the Supplier, and the Supplier is willing to grant to the Distributor, the right to repackage and distribute these Products for resale purposes
in the Territory. 

  
 In consideration for the
mutual promises, covenants, and Agreements made below, the parties, intending to be legally bound, agree as follows: 
  

	1.	Definitions 

  
 For purposes of this Agreement, the following terms will have the indicated definitions: 
  

	1.1	“Agreement.” This Agreement is by and between the Supplier and the Distributor. 

  

	1.2	 “Confidential Information” means any data or information disclosed hereunder (whether written, oral or graphical) that relates to the disclosing
party’s products, technology, research, development, customers or business activities, and which is confidential or proprietary to or a trade secret of the disclosing party, and which the disclosing party designates as being confidential, or
which under the circumstances surrounding disclosure would reasonably be considered as confidential. Confidential Information shall not include any information, data or material which: (a) the 

  

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disclosing party expressly agrees in writing is free of any non-disclosure obligations; (b) at the time of disclosure to the receiving party was known to the
receiving party free of any non-disclosure obligations; (c) is independently developed by the receiving party without reference to any Confidential Information; (d) is lawfully received by the receiving party, free of any non-disclosure obligations,
from a third party having the right to so furnish such Confidential Information; or (e) is or becomes generally available to the public without any breach of this Agreement or unauthorized disclosure of such Confidential Information by the receiving
party. The parties agree that all tangible embodiments and any visual or oral disclosure of any component of the Proprietary Information (as hereinafter defined) shall be Confidential Information of Supplier, whether or not so marked or identified
at or after the time of disclosure. Distributor further agrees that the limitations on the disclosure or use of the Proprietary Information as set forth in Section 13 shall be binding upon Distributor irrespective of the occurrence of the events or
any of them described in subparagraph 1.2(a) through (e). The parties further agree that the terms and conditions of this Agreement shall be considered to be Confidential Information and may not be disclosed to any third party without the written
permission of the other party. 

  

	1.3	“Customer.” Any person or entity who obtains the Product(s) for his or her own personal use. 

  

	1.4	“Intellectual Property Rights.” All present and future (a) patents, patent applications, inventions, and other industrial property rights, (b) copyrights, mask work
rights, and other rights associated with works of authorship, including without limitation moral rights in any of the foregoing, (c) trade secret rights, know-how, proprietary techniques, methodologies and processes, and (e) other forms of
intellectual or industrial property rights and proprietary rights of any kind or nature, in each case under the laws of any jurisdiction in the world, including rights under and with respect to all applications, registrations, extensions, renewals,
continuations, combinations, divisions, and reissues of the foregoing, but excluding trademarks, service marks, trade names and other product, service or company identifiers. 

  

	1.5	“Products.” The products set forth in Exhibit B, as may be supplemented from time to time upon the mutual written agreement of the Parties.

  

	1.6	“Proprietary Information.” All confidential or proprietary information of Supplier, including without limitation trade secrets, whether in written, electronic or
oral form, which embody, describe or relate to (i) the development of film structure formulations for, (ii) the selection and preparation of solvents, vehicles, excipients, surfactants, stabilizers, polymers, plasticizers and other components of,
and (iii) the process and methods of manufacture associated with, water-soluble and edible film formulations supplied by Supplier as provided hereunder and suitable for use in in-gestible food, pharmaceutical and other consumer applications (the
“Films”), including by way of example and not limitation, formulations, processing technology and methods of manufacture for Films, foams and multiple layer constructions of Films and foam products and certain drying
and related manufacturing techniques and machinery for making commercial quantities of the Products. 

  

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	1.7	“SFDA.” The State Food and Drug Administration of the People’s Republic of China. 

  

	1.8	“Term.” The duration of this Agreement as provided in Section 2. 

  

	1.9	“Territory.” The specific geographic areas set forth in Exhibit A. 

  

	1.10	“Trademarks.” The Trademarks specified in Exhibit C. 

  

	2.	Term 

  

	2.1	Term. This Agreement shall commence on the date stated in the first section (the start date) and shall terminate two (2) years following that start date, unless it terminates
sooner in accordance with the provisions of this Agreement. The Parties may renew this Agreement in writing upon mutual agreement. 

  

	2.2	Continuation or Survival of Certain Sections. Certain sections, as indicated below, will survive and remain effective even after the termination of this Agreement. All other
rights and obligations of each party to the other shall terminate upon the termination of this Agreement. 

  

	3.	Relationship 

  

	3.1	AXM as Preferred Distributor. The Supplier grants the Distributor, and the Distributor accepts from the Supplier, a nontransferable right and license to distribute the
Products in the Territory for end use by Customers located in the Territory. This appointment is also subject to the limitations set forth in Section 4. 

  

	3.2	Powers as Distributor. The Distributor may repackage and relabel the Products; sell them either alone or in combination with other products; and sell them under the
Distributor’s own label. Except as expressly provided in this Agreement, all aspects of the distribution and marketing of the Products by the Distributor shall be in the Distributor’s sole control, including without limitation the methods
of marketing, pricing, naming, packaging, labeling, and advertising, and the terms and conditions of any sale, unless otherwise provided for in this Agreement. 

  

	3.3	Supplier and Distributor as Independent Contractors. The Supplier and the Distributor agree that their relationship is that of the seller and the buyer and not that of joint
venturers, principals or agents, or franchiser and franchisee. Both are independent contractors acting for their own accounts, and neither is authorized to make any commitment or representation, express or implied, on the other’s behalf unless
authorized to do so by the other in writing. 

  

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	3.4	Use of Trademarks and Trade Names. No right, title, license or interest in or to any of the trademarks, trade names, slogans, labels, trade dress, designs or other indicators
of source owned or used by Supplier in connection with the Products (each, a “Supplier Mark”) is conveyed under this Agreement. The Distributor may not, directly or indirectly, adopt, display, or otherwise use, in connection with
the promotion and sale of the Products pursuant to the terms of this Agreement, any Supplier Mark, nor shall Distributor seek to register any Supplier Mark, or any transliteration, translation, logo, design or other version of any Supplier Mark, or
any mark substantially similar to a Supplier Mark, in the Territory. Notwithstanding the foregoing, Distributor may refer to Supplier’s applicable trade names in connection with any regulatory filing or public disclosure required to be made in
connection with the sale or distribution of Products in the Territory, including any labeling or similar requirement prescribed by law or rule, provided that Distributor first provides to Supplier in writing a description of any such use of Supplier
trade names, and representative samples of such proposed use. 

  

	3.5	Territorial Responsibility. The Distributor shall pursue vigorously sales policies and procedures to realize the maximum sales potential for the Products in the Territory.
The Distributor shall not advertise, solicit or make any sales of the Products outside the Territory, nor to any reseller, distributor or other third party located in the Territory who Distributor knows or has reason to suspect will export or
otherwise distribute Products outside the Territory. 

  

	4.	Distribution Rights 

  
 In recognition of the investment to be made by the Distributor in connection with its marketing and distribution of the Products, the Parties agree to
each of the following provisions: 
  

	4.1	Distribution 

  

	 	4.1.1 	The Supplier hereby grants the Distributor the right to distribute the Products in the Territory to dealers, resellers, remarketers, Customers and any other person or entity in the
Territory, subject to the restrictions set forth herein. 

  

	4.2	Packaging of the Products. Subject to the terms hereunder, including without limitation Section 3.4, the Distributor may repackage, and label the Products at its own
discretion. It is understood that the Distributor shall be solely responsible for the production and contents of any accompanying promotional materials, inserts, instructional materials, warranties, disclaimers, and consumer service policy, or
related information, and it is further understood that Distributor intends to use the Trademarks in marketing the Products pursuant to the Distributor’s exclusive trademark license agreement with Sunkist. The Distributor may distribute Products
with its own packaging, which may be printed in the materials furnished to consumers. 

  

	4.3	 Obtaining Approval. The Distributor shall use its best efforts to obtain any necessary approval for import, distribution, resale and marketing the Products
from the 

  

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relevant governmental authorities in the Territory. The Supplier, at the Distributor’s sole cost and expense, shall assist the Distributor in obtaining
such approval by providing the necessary materials and documentation of the Products as such assistance is reasonably requested by the Distributor, provided that Supplier shall not be required to provide, disclose or otherwise deliver Proprietary
Information unless it is reasonably satisfied that such disclosure or delivery shall be made under circumstances sufficient to protect the confidentiality of the Proprietary Information. 

  

	5.	Distributor’s Responsibilities 

  
 During the term of this Agreement, the Distributor agrees to the following: 
  

	5.1	Distribution to Dealers. Subject to the limits set forth in Sections 3.1 and 3.5, Distributor may distribute the Products to dealers and resellers for resale in the
Territory. 

  

	5.2	Minimum Commitments. The Distributor shall maintain an inventory of Products and warehousing facilities sufficient to adequately serve the demands of its dealers, resellers
and Customers on a timely basis. Such inventory shall equal or exceed the quantity of Products necessary to meet reasonably anticipated demands of the dealers for at least the period covered by the shipments. 

