Document:

Exhibit
      10.1

    

    AGREEMENT
      AND PLAN OF MERGER

    

    This
      Agreement and Plan of Merger, dated as of this 9th
      day of
      April, 2008 (the “Agreement”),
      by
      and among Nutra Pharma Corp., a California corporation (“Nutra
      Pharma”),
      NP
      Acquisition Corporation, a Nevada corporation wholly owned by Nutra Pharma
      (“Acquisition”),
      Receptopharm, Inc., a Nevada corporation (“Receptopharm”)
      and
      the stockholders of Receptopharm listed on the signature pages hereto
      (collectively, the “Executing
      Stockholders,”
and
      together with Nutra Pharma and Receptopharm shall be referred to collectively
      as, the “Parties”).
      Terms
      used herein and not otherwise defined shall have the meaning set forth in
Article
      IX
      hereof.

     

    WITNESSETH:

    

    WHEREAS,
      Nutra
      Pharma is the beneficial owner of 4,444,444 shares of the common stock, par
      value $.001 per share, of Receptopharm (the
      “Receptopharm
      Common Stock”),
      which
      shares represent thirty-eight percent (38%) of the aggregate outstanding shares
      of Receptopharm Common Stock; and

    

    WHEREAS, Nutra
      Pharma desires to acquire the remaining sixty-two percent (62%) of the
      outstanding shares of Receptopharm Common Stock on the terms and subject to
      the
      conditions set forth herein; and

    

    WHEREAS,
      the
      Parties desire that Acquisition be merged with and into Receptopharm in
      accordance with Nevada law (the “Merger”);
      and

    

    WHEREAS,
      the
      Board of Directors of Receptopharm has (i) determined that the Merger, this
      Agreement and the other transactions contemplated herein are fair to and in
      the
      best interests of Receptopharm and its stockholders and have declared that
      the
      Merger is advisable; and (ii) approved the Merger and this Agreement and (iii)
      recommended that its stockholders adopt and approve the Merger and this
      Agreement; and

     

    WHEREAS, the
      respective Boards of Directors of Nutra Pharma and Acquisition and the sole
      shareholder of Acquisition have each (i) adopted this Agreement and (ii)
      approved the Merger and the transactions contemplated by this Agreement;
      and

     

    WHEREAS, the
      terms
      and conditions of the Merger, the manner of converting the capital stock of
      Receptopharm and such other terms and conditions as may be required or permitted
      to be stated in this Agreement are set forth below;

     

    NOW,
      THEREFORE,
      in
      consideration of the foregoing and the mutual covenants and agreements herein
      contained and intending to be legally bound hereby, Nutra Pharma, Acquisition,
      Receptopharm and the Executing Stockholders hereby agree as
      follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      I.

    THE
      MERGER

     

    1.1 The
      Merger. Subject to the terms and conditions contained herein, at
      the
      Effective Time, Acquisition shall be merged with and into Receptopharm in
      accordance with the requirements of Nevada law.
      Thereupon, the corporate existence of Receptopharm, with all of its rights,
      privileges, immunities, powers and purposes, shall continue unaffected and
      unimpaired by the Merger, and Receptopharm, as the corporation surviving the
      Merger, shall be fully vested therewith, the separate existence of Acquisition
      shall cease upon the Merger becoming effective as herein provided and thereupon
      Acquisition and Receptopharm shall be a single corporation (sometimes referred
      to herein as the “Surviving Corporation”).

     

    1.2 Filing.
      As soon
      as practicable following fulfillment of the conditions specified in Article
      V
      hereof, and provided that this Agreement has not been terminated and abandoned
      pursuant to Article VIII hereof, Acquisition and Receptopharm will cause (a)
      executed Articles of Merger (the “Articles
      of Merger”)
      in the
      form required by Section 92A.200 and 92A.207 of the Nevada Revised Statutes
      (“NRS”) to be filed with the Secretary of State of the State of Nevada in
      accordance with the provisions of the NRS. 

     

    1.3 Effective
      Time of the Merger. The
      Merger shall be effective at the date and time that the Articles of Merger
      is
      filed with the Secretary of State of the State of Nevada, which date and time
      are sometimes referred to herein as the “Effective Time”. 

     

    1.4 Effect
      of the Merger. The Merger shall have the effects set forth in Section
      92A.250 of the NRS.

     

    1.5 Articles
      of Incorporation and Bylaws. At
      the
      Effective Time, the Articles of Incorporation of Receptopharm as in effect
      immediately prior to the Merger shall be the Articles of Incorporation of the
      Surviving Corporation, which may be amended from time to time after the
      Effective Time as provided by law. At the Effective Time, the bylaws of
      Receptopharm as in effect immediately prior to the Merger shall be the bylaws
      of
      the Surviving Corporation, which may be amended from time to time after the
      Effective Time as provided by law.

     

    1.6 Directors
      and Officers.

     

    (a) From
      and
      after the Effective Time, the members of the Board of Directors of Receptopharm
      immediately prior to the Effective Time shall become the members of the Board
      of
      Directors of the Surviving Corporation.

     

    (b) From
      and
      after the Effective Time, the officers of Receptopharm immediately prior to
      the
      Effective Time shall become the officers of the Surviving Corporation, in the
      same capacities they respectively held in Receptopharm. 

     

    
      
        
        

      

      
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    1.7 Conversion.
      At the
      Effective Time, all of the issued and outstanding shares of capital stock of
      Acquisition and Receptopharm shall, by virtue of the Merger and without any
      action on the part of the respective holders thereof, be converted as
      follows:

     

    (a) Each
      share of common stock, par value $.001per share, of Acquisition shall be
      converted into one share of Receptopharm Common Stock;

     

    (b) Each
      share of Receptopharm Common Stock (other than shares of Receptopharm Common
      Stock owned by Nutra Pharma or any subsidiary of Nutra Pharma) shall
be
      converted into four (4) shares of common stock, par value $.0001 per share
      (the
“Nutra
      Pharma Common Stock”),
      of
      Nutra Pharma (collectively, the “Merger
      Consideration”);
      provided that in no event shall the number of shares of Nutra Pharma Common
      Stock issued in connection with the transactions contemplated by this Agreement
      exceed thirty million (30,000,0000) shares. 

     

    1.8 Effect
      of
      Conversion of Shares. After the Effective Time, and until surrendered, each
      outstanding certificate which, prior to the Effective Time represented shares
      of
      Receptopharm Common Stock (each, a “Receptopharm Certificate”), shall be
      deemed for all purposes to represent only the right to receive four (4) shares
      of Nutra Pharma Common Stock multiplied by the number of shares of Receptopharm
      formerly represented by such Receptopharm Certificate. 

     

    1.9 Stock
      Option and Other Plans. Prior
      to
      the Effective Time, Receptopharm shall terminate any
      stock
      option plan
      and any
      other plan, program or arrangement providing for the issuance or grant of any
      other interest in respect of the capital stock of Receptopharm (collectively,
      the “Stock Plans”). As
      of the
      date hereof, there are no options currently exercisable to acquire shares of
      Receptopharm Common Stock.

     

    1.10 Procedures
      for Exchange. Nutra Pharma shall take all steps reasonably necessary on and
      as of the Effective Time to deliver to an exchange agent mutually agreed upon
      by
      Nutra Pharma and Receptopharm (the “Exchange Agent”), for the benefit of
      the holders of Receptopharm Certificates, for exchange in accordance with
      Section 1.7, the number of shares of Nutra Pharma Common Stock in accordance
      with this Agreement.

     

    1.11 Dissenting
      Shares.

     

    (a) Upon
      filing a notice of election to demand payment for shares of Receptopharm Common
      Stock pursuant to Section 92A.420 of the NRS, and complying with the other
      requirements thereof and of Sections 92A.300-500 of the NRS, a Dissenting
      Stockholder shall thereafter be entitled only to payment as provided in Sections
      92A.460 through 92A.500 of the NRS and shall not be entitled to vote or to
      exercise any other rights of a stockholder of Receptopharm. If the Dissenting
      Stockholder fails to properly exercise and perfect its dissenters’ rights as set
      forth in NRS Sections 92A.340-500 inclusive, in a timely manner, then, such
      Dissenting Stockholder’s Dissenting Shares shall cease to be Dissenting Shares
      and shall be converted into and only represent the right to receive the Merger
      Consideration payable in respect of such shares.

     

    
      
        
        

      

      
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    (b) In
      accordance with Nevada law, concurrently with notice of the Receptopharm
      stockholders’ meeting being held to consider and vote upon the Merger,
      Receptopharm has or will notify each Receptopharm stockholder who is eligible
      to
      exercise dissenters’ rights under Section 92A.380 of the NRS that dissenters’
rights are or may be available for any or all of such stockholder’s shares of
      Receptopharm Common Stock. Such notice has or shall include a copy of NRS
      Sections 92A.300-92A.500. Any such stockholder entitled to dissenter’s rights
      must deliver to Receptopharm before the stockholder vote is taken, written
      notice of its intent to demand payment for its shares of Receptopharm Common
      Stock if the Merger is effectuated and must not vote in favor of the Merger
      (any
      such stockholder who properly provides such notice and complies with Section
      92A.420 of the NRS, a “Dissenting
      Stockholder”). 

     

    1.12 Closing
      Deliveries

     

    (a) At
      the
      Closing, Receptopharm and the Executing Stockholders shall deliver or cause
      to
      be delivered to Nutra Pharma:

     

    (i) a
      certificate of the President of Receptopharm certifying as to the matters set
      forth in this Section 5.2(a); 

     

    (ii) a
      certificate of the President of Receptopharm certifying as to the matters set
      forth in Section 5.2(b); and

     

    (iii) Receptopharm
      Certificates representing shares of Receptopharm Common Stock beneficially
      owned
      by the Executing Stockholders, with stock powers attached thereto.

     

    (b) At
      the
      Closing, Nutra Pharma and Acquisition shall deliver or cause to be delivered
      to
      Receptopharm:

     

    (i) a
      certificate of the Chief Executive Officer or Chief Financial Officer of Nutra
      Pharma certifying as to the matters set forth in this Section 5.3(a);

     

    (ii) a
      certificate of the Chief Executive Officer or Chief Financial Officer of Nutra
      Pharma certifying as to the matters set forth in this Section 5.3(b);
      and

     

    (iii) the
      shares of Nutra Pharma Common Stock issuable pursuant to Section 1.7(b)
      hereof.

     

    
      
        
        

      

      
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    ARTICLE
      II.

    REPRESENTATIONS
      AND WARRANTIES OF RECEPTOPHARM

    AND
      THE EXECUTING STOCKHOLDERS

     

    Receptopharm
      and the Executing Stockholders represent and warrant to Nutra Pharma and
      Acquisition as of the date of this Agreement and as of the Effective
      Time:

     

    2.1 Organization,
      Good Standing and Corporate Power.
      Receptopharm is a corporation duly organized, validly existing and in good
      standing under the laws of the State of Nevada and has the requisite corporate
      or other power and authority to own, lease and operate its properties and to
      carry on its business as now being conducted. Receptopharm is duly qualified
      or
      licensed and in good standing to do business in each jurisdiction in which
      the
      property owned, leased or operated by it or the nature of the business conducted
      by it makes such qualification necessary, except where the failure to be so
      qualified could not reasonably be expected to have a Material Adverse Effect
      on
      Receptopharm. 