  

	5.3	Promotional Efforts. The Distributor shall use its best efforts to promote vigorously and aggressively the marketing and distribution of the Products. Subject to the terms
and conditions of this Agreement, the Distributor shall be responsible at its own expense, unless the Distributor and the Supplier specifically agree in writing other wise, for all aspects of the marketing of the Products in the Territory as
provided for herein and subject to the limitations hereunder, including, without limitation, (i) the development of any marketing programs or offers for the Products, (ii) the design, development and production of any advertising or promotional
materials for the Products, (iii) any media buys to advertise and promote the Products, including the purchase of television time and any media buys for any print or other advertising, including advertising delivered via the Internet, (iv)
participation in trade shows and other consumer and trade promotions, and (v) all customer service, product ordering and fulfillment services (including telemarketing, order processing and warehousing services), and product return and refund
services. 

  

	5.4	Reports. The Distributor shall deliver to the Supplier no later than ten (10) business days after the end of each month during the term of this Agreement and for sixty (60)
days thereafter, a written report showing for the preceding month (1) the Distributor’s current inventory of each Product (listed in Units, as such term is defined in Exhibit B); (2) the quantity of each Product shipped into a specific area;
(3) the number of returns of or refunds on Products granted and the basis for such returns; and (4) other relevant information for the prior month as requested from time to time by the Supplier. 

  

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	5.5	Compliance with Laws. The Distributor shall comply with all applicable present and future laws, ordinances and regulations relating to the sale of the Products in the
Territory. 

  

	5.6	Specifications of the Products. The Distributor shall supply its dealers, resellers and Customers, as applicable, with the Product Name, Approval No., Functions &
Indications, Dosage & Administration, Ingredients, Specification, Property, Adverse Reaction, Contra-indications, Precautions, Shelf-life and other introductory information for consumers’ use of the Products that the Distributor adapts from
the materials, specifications provided by the Supplier. 

  

	5.7	Training. The Distributor shall train a sufficient number of its sales personnel in connection with the sale of the Products in order to maintain a staff of competent sales
personnel conversant in the specifications, features and advantages of the Products. Such training of sales personnel shall include instruction as to the proper use of, and restrictions on the use of, information provided by the Supplier as approved
by the SFDA. 

  

	5.8	Sales Service. Subject to the terms of the Distributor’s consumer service arrangements, the Distributor shall provide service support for the Products it purchases
pursuant to this Agreement, including, but not limited to providing qualified personnel to answer consumer inquiries. 

  

	6.	Supplier’s Rights and Responsibilities 

  

	6.1	Materials of the Products. Within thirty (30) days of execution of this Agreement, the Supplier shall provide the Distributor with detailed specifications and descriptions
(including but without limitation Product Name, Approval No., Functions & Indications, Dosage & Administration, Ingredients, Specification, Property, Adverse Reaction, Contra-indications, Precautions, Shelf-life) documenting the Products, as
appropriate and as commonly used for regulatory approval in the United States. 

  

	6.2	Support. At the Distributor’s sole cost and expense, the Supplier shall use its reasonable best efforts to (i) be supportive of Distributor’s distributing, selling
and marketing of the Products in the Territory, and help the Distributor to solve related technical problems that might arise with the Distributor’s marketing of the Products and (ii) provide, with respect to each of the Products, the
regulatory filing documents as available for preshipment authorization. 

  

	6.3	Supplier’s Invoice. The Supplier shall use an effective date on the invoice, which is the date of shipment to the Distributor. The payment terms shall be effective from
the effective date of the invoice in all cases. If the effective date differs from the actual date, the effective date will be the operative date for establishing payment terms. 

  

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	6.4	Other Covenants. The Supplier shall: 

  

	 	6.4.1 	inform the Distributor of all significant new developments related to the Product(s), including as described in Exhibit B, any changes to the formulation of the Products, and shall
supply to the Distributor copies of any new information, and documentation related to the Product, and keep the Distributor informed about any changes in the Products; 

  

	 	6.4.2 	not in any manner (i) pledge the credit of the Distributor or (ii) receive any money on behalf of the Distributor or (iii) commit the Distributor to any obligation or give any
representation, warranty or promise on the Distributors behalf; 

  

	 	6.4.3 	immediately and in writing bring to the attention of the Distributor any improper or wrongful use or misappropriation in the Territory known to the Supplier of the Supplier’s
Intellectual Property Rights or Proprietary Information; 

  

	 	6.4.4 	immediately in writing pass to the Distributor details of any complaint, claim, demand or adverse notice received from any source in the Territory about the Supplier and the
Products; and 

  

	 	6.4.5 	subject to the terms of Section 8.8, not appoint or designate any other party to sell or distribute Products in the Territory. 

  

	7.	Purchase Orders 

  

	7.1	Initial Order. The Initial Order shall be non-cancelable except as set forth in Sections 7.3 and 7.9 below. 

  

	7.2	Subsequent Orders. All subsequent orders shall be in writing, or, if placed orally, shall be confirmed in writing within five (5) business days after such oral order. All
orders, whether in writing or otherwise shall specify: (1) this Agreement; (2) the quantity and description of the Products; (3) requested delivery dates; (4) applicable price; and (5) any special instructions. 

  

	7.3	Supplier Acceptance. All orders for Products by the Distributor shall be subject to acceptance by the Supplier in accordance with the procedures set forth in Section 7.9 and
shall not be binding on the Supplier until the earlier of confirmation or shipment, and, in the case of acceptance by shipment, only as to the portion of the order actually shipped. 

  

	7.4	 Controlling Terms. The terms and conditions of this Agreement shall apply to each order accepted or shipped by the Supplier under this Agreement. No
additional or different provisions contained in the Distributor’s purchase orders, the Supplier’s sales acknowledgments or any other business forms shall be of any force or effect whatsoever unless agreed to in writing by the other Party.
For the avoidance of doubt, any terms or conditions appearing on the face or reverse side of any purchase 

  

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order, acknowledgment, or confirmation that are different from or in addition to those required under this Agreement shall not be binding on the Parties,
even if signed and returned, unless both Parties expressly agree in a separate writing to be bound by such separate or additional terms and conditions. 

  

	7.5	Cancellation of Orders 

  

	 	7.5.1 	Subject to the provisions of Section 7.5.2, any order under this Agreement, including, without limitation, the Initial Order set forth in Section 7.1 shall be cancelable by the
Distributor upon an adverse ruling in the form of a restraining order, injunction or other remedy issued by any court of competent jurisdiction preventing or restraining the Supplier from selling, or the Distributor from reselling, the Products.

  

	 	7.5.2 	Once an order has been accepted by the Supplier, it may not be canceled by the Distributor unless (1) the Supplier has failed to ship the order, or any portion thereof, within ten
(10) days of the date of the Supplier’s confirmation of such order, as such time period may be extended by any rescheduling mutually agreed upon pursuant to Section 7.7; and (2) the Distributor provides written notice of such cancellation, and
the Supplier acknowledges such cancellation in writing; and (3) the Supplier has not yet shipped the order or portion thereof that the Distributor desires to cancel. 

  

	7.6	Supplier Cancellation. The Supplier reserves the right to cancel or suspend any orders placed by the Distributor and accepted by the Supplier, or to refuse or delay shipment
thereof, in case the Distributor fails (1) to make any payment as provided in this Agreement or in any invoice; or (2) to meet credit or financial requirements established by the Supplier. 

  

	7.7	Rescheduling of Delivery. At no charge, the Distributor may at any time with at least five (5) business days’ prior written notice to the Supplier, reschedule and
postpone for up to ten (10) business days the delivery of any Products. 

  

	7.8	Shipping. Unless expressly otherwise agreed by both parties in writing, the costs of shipping the Products under this Agreement shall on the basis of FOB or FCA, as
applicable (as defined by INCOTERMS 2000). 

  

	7.9	Acceptance Tests. 

  

	 	7.9.1 	 Prior to the delivery of any Product hereunder, the Parties will, mutually agree upon the inspection process, including any testing and other chemical analysis, of
such Product to be conducted to confirm whether such Product conforms with the specifications set forth in Exhibit A for such Product. Within five (5) business days after delivery, the Distributor has the right to conduct such acceptance tests on
any of the Products in accordance with the testing procedures and may reject those Products that fail to 

  

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pass that test. Any rejection of Product shall be evidenced by notice of rejection to the Supplier, together with an indication of the basis for that
rejection (including a sample from such shipment and copies of the results of any testing supporting the Distributor’s determination) within fifteen (15) days after completion of the testing. 

  

	 	7.9.2 	If the Supplier confirms any non-conformity for which the Distributor has provided notice pursuant to Section 7.9.1, it will promptly so notify the Distributor. If the Distributor
has timely provided notice and the Supplier does not confirm such non-conformity, it will promptly so notify the Distributor, and the Parties will promptly submit samples of such disputed delivery for testing to an independent testing laboratory or
other independent third-party expert that is mutually acceptable to the Parties. The findings of the testing laboratory or third-party expert will be binding on the Parties. The expenses of such testing or other investigation will be borne by the
Supplier if the non-conformity is confirmed, and otherwise by the Distributor. Notwithstanding anything to the contrary in this Agreement, for any non-conformity for which the Distributor provides a notice of dispute pursuant to this Section 7.9,
the sole criterion for a determination that any delivery of any Product is non-conforming is failure of any Product contained therein to conform to the specifications in Exhibit A. 