     

    2.2 Capitalization.
      The authorized, issued and outstanding Receptopharm Common Stock and securities
      that are convertible into, or exchangeable for, shares of Receptopharm Common
      Stock without giving effect to any of the transactions contemplated hereby
      are
      held beneficially and of record by the Persons set forth in Schedule 2.2
      hereto. Receptopharm has no contracts containing any profit participation
      features, stock appreciation rights or phantom stock options that allow any
      Person to participate in the equity of Receptopharm except as set forth on
      Schedule 2.2 hereto. All of the outstanding shares of Receptopharm Common
      Stock are validly issued, fully paid and non-assessable. Receptopharm is not
      subject to any obligation or contract (contingent or otherwise) to repurchase
      or
      otherwise acquire or retire any shares of its capital stock. There
      are
      no shares of capital stock of Receptopharm held in the treasury of Receptopharm
      and no shares of capital stock of Receptopharm are currently reserved for
      issuance for any purpose or upon the occurrence of any event or condition.
      There
      are no outstanding Options.

     

    2.3 Authority
      Relative to This Agreement. 

     

    (a) Receptopharm
      has full corporate power and authority to enter into this Agreement and the
      agreements contemplated hereby to which Receptopharm is a party and to
      consummate the transactions contemplated hereby and thereby. The execution,
      delivery and performance of this Agreement and all other agreements and the
      transactions contemplated hereby have been duly authorized by the Board of
      Directors and stockholders of Receptopharm and no other corporate proceedings
      on
      its/their part are necessary to authorize this Agreement and the agreements
      contemplated hereby and the transactions contemplated hereby and thereby. Upon
      the execution and delivery of this Agreement by Receptopharm, this Agreement
      will constitute a legal, valid and binding obligation of Receptopharm
      enforceable against it in accordance with its terms.

     

    (b) Each
      Executing Stockholder has full power and authority to enter into this Agreement
      and the agreements contemplated hereby and to deliver its respective shares
      of
      Receptopharm Common Stock to Nutra Pharma as provided for herein, free and
      clear
      of all Liens except for Permitted Liens. Upon the execution and delivery by
      the
      Executing Stockholders of this Agreement, this Agreement will constitute a
      legal, valid and binding obligation of the Executing Stockholders enforceable
      against them in accordance with its terms.

     

    
      
        
        

      

      
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    (c) Except
      as
      set forth on Schedule
      2.3(c),
      the
      execution, delivery and performance of this Agreement by Receptopharm and the
      Executing Stockholders of this Agreement, and all other agreements contemplated
      hereby, and the fulfillment of and compliance with the respective terms hereof
      and thereof by Receptopharm and the Executing Stockholders, do not and will
      not
      (i) conflict with or violate Receptopharm’s Articles of Incorporation,
      as amended, or Receptopharm’s Bylaws; (ii) conflict with or violate any Law
      applicable to the Executing Stockholders or Receptopharm or by which any
      property or assets of Receptopharm are bound except such Laws the failure of
      which to comply with would not have or cause a Material Adverse Effect on
      Receptopharm; or (iii) result in any breach of or constitute a material default
      (or an event which with notice or lapse of time or both would become a default)
      under, or give to others any right of termination, amendment, acceleration
      or
      cancellation of any Material Contract; or (iv) result in the creation of a
      Lien
      on any property or assets of Receptopharm except such that would not result
      in a
      Material Adverse Effect on Receptopharm.

     

    2.4 Financial
      Statements.
      Attached
      hereto as Schedule 2.4 are copies of the year-end balance sheets of
      Receptopharm as of December 31, 2005 and 2006 and statements of profit and
      loss
      of Receptopharm for each of the fiscal years then ended (collectively, the
      “Financial Statements”). Receptopharm has previously delivered copies of
      the foregoing Financial Statements to Nutra Pharma. For purposes of this
      Agreement, December 31, 2006 is herein referred to as the “Financial
      Statement Date” and Receptopharm’s balance sheet dated as of December 31,
      2006 is herein referred to as the “Receptopharm Balance
      Sheet.”

     

    2.5 Taxes.
      Receptopharm has filed its tax returns required to be filed for the five (5)
      fiscal years ended December 31, 2006 and has paid all taxes due, if any, for
      all
      such periods. All such returns and reports are accurate and correct in all
      material respects. Receptopharm has no liabilities with respect to the payment
      of any federal, state, county, local, or other taxes (including any
      deficiencies, interest, or penalties) accrued for or applicable to the period
      ended on the Effective Time and all such dates and years and periods prior
      thereto and for which Receptopharm may at said date have been liable in its
      own
      right or as transferee of the assets of, or as successor to, any other
      corporation or entity, except for taxes accrued but not yet due and payable,
      and
      to the knowledge of Receptopharm, no deficiency assessment or proposed
      adjustment of any such tax return is pending, proposed or contemplated. To
      the
      knowledge of Receptopharm, none of such income tax returns has been examined
      or
      is currently being examined by the Internal Revenue Service and no deficiency
      assessment or proposed adjustment of any such return is pending. There are
      no
      outstanding agreements or waivers extending the statutory period of limitation
      applicable to any tax return of Receptopharm.

     

    
      
        
        

      

      
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    2.6 Property.
      

     

    (a) Receptopharm
      owns no real property. Set forth on Schedule
      2.6(a),
      hereto
      is a list of all real property leased by Receptopharm.

     

    (b) Receptopharm
      is the owner of and has good and marketable title to all material tangible
      personal property and assets currently in use by Receptopharm, or in which
      it
      has an interest, free and clear of all Liens except for Permitted Liens. Except
      as set forth on Schedule
      2.6(b),
      all
      such material tangible personal property and assets are in good operating
      condition and repair subject only to ordinary wear and tear.

     

    2.7 Undisclosed
      Liabilities.
      Except
      for those liabilities that are (i) clearly reflected or reserved against on
      the
      Receptopharm Balance Sheet (or in the notes thereto), (ii) incurred by
      Receptopharm since the Financial Statement Date in the ordinary course of
      business, (iii) set forth on Schedule 2.7 hereto or (iv) not required to
      be reflected or reserved against on Receptopharm Balance Sheet consistent with
      Receptopharm’s past practices, Receptopharm does not have any material
      outstanding liability of any nature whatsoever (whether absolute, accrued,
      contingent or otherwise and whether due or to become due), except for those
      that
      could not reasonably be expected to have, individually or in the aggregate,
      a
      Material
      Adverse Effect on Receptopharm.

     

    2.8 Litigation
      and Proceedings. Except as set forth on Schedule 2.8, there are no
      material actions, suits, claims, or administrative or other proceedings pending,
      asserted or to the knowledge of Receptopharm, threatened, by or against
      Receptopharm or adversely affecting Receptopharm or its properties, at law
      or in
      equity, before any Authority which could reasonably be expected to have a
      Material Adverse Effect on Receptopharm. To the knowledge of Receptopharm,
      Receptopharm is not in default of any judgment, order, writ, injunction, decree,
      award, rule, or regulation of any Authority.

     

    2.9 Absence
      of Certain Changes.
      Since
      the Receptopharm Balance Sheet Date: (a) the business of Receptopharm has been
      conducted in the ordinary course consistent with past practices (other than
      with
      respect to the transactions contemplated by this Agreement); (b) except as
      set
      forth on Schedule 2.9, there has not been any material change by
      Receptopharm, when taken as a whole, in its accounting methods, principles
      or
      practices or any of its tax methods, practices or elections; (c) except as
      set
      forth on Schedule 2.9, there has not been any event, occurrence,
      development or state of circumstances or facts that has had, or could reasonably
      be expected to have a Material Adverse Effect on Receptopharm; and (d)
      Receptopharm has not taken any action or omitted to take any action, which
      act
      or omission, if taken after the date of this Agreement, would result in a breach
      or violation of Section 4.1(a) of this Agreement.

     

    2.10 Intellectual
      Property.

     

    (a) Receptopharm
      has the right to use, sell or license all Receptopharm Intellectual Property
      identified on Schedule
      2.10
      hereto,
      free and clear of all Liens except Permitted Liens, and except for liens of
      licensors of Receptopharm Intellectual Property. To the knowledge of
      Receptopharm, all registrations of Receptopharm Intellectual Property are valid
      and enforceable and have been duly recorded and maintained.

     

    
      
        
        

      

      
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    (b) To
      the
      knowledge of Receptopharm, the conduct of Receptopharm’s business and the use of
      Receptopharm Intellectual Property does not materially infringe or violate
      any
      intellectual property rights of any Person or give rise to any obligations
      to
      any Person as a result of co-authorship, and Receptopharm has not received
      any
      written notice of any claims or threats that Receptopharm’s use of any of
      Receptopharm Intellectual Property materially infringes or violates or is
      otherwise in conflict with any intellectual property rights of any third party
      or that any of Receptopharm Intellectual Property is invalid or
      unenforceable.

     

    2.11 Broker’s
      or Finder’s Fee. No Person will be entitled to a broker’s, finder’s,
      financial advisors or similar fees from Receptopharm in connection with this
      Agreement or any of the transactions contemplated
      hereby based upon arrangements made by or on behalf of Receptopharm or the
      Executing Stockholders.

     

    2.12 Exclusivity.
      Except for this Agreement, Receptopharm is not subject to any binding agreement,
      letter of intent or other binding or non-binding understanding with respect
      to
      the sale or license of its assets or securities or any other transaction that
      could conflict with the matters contemplated by this Agreement.

     

    2.13 Prior
      Loans to Receptopharm/Paid in Capital Upon Closing. Receptopharm hereby
      acknowledges that from March 26, 2006 to February 29, 2008, Nutra Pharma made
      various loans to Receptopharm in the aggregate principal amount of $1,225,000.
      

     

    ARTICLE
      III.

    REPRESENTATION
      AND WARRANTIES OF NUTRA PHARMA AND ACQUISITION

     

    Nutra
      Pharma and Acquisition represent and warrant to Receptopharm and the Executing
      Stockholders as of the date of this Agreement and as of the Effective
      Time:

     

    3.1 Organization,
      Good Standing and Corporate Power.

     

    (a) Nutra
      Pharma is a corporation duly organized, validly existing and in good standing
      under the laws of the State of California and has the requisite corporate or
      other power and authority to own, lease and operate its properties and to carry
      on its business as now being conducted. Nutra Pharma is duly qualified or
      licensed and in good standing to do business in each jurisdiction in which
      the
      property owned, leased or operated by it or the nature of the business conducted
      by it makes such qualification necessary, except where the failure to be so
      qualified could not reasonably be expected to individually or in the aggregate
      have a Material Adverse Effect on Nutra Pharma.

     

    (b) Acquisition
      is a corporation duly organized, validly existing and in good standing under
      the
      laws of the State of Nevada and has the requisite corporate or other power
      and
      authority to own, lease and operate its properties and to carry on its business
      as now being conducted. Acquisition is duly qualified or licensed and in good
      standing to do business in each jurisdiction in which the property owned, leased
      or operated by it or the nature of the business conducted by it makes such
      qualification necessary, except where the failure to be so qualified could
      not
      reasonably be expected to individually or in the aggregate have a Material
      Adverse Effect on Acquisition.