  

	7.10	Packaging. The Supplier agrees to provide appropriate packaging, and similar matters as requested by the Distributor, at the Distributor’s sole cost and expense, in
order to permit the Products to be shipped directly into the Distributor’s distribution system without reopening the boxes or otherwise re-handling the finished goods. 

  

	7.11	Direct Shipping. The Distributor may request that the Supplier ship directly to any location designated by the Distributor. The Supplier agrees to comply with these requests
at no additional charge (other than transportation charges) provided that the Distributor furnishes the Supplier with shipping instructions at least fourteen (14) calendar days prior to shipment. 

  

	8.	Pricing, Taxes, Payment. 

  

	8.1	Product Price. The initial Product price is set forth in Exhibit D. The Supplier may change the Product price at any time during the Term, upon no less than forty-five (45)
days advance written notice to Distributor. 

  

	8.2	Taxes. Distributor shall be solely responsible for all taxes, fees, import duties or other tariffs or assessments levied on or in connection with the importation and sale of
the Products in and through the Territory, other than taxes imposed upon or measured by Supplier’s income. 

  

	8.3	 Payment. The Distributor shall pay for Products within thirty (30) calendar days after the date of the Supplier’s invoice or on such terms as may be
otherwise specified 

  

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in the Supplier’s invoice. At the Supplier’s option, shipments may be made on credit terms in effect at the time an order is accepted.

  

	8.4	Interest. Interest shall accrue on any delinquent amounts owed by the Distributor for the Products at the rate of 0.2% per month. 

  

	8.5	Distributor Financial Condition. The Distributor represents and warrants that it is and at all times during the term of this Agreement shall remain in good financial
condition, solvent and able to pay its bills when due. The Distributor shall maintain and employ in connection with the Distributor’s business under this Agreement such working capital and net worth as may be required in the reasonable opinion
of the Supplier to enable the Distributor to carry out and perform all of the Distributor’s obligations and responsibilities under this Agreement. 

  

	8.6	Distributor Pricing. The Distributor is free to determine its own resale prices for the Products. Although the Supplier may publish suggested list prices, these are
suggestions only and are not binding in any way. 

  

	8.7	Dealer Pricing. The Distributor shall inform each Dealer that it is free to determine its own retail prices and that, although the Supplier may publish suggested retail price
lists, they are suggestions only and are not binding in any way. 

  

	8.8	Minimum Orders. As a condition of Supplier’s designation of Distributor as a preferred distributor of Products in the Territory, Distributor covenants and agrees to
purchase from Supplier no fewer than One Hundred Thousand (100,000) Units (as that term is defined in Exhibit B) in each calendar quarter during the Term (the “Quota”). Such Quota shall be calculated net of any returns or cancelled orders.
In the event that Distributor fails to purchase from Supplier the Quota during any calendar quarter during the Term, Supplier may, at its sole discretion, and upon written notice at anytime after the close of the calendar quarter in which such a
shortfall occurs, revoke Distributor’s status as a preferred distributor in the Territory and appoint or designate other distributors of Products in the Territory. 

  

	9.	Shipment, Risk of Loss and Delivery 

  

	9.1	Risk of Loss. Except as provided below, title to the Products purchased pursuant to this Agreement will pass upon delivery to the Distributor. The Supplier assumes the risk
of loss and damage of the Products in transit from the Supplier’s shipping point to the point of destination as required for conformance with FOB/FCA terms. 

  

	9.2	Shipment. All Products shall be shipped by the Supplier FOB/FCA the Supplier’s point of shipment. Shipments shall be made to the Distributor’s identified ware house
facilities or freight forwarded. Unless specified in the Distributor’s order, the Supplier shall select the mode of shipment and the carrier. The Distributor shall be responsible for and shall pay all shipping, freight, and insurance charges,
which charges the Supplier may require the Distributor to pay in advance. 

  

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	9.3	Partial Delivery. Upon not less than five (5) calendar days prior notice by the Supplier, the Supplier may make partial shipments of the Distributor’s orders, to be
separately invoiced and paid for when due. Delay in delivery of any installment shall not relieve the Distributor of its obligation to accept the remaining deliveries, unless canceled pursuant to Section 7.3 of this Agreement.

  

	9.4	Delivery Schedule and Delays. The Supplier shall use reasonable efforts to meet the Distributor’s requested delivery schedules for the Products. Should orders for
Products exceed the Supplier’s available inventory, the Supplier will allocate its available inventory and make deliveries on a basis the Supplier deems equitable, in its sole discretion, and without liability to the Distributor on account of
the method of allocation chosen or its implementation. 

  

	10.	Warranty 

  

	10.1	Warranty to Distributor. (a) Supplier warrants that all Products sold to the Distributor (i) shall be free from defects in workmanship and materials as of the date of
delivery, except for any defects arising out of actions taken by or at the direction of the Distributor, including by way of example and not limitation, failure of Distributor to ship or store Products in conformance with the specifications set
forth in Exhibit D and (ii) shall comply with the specifications for Products set forth on Exhibit A (as such specifications may be amended from time to time in accordance with the terms hereof) and with any agreed upon specifications for new
Products. The Supplier’s liability under this warranty, whether in contract or tort, shall be limited exclusively to the repayment of the purchase price of the defective Products. 

  

	10.2	Disclaimer, No Other Warranty. 

  

	 	10.2.1 	EXCEPT FOR THE EXPRESS WARRANTY SET FORTH ABOVE, THE SUPPLIER MAKES NO WARRANTY, WHETHER OF MERCHANTABILITY, FITNESS OR OTHERWISE, EXPRESS OR IMPLIED, IN FACT OR BY LAW, AND THE
SUPPLIER SHALL HAVE NO FURTHER OBLIGATION OR LIABILITY UNDER THE ABOVE WARRANTY OR WITH RESPECT TO THE PRODUCTS. THE SUPPLIER SHALL IN NO EVENT BE LIABLE FOR PUNITIVE, CONSEQUENTIAL OR INCIDENTAL DAMAGES. 

  

	 	10.2.2 	The Supplier shall not be liable for, and the Distributor assumes responsibility for, all personal injury and property damage resulting from the handling, possession, use or resale
of the Products produced hereunder after such Products are delivered to the Distributor, whether the same is used alone or in combination with other substances, except to the extent any such personal injury or property damage results from the
willful misconduct of the Supplier. 

  

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	11.	Representations and Warranties and Indemnification 

  
 11.1 Representations and Warranties of the Parties Concerning Authorizations. 
  

	 	11.1.1 	Such Party is duly organized and validly existing and in good standing under the laws of the jurisdiction of its organization. 

  

	 	11.1.2 	Such Party has the full power and is duly authorized to enter into, execute and deliver this Agreement, and to carry out and otherwise perform its obligations thereunder.

  

	 	11.1.3 	This Agreement has been duly executed and delivered by, and is the legal and valid obligation binding upon such Party and the entry into, the execution and delivery of, and the
carrying out and other performance of its obligations under this Supply Agreement by such Party (i) does not conflict with, or contravene or constitute any default under, any agreement, instrument or understanding, oral or written, to which it is a
party, including, without limitation its organizational documents, and (ii) does not violate any applicable laws or any judgment, injunction, order or decree of any government authority having jurisdiction over it. 

  

	11.2 	Additional Warranties of the Supplier. The Supplier represents and warrants to the Distributor that, to Supplier’s knowledge, the Products do not infringe upon any
patent, copyright, trademark, trade secret, know-how or other proprietary rights of others. The Supplier further represents and warrants to the Distributor that the Supplier has not previously or otherwise granted any other rights in the Products to
any third party that conflict with the rights in this Agreement granted to the Distributor. 

  

	11.3 	Indemnification. With respect to Products produced by the Supplier pursuant to this Agreement, the Distributor shall defend, indemnify and hold the Supplier and its
affiliates and their respective officers, directors, employees, successors and permitted assigns harmless against any and all liability, damage, loss, cost or expense arising out of (i) the importation, use, sale or distribution of such Products in
the Territory, including by way of example and not limitation products liability claims (except any liability directly related to and directly caused by the gross negligence or willful misconduct of the Supplier in manufacturing the Products), or
(ii) the Distributor’s breach of this Agreement, negligence or willful misconduct. Furthermore, the Distributor shall indemnify, defend and hold the Supplier and its affiliates and their respective officers, directors, employees, successors and
permitted assigns harmless against all damages, claims, judgments, decrees, costs, expenses and demands for unfair competition or infringement of any United States or foreign trade mark or copyright arising as a direct result of the Supplier’s
manufacture of Products for the Distributor conforming to the specifications required by the Distributor, or the failure of such conforming Products to comply with any federal, state, local or other law or regulation. The Distributor shall not
settle any claim for which Supplier is entitled to indemnification hereunder without the written consent of the Supplier, which consent shall not be unreasonably withheld. 

  

 12 

	11.4 	Survival of Warranties. The warranties and indemnities stated in this Section 11 shall survive the expiration or termination of this Agreement. 

  

	12.	Termination 

  

	12.1	Termination Events. This Agreement may be terminated by either party upon the occurrence of any of the following circumstances: 

  

	 	12.1.1 	Any assignment for the benefit of the creditors, or any bankruptcy, reorganization, or other proceeding under any bankruptcy or insolvency law is initiated by the other party, or is
initiated against it and not dismissed or stayed within sixty (60) calendar days; 

  

	 	12.1.2 	A material breach by the other party of any of the terms of this Agreement, which breach is not remedied by the other party within thirty (30) calendar days of the other
party’s receipt of written notice of such breach; or 

  

	12.2 	Fulfillment of Obligations. The termination of this Agreement shall not otherwise release either party from its obligation to pay any sum that may be then or thereafter owing
to the other party nor operate to discharge any liability that had been incurred by either party prior to any such termination. Except as qualified by the preceding sentence, neither party shall, by reason of the termination of this Agreement, be
liable to the other for any damages (whether direct, consequential or incidental to and including loss of profit or prospective profits of any kind) sustained or arising out of any such termination. 

  

	12.3 	Effect of Termination. Upon termination of this Agreement, the Distributor may continue to dispose of its existing inventories of Products, but the Distributor shall
otherwise discontinue all further promotion, marketing, and support of the Products. Without limiting the generality of the foregoing, the Distributor shall cease all display, advertising, and use of all the Supplier names, trademarks, logos, and
designations and will not thereafter use, advertise, or display any such names, trademarks, logos, or designations. All orders or portions thereof remaining unshipped as of the effective date of termination may be canceled by the Supplier, at its
option, to the extent they call for delivery more than five (5) business days after the date of termination. Upon termination of this Agreement, the Supplier shall have the option, exercisable at any time in its discretion, to repurchase some or the
entire remaining uncommitted inventory of the Products held by the Distributor. The Supplier shall pay the Distributor for all Products so repurchased (if received in a new and re-saleable condition) an amount equal to the discounted price paid by
the Distributor to the Supplier, less a restocking charge of twenty percent (20 %) of such price. Upon receipt of any Products so reacquired from the Distributor, the Supplier shall issue an appropriate credit to the Distributor’s account.

  

 13 

	12.4	Survival. Despite any termination of this Agreement, the provisions in Sections 5.4 through 5.6, and Sections 8 through 14 shall remain in full force and effect.

  

	13.	Confidentiality, Proprietary Information, Infringement 

  

	13.1	Non-disclosure and Non-use. Subject to the provisions of Sections 13.2 and 13.3, each party receiving Confidential Information of the other shall treat such information as
strictly confidential, and shall use the same care to prevent disclosure of such information as such party uses with respect to its own confidential and proprietary information, which shall not be less than the care a reasonable person would use
under similar circumstances. In any event, subject to the provisions of Sections 13.2 and 13.3, each party receiving Confidential Information shall (a) disclose such Confidential Information to (i) only those authorized employees of such party whose
duties justify their need to know such information and who have been clearly informed of their obligation to maintain the confidential and/or proprietary status of such Confidential Information; and (ii) only those third parties required for the
performance of the receiving party’s obligations under this Agreement pursuant to a written confidentiality agreement at least as extensive as the confidentiality provisions of this Agreement; and (b) use such Confidential Information only for
the purposes set forth in this Agreement. 

  

	13.2	Certain Exceptions. The receiving party may disclose Confidential Information of the disclosing party to the extent such disclosure is required by law, court order or order
of a governmental agency with jurisdiction; provided that the receiving party notifies the disclosing party prior to such disclosure and gives the disclosing party a reasonable opportunity to seek a protective order or to contest such requirement.

  

	13.3	Protection of Proprietary Information. Notwithstanding the foregoing, with respect to the Proprietary Information, Distributor shall not make, and shall not cause or permit
to be made, any release, disclosure, publication or other dissemination of the Proprietary Information except as required by an order of a court of competent jurisdiction, and then only subject to notice to Supplier as provided under Section 13.2.
Distributor shall not, and shall not permit any third party to, reverse engineer the Products or otherwise attempt to derive the Proprietary Information. 

  

	13.4	Right to Injunction. If Distributor shall attempt to reproduce, publish, disclose, or disseminate any Proprietary Information or any of its aspects or components in a manner
contrary to the terms of this Agreement, Supplier shall have the right, without the necessity of filing a bond or other security, in addition to such other remedies that may be available to it, to injunctive relief enjoining such acts or attempts,
it being acknowledged that legal remedies are inadequate to compensate Supplier for such breach. In the event of a breach of the obligations of a party hereto with respect to Confidential Information that does not constitute Proprietary Information,
the disclosing party shall have the right, without the necessity of filing a bond or other security, in addition to such other remedies that may be available to it, to injunctive relief enjoining such acts or attempts, it being acknowledged that
legal remedies are inadequate to compensate such disclosing party for such breach. 

  

 14 

	13.5	Notification. The Distributor shall promptly notify the Supplier (1) upon receipt of any claim, allegation, suit, demand or notice (whether or not in writing) alleging that
Distributor’s marketing, sale, use, or distribution of the Products, or any service or support provided by or on behalf of Distributor related to such use or distribution of Products, infringes, misappropriates or otherwise violates the
Intellectual Property Rights of any other person or entity, or is likely to do so; and (2) if it knows or reasonably suspects that any person or entity is or may be infringing, misappropriating or otherwise violating the Intellectual Property Rights
of the Supplier or making unauthorized use of the Proprietary Information. Supplier shall have the sole right (but not the obligation), at its own expense and with legal counsel of its own choice, to bring suit (or take other appropriate legal
action) against any actual, alleged or threatened infringement of Supplier’s Intellectual Property Rights, or the misappropriation or unauthorized use of the Proprietary Information. Distributor shall cooperate reasonably, at Supplier’s
expense, in the conduct of such action, and shall have the right, at its own expense, to be represented in any such action by Supplier by counsel of Distributor’s own choice. Supplier may settle, compromise or otherwise resolve any such suit at
its discretion, provided that it shall notify Distributor in writing prior to entering into any such settlement or understanding. In the event Supplier does not file any action or proceeding against any such infringement within six (6) months after
notice by Distributor as set forth above, or a written request from Distributor to take action with respect to such infringement, then Distributor shall have the right (but not the obligation), at its own expense, to bring suit (or take other
appropriate legal action) against such actual, alleged or threatened infringement, with legal counsel of its own choice, provided that Distributor shall not be permitted to settle, compromise or otherwise resolve any such suit without
the prior written con sent of Supplier, which consent shall not be unreasonably withheld. 

  

	13.6	Infringement 

  

	 	13.6.1 	If notified promptly in writing of and given sole control of the defense and all related negotiations and settlements, the Supplier shall defend, hold harmless and indemnify the
Distributor from and against claims alleging that the sale or distribution of the Products as authorized hereunder infringes any third party’s issued patent(s), provided that such indemnification shall not apply to claims that would not have
arisen but for (i) changes or modifications to the Products made by any person other than Supplier, or the (ii) the combination of the Products with the products of third parties. 

  

	 	13.6.2 	If the Products in the inventory of the Distributor, or the distribution or use thereof, become, or in the Supplier’s opinion could seriously be contended to be, the subject of
an infringement claim as described in Section 13.6.1, and if the Supplier cannot offer reasonable proof that such claim is without merit, the Distributor shall permit the Supplier to refund of the price paid for such Products with an additional
annual interest of 10%. 

  

 15 

	14.	General Provisions 

  

	14.1	Assignment. Neither party may assign, sublicense or otherwise transfer its rights and obligations hereunder without the prior written consent of the other parties and any
attempted assignment, sublicense or transfer directly or indirectly (including by operation of law) without such permission shall be null and void. In addition, notwithstanding the foregoing, the Supplier shall have the right to assign this
Agreement and its rights and obligations hereunder, without obtaining prior written consent of the other parties, to any corporate affiliate of the Supplier. This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors or permitted assigns. 

  

	14.2	Waiver, Amendment, Modification. No waiver, amendment or modification, including those by custom, usage of trade, or course of dealing, of any provision of this Agreement
will be effective unless in writing and signed by the party against whom such waiver, amendment or modification is sought to be enforced. No waiver by any party of any default in performance by the other party under this Agreement or of any breach
or series of breaches by the other party of any of the terms or conditions of this Agreement shall constitute a waiver of any subsequent default in performance under this Agreement or any subsequent breach of any terms or conditions of that
Agreement. Performance of any obligation required of a party under this Agreement may be waived only by a written waiver signed by a duly authorized officer of the other party, that waiver shall be effective only with respect to the specific
obligation described in that waiver. 