     

    
      
        
        

      

      
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    3.2 Capitalization.

     

    (a) The
      authorized capital stock of Nutra Pharma consists of two billion (2,000,000,000)
      shares of common stock of which 161,295,682 are issued and outstanding. The
      authorized capital stock of Acquisition consists of 25,000,000 shares of common
      stock, par value $.001 per share (the “Acquisition
      Common Stock”),
      of
      which [11,944,444] shares of Acquisition Common Stock are issued and outstanding
      and all of which are owned by Nutra Pharma. Except as set forth on Schedule
      3.2,
      there
      are no outstanding Options relating to the Nutra Pharma Common Stock or other
      equity interests of Nutra Pharma pursuant to which Nutra Pharma is or may become
      obligated to issue shares of its securities or other equity interests or any
      securities convertible into, exchangeable for or evidencing the right to
      subscribe for, any shares of the securities or other equity or other interest
      of
      Nutra Pharma.

     

    (b) Nutra
      Pharma has reserved for issuance a sufficient number of authorized and unissued
      shares of Nutra Pharma Common Stock to consummate the transactions contemplated
      by this Agreement. Upon the issuance of the shares of Nutra Pharma Common Stock
      upon the Effective Time of the Merger, such shares of Nutra Pharma Common Stock
      will be duly authorized, validly issued, fully paid and non-assessable and
      not
      subject to preemptive rights created by statute or by Nutra Pharma’s Articles of
      Incorporation or Bylaws. 

     

    3.3 Authority
      Relative to this Agreement; Issuance of Shares.

     

    (a) Each
      of
      Nutra Pharma and Acquisition has all necessary corporate power and authority
      to
      execute and deliver this Agreement and the agreements contemplated hereby to
      which Nutra Pharma is a party and do not require any further corporate
      authorization or consent of Nutra Pharma or Acquisition. The execution, delivery
      and performance of this Agreement by Nutra Pharma and the consummation by Nutra
      Pharma of the Merger and the other transactions contemplated by this Agreement
      have been duly and validly authorized by all necessary corporate action of
      Nutra
      Pharma and Acquisition, including any action by its board of directors or
      stockholders and do not require any further corporate authorization or consent
      of Nutra Pharma or Acquisition and no other corporate proceedings on the part
      of
      Nutra Pharma are necessary to authorize this Agreement or the agreements
      contemplated hereby to which Nutra Pharma is a party or to consummate the Merger
      and the other transactions contemplated by this Agreement. This Agreement has
      been duly and validly executed and delivered by Nutra Pharma and, assuming
      the
      due authorization, execution and delivery by Receptopharm and the Executing
      Stockholders, constitutes a legal, valid and binding obligation of Nutra Pharma
      enforceable against Nutra Pharma in accordance with its terms, except that:
      (i)
      such enforcement may be subject to any bankruptcy, insolvency, reorganization,
      moratorium, fraudulent transfer, or other laws, now or hereafter in effect,
      relating to or limiting creditors’ rights generally; and (ii) the remedy of
      specific performance and injunctive and other forms of equitable relief may
      be
      subject to equitable defenses and to the discretion of the court before which
      any proceeding therefore may be brought.

     

    
      
        
        

      

      
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    (b) The
      execution, delivery and performance of this Agreement by Nutra Pharma and the
      consummation by Nutra Pharma of the Merger and the other transactions
      contemplated by this Agreement do not require the approval of any exchange
      upon
      which where the Nutra Pharma Common Stock is quoted or of any other Authority.
      The execution, delivery and performance of this Agreement by Nutra Pharma and
      the consummation by Nutra Pharma of the Merger and the other transactions
      contemplated by this Agreement do not require the approval of the holders of
      the
      Nutra Pharma Common Stock. 

     

    3.4 Absence
      of Undisclosed Liabilities. Except as set forth in Nutra Pharma’s balance
      sheet for the year ended December 31, 2006 (the “Nutra Pharma Balance
      Sheet”), or set forth on Schedule 3.4, there is no liability
      (including unasserted claims, whether known or unknown), whether absolute,
      contingent, accrued or otherwise, which is not shown or which is in excess
      of
      amounts shown or reserved for on the Nutra Pharma Balance Sheet, which is not
      shown or which is in excess of amounts shown or reserved for in the Nutra Pharma
      Balance Sheet, other than immaterial liabilities incurred after the date of
      Nutra Pharma’s Balance Sheet in the ordinary course of business consistent with
      past practices, and to Nutra Pharma’s knowledge, there is no reasonable basis
      for assertion against Nutra Pharma of any such liability, commitment or
      obligation.

     

    3.5 No
      Conflict; Required Filings and Consents.

     

    (a) The
      execution, delivery and performance of this Agreement and the other agreements
      contemplated hereby and the fulfillment of and compliance with the respective
      terms hereof and thereof by Nutra Pharma and Acquisition, do not and will not
      (i) conflict with or violate the respective Articles of Incorporation or Bylaws
      of Nutra Pharma or Acquisition, as the case may be; (ii) conflict with or
      violate any Law applicable to Nutra Pharma or any of its subsidiaries or by
      which any property or assets of Nutra Pharma or Acquisition is bound or
      affected; or (iii) result in any breach of or constitute a default (or an event
      which with notice or lapse of time or both would become a default) under, or
      give to others any right of termination, amendment, acceleration or cancellation
      of, or result in the creation of a Lien on any property or assets of Nutra
      Pharma or Acquisition with respect to clause (ii) and (iii) for any such
      conflicts, violations, breaches, defaults or other occurrences that have not
      had, and could not reasonably be expected to have individually or in the
      aggregate, a Material Adverse Effect on Nutra Pharma or
      Acquisition.

     

    (b) 
      The
      execution, delivery, and performance of this Agreement by Nutra Pharma and
      Acquisition will not require any consent, approval, authorization or permit
      of,
      or filing with or notification to, any Authority except as set forth on
Schedule
      3.5(b).

     

    
      
        
        

      

      
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    3.6 SEC
      Filings; Financial Statements.

     

    (a) Nutra
      Pharma has filed all statements, forms, reports, schedules and documents
      required to be filed by it with the SEC (collectively, including all exhibits
      thereto and any registration statement filed since such date, the “Nutra
      Pharma SEC Reports”).
      As of
      the respective dates on which they were filed, (i) Nutra Pharma SEC Reports
      complied in all material respects with the requirements of the Securities Act
      of
      1933, as amended, or the Securities Exchange Act of 1934, as the case may be,
      and (ii) none of Nutra Pharma SEC Reports contained, nor will any forms,
      reports, schedules or documents filed after the date of this Agreement contain,
      any untrue statement of a material fact or omit to state a material fact
      required to be stated therein or necessary in order to make the statements
      therein, in light of the circumstances under which they
      were
      made, not misleading. No subsidiary of Nutra Pharma is required to file any
      form, report, schedule or other document with the SEC.

     

    (b) Each
      of
      the consolidated financial statements (including, in each case, any notes
      thereto) contained in Nutra Pharma SEC Reports and in any statement, form,
      report, schedule or document filed after the date of this Agreement was, or
      will, as the case may be, (i) comply as to form in all material respects with
      the published rules and regulations of the SEC; (ii) were prepared in accordance
      with GAAP throughout the periods indicated (except as may be indicated in the
      notes thereto or, in the case of unaudited statements, as permitted by Form
      10-Q
      under the Exchange Act) and (iii) present or will present fairly the
      consolidated financial position, results of operations and cash flows of Nutra
      Pharma and the consolidated Nutra Pharma Subsidiaries as at the respective
      dates
      thereof and for the respective periods indicated therein, except as otherwise
      noted therein (subject, in the case of unaudited statements, to normal and
      recurring year-end adjustments which were not material in amount).

     

    3.7 Absence
      of Litigation.
      Except as specifically disclosed in the Nutra Pharma SEC Reports filed prior
      to
      the date of this Agreement, there is no action, suit, claim or administrative
      or
      other proceeding pending or, to the knowledge of Nutra Pharma, threatened
      against Nutra Pharma or any of its subsidiaries or any property or asset of
      Nutra Pharma or Acquisition or any subsidiary of Nutra Pharma, before any
      Authority that could affects Nutra Pharma’s ability to consummate the
      transactions contemplated by this Agreement.

     

    3.8 Broker’s
      or Finder’s Fee. No agent, broker, financial adviser, person or firm is, or
      shall be, entitled to any fee, commission or broker’s or finder’s fees in
      connection with this Agreement or any of the transactions contemplated hereby
      for which Receptopharm or the Executing Stockholders could be
      liable.

     

    3.9 Absence
      of Changes. Since December 31, 2006, Nutra Pharma has not:

     

    (a) conducted
      its business other than in the ordinary course of business consistent with
      past
      practice;

     

    (b) made
      material changes in its accounting principles or practices;

     

    
      
        
        

      

      
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    (c) declared
      or paid any dividends on or made any other distributions (whether in cash,
      stock
      or property) in respect of any of its capital stock, or split, combined or
      reclassified any of the Nutra Pharma Common Stock or issued or authorized the
      issuance of any other securities in respect of, in lieu of or in substitution
      for shares of Nutra Pharma Common Stock;

     

    (d) other
      than upon the exercise of securities that are exercisable or exchangeable for
      or
      convertible into shares of Nutra Pharma Common Stock, issued, delivered or
      sold
      or authorized or proposed the issuance, delivery or sale of, any shares of
      Nutra
      Pharma Common Stock of any class or securities convertible into, or Options
      to
      acquire or entered into other agreements, or commitment of any character
      obligating it to issue any shares or other convertible securities; 

     

    (e) caused,
      permitted or proposed any amendments to its Articles of Incorporation or
      bylaws;

     

    (f) created,
      incurred, assumed or guaranteed any indebtedness for borrowed money or entered
      into as lessee, any capitalized lease obligations (as defined by GAAP) other
      than in the ordinary course of business consistent with past
      practices;

     

    (g) taken
      any
      other action which could reasonably be expected to cause any of the conditions
      to Closing not to be satisfied; or

     

    (h) agreed
      to
      do any of the foregoing.

     

    ARTICLE
      IV.