  

	14.3	Force Majeure. Neither party will be deemed in default of this Agreement to the extent that performance of its obligations, or attempts to cure any breach, are delayed or
prevented by reason of circumstance beyond its reasonable control, including without limitation governmental action, fire, natural disaster, earthquake, accident or other acts of God (“Force Majeure”), provided that the party seeking to
delay its performance gives the other written notice of any such Force Majeure immediately after the discovery of the Force Majeure, and further provided that such party uses its good faith efforts to cure the Force Majeure. If there is a Force
Majeure, the time for performance or cure will be extended for a period equal to the duration of the Force Majeure. NOTWITHSTANDING THE OTHER PROVISIONS HEREIN, THE NON-PERFORMANCE OF THIS AGREEMENT ARISING FROM THE FAILURE TO OBTAIN THE GOVERNMENT
APPROVAL BY THE DISTRIBUTOR SHALL BE DEEMED AS A FORCE MAJEURE UNLESS SUCH FAILURE RESULTS FROM THE DISTRIBUTOR’S ACTIONS OR INACTIONS. 

  

	14.4	Press Releases. No press releases or other like publicity or advertising of any nature regarding this Agreement that mentions this Agreement or the other party by name shall
be released by a party without the prior written Agreement of the other party; provided, however, that the Distributor or its parent company shall disclose the information or make press releases in accordance with the regulations of Security
Exchange Commission of the United States or the securities rules and regulations of the United Kingdom. 

  

 16 

	14.5	Settlement of Disputes 

  

	 	14.5.1 	The Parties shall make their best efforts to settle amicably through consultation any dispute arising in connection with the performance or interpretation of any provision hereof.
Consultations shall begin within one (1) week of the dispatch of a written request for the commencement of consultations. 

  

	 	14.5.2 	With respect to all disputes which the Parties are unable to resolve among themselves, the Parties will have their dispute resolved by submitting the dispute to final and binding
arbitration before a single arbitrator under the then prevailing Commercial Arbitration Rules of the American Arbitration Association; provided, that (1) such arbitration shall be conducted by a single arbitrator in Tampa, Florida; (2) the
arbitrator will be selected by the agreement of the Parties or, if the Parties fail to agree within ten (10) days of the matter having been submitted to arbitration, then the arbitrator will be chosen in accordance with the rules of the governing
arbitrator body; (3) the arbitration will be completed and the arbitrator’s ruling provided within two hundred seventy (270) days of the date the matter is submitted to the arbitrator; and (4) unless otherwise ruled in the arbitration award,
all expenses incurred shall be born by the losing Party. When any dispute occurs and when any dispute is under arbitration, except for the matters under dispute, the Parties shall continue to exercise their remaining respective rights, and to
perform remaining respective obligations under this Agreement. 

  

	14.6	Independent Contractor. Nothing in this Agreement will be deemed to place the parties in the relationship of employer / employee, partners, or joint venturers. Neither party
shall have any right to obligate or bind the other in any manner. Each party agrees and acknowledges that it shall not hold itself out as an authorized agent with the power to bind the other party in any manner. Except as provided herein, each party
will be responsible for any withholding taxes, payroll taxes, disability insurance payments, unemployment taxes, and other similar taxes or charges with respect to its activities in relation to performance of its obligations under this Agreement.

  

	14.7	Cumulative Rights. Any specific right or remedy provided in this Agreement shall not be exclusive but shall be cumulative upon all other rights and remedies set forth in this
section and allowed under applicable law. 

  

	14.8	Governing Law. This Agreement shall be governed by the internal laws of the State of Florida, United States without regard to conflict of laws rules, principles or doctrines
thereof. 

  

	14.9	 Entire Agreement. The parties acknowledge that this Agreement expresses their entire understanding and Agreement, and that there have been no warranties,

  

 17 

	 	 
representations, covenants or understandings made by either party to the other except such as are expressly set forth in this section. The parties further
acknowledge that this Agreement supersedes, terminates and otherwise renders null and void any and all prior Agreements or contracts, whether written or oral, entered into between the Supplier and the Distributor with respect to the matters
expressly set forth in this Agreement. 

  

	14.10 	Counterparts. This Agreement may be executed in multiple counterparts, any one of which will be deemed an original, but all of which shall constitute one and the same
instrument. 

  

	14.11 	Attorney Fees. If either party is required to retain the services of any attorney to enforce or otherwise litigate or defend any matter or claim arising out of or in
connection with this Agreement, then the prevailing party shall be entitled to recover from the other party, in addition to any other relief awarded or granted, its reasonable costs and expenses (including attorneys’ fees) incurred in the
proceeding. 

  

	14.12 	Severability. If any provision of this Agreement is found invalid or unenforceable under judicial decree or decision, the remainder shall remain valid and enforceable
according to its terms. Without limiting the previous, it is expressly understood and agreed that each and every provision of this Agreement that provides for a limitation of liability, disclaimer of warranties, or exclusion of damages is intended
by the parties to be severable and independent of any other provision and to be enforced as such. Further, it is expressly understood and agreed that if any remedy under this Agreement is determined to have failed of its essential purpose, all other
limitations of liability and exclusion of damages set forth in this section shall remain in full force and effect. 

  

	14.13 	Notices. All notices, demands or consents required or permitted under this Agreement shall be in writing and shall be delivered or mailed certified return receipt requested
to the respective parties at the addresses set forth above or at such other address as such party shall specify to the other party in writing. 

  

	14.14 	Headings. Captions and section headings used in this Agreement are for convenience only and are not a part of this Agreement and shall not be used in construing it.

  

	14.15 	Language. This Agreement is written in the English language and the English language version shall control over any translation of this Agreement into another language.

  

	14.16 	 Parent Guarantee. Parent hereby unconditionally guarantees to the Supplier the performance by the Distributor of each of its obligations under this
Agreement. Parent hereby agrees that its obligations hereunder shall be as if it were a principal obligor and not merely a surety, and shall be absolute and unconditional, irrespective of, and shall be unaffected by, any invalidity, irregularity or
unenforceability of any 

  

 18 

	 	 
provision of this Agreement, any failure to enforce the provisions of this Agreement, any waiver, modification or indulgence granted to the Distributor with
respect thereto by the Supplier, or any other circumstances which may otherwise constitute a legal or equitable discharge of a surety or guarantor. Parent hereby waives any right to require a proceeding first against the Distributor and the benefit
of all demands whatsoever, and covenants that this guarantee will not be discharged with respect to the Supplier except by the full and complete performance of all of the Distributor’s obligations under this Agreement. Parent hereby agrees that
it will pay, or reimburse the Supplier on demand for, all reasonable costs and expenses (including fees and disbursements of counsel) incurred by the Supplier in connection with any rescission or restoration of this guarantee.

  
 IN WITNESS WHEREOF, both parties have carefully
reviewed this agreement and agree to and accept its terms and conditions, and are executing this Agreement as of the day and year first written above. 
  

									
	 Supplier: Bio Tec Films, LLC
	 	 	 	 Distributor: AXM Pharma (Shenyang), Inc.

					
	By:	 	 /s/ Graham Hind
	 	 	 	By:	 	 /s/ Peter Cunningham

	 Name:
	 	 Graham Hind
	 	 	 	 Name:
	 	 Peter Cunningham

	 Title:
	 	 CEO
	 	 	 	 Title:
	 	 Director

  

			
	The undersigned has executed this Agreement only for the purpose of agreeing to the provisions of Section 14.16 hereof:	  	[SEAL]

  

					
	AXM Pharma, Inc.
		
	 By:
	 	 /s/ Peter Cunningham

	 	 	 Name:
	 	 Peter Cunningham

	 	 	 Title:
	 	 CEO/President

  

 19 

 Exhibit A—Territory 
  

The Peoples Republic of China (hereinafter “China”, including Hong Kong, Taiwan and Macao). 
  

 20 

 Exhibit B—Product List 
  
 The Product(s) covered by this Agreement is (are): 
  

PRODUCT SPECIFICATIONS 
  
 All ingredients are food approved. 
 Film weight: 1.3 grams +/- 12% per
24 strips 
 Dimension of strip: 1” +/- 3% x 1.25” +/- 3% 
 24 strips per container (each such container, a “Unit”) 
 Each Unit
will be labeled with customer supplied label meeting Supplier supplied specifications 
 Microbiological a) total aerobic plate count <100 CFU/GM

  
 b) yeast/mold <10 CFU/GM 
  
 c) free from pathogenic organisms 
  
 Caffeine Mint 
  
 * Ingredients: Hydroxypropyl methylcellulose, caffeine, flavor, menthol, cellulose, tapioca dextrin, canola oil, glycerin, artificial
sweetener, gum arabic, polysorbate 80, carrageenan, citric acid, FD&C green dye 3. 
  