    COVENANTS

     

    4.1 Conduct
      of the Business.

     

    (a) From
      and
      after the date hereof and prior to the Effective Time and except as may be
      agreed in writing by Nutra Pharma, or as may be expressly permitted pursuant
      to
      this Agreement, Receptopharm and the Executing Stockholders agree that
      Receptopharm:

     

    (i) shall
      conduct its business in the ordinary course;

     

    (ii) shall
      use
      commercially reasonable efforts to (A) preserve intact its business organization
      and goodwill and (B) keep available the services of its current officers and
      other key employees and preserve its relationships with those Persons having
      business dealings with Receptopharm;

     

    (iii) shall
      promptly notify Nutra Pharma of any change in its condition (financial or
      otherwise) or the breach of any representation or warranty contained
      herein;

     

    
      
        
        

      

      
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    (iv) shall
      maintain its insurance coverage in such amounts and against such risks and
      losses as are customary for Receptopharm;

     

    (v) shall
      not
      authorize, declare or pay any dividends on or make any distribution with respect
      to any shares of its capital stock;

     

    (vi) shall
      not
      split, combine or reclassify any of its capital stock or other equity interests
      or issue or authorize or issue any other equity interests in respect of, in
      lieu
      of or in substitution for, shares of its capital stock or other equity interests
      other than the issuance of capital stock pursuant to options, warrants and
      convertible Receptopharm Securities outstanding as of the date of this
      Agreement;

     

    (vii) shall
      not
      (A) increase the rate of compensation of any employee, except for increases
      or
      bonuses occurring in the ordinary course of business, (B) enter into or amend
      any employment, severance or similar agreements or arrangements with any of
      its
      present or former directors
      or officers, or (C) enter into, adopt or amend any other Receptopharm Employee
      Benefit Plan;

     

    (viii) shall
      not
      terminate any executive officer without cause if the termination would entitle
      such executive officer to receive enhanced separation payments upon consummation
      of the Merger;

     

    (ix) shall
      not
      authorize or announce an intention to authorize or propose, or enter into an
      agreement with respect to, any merger, consolidation or business combination
      (other than the Merger) and shall not purchase a substantial portion of the
      assets or equity or other securities of any business;

     

    (x) shall
      not
      adopt any amendment to its Articles of Incorporation or Bylaws;

     

    (xi) shall
      not
      incur or assume or any indebtedness or any other liabilities other than those
      liabilities incurred in the ordinary course of business;

     

    (xii) shall
      not
      (A) make any loans, advances or capital contributions to, or investments in,
      any
      other Person, or (B) pay, discharge or satisfy any claims, liabilities or
obligations
      (absolute, accrued, asserted or unasserted, contingent or otherwise), other
      than
      indebtedness, issuances of debt securities, guaranties, loans, advances, capital
      contributions, investments, payments, discharges or satisfactions incurred
      or
      committed to in the ordinary course of business;

     

    (xiii) shall
      not
      sell, lease, license, mortgage or otherwise encumber or subject to any Lien
      or
      otherwise dispose of any of its properties or assets (including
      securitizations), other than in the ordinary course of business;

     

    
      
        
        

      

      
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    (xiv) shall
      not
      enter into any agreement or arrangement that limits or otherwise restricts
      Receptopharm or that would, be reasonably likely to limit or restrict
      Receptopharm from engaging or competing in any line of business in any
      geographic area;

     

    (xv) shall
      not
      settle or compromise any material claim, action or proceeding (including any
      material claim, action or proceeding relating to Taxes) involving money damages,
      except in the ordinary course of business;

     

    (xvi) shall
      not
      make or change any material tax election or change its fiscal year;

     

    (xvii) except
      as
      required by an Authority, shall not change its methods of accounting (including
      making any material write-off or reduction in the carrying value of any assets),
      other than as agreed by Receptopharm’s independent auditors;

     

    (xviii) shall
      not
      take any action that is reasonably likely to delay or materially or adversely
      affect the ability of any of the Parties hereto to obtain any consent,
      authorization, order or approval of any governmental commission, board or other
      regulatory body or the expiration of any applicable waiting period required
      to
      consummate the transactions contemplated by this Agreement; and

     

    (xix) shall
      not
      agree, in writing or otherwise, to take any of the foregoing actions or take
      any
      action which would result in any of the conditions to the Merger set forth
      in
      Article V not being satisfied.

     

    (b) From
      and
      after the date hereof and prior to the Effective Time and except as may be
      expressly permitted pursuant to this Agreement, or as set forth in Schedule
      4.1(b),
      Nutra
      Pharma:

     

    (i) shall
      promptly deliver to Receptopharm true and correct copies of any report,
      statement or schedule filed with the SEC subsequent to the date of this
      Agreement;

     

    (ii) shall
      not
      split, combine or reclassify any of its capital stock;

     

    (iii) shall
      not
      authorize, propose or announce an intention to authorize or propose, or enter
      into an agreement with respect to, any merger, consolidation or
      business combination;

     

    
      
        
        

      

      
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    (iv) shall
      not
      issue or authorize the issuance of, or agree to issue or sell any shares of
      its
      capital stock of any class, or any other equity interests (in each case, whether
      through the issuance or granting of options, warrants, commitments,
      subscriptions, rights to purchase or otherwise) which would result in a change
      of the voting control of Nutra Pharma; and

     

    (v) shall
      not
      take any action that is reasonably likely to delay the ability of any of the
      Parties hereto to obtain any consent, authorization, order or approval of any
      governmental commission, board or other regulatory body or the expiration of
      any
      applicable waiting period required to consummate the transactions contemplated
      by this Agreement.

     

    4.2 Consents.
      Subject to the terms and conditions of this Agreement, the Parties shall use
      their commercially reasonable efforts to make, or cause to be made, all filings
      and use commercially reasonable efforts to obtain, or cause to be obtained,
      all
      assignments, Permits, authorizations, consents and approvals of Authorities
      and
      other third parties necessary, proper or advisable to consummate the
      transactions contemplated by this Agreement. The Parties shall use their
      commercially reasonable efforts to furnish, or cause to be furnished, to one
      another such information and assistance as such other party may reasonably
      request in connection with the foregoing and shall provide one another with
      copies of all filings and or documents made by Receptopharm with any
      governmental authority or other third party or any other information supplied
      by
      such Party to a Authority or other third party in connection with the
      transactions contemplated by this Agreement.

     

    4.3 Public
      Announcements. No press release or other public announcement shall be
      released by any Party without prior written mutual agreement.

     

    4.4 Board
      of Directors. Nutra Pharma shall appoint Paul F. Reid and Harold H. Rumph to
      Nutra Pharma’s Board of Directors. Nutra Pharma shall take all actions necessary
      and appropriate so that from and after the Effective Time such representation
      comprises no less than forty percent (40%) of the membership of Nutra Pharma’s
      Board of Directors. Nutra Pharma shall file all required forms with the SEC
      pertaining to such appointments.

     

    4.5 Tax-Free
      Reorganization Treatment.
      To the
      extent consistent with the other terms and conditions of this Agreement, the
      Executing Stockholders, Nutra Pharma, Acquisition and Receptopharm shall use
      all
      commercially reasonable efforts to cause the transactions contemplated by this
      Agreement to be treated as a “reorganization” within the meaning of Section
      368(a)(1)(B) of the Code to the maximum extent permissible and shall not
      knowingly take or fail to take any action which action or failure to act would
      jeopardize the qualification of the Merger as a “reorganization” within the
      meaning of Section 368 of the Code. 

     

    
      
        
        

      

      
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    4.6 Exclusivity.
      From
      and after the date hereof until the Effective Time or other termination hereof,
      neither the Executing Stockholders nor Receptopharm shall, directly or
      indirectly, (i) encourage, solicit, initiate, engage or participate in
      discussions or negotiations with any person or entity (other than Nutra Pharma)
      concerning any merger, consolidation, sale of material assets, or other business
      combination involving Receptopharm or any division of Receptopharm, or to sell
      the Receptopharm Common Stock, or (ii) provide any non-public information
      concerning prospective acquirer (other than Nutra Pharma).

     

    4.7 Stand-Alone
      Subsidiary. From and after the Effective Time, Nutra Pharma and Receptopharm
      acknowledge and agree that Receptopharm shall be a stand-alone subsidiary of
      Nutra Pharma and shall remain a stand-alone subsidiary of Nutra Pharma for
      a
      period of not less than two (2) years from the Effective Time.

     

    4.8 Security
      Act Provisions.

     

    (a) Each
      Executing Stockholder acknowledges that the shares of Nutra Pharma Common Stock
      to be received in connection with the consummation of the Merger are being
      acquired for its own account and not with the present view of disposing of
      such
      shares except (i) pursuant to an effective registration statement under the
      Securities Act of 1933 or
      (ii)
      in any other transaction which, in the opinion of counsel, acceptable to Nutra
      Pharma, is exempt from registration under the Securities Act or the rules and
      regulations of the SEC thereunder.
      In
      order
      to effectuate the covenants of this subsection 4.8(a), an appropriate
      restrictive legend in the form set forth on Schedule
      4.8(a)
      will be
      placed on the certificate representing the Nutra Pharma Securities at the time
      of distribution of such shares by Nutra Pharma pursuant to this Agreement,
      and
      stop transfer instructions shall be placed with the transfer agent for the
      Nutra
      Pharma Securities.

     

    (b) Each
      Executing Stockholder is aware that the shares of Nutra Pharma Common Stock
      to
      be received have not been registered pursuant to the Securities Act and,
      therefore, the shares may not be re-offered or re-sold except through a valid
      registration statement or pursuant to a valid exemption from the registration
      requirements of the Securities Act.

     

    ARTICLE
      V.

    CONDITIONS
      OF CLOSING

     

    5.1 Mutual
      Conditions Precedent. The respective obligations of the Parties to
      consummate the Merger shall be subject to the fulfillment at or prior to the
      Effective Time, of the following conditions (any of which may be waived, to
      the
      extent permitted by Law, in writing, in whole or in part, by the party to which
      such condition is owed):

     

    (a) All
      consents, approvals, orders or authorizations of, or registrations, declarations
      or filings with, any Authority required by or with respect to Receptopharm,
      Nutra Pharma, Acquisition or any Executing Stockholder in connection with the
      execution and delivery of this Agreement or the consummation of the transactions
      contemplated hereby shall have been obtained or made.

     

    
      
        
        

      

      
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    (b) This
      Agreement, and the transactions contemplated by this Agreement shall, if
      necessary, have received the requisite approval and authorization of the
      shareholders of Nutra Pharma in accordance with applicable requirements of
      Law
      and the Articles of Incorporation and Bylaws of Nutra Pharma.

     

    (c) No
      requirement of Law shall have been enacted or promulgated which prohibits the
      consummation of the transactions contemplated by this Agreement; and there
      shall
      be no order or injunction of a court of competent jurisdiction in effect
      precluding consummation of the transactions contemplated by this
      Agreement.

     

    (d) No
      action, suit or proceeding shall be pending before any Authority wherein an
      unfavorable judgment, order, decree, stipulation or injunction would prevent
      consummation of any of the transactions contemplated by this Agreement or cause
      any of the transactions contemplated by this Agreement to be rescinded following
      consummation, and no such judgment, order, decree, stipulation or injunction
      shall be in effect.

     

    (e) There
      shall not have occurred and be continuing a declaration of banking moratorium
      by
      federal or New York authorities or any suspension of payments in respect of
      banks in the United States that regularly participate in the market in loans
      to
      large corporations, in each case which would prevent the acceptance for payment
      or the payment for Nutra Pharma Common Stock accepted for payment
      hereunder.

     

    5.2 Conditions
      to the Obligations of Nutra Pharma
      and
      Acquisition. The obligations of Nutra Pharma and Acquisition to consummate
      the Merger are subject to the satisfaction or waiver in writing by Nutra Pharma
      of the following additional conditions:

     

    (a) Each
      of
      the representations and warranties of Receptopharm and the Executing
      Stockholders contained in this Agreement shall be true and correct as of the
      Effective Time, as though made at and as of the Effective Time, except to the
      extent those representations and warranties address matters only as of a
      particular date, and except to the extent that the failure of the
      representations and warranties to be so true and correct could not reasonably
      be
      expected, individually or in the aggregate, to have a Material Adverse Effect
      upon Receptopharm.