 Active Content (as formulated): 
 Caffeine 8-10 mg per 1 strip 
  
 Orange C 
  
 * Ingredients: pectin, ascorbic acid, natural and artificial flavor, cellulose, sucralose, gum acacia, glycerin, citric acid, sodium citrate, polysorbate 80,
carrageenan, sodium lauryl sulfate, FD&C yellow 6 dye 
  
 Active Content
(as formulated): 
 Ascorbic acid 15 mg per 1 strip 
  
 Lemon-Zinc-Echinacea 
  
 * Ingredients: hydroxypropyl methylcellulose, ascorbic acid, flavor, cellulose, tapioca dextrin, modified food starch, gum arabic, zinc oxide, citric acid, artificial sweetener, canola oil, echinacea extract,
glycerin, polysorbate 80, carrageenan, sodium lauryl sulfate, sodium citrate, FD&C Yellow 6 dye 
  
 Active Content (as formulated): 
  
 Vitamin C as Ascorbic Acid: 60 mg per 8 strips 
 Zinc oxide: 15 mg per 8 strips 
 Echinacea: 20 mg per 8 strips 
  

 21 

 Children’s Watermelon Multivitamin 
  
 * Ingredient List: hydroxypropylmethyl cellulose, ascorbic acid, Vitamin E acetate, flavor, Vitamin A – palmitate, tapioca
dextrin, food modified starch, cellulose, gum arabic, Vitamin K phytonadione, artificial sweetener, canola oil, polysorbate 80, citric acid, carrageenan, sodium lauryl sulfate, sodium citrate, FD&C red 40 dye. 
  
 Active Content (as formulated): 
  
 Vitamin C as Ascorbic Acid: 60mg per 8 strips 
 Vitamin A (retinol): 5000 IU per 8 strips (equivalent to 1.5 mg per 8 strips) 
 Vitamin K (phytomenadione): 400 IU per 8 strips (equivalent to 0.08 mg per 8 strips) 
 Vitamin E (tocopherol): 30 IU per 8 strips (equivalent to 15
mg per 8 strips) 
  
 * Supplier reserves the right, at its sole discretion, to
change the formulation for the Products at any time during the Term. Supplier will notify Distributor of any proposed changes in writing, and cooperate reasonably with Distributor to provide , such documentation and information as Distributor may
request in order to comply with regulatory, labeling or other notices required as a result of any such changes. 
  
 Product will be supplied in bulk shipping boxes of approximately 2,500 Units each. 
  
 Shelf life – one year from date of shipment. 
  

To maintain product warranty and not damage the Product, the Product must be stored and used at 59 F to 75 F in a dry place with humidity from 40% to 65%. Avoid heat
and excessive humidity. Failure to adhere to the climate control provisions herein shall void any product warranty of Supplier. 
  

 22 

 Exhibit C—Trademarks 
  
 Sunkist series 
  

 23 

 Exhibit D—Price Schedule 
  
 Subject to the provisions of Section 8 of the Agreement, the initial price for Product ordered by Distributor pursuant to the terms
hereunder shall be * per Unit. 
  

 24 

 Exhibit E—Initial Order 
  
 The Distributor hereby places, effective upon execution of this Agreement, an order for [X] (Enter quantity) delivery as follows: [X] (Enter
schedule) to be delivered in [X] (Month, Day, Year); [X] (Enter schedule) to be delivered in [X] (Month, Day, Year); and [X] (Enter schedule) to be delivered in [X] (Month, Day, Year) (the “Initial Order”). Attached to this Agreement as
Exhibit E is a copy of the purchase order for the Initial Order. The Distributor has the option of increasing the number of [X] (Enter description) subject to the Initial Order to [X] (Enter number) (the “Subsequent Orders”). 

 
 Purchase Order 
  

			
	TO: Bio Tec Films	 	From: AXM Pharma (Shenyang), Inc.
		
	Add:	 	 Add: No. F3004 Sankei Torch Bldg., 262A
 Shifu Road,
Shenyang City, Liaoning Province, P. R. China 110013

		
	Tel:	 	Tel:
		
	Fax:	 	Fax:
		
	Email:	 	Email:
		
	Attn:	 	Attn:

  
 THIS order hereby is affined by
the following terms or qualification and the terms or qualification in the Supply Agreement dated             , 2004 with Agreement No.:         
between Biotec Films and AXM Pharma (Shenyang), Inc. 
  

							
	 Designation of the Products

	  	Description

	  	Quantity

	  	Others

	 	  	 	  	 	  	 
	 Total amount:
	  	 	  	 	  	 

  

 25 

	1.	Terms of payment: 

  

	2.	Date of delivery: 

  

	3.	Place of delivery: 

  

	4.	Others: 

  

			
	 Payer of AXM:

	 	 Consignee of AXM:

	 Add:
	 	 Add:

		
	 Tel:
	 	 Tel:

		
	 Fax:
	 	 Fax:

		
	 Email:
	 	 Email:

		
	 Attn:
	 	 Attn:

  

									
	 The Supplier: Biotec Films
	 	 	 	 The Distributor: AXM Pharma (Shenyang) Inc.

					
	 By:
	 	 	 	 	 	 By:
	 	 
					
	 Name:
	 	 	 	 	 	 Name:
	 	 
					
	 Title:
	 	 	 	 	 	 Title:
	 	 
					
	 Date:
	 	 	 	 	 	 Date:
	 	 

  

 26Net Lease - Florida property

 Exhibit 4.49 
  
 NET LEASE 
  
 THIS LEASE, made as of the First day of Sept., 2003, by and among ROBERT H. BUTLER, Trustee of the Robert H. Butler Family Trust dated July 9,
1987 (hereinafter called the “Lessor”), and AQUAFILM USA, INC., a North Carolina corporation (hereinafter called the “Lessee”). 
  

1. Leased Premises. The Lessor hereby leases to the Lessee the property situated at 7401 Adamo Drive, Tampa, Florida, hereinafter called the
“Leased Property” or “Leased Premises”. 
  
 2. Lease
Term. The lease term shall be for a period of two (2) years commencing on September 1st, 2003 and ending on
August 31st, 2005 (this period is hereinafter called the “Initial Term”), unless otherwise sold to Lessee,
terminated or extended, as hereinafter provided. In accordance with Paragraph 20 below, Lessee shall have the option to purchase the Leased Premises. Lessee shall have the option to renew this Lease for two (2) consecutive two (2) year renewal terms
(the “Renewal Terms”). Lessee shall deliver to Lessor written notice of Lessee’s election to exercise his option to purchase or to renew this Lease at least ninety (90) days prior to the expiration of the Initial Term, if the option
is to purchase the Leased Premises or to elect to renew this Lease for the First Renewal Term and ninety (90) days prior to the expiration of the First Renewal Term if the option is to renew this Lease for the Second Renewal Term. In the event that
Lessee fails to timely deliver said written notice to Lessor, Lessee shall be deemed to have waived Lessee’s option to purchase the Leased Premises and Lessee’s right to further renew this Lease as set forth in this Paragraph. The rent
payable by Lessee during any Renewal Term shall be determined in accordance with Paragraph #3 below. Except as set forth herein, the terms and conditions of this Lease shall be in effect during any Renewal Term. 
  
 3. Rent. 
  
 a. The Lessee covenants to pay rent during the first two (2) years of the Initial Term of this Lease in the sum of Ninety
Six Thousand and No/100 Dollars ($96,000.00) payable in monthly installments of Four Thousand and No/100 Dollars ($4,000.00). The first month’s rent shall be paid in the full amount of Four Thousand and No/100 Dollars ($4,000.00). In addition,
Lessee shall pay sales tax on all lease payments. 
  
 b. In the
event that the Lessee elects to renew this Lease for the First Renewal Term, the rent payable during the First Renewal Term shall be equal to the total sum of One Hundred and Eight Thousand and No/100 Dollars ($108,000.00) payable in installments of
Four Thousand Five Hundred and No/100 Dollars ($4,500.00) per month, plus all applicable sales tax. 
  

 Page 1 

 c. In the event that the Lessee elects to renew this Lease for the Second Renewal Term, the rent payable
during the Second Renewal Term shall be equal to the total sum of One Hundred and Twenty Thousand and No/100 Dollars ($120,000.00) payable in installments of Five Thousand and No/100 ($5,000.00) per month, plus all applicable sales tax. 

 
 4. Use of Premises. The Leased Property may be used for any lawful purpose.
Any business conducted on the Leased Property shall be in full compliance with all applicable laws, rules and regulations of government authority. 
  
 5. Net Lease. This Lease is a “Net Lease” and the rental is net of taxes, insurance premiums, utilities and repairs. Except as otherwise set forth
herein, in addition to the rent provided for hereunder, Lessee shall pay without abatement, deduction or offset all expenses and taxes of every kind and nature to include but not being limited to the items hereinafter provided. 
  
 6. Taxes. Lessee shall pay, prior to delinquency, the real property taxes, and
all other assessments levied on or against the Leased Property, and improvements located thereon. In addition, Lessee shall pay all personal property taxes, use or sales tax, assessments and other charges of every description levied on or against
the Leased Property, personal property located on or in the Leased Property whether belonging to, or chargeable against, Lessor or Lessee. Lessee shall pay the real property tax payment to Lessor each year before delinquency and before any fine,
interest or penalty shall become due or be imposed by operation of law for their non-payment and shall pay all other taxes directly to the charging authority before delinquency and before any fine, interest or penalty shall become due or imposed by
operation of law for their non-payment. 
  
 7. Utilities. Lessor
shall not furnish to Lessee any utilities or services of any kind, such as water, steam, heat, gas, hot water, electricity, light and power. The Lessee shall pay all charges for such utilities or services when due and shall indemnify the Lessor
against any liability or damages on such accounts. Upon request of Lessor, Lessee shall furnish Lessor evidence satisfactory to Lessor of payment of utilities and other sums payable by Lessee under this Agreement. 
  
 8. Maintenance of Premises. Lessee shall maintain the Leased Property in
substantially the same condition, order and repair as it is in at the commencement of this Lease; reasonable wear and tear excepted. Lessor shall have no obligation whatsoever to maintain all or any portion of the Leased Property. Maintenance shall
include, but not be limited to, the interior of the building, the roof and exterior of the building, the paved area outside the building, and the water, electrical and mechanical systems which are part of the Leased Property. Maintenance shall also
include, but not be limited to, maintenance of lawns and shrubs. In the event of an insured casualty loss, the Lessor shall make insurance proceeds, if any, available, if permitted by any mortgagee to which Lessee has subordinated its interest
hereunder, to reimburse Lessee 

  

 Page 2 

 
for repairs Lessee is obligated to make hereunder. Lessee assumes all risk of any damages to Lessee’s property that may occur by reason of water or by
bursting or leaking pipes or waste water about the Leased Property, or from any act of negligence of any person, or fire or other casualty, or from any cause whatsoever. Any dispute as to the obligations of the parties under this Paragraph shall be
settled by arbitration. 
  
 9. Insurance. 
  
 a. Fire and Extended Coverage Insurance. Lessee, at Lessee’s sole
cost and expense, shall keep or cause to be kept insured in an amount equal to the full replacement value thereof, regardless of their ownership, for the mutual benefit of Lessor and Lessee (and any mortgagee required under a mortgage encumbering
the Leased Property) all improvements located on or appurtenant to the Leased Property, against loss or damage by fire, lightning, windstorm, hail, explosion, riot, riot attending a strike, civil commotion, aircraft, vehicles and smoke and such
other risks as are now or hereinafter included in an extended coverage endorsement in common use for similar structures (including vandalism and malicious mischief) except to the extent that from time to time Lessor may waive certain enumerated
items of coverage upon request of Lessee; however, no such waiver shall be effective except if stated in a writing signed by Lessor making specific reference to the item of coverage waived. Such insurance shall name both the Lessor and the Lessee as
insureds as their interest may appear. 
  
 b. Public Liability
Insurance. Lessee, at Lessee’s sole cost and expense, shall keep or cause to be kept in force, for the mutual benefit of Lessor and Lessee, comprehensive broad form general public liability insurance against claims and liability for
personal injury, death or property damage arising from the use, occupancy, disuse or condition of the Leased Property, improvements or adjoining areas or ways, providing protection of at least $500,000.00 for any one accident or occurrence and with
at least $1,000,000.00 umbrella coverage. Such insurance shall name both the Lessor and Lessee as insured. 
  
 c. Policy Form, Content and Insurer. All insurance required by express provisions of the Lease shall be carried only in responsible insurance
companies licensed to do business in the State of Florida and reasonably acceptable to Lessor. All such policies shall be non-assessable and contain language, to the extent obtainable, to the effect that any loss shall be payable notwithstanding any
acts or negligence of Lessor, Lessee, or others that might otherwise result in a forfeiture of the insurance, that the insurer waives the right of subrogation against Lessor and against Lessor’s agents and representatives; and the Leased
Property, and that the policies cannot be cancelled or materially changed except after thirty (30) days written notice by the insurer to the Lessor and to any mortgagee whose mortgage encumbers the Leased Property. All policies shall be deposited
with the Lessor. 
  
 10. Destruction of Premises. In the event that
substantially all of the Leased Property shall be destroyed or rendered otherwise untenantable because of fire or other 

  

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casualty, this Lease shall expire on the date when the Leased Premises shall be so destroyed in the same manner as if such date or destruction were the
expiration date of the term of this Lease and the rent shall be apportioned as of that date. In such event, with respect to any casualty loss which is insured under insurance coverages provided under this Lease, all insurance proceeds payable
because of such casualty loss shall be paid to the Lessor; Lessee hereby waiving any claim thereto for any reason whatsoever. 
  
 11. Eminent Domain. If the Leased Premises or any substantial part thereof is taken by eminent domain, this Lease shall expire on the date when the Leased
Premises shall be so taken in the same manner as if such date or taking were the expiration date of the term of this Lease and the rent shall be apportioned as of that date. No part of any award shall belong to Lessee. If there shall occur an
insubstantial taking which shall not terminate this Lease, then in such case, the Lessee shall have no claim to any part of the award, nor shall be any rent of payment for the balance of the term. 
  
 12. Alterations and Improvements. Lessee shall not make any alterations,
modifications or improvements to any portion of the Leased Property without the written consent of Lessor and any such modifications or additions to said Property made with or without consent shall be the Property of Lessor or, at Lessor’s
option, Lessee shall restore the Leased Property at Lessee’s expense to its original condition. The restrictions of this Paragraph shall not apply to maintenance of the Leased Property, but shall apply to any change which changes the
architecture or purpose of the improvements of the Property or which changes any of the interior walls of the improvements or which annexes a fixture to any part of the Leased Property which cannot be removed without damage thereto. In the event
Lessee desires to make any alterations or modifications, notice shall be given to the Lessor. Lessee shall have no power or authority to permit mechanics’ or materialmen’s liens to be placed upon the Leased Property in connection with
maintenance, alterations or modifications. 
  
 13. Indemnification.
Lessee shall indemnify Lessor against all liabilities, expenses and losses incurred by Lessor arising out of or related to the Leased Premises and Lessee’s use or occupancy thereof during the initial or extended term hereof, to include, but
not be limited to: (a) failure by Lessee, or its agents, to perform any provision, term, covenant or agreement required to be performed by Lessee under this Agreement; (b) any occurrence, injury or personal or property damage which shall happen in
or about the Leased Property or appurtenances resulting from the condition, maintenance, construction on or of the operation of the Leased Property; (c) failure to comply with any requirements of any governmental authority or insurance company
insuring the Leased Property or its contents; (d) any security agreement, conditional bill of sale or chattel mortgage or mechanic’s lien connected with Lessee, its obligation or operations, filed against the Leased Property, any fixtures,
equipment or personal property therein; and (e) any construction, work, alterations or improvements by Lessee on the Leased Property. Such indemnification shall include reasonable attorney’s fees for all proceedings, trials and appeals.

  

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 14. Subrogation. Lessor and Lessee do mutually each release and discharge the other of and from all
suits, claims or demands whatsoever, for loss or damage to the Leased Property of the other, arising from fire or the perils insured against under extended coverage caused by or occurring through or as a result of any acts or omissions, whether
negligent or otherwise, of the parties, their agents, servants or employees. Nothing contained herein shall in any way be considered or construed as a waiver or release by either party of any and all of the other covenants and conditions contained
in the within Lease to be performed by the other party. 
  
 15.
Subordination. If the Lessor desires to execute a mortgage upon the Leased Property to secure a loan to it, the proceeds from which loan may be used by the Lessor for any purpose even though not pertaining to the Leased Property,
Lessee agrees to execute such subordination agreements and other documents as may be required by the mortgagee to subordinate this Lease to the lien of such mortgage. Provided that such agreement shall provide that in the event of default under the
mortgage, the mortgagee shall honor the Lease as long as Lessee is not in default thereof. 
  
 16. Default - Remedies. 
  
 a. Lessee further covenants that, if default shall be made in the payment of rent and such default shall continue for a period of ten (10) days after the date when due, or if Lessee shall violate any other covenant of this Lease and fail to
correct such default within fifteen (15) days after a written request by the Lessor to do so, then Lessor may, at its option, deem this Lease terminated and the Lessee shall become tenant at sufferance, hereby waiving all right of notice, and Lessor
shall be entitled immediately to re-enter and re-take possession of the Leased Property. Lessor may alternately avail itself of any remedy provided by law or equity, or available under the following Paragraph as if the Leased Property were vacated.

  
 b. In case the Leased Property shall be deserted or vacated,
Lessor shall have the right and authority: (a) to re-enter the Premises, either by force or otherwise, without being liable for any prosecution or claim therefor, and to hold said Leased Property as if this Lease had not been made, and, upon such
re-entry, the estate hereby created shall be at an end; or (b) at the option of Lessor, to be exercised by written notice mailed to Lessee at its address shown above, or such other place as the Lessee shall designate in writing, Lessor may re-enter
the Premises as the agent of the Lessee, either by force or otherwise, without being liable to any prosecution or claim therefor, and may re-let the Leased Property as the agent of Lessee and receive the rent thereof and apply the same to the
payment of the rent due hereunder, holding Lessee liable for any deficiency; or (c) Lessor may, at its option, terminate this Lease by giving the Lessee written notice of such intention served upon Lessee or left upon the Leased Property and the
term hereof shall absolutely expire and terminate immediately upon the date set forth in said notice, but the Lessee shall nevertheless and thereafter be liable to Lessor for any deficiency between the rent due hereunder for the balance of the term
of this Lease and the fair rental value of the Leased Property for the balance of said term. 
  