     

    (b) Receptopharm
      shall have performed or complied in all respects with all agreements and
      covenants required by this Agreement to be performed or complied with by it
      on
      or prior to the Closing.
      

     

    (c) No
      action, suit or proceeding shall be pending before any Authority wherein an
      unfavorable judgment, order, decree, stipulation or injunction would prevent
      consummation of any of the transactions contemplated by this Agreement or cause
      any of the transactions contemplated by this Agreement to be rescinded following
      consummation, and no such judgment, order, decree, stipulation or injunction
      shall be in effect.

     

    
      
        
        

      

      
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    (d) Receptopharm
      and the Executing Stockholders shall have furnished to Nutra Pharma and
      Acquisition such further documents and certificates as Nutra Pharma and
      Acquisition may reasonably request to evidence compliance with the conditions
      set forth in this Agreement.

     

    5.3 Conditions
      to the Obligations of Receptopharm.
      The obligations of Receptopharm and the Executing Stockholders to consummate
      the
      Merger are subject to the satisfaction or waiver in writing by Receptopharm
      of
      the following additional conditions:

     

    (a) Each
      of
      the representations and warranties of Nutra Pharma and Acquisition contained
      in
      this Agreement shall be true and correct as of the Effective Time, as though
      made at and as of the Effective Time, except to the extent those representations
      and warranties address matters only as of a particular date, and except
      to the
      extent that the failure
      of the representations and warranties to be so true and correct could not
      reasonably be expected, individually or in the aggregate, to have a Material
      Adverse Effect on Nutra Pharma. 

     

    (b) Nutra
      Pharma and Acquisition shall have performed or complied in all material respects
      with all agreements and covenants required by this Agreement to be performed
      or
      complied with by it on or prior to the Closing. 

     

    (c) No
      action, suit or proceeding shall be pending before any Authority wherein an
      unfavorable judgment, order, decree, stipulation or injunction would prevent
      consummation of any of the transactions contemplated by this Agreement or cause
      any of the transactions contemplated by this Agreement to be rescinded following
      consummation, and no such judgment, order, decree, stipulation or injunction
      shall be in effect.

     

    (d) Nutra
      Pharma shall have delivered the shares of Nutra Pharma Common Stock issuable
      pursuant to Section 1.7(b) hereof. 

     

    (e) Receptopharm
      shall have received from Nutra Pharma such other documents as Receptopharm
      may
      reasonably request.

     

    
      
        
        

      

      
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    ARTICLE
      VI.

    REGISTRATION
      RIGHTS

     

    6.1 Right
      to Include Registrable Securities. If at any time Nutra Pharma proposes to
      register any shares of Nutra Pharma Common Stock under the Securities Act (other
      than any registration by and for the account of Nutra Pharma of securities
      issued pursuant to any employee benefit or similar plan, including employee
      stock and stock option plans, or any dividend reinvestment plan), either in
      connection with a primary offering for cash for the account of Nutra Pharma
      or a
      secondary offering or a combination thereof, Nutra Pharma will, each time it
      intends to effect such a registration, give written notice to all Holders of
      Registrable Securities at least fifteen (15) business days prior to the
      anticipated filing date of a Registration Statement with the SEC pertaining
      thereto, informing such Holders of its intent to file such Registration
      Statement and of the Holders’ rights to request the registration of the
      Registrable Securities held by the Holders under this Section 6.1 (the
“Notice”); provided, that if in the reasonable opinion of Nutra Pharma
      such fifteen (15) business day period would materially interfere with the
      ability of Nutra Pharma to effect a registration and issue and sell securities
      pursuant to such registration, such period may be reduced to a period of not
      less than ten (10) business days as reasonably determined by Nutra Pharma.
      Upon
      the written request of any Holder made within seven (7) business days after
      any
      such Notice is given (which request shall specify the Registrable Securities
      intended to be disposed of by such Holder and, unless the applicable
      registration is intended to effect a primary offering of shares of Nutra Pharma
      Common Stock for cash for the account of Nutra Pharma, the intended method
      of
      distribution thereof), Nutra Pharma will use its commercially reasonable efforts
      to effect the registration under the Securities Act of all Registrable
      Securities which Nutra Pharma has been so requested to register by such Holders
      to the extent required to permit the disposition (in accordance with the
      intended methods of distribution thereof) of the Registrable Securities so
      requested to be registered, including, if necessary, by filing with the SEC
      a
      post-effective amendment or a supplement to the Registration Statement or the
      related prospectus or any document incorporated therein by reference or by
      filing any other required document or otherwise supplementing or amending the
      Registration Statement, if required by the rules, regulations or instructions
      applicable to the registration form used by Nutra Pharma for such Registration
      Statement by the Securities Act, any state securities or blue sky laws, or
      any
      rules and regulations thereunder; provided, however, that if, at any time after
      giving written notice of its intention to register any securities and prior
      to
      the effective date of the Registration Statement filed in connection with such
      registration, Nutra Pharma shall determine for any reason not to register or
      to
      delay registration of such securities, Nutra Pharma may, at its election, give
      written notice of such determination to each Holder of Registrable Securities
      and, thereupon, (A) in the case of a determination not to register, Nutra Pharma
      shall be relieved of its obligation (other than with respect to any future
      and
      additional registrations as set forth in and pursuant to this Section 6.1
      hereof) to register any Registrable Securities in connection with and only
      with
      respect to such terminated registration (but not from its obligation to pay
      the
      Registration Expenses incurred in connection therewith) and (B) in the case
      of a
      determination to delay such registration, Nutra Pharma shall be permitted to
      delay registration of any Registrable Securities requested to be included in
      such Registration Statement for the same period as the delay in registering
      such
      other securities.

     

    6.2 Expenses.
      Nutra Pharma agrees to pay all Registration Expenses in connection with each
      registration effected in accordance with this Article VI.

     

    
      
        
        

      

      
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    ARTICLE
      VII.

    INDEMNIFICATION

     

    7.1 Indemnification
      by Receptopharm. Subject to Section 7.4(a) hereof, the Executing
      Stockholders, severally (based on their pro rata ownership of the shares of
      Nutra Pharma Common Stock issued in connection with the Merger) and not jointly,
      agree to indemnify and hold Nutra Pharma harmless from and against any and
      all
      losses, costs and expenses (hereinafter, a “Loss” and collectively,
“Losses”) suffered by Nutra Pharma resulting from, arising out of,
      or
      incurred with respect to any liability incurred by Nutra Pharma as a result
      of
      the breach of the representation or warranty contained in Section 2.12
      (Exclusivity) of this Agreement or the breach of the covenant contained in
      Section 4.6 of this Agreement.

     

    7.2 Indemnification
      by Nutra Pharma. Subject to Section 7.4(b) hereof, Nutra Pharma agrees to
      indemnify Receptopharm and the Executing Stockholders and hold each of them
      harmless from and against any and all Losses, arising out of or resulting from
      the breach of (i) the representations and warranties contained in Sections
      3.1
      (Organization, Good Standing and Corporate Power), 3.2 (Capitalization), 3.3(a)
      and 3.3(b) (Authority Relative to this Agreement; Issuance of Shares), 3.4
      (Absence of Undisclosed Liabilities), 3.5 (No Conflict; Required Filings and
      Consents), 3.8 (Broker’s or Finder’s Fee) of this Agreement; and (ii) any
      covenant made by Nutra Pharma or Acquisition contained in this
      Agreement.

     

    7.3 Survival
      of Representations, Warranties and Agreements.
      All of
      the terms and conditions of this Agreement, together with the representations,
      warranties, covenants and agreements contained herein or in any instrument
      or
      document delivered or to be delivered pursuant to this Agreement, shall survive
      the execution of this Agreement and the Effective Time until all obligations
      set
      forth therein shall have been performed and satisfied notwithstanding any
      investigation heretofore or hereafter made by or on behalf of any Party as
      follows: (a) the representations and warranties in Sections 3.1 (Organization,
      Good Standing and Corporate Power), 3.2 (Capitalization), 3.3(a) and 3.3(b)
      (Authority Relative to this Agreement; Issuance of Shares), 3.4 (Absence of
      Undisclosed Liabilities), 3.5 (No Conflict; Required Filings and Consents),
      3.8
      (Broker’s or Finder’s Fee) shall survive indefinitely and shall not terminate;
      (b) the representation and warranty contained in Section 2.12 (Exclusivity)
      shall terminate upon the six (6) month period commencing on the Effective Time;
      and (iii) all other representations and warranties in this Agreement shall
      terminate on the Effective Time.

     

    
      
        
        

      

      
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    7.4 Limitations
      on Indemnification. 

     

    (a) Notwithstanding
      anything to the contrary contained in this Agreement, after the Effective Time,
      the aggregate maximum amount of indemnifiable Losses which may be recovered
      from
      the Executing Stockholders by Nutra Pharma pursuant to Section 7.1 hereof shall
      not exceed $30,000 in the aggregate; provided
      that to
      the extent the Executing Stockholders shall be liable to Nutra Pharma pursuant
      to Section 7.1 for any Losses, such indemnification claim may be satisfied
      by
      the Executing Stockholders, in their sole discretion, by delivery of a number
      of
      shares of Nutra Pharma Common Stock having a fair market value (as determined
      below in this Section 7.4) equal to the amount of such Losses but in no event
      to
      exceed $30,000. For purposes of this Section 7.4(a), the shares of Nutra Pharma
      Common Stock used by the Executing Stockholders to satisfy any indemnification
      claim shall have a fair market value equal to the greater of (a) closing price
      of Nutra Pharma Common Stock on the Effective Time (as reported on the OTCBB
      or
      other electronic quotation system on which the Nutra Pharma Common Stock is
      then
      quoted) and (b) the closing price of the Nutra Pharma Common Stock on the
      business day immediately preceding the day on which such shares are delivered
      to
      Nutra Pharma (as reported on the OTCBB or other electronic quotation system
      on
      which the Nutra Pharma Common Stock is then quoted) to satisfy any such
      indemnification claim.

     

    (b) Notwithstanding
      anything to the contrary contained in this Agreement, after the Effective Time,
      the aggregate maximum amount of indemnifiable Losses that may be recovered
      by
      the Receptopharm stockholders from Nutra Pharma pursuant to Section 7.2 hereof
      shall not exceed $30,000 in the aggregate.

     

    7.5 Notice
      of Claim.

     

    (a) Any
      Party
      seeking indemnification hereunder (the “Indemnified
      Party”)
      shall
      promptly after obtaining knowledge, give to the party obligated to provide
      indemnification (the “Indemnitor”)
      a
      notice describing any claim, liability or obligation for which the Indemnitor
      may be required under this Agreement to indemnify such Indemnified Party. If
      such indemnity obligation arises from the claim of a third party, the Indemnitor
      shall have the right to defend the Indemnified Party against the third party
      claim with counsel of its choice so long as the Indemnitor gives written notice
      to the Indemnified Party within fifteen days after the Indemnified Party has
      given notice of the third party claim that the Indemnitor will defend such
      claim. The Indemnified Party and the Indemnitor shall cooperate in the defense
      of any third party claims. In the event that the Indemnitor assumes or
      participates in the defense of such third party claim as provided herein, the
      Indemnified Party shall make available to the Indemnitor all relevant records
      and take such other action and sign such documents as are reasonably necessary
      to defend such third party claim in a timely manner. If the Indemnified Party
      shall be required by judgment or a settlement agreement to pay any amount in
      respect of any obligation or liability against which the Indemnitor has agreed
      to indemnify the Indemnified Party under this Agreement, the Indemnitor shall
      promptly reimburse the Indemnified party in an amount equal to the amount of
      such payment plus all documented expenses incurred by such Indemnified Party
      in
      connection with such obligation or liability subject to this Article VII. No
      Indemnitor, in the defense of any such claim, shall, except with the written
      consent of the Indemnified Party, consent to entry of any judgment or enter
      into
      any settlement that does not include as an unconditional term thereof the giving
      by the claimant or plaintiff to such Indemnified Party of a release from all
      liability with respect to such claim. In the event that the Indemnitor does
      not
      accept the defense of any matter for which it is entitled to assume as provided
      above, the Indemnified Party shall have the full right to defend such
      claim.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    (b) Prior
      to
      paying or settling any claim against which an Indemnitor is, or may be,
      obligated under this Agreement to indemnify an Indemnified Party, the
      Indemnified Party must first supply the Indemnitor with a copy of a final court
      judgment or decree holding the Indemnified Party liable on such claim or failing
      such judgment or decree, must first receive the written approval of the terms
      and conditions of such settlement from the Indemnitor, which shall not be
      unreasonably withheld.

     

    ARTICLE
      VIII.

    GENERAL

     

    8.1 Extension;
      Waiver.

     

    (a) At
      any
      time prior to the Effective Time, the Parties, by action taken by or on behalf
      of the respective Boards of Directors of Receptopharm and Nutra Pharma, may
      (i)
      upon
      the mutual consent of the Parties, extend the time for the performance of any
      of
      the obligations or other acts of the other Parties; (ii) waive any inaccuracies
      in the representations and warranties contained herein by any other applicable
      Party or in any document, certificate or writing delivered pursuant hereto
      by
      any other applicable Party; or (iii) waive compliance by the other Party with
      any of the agreements or conditions contained herein. Notwithstanding the
      foregoing, no failure or delay by Receptopharm or Nutra Pharma in exercising
      any
      right hereunder shall operate as a waiver thereof nor shall any single or
      partial exercise thereof preclude any other or further exercise of any other
      right hereunder. Any agreement on the part of any Party to any such extension
      or
      waiver shall be valid only if set forth in an instrument in writing signed
      on
      behalf of such Party.

     

    (b) Except
      as
      provided in this Agreement, no action taken pursuant to this Agreement,
      including, without limitation, any investigation by or on behalf of any Party,
      shall be deemed to constitute a waiver by the Party taking such action of
      compliance with any representations, warranties, covenants or agreements
      contained in this Agreement. The waiver by any Party hereto of a breach of
      any
      provision hereunder shall not operate or be construed as a waiver of any prior
      or subsequent breach of the same or any other provision hereunder.

     

    8.2 Expenses.
      Whether
      or not the Merger is consummated, all costs and expenses incurred in connection
      with this Agreement and the transactions contemplated hereby shall be paid
      by
      the Party incurring such expenses.

     

    8.3 Amendments.
      This Agreement may not be amended except by an instrument in writing signed
      on
      behalf of each of the Parties hereto.

     

    8.4 Entire
      Agreement. This Agreement (including the exhibits, schedules and instruments
      referred to herein) constitutes the entire agreement among the Parties with
      respect to the subject matter hereof and supersedes all prior agreements and
      understandings
      among the Parties with respect thereto. No addition to or modification of any
      provision of this Agreement shall be binding upon any Party hereto unless made
      in writing and signed by all Parties hereto.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    8.5 No
      Strict Construction. Notwithstanding the fact that this Agreement has been
      drafted or prepared by one of the Parties, each of the Parties confirms that
      both it and its counsel have reviewed, negotiated and adopted this Agreement
      as
      the joint agreement and understanding of the Parties, and the language used
      in
      this Agreement shall be deemed to be the language chosen by the Parties to
      express their mutual intent, and no rule of strict construction shall be applied
      against any Party. Accordingly, any rule of Law or any legal decision that
      would
      require interpretation of any claimed ambiguity in this Agreement against the
      Party that drafted it has no application and is expressly waived by each
      Party.

     

    8.6 Headings.
      Headings of the articles and sections of this Agreement and table of contents
      are for the convenience of the Parties only and shall be given no substantive
      or
      interpretative effect whatsoever.

     

    8.7 Governing
      Law. This Agreement shall be governed by and construed in accordance with
      the laws of the State of Florida without regard to its rules of conflict of
      laws.

     

    8.8 Assignment;
      Binding Effect; Benefit. Neither this Agreement nor any of the
      rights, interests or obligations hereunder shall be assigned by any of the
      Parties hereto (whether by operation of law or otherwise) without the prior
      written consent of the other Parties. Any assignment in violation of the
      preceding sentence shall be void. Subject to the preceding two sentences, this
      Agreement shall be binding upon and shall inure to the benefit of the Parties
      hereto and their respective successors and assigns. Notwithstanding anything
      contained in this Agreement to the contrary. Nothing in this Agreement,
      expressed or implied, is intended to confer on any Person other than the Parties
      hereto or their respective heirs, successors, executors, administrators and
      assigns any rights, remedies, obligations or liabilities under or by reason
      of
      this Agreement. 

     

    8.9 Notices.
      Except as otherwise provided herein, any notice required to be given hereunder
      shall be sufficient if in writing and sent by facsimile transmission (which
      is
      confirmed) or by courier service (with proof of service), hand delivery or
      certified or registered mail (return receipt requested and first-class postage
      prepaid),
      addressed as follows:

     

    (a) If
      to
      Receptopharm:

    

    Receptopharm,
      Inc.

    1537
      NW
      65th
      Avenue

    Plantation,
      Florida 33313

    Attention:
      Harold Rumph

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    with
      a copy to (which shall not constitute notice to Receptopharm):

     

    Stearns
      Weaver Miller Weissler

    Alhadeff
      & Sitterson, P.A.

    Museum
      Tower

    150
      West
      Flagler Street

    Suite
      2200

    Miami,
      Florida 33130

    Attention:
      Jeffrey Oshinsky, Esq.

     

    (b) If
      to the
      Executing Stockholders, to the names and addresses listed on the signature
      pages
      hereto. 

     

    (c) If
      to
      Nutra Pharma:

    

    Nutra
      Pharma Corp.

    791
      Park
      of Commerce Boulevard 

    Suite
      300

    Boca
      Raton, Florida 33487

    Attention:
      Rik Deitsch, Chief Executive Officer 

    

    with
      a copy to (which shall not constitute notice to Nutra Pharma):

     

    Frederick
      M. Lehrer, Esquire

    Hamilton
      & Lehrer, P.A. 

    101
      Plaza
      Real South, Suite 201

    Boca
      Raton, Florida 33432

     

    or
      to
      such other address as any Party shall specify by written notice so given, and
      such notice shall be deemed to have been delivered as of the date so
      telecommunicated, personally delivered or mailed.

     

    8.10 Enforcement
      of Agreement.

     

    (a) The
      Parties hereto agree that irreparable damage would occur in the event that
      any
      of the provisions of this Agreement were not performed in accordance with its
      specific terms or was otherwise breached. It is accordingly agreed that the
      Parties shall be entitled to an injunction or injunctions to prevent breaches
      of
      this Agreement and to enforce specifically the terms and provisions hereof,
      this
      being in addition to any other remedy to which they are entitled at law or
      in
      equity.

     

    (b) Each
      of
      the Parties hereto: (i) consents to submit itself to the personal jurisdiction
      of any Florida state court or any federal court located in the State of Florida
      in the event any dispute arises out of this Agreement or any of the transactions
      contemplated herein; (ii) agrees that it will not attempt to deny or defeat
      such
      personal jurisdiction by motion or other request for leave from any such court;
      (iii) agrees that it will not bring any action relating to this Agreement or
      any
      of the transactions contemplated herein in any court other than any Florida
      state court or any federal court sitting in the State of Florida; and (iv)
      waives any right to trial by jury with respect to
      any
      action related to or arising out of this Agreement or any of the transactions
      contemplated herein.

     

    
      
        
        

      

      
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    8.11 Severability.
      Any term or provision of this Agreement which is invalid or unenforceable in
      any
      jurisdiction shall, as to that jurisdiction, be ineffective to the extent of
      such invalidity or unenforceability without rendering invalid or unenforceable,
      the remaining terms and provisions of this Agreement or affecting the validity
      or enforceability of any of the terms or provisions of this Agreement in any
      other jurisdiction. If any provision of this Agreement is so broad as to be
      unenforceable, the provision shall be interpreted to be only so broad as is
      enforceable.

     

    8.12 Waiver
      of Jury Trial.
      EACH OF
      THE PARTIES HERETO KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHTS
      IT
      MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR
      ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY SCHEDULE
      OR
      EXHIBIT HERETO, OR ANY COURSE OF CONDUCT, COURSE OF DEALING OR STATEMENTS
      (WHETHER VERBAL OR WRITTEN) RELATING TO THE FOREGOING. THIS PROVISION IS A
      MATERIAL INDUCEMENT FOR THE PARTIES TO ENTER INTO THIS AGREEMENT.

     

    8.13 Counterparts.
      This Agreement may be executed and delivered (including by facsimile or e-mail
      transmission) in one or more counterparts, and by the different Parties hereto
      in separate counterparts, each of which when executed and delivered shall be
      deemed to be an original but all of which when taken together shall constitute
      one and the same Agreement.

     

    ARTICLE
      IX.

    DEFINITIONS;
      INTERPRETATION

     

    9.1 Interpretation.
      In this Agreement:

     

    (a) Unless
      the context otherwise requires, words describing the singular number shall
      include the plural and vice versa, words denoting any gender shall include
      all
      genders, and words denoting natural persons shall include corporations and
      partnerships and vice versa.

     

    (b) Whenever
      the words “include,” includes” or “including” are used in this Agreement they
      shall be deemed to be followed by the words “without limitation.”

     

    (c) The
      phrase “to the Knowledge of Receptopharm” shall mean the actual knowledge of
Paul
      F.
      Reid, Harold H. Rumph and Laurence N. Raymond after reasonable investigation
      of
      the parties responsible for such matters.

     

    (d) The
      phrase “to the Knowledge of Nutra Pharma” shall mean the actual knowledge of Rik
      Deitsch after reasonable investigation of the parties responsible for such
      matters.

     

    
      
        
        

      

      
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    9.2 Definitions

     

    “Acquisition”
has
      the
      meaning set forth in the preamble of this Agreement. 

     

    “Agreement”
has
      the
      meaning set forth in the preamble of this Agreement.