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 c. As a distinct and cumulative remedy, Lessor may, at its option, may terminate this Lease as for a
default upon the occurrence of any or all of the following events: an assignment by Lessee for the benefit of creditors; or the filing of a voluntary or involuntary petition by or against Lessee under any law for the purpose of adjudicating Lessee
bankrupt; or for reorganization, dissolution or arrangement on account of or to prevent bankruptcy or insolvency; or the appointment of a receiver of the assets of Lessee; or the bankruptcy of Lessee. Each of the foregoing events shall constitute a
default by Lessee and breach of this Lease. 
  
 d. In the event of
a breach by Lessee of any of the agreements or covenants of this Lease, the Lessee agrees to pay to Lessor all attorneys’ fees and costs for all proceedings, trials and appeals incurred by Lessor in connection with the enforcement of the
agreements and covenants of this Lease, the collection of rent hereunder, or any action for damages for breach of this Lease by Lessee. 
  
 e. The rights of Lessor under the foregoing shall be cumulative, and failure on the part of the Lessor to exercise promptly any rights given hereunder
shall not operate to forfeit any of the said rights. 
  
 f. All
sums not paid when due shall bear interest at the maximum legal contract rate, or if less, 18% per annum, until paid. 
  
 17. Representations of Lessor. Lessor represents and warrants that: 
  

a. Lessor is the owner of the Leased Property and has the right to make this Lease. 
  
 b. Lessee, on paying the rent herein reserved and upon performing all of the terms and conditions of this Lease on its part
to be performed, shall at all times during the term herein demised peacefully and quietly have, hold and enjoy the Leased Property. 
  
 18. Lessee’s Duty to Surrender. At the expiration or earlier termination of the term, Lessee shall surrender to Lessor the possession of the Leased
Property. Lessee shall leave the surrendered Leased Property and any of Lessee’s improvements, as herein defined, in good and broom-clean condition; reasonable wear and tear excepted. All property that Lessee is required to surrender shall
become Lessor’s property at termination of the Lease. Lessee is permitted to remove all personal property and trade fixtures, provided that any damage to the Leased Premises shall be repaired by Lessee and provided that any items not removed
shall be conclusively presumed abandoned and shall become the property of Lessor if said property is not removed within ten (10) days after possession is given to Lessor voluntarily by Lessee or pursuant to court order. 
  

 Page 6 

 19. Assignment; Corporate Ownership. Lessee shall not have the right to assign this Lease without
the written consent of the Lessor; which consent may be withheld for any reason. If at any time during the term of this Lease any part or all of the corporate shares of Lessee, if any, shall be transferred by sale, assignment, devise, operation of
law or other disposition so as to result in a change in the present effective voting control of Lessee, Lessee shall promptly notify Lessor, in writing, of such change, and Lessor may terminate this Lease after such change in control by giving
Lessee sixty (60) days prior written notice of such termination. Lessee may not sublet any portion of the Leased Premised without Lessor’s written approval, which consent may be withheld for any reason; provided that, with respect to any
sublease, whether approved by Lessor or not, Lessee shall remain fully responsible for the performance of this Lease and Lessee shall not be relieved of liability or responsibility hereunder as a result of said sublease and Lessee shall be fully
responsible for the acts of any sublessee. 
  
 20. Option to
Purchase. The Lessee is hereby granted the option to purchase the Leased Premises from the Lessor at the expiration of the Initial Term for the total sum of Five Hundred Thousand and No/100 Dollars ($500,000.00) or its reasonably equivalent
value in real estate selected by, and acceptable to, the Lessor as part of a “1031 Like-Kind Exchange”. In order to validly elect this option, the Lessee must provide written notice to Lessor at least ninety (90) days prior to the
expiration of the Initial Term that the Lessee elects to purchase the Leased Premises under these terms. If elected, the Lessor shall convey good and marketable title to the Lessee and shall pay the documentary stamp taxes required to be affixed to
the deed. The Lessee shall pay the cost of recording the deed and any costs attendant to any financing of any portion of the purchase price. All normally prorated items will be prorated between the parties as of the date of closing. At Lessor’s
option, the purchase price for the property if this option is elected shall be paid by virtue of an exchange of like-kind property selected by the Lessor and purchased by the Lessee and then traded to the Lessor for the Leased Premises in such a way
as to qualify for a Section 1031 Like-Kind Exchange under the Internal Revenue Code. The parties agree and covenant to do and perform each and every act necessary in order to accomplish said like-kind exchange in the event that the Lessor elects
that option. In the event that the Lessee elects to purchase the Leased Premises, the closing shall occur on or about September 1st 2005. 
  
 21. Notices. All written
notices and rentals required under the terms of this Lease shall be mailed to each party by U.S. mail, postage paid, directed to the following addressee: 
  
 Robert H. Butler, Trustee 
 Robert H. Butler
Family Trust 
 3514 Landmark Place 
 Palm Harbor, Florida 34684-5012 
  
 AQUAFILM USA, INC.

 Attention: Scott P. Schaneville, C.O.O. 
 Post Office Box 2206 
 Tampa, Florida 33601-2206 
  

 Page 7 

 22. Binding Effective. Each and all of the covenants and conditions of this Lease shall be
binding on and shall inure to the benefit of the heirs, successors, executors, administrators, assigns and personal representatives of the respective parties. 
  

23. Time of the Essence. It is understood and agreed between the parties hereto that time is of the essence of this Lease and this applies
to all terms and conditions contained herein. 
  
 24.
Landlord’s Lien. In the event the Lessee finances the purchase of equipment, furniture or fixtures to be located and used on the Leased Property, and a financial institution requests the Lessor to subordinate its statutory
landlord’s lien to such financing, Lessor shall comply with such request, subject, however, to the approval of its counsel as to the form and substance of such subordination. 
  
 25. Estoppel Letters and Certificates. Upon request of Lessor to facilitate financing or other reasonable
business need, Lessee shall, within five (5) days of request, furnish estoppel letters or certificates as to the status of the Lease, defaults and rent payments. 
  
 26. Security Deposit. 
  

a. Lessee has deposited with Lessor the sum of Four Thousand Dollars ($4000.00), receipt of which is hereby acknowledged, subject to collection of any
non-cash deposit. Said deposit shall be held by Lessor without liability for interest as security for the faithful performance by Lessee of all of its obligations under this Lease. The security deposit shall not be mortgaged, assigned, transferred
or encumbered by Lessee without the written consent of Lessor, and any such act on the part of Lessee shall be without force and effect and shall not be binding upon Lessor. 
  
 b. If any of the rent herein reserved, or any other sum payable by Lessee to Lessor, shall be overdue and unpaid, or should
Lessor make payments on behalf of Lessee, or Lessee shall fail to perform any of the terms of this Lease, then Lessor may, at its option and without prejudice to any other remedy which Lessor may have on account thereof, appropriate and apply said
entire deposit or such portion thereof as may be necessary to compensate Lessor toward the payment of rent or additional rent or loss or damage sustained by Lessor due to such breach on the part of Lessee; and Lessee shall forthwith, upon demand,
restore said security to the original sum deposited. Should Lessee comply with all of said terms and promptly pay all of the rent as it becomes due and all other sums payable by Lessee to Lessor, said deposit shall be returned in full to Lessee
within thirty (30) days after the end of the term. 
  

 Page 8 

 c. Lessor may deliver the funds deposited hereunder to the purchaser of Lessor’s interest in the
Premises in the event that such interest is sold and thereupon Lessor shall be discharged from any further liability with respect to such deposit, and this provisions shall also apply to any subsequent transferees. 
  
 IN WITNESS WHEREOF, the parties hereto have set their hands and seals
the day and year first above written. 
  

									
	 Signed, sealed and delivered in the presence of:
	 	 	 	 LESSOR:

			
	 /s/ J. David Hadly
	 	 	 	 /s/ Robert H. Butler

	 (Witness to sign on line above)
	 	 	 	ROBERT H. BUTLER, as Trustee of the Robert H. Butler Family Trust, dated July 9, 1987
			
	 J. David Hadly
	 	 	 	Date: 7-20-03
	 (Witness to print name on line above)
	 	 	 	 	 	 
				
	 	 	 	 	 	 	 
	 (Witness to sign on line above)
	 	 	 	 	 	 
				
	 	 	 	 	 	 	 
	 (Witness to print name on line above)
	 	 	 	 	 	 

  

									
	 Signed, sealed and delivered in the presence of:
	 	 	 	 LESSEE:
 AQUAFILM USA, INC.

				
	 /s/ Juana C. Powell
	 	 	 	 By:
	 	 /s/ Scott P. Schaneville

	 (Witness to sign on line above)
	 	 	 	 	 	 Scott P. Schaneville, C.O.O

			
	 Juana C. Powell
	 	 	 	Date: 7/11/03
	 (Witness to print name on line above)
	 	 	 	 	 	 
				
	 /s/ Judy Neyra
	 	 	 	 	 	 
	 (Witness to sign on line above)
	 	 	 	 	 	 
				
	 Judy Neyra
	 	 	 	 	 	 
	 (Witness to print name on line above)
	 	 	 	 	 	 

  

 Page 9

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