     

    “Articles
      of Merger”
has
      the
      meaning set forth in Section 1.2 of this Agreement.

     

    “Authority”
means
      any governmental, regulatory or administrative body, agency, commission, board,
      arbitrator or authority, any court or judicial authority, any public, private
      or
      industry regulatory authority, whether international, national, federal, state
      or local.

     

    “Closing”
means
      the consummation of the transactions contemplated by this
      Agreement.

     

    “Dissenting
      Shares”
means
      the shares of Receptopharm Common Stock owned of record or beneficially by
      Dissenting Stockholders.

     

    “Dissenting
      Stockholder”
has
      the
      meaning set forth in Section 1.11(b) of this Agreement.

     

    “Effective
      Time”
has
      the
      meaning set forth in Section 1.3 of this Agreement.

     

    “Exchange
      Agent”
has
      the
      meaning set forth in Section 1.10 of this Agreement.

     

    “Executing
      Stockholders”
has
      the
      meaning set forth in the preamble of this Agreement.

     

    “Holder”
or
      “Holders”
means
      the stockholders of Receptopharm that receive Registrable Securities pursuant
      to
      this Agreement.

     

    “Indemnified
      Party”
has
      the
      meaning set forth in Section 7.5(a) of this Agreement.

     

    “Indemnitor”
has
      the
      meaning set forth in Section 7.5(a) of this Agreement.

     

    “Law”
means
      any rule, law, code, statute, regulation, ordinance, requirement, announcement,
      policy, guideline, rule of common law or other binding action of or by an
      Authority and any judicial interpretation thereof.

     

    “Liens”
means
      any lien, encumbrance, charge or assessment of any kind or nature.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    “Loss”
or
      “Losses”
has
      the
      meaning set forth in Section 7.1 of this Agreement.

     

    “Material
      Adverse Effect”
means
      

     

    (a) with
      respect to Receptopharm, any circumstances, state of facts or matters which
      might reasonably be expected to (i) have a material adverse effect in respect
      of
      the business, operations, properties, assets, condition (financial or otherwise)
      or results of Receptopharm or (ii) materially impair the ability of Receptopharm
      to consummate the transactions contemplated by this Agreement; provided
      that a
      Material Adverse Effect with respect to Receptopharm shall not include any
      effect that is attributable to (x) general business, economic or financial
      conditions or changes affecting the industry generally in which Receptopharm
      operates in each case, so long as Receptopharm is not disproportionately
      impacted thereby relative to other companies in the same industry, (y) the
      announcement or pendency of the transactions contemplated hereby or any change
      or effect arising out of actions contemplated or required by this Agreement
      or
      any actions or omissions of Receptopharm and/or the Executing Stockholders
      taken
      with the prior written consent of Nutra Pharma or (z) force majeure events,
      disruptions of supplies or acts of terrorism, warm, acts of God, national or
      international political or social conditions, including the engagement by the
      United States in hostilities, whether or not pursuant to the declaration of
      a
      national emergency or war in each case, so long as Receptopharm is not
      disproportionately impacted thereby; and 

     

    (b) with
      respect to Nutra Pharma, any circumstances, state of facts or matters which
      might reasonably be expected to (i) have a material adverse effect in respect
      of
      the business, operations, properties, assets, condition (financial or otherwise)
      or results of Nutra Pharma or (ii) materially impair the ability of Nutra Pharma
      to consummate the transactions contemplated by this Agreement; provided
      that a
      Material Adverse Effect with respect to Nutra Pharma shall not include any
      effect that is attributable to (x) general business, economic or financial
      conditions or changes affecting the industry generally in which Nutra Pharma
      operates in each case, so long as Nutra Pharma is not disproportionately
      impacted thereby relative to other companies in the same industry, (y) the
      announcement or pendency of the transactions contemplated hereby or (z) force
      majeure events, disruptions of supplies or acts of terrorism, warm, acts of
      God,
      national or international political or social conditions, including the
      engagement by the United States in hostilities, whether or not pursuant to
      the
      declaration of a national emergency or war in each case, so long as Nutra Pharma
      is not disproportionately impacted thereby.

     

    “Merger”
has
      the
      meaning set forth in Section 1.1 of this Agreement.

     

    “Nutra
      Pharma”
has
      the
      meaning set forth in the preamble of this Agreement.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    “Nutra
      Pharma Ancillary Agreement”
means
      all agreements, instruments and documents being or to be executed and delivered
      by Nutra Pharma or Acquisition under this Agreement or in connection
      herewith.

     

    “Nutra
      Pharma Balance Sheet”
has
      the
      meaning set forth in Section 3.4 of this Agreement.

     

    “Nutra
      Pharma Common Stock”
has
      the
      meaning set forth in Section 1.7(b) of this Agreement.

     

    “Nutra
      Pharma SEC Reports”
has
      the
      meaning set forth in Section 3.6(a) of this Agreement.

     

    “Options”
means
      any options, warrants, rights, subscriptions, claims, agreements or obligations,
      by which Receptopharm is bound to issue any additional shares of its capital
      stock or an interest in its equity or rights pursuant to which any Person has
      a
      right to purchase shares of Receptopharm’s capital stock or an interest in its
      equity.

     

    “Parties”
has
      the
      meaning set forth in the preamble of this Agreement.

     

    “Permits”
means
      all permits, licenses, registrations, certificates, franchises, qualifications
      or approvals required by any Authority or other Person.

     

    “Permitted
      Liens”
means
      (a) statutory Liens not yet delinquent and immaterial in amount; (b) such
      imperfections or irregularities of title or Liens as do not materially detract
      from or interfere with the present use of the properties or assets subject
      thereto or affected thereby, otherwise impair present business operations at
      such properties, or do not detract from the value of such properties and assets;
      (c) Liens reflected in the Financial Statements or the notes thereto; (d) the
      rights of customers of Receptopharm with respect to inventory or work in
      progress under purchase orders or contracts entered into by Receptopharm in
      the
      ordinary course of business; (e) mechanics’, carriers’, workers’, repairmen’s,
      warehousemen’s, or other similar Liens arising in the ordinary course of
      business in respect of obligations not overdue and immaterial in amount or
      which
      are being contested in good faith and covered by a bond in an amount at least
      equal to the amount of the Lien; and (f) deposits or pledges to secure workmen’s
      compensation, unemployment insurance, old age benefits or other social security
      obligations in connection with, or to secure the performance of, bids, tenders,
      trade contracts not for the payment of money or leases, or to secure statutory
      obligations or surety or appeal bonds or other pledges or deposits for purposes
      of like nature in the ordinary course of business and immaterial in
      amount.

     

    “Person”
means
      any corporation, partnership, joint venture, limited liability company,
      organization, entity, Authority or natural person.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    “Prospectus”
means
      the prospectus included in a Registration Statement, including any preliminary
      Prospectus, and any such Prospectus as amended or supplemented by any prospectus
      supplement with respect to the terms of the offering of any portion of the
      Registrable Securities and by all other amendments and supplements to such
      Prospectus, including post-effective amendments, and in each case all material
      incorporated by reference therein.

     

    “Receptopharm”
has
      the
      meaning set forth in the preamble of this Agreement.

     

    “Receptopharm
      Balance Sheet”
has
      the
      meaning set forth in Section 2.4 of this Agreement.

     

    “Receptopharm
      Certificate”
has
      the
      meaning set forth in Section 1.8 of this Agreement.

     

    “Receptopharm
      Common Stock”
has
      the
      meaning set forth in the recitals of this Agreement.

     

    “Receptopharm
      Intellectual Property”
means
      all of the following which are necessary to conduct the business of Receptopharm
      as presently conducted or as currently proposed to be conducted: (i) trademarks,
      trade dress, service marks, copyrights, logos, trade names, corporate names
      and
      all registrations and applications to register the same; (ii)
      patents and pending patent applications; (iii) all material computer software
      programs, databases and compilations; (iv) all technology, know-how and trade
      secrets; and (v) all material licenses and agreements to which Receptopharm
      is a
      party which relate to any of the foregoing.

     

    “Registrable
      Securities”
means
      the shares of Nutra Pharma Common Stock issued to the stockholders of
      Receptopharm pursuant to this Agreement or with respect to such Nutra Pharma
      Common Stock (w) upon any conversion or exchange thereof, (x) by way of stock
      dividend or stock split, (y) in connection with a combination of shares,
      recapitalization, merger, consolidation or other reorganization or (z)
      otherwise, in all cases subject to Article VI of this Agreement. As to any
      particular Registrable Securities, once issued such securities shall cease
      to be
      Registrable Securities when (A) a Registration Statement with respect to the
      sale of such securities shall have become effective under the Securities Act
      and
      such securities shall have been disposed of in accordance with such Registration
      Statement, (B) such securities shall have been sold in reliance upon Rule 144,
      (C) such securities shall have been otherwise transferred, new certificates
      for
      such securities not bearing a legend restricting further transfer shall have
      been delivered by the Company and subsequent disposition of such securities
      shall not require registration or qualification of such securities under the
      Securities Act or any similar state law then in force, or (D) such securities
      shall have ceased to be outstanding.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    “Registration
      Expenses”
means
      all expenses incident to Nutra Pharma’s performance of or compliance with this
      Agreement, including, without limitation, (i) all registration, listing,
      qualification and filing fees (including NASD filing fees), (ii) fees and
      disbursements of counsel for the Company, (iii) accounting fees, (iv) blue
      sky
      fees and expenses (including counsel fees in connection with the preparation
      of
      a blue sky memorandum and legal investment survey and NASD filings), and (v)
      all
      printing, distributing, mailing and delivery expenses for any Registration
      Statement, any Prospectus, transmittal letters, securities certificates and
      other documents relating to the performance of and compliance with Article
      VI of
      this Agreement.

     

    “Registration
      Statement”
means
      any registration statement of Nutra Pharma, including a Shelf Registration
      Statement, which covers the sale of any Registrable Securities by Holders,
      and
      all amendments and supplements to any such Registration Statement, including
      post-effective amendments, in each case including the Prospectus contained
      therein, all exhibits thereto and all material incorporated by reference
      therein.

     

    “SEC”
means
      the Securities and Exchange Commission.

     

    “Stock
      Plans”
has
      the
      meaning set forth in Section 1.9 of this Agreement.

     

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, and intending to be legally bound hereby, the parties hereto
      have executed this Agreement on the date first set forth above.

    

      
        	 	
                NUTRA
                  PHARMA CORP.

              
	 	 
	 	
                /s/ Rik
                  J. Deitsch
                  
                  

                

              
	 	
                Rik
                  J. Deitsch, President

              
	 	 
	 	
                NP
                  ACQUISITION CORPORATION

              
	 	 
	 	
                /s/ Rik
                  J. Deitsch

              
	 	
                Rik
                  J. Deitsch, President 

              
	 	 
	 	
                RECEPTOPHARM,
                  INC.

              
	 	 
	 	
                /s/ Harold
                  H.Rumph

              
	 	
                Harold
                  H. Rumph, President

              
	 	 
	 	
                EXECUTING
                  STOCKHOLDERS:

              
	 	 
	 	
                /s/ Paul
                  F. Reid

              
	 	
                Paul
                  F. Reid, Ph.D

              
	 	 
	 	
                Address:

              
	 	 
	 	
                 

              
	 	
                 

              
	 	
                 

              
	 	 
	 	
                /s/ Harold
                  H. Rumph

              
	 	
                Harold
                  H. Rumph

              
	 	 
	 	
                Address:

              
	 	 
	 	 
	 	 
	 	 

      

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

       

      
        	 	
                /s/ Laurence
                  N. Raymond

              
	 	
                Laurence
                  N. Raymond, Ph. D

              
	 	 
	 	
                Address:

              
	 	 
	 	
                 

              
	 	
                 

              
	 	
                 

              
	 	 
	 	
                /s/ John
                  David Schmidt

              
	 	
                John
                  David Schmidt

              
	 	 
	 	
                Address:

              
	 	 
	 	
                 

              
	 	
                 

              
	 	
                 

              

      

    

     

    
      
        
        

      

      
        32Unassociated Document

    
       

       

      Cooperation
        Establishment of “Tangdu 

      Gamma
        Knife Therapeutic Center”

       

      Agreement

       

       

       

       

      

       

      Tangdu
        Hospital Affiliated to Fourth Military Medical University

       

      Masep
        Medical Science & Technology Development (Shenzhen) Co.,
        Ltd.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Cooperation
        Establishment of 

      “Tangdu
        Gamma Knife Therapeutic Center”

      Agreement

       

       

      Chapter
        I    
        General
        Provisions

       

      Article
        1 In
        accordance with the relevant laws & regulations of the People’s Republic of
        China and the principle of the equality
        and mutual-benefits, Tangdu Hospital Affiliated to the Fourth Military Medical
        University and Masep Medical Science & Technology Development (Shenzhen)
        Co., Ltd. agree to cooperatively establish “Tangdu Gamma Knife Therapeutic
        Center” in Xi’an Tangdu Hospital via friendly negotiation. The corresponding
        agreement is signed as follows:

       

      Article
        2 Brief
        Introduction to Project

       

      The
        gamma
        ray 3-dimension orientation therapeutic system, integrating
        3-dimension-orientation technology and radiation surgical technology, is
        3-dimension orientation radiation surgical therapeutic equipment
        mainly for treating cerebral disease (including various tumors in brain,
        the cerebrovascular abnormality and functional disease, etc.). It make a
        planned
        mass of gamma rays centrally focus on the pre-chosen target place in the
        body
        with gamma ray geometrical focusing type through precise 3-dimension
        orientation, which can thoroughly and fatally destroy the tissues in the
        target
        place so as to achieve the surgical operation removal or destroy therapeutic
        effect. Since this therapeutic system adopts gamma ray instead of scalpel,
        its
        irradiation scope has very obvious demarcation with the normal tissues during
        treatment and the edge is as uniform as cutting with scalpel. It is called
        the
“gamma knife”. The gamma ray 3-dimension-orientation therapeutic system is the
        most advanced radiation therapeutic equipment in the world at present; it
        is
        also called the non-wound medical pioneering equipment with broad clinical
        application prospect.

       

      In
        order
        to keep the pace with medical technology development and meet the challenge
        of
        medical market reform and competition, many of domestic hospitals have
        introduced the gamma knife therapeutic system respectively. As the gradual
        maturation of medical diagnosis therapeutic technology development and
        application both at home and abroad, with the encouraging policies of China’s
        western region development and boasting western region economy, Masep
        Medical Science & Technology Development (Shenzhen) Co., Ltd. plans to
        cooperate with Tangdu Hospital Affiliated to the Fourth Military Medical
        University and invest for “the gamma knife aiming at brain & body part” and
        establish “Tangdu Gamma Knife Therapeutic Center” via the mutual friendly
        negotiation and understanding with the Fourth Military Medical University
        in
        Xi’an City after investigating and knowing the medical sanitation facilities
        in
        five provinces in Northwest China and Shaanxi Province. With
        the
        regional advantage of Xi’an city and the long history, advanced & powerful
        technology strength, the academic status and outstanding medical role of
        Tangdu
        Hospital Affiliated to the Fourth Military Medical University in Northwest
        China
        and even the whole country, The center will stand in Xi’an and radiate 5
        provinces in Northwest China to boost and improve the integral medical clinical
        diagnosis therapeutic level, speed up military and northwestern regional
        medical
        technology development, serve for the good health of soldiery & civilian and
        exert more economic & social benefit.

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      Chapter
        II     Both
        Cooperative Parties

       

      Article
        3 Both
        contracted parties, signing place and performance area:

       

      Party
        A:
Tangdu
        Hospital Affiliated to the Fourth Military Medical University. Legal address:
        Xinsi Road, Baqiao District, Xi’an City. Legal person representative: Liu
        Zhenli, Post: President. Post Code: 710038, Fax: 86-29-3577477,
        Tel: 86-29-3577001.

       

      Party
        B:
        Masep Medical Science & Technology Development (Shenzhen) Co., Ltd. Legal
        address: Room 909, New Century Hotel, North Huaqiang Road, Shenzhen City.
        Legal
        person representative: Hui Xiaobing Post: Board chairman. Post Code: 518028,
        Fax: 86-(0755)3237273, Tel: 86-(0755)3231352

       

      Signing
        place of the agreement: Xi’an

       

      Actual
        performance place of the agreement: Xi’an

       

      Chapter
        III

       

      Article
        4 Both
        parties shall cooperatively establish “Tangdu Gamma Knife Therapeutic Center” in
        Tangdu Hospital in accordance with the relevant laws & regulations of the
        People’s Republic of China.

       

      Article
        5 Name
        of
        the center is “Tangdu Gamma Knife Therapeutic Center” (hereinafter referred to
        as the Center), the legal address of the Center is in Tangdu Hospital, Baqiao
        District, Xi’an City.

       

      Article
        6 The
        Center is an organization affiliated to Tangdu Hospital, and shall be
        responsible for accounting and the corresponding liability
        independently.

       

      Article
        7 All
        the
        activities launched in the Center must comply with the laws & regulations of
        the People’s Republic of China, and all the therapeutic activities must observe
        the medical treatment rules & regulations confirmed by both
        parties.

       

      Article
        8 The
        Center will conduct the independent accounting and open the independent
        accounts, accept the supervision and administration of the local competent
        organization. Party B shall assign the chief financial accountant and Party
        A
        shall assign the cashier.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      Article
        9 The
        operation cost of the Center should include the necessary cost expenditure
        such
        as paying a part to the general logistics department (2% of the gross income),
        maintenance cost in the Center (building and equipment maintenance), salary
        for
        employee, bonus, electricity and water expense, gas & heating fee, public
        relationship expense, advertisement fee, communication, office expense and
        relevant premium, etc.

       

      If
        other
        expense is needed to pay by the Center, the detailed item should be decided
        by
        the Center administration commission.

       

      Article
        10 Financial
        settlement in the Center should be carried out once per month deducting the
        Center operation cost. The benefit made in Center should be shared according
        to
        the distribution proportion stipulated in the agreement of both
        parties.

       

      Chapter
        IV     Cooperation
        Purpose, Type and Distribution Scheme

       

      Article
        11 Cooperation
        purpose: For realizing the will to accelerate radiation therapeutic technology
        advancement in northwestern region of China, introducing the modern advanced
        gamma ray 3-dimension orientation therapeutic system (hereinafter referred
        to as
        the Gamma Knife) at home and abroad and adopting the advanced management
        methodology for scientific operation, the Center can become a leading
        modernization medical treatment organization and obtain the better social
&
economic benefit.

       

      Article
        12 Cooperation
        type: Party A shall supply the building, operation facilities and medical
        technical personnel complying with the construction of Gamma Knife Center.
        Party
        B shall offer the fund to purchase the Gamma Knife therapeutic system and
        the
        auxiliary equipments.

       

      Article
        13 Cooperation
        period: The total cooperation period is 16 years, and it is calculated from
        the
        day when starting formal operation of the Center.

       

      Article
        14 Distribution
        proportion: Sixteen-year cooperation period can be divided into 5 distribution
        periods, and the settlement can be done once a year.

       

      The
        first
        period (2-year): The distribution proportion for Party A and Party B shall
        be
        10% and 90% respectively.

       

      The
        second period (5-year): The distribution proportion for Party A and Party
        B
        shall be 20% and 80% respectively.

       

      The
        third
        period (3-year): The distribution proportion for Party A and Party B shall
        be
        20% and 70% respectively.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      The
        fourth period (3-year): The distribution proportion for Party A and Party
        B
        shall be 40% and 60% respectively.

       

      The
        fifth
        period (3-year): The distribution proportion for Party A and Party B shall
        be
        50% and 50% respectively.

       

      Note:
        If the
        state policies have impact to the Center during cooperation period, the charge
        standard for hospital equipment will decline and the decline scope is less
        than
        15%, the cooperation period shall not be changed. If the adjusting scope
        is over
        15%, the total cooperation period shall be extended and the detailed items
        can
        be negotiated and comfirmed by both parties.

       

      Chapter
        V

       

      Article
        15 Responsibilities
        for both parties

       

      (1) Responsibilities
        for Party A:

       

      1. Deal
        with
        the procedures of applying for establishing the Gamma Knife center cooperation
        medical treatment organization timely from the day when the contract is formally
        signed.

       

      2. Apply
        for
        obtaining the “Application
        License of Large-size Medical Treatment Equipment”.

       

      3. Supply
        the Center operation building based on the stipulated time and the place
        should
        be restrained in the legal address scope of Party A.

       

      4. Cooperate
        with Party B to investigate & study, confirm and handle the relevant
        procedures for purchasing the Gamma Knife equipment and its approval,
        etc.

       

      5. Cooperate
        with Party B to discuss and confirm the construction site and building
        reconstruction scheme of the Center.

       

      6. Carry
        out
        the infrastructures such as water, electricity, communication and office
        facilities, etc.

       

      7. Be
        responsible for recommending the required medical, technical and nursing
        personnel working in the Center.

       

      8. Be
        responsible for coordinating the relationship between the Center and all
        the
        departments & sections of university and hospital.

       

      9. Be
        responsible for handling other corresponding items.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      (2) Responsibility
        for Party B:

       

      1. Review
        and investigate, confirm and handle relevant procedures for purchasing the
        Gamma
        Knife equipment together with Party A.

       

      2. Ensure
        that all the equipments of Gamma Knife system confirmed by both parities
        can be
        reached, installed and commissioned so as to ensure their normal operation
        and
        usage according to the time table confirmed by both from the day when formally
        signing the agreement.

       

      3. Cooperate
        with Party A to investigate and confirm the organization configuration and
        building reconstruction scheme.

       

      4. Cooperate
        with Party A to research and manage the relevant matters such as operation
        and
        public relationship, etc. of the Gamma Knife Center.

       

      5. Be
        responsible for handling other corresponding matters.

       

      (3) The
        period in which both parties perform the respective obligation shall not
        exceed
        December 31, 2001.

       

      (4) Both
        parties should prepare the written confirmation letter for the respective
        obligation performed.

       

      Chapter
        VI    
        Organization
        Form

       

      Article
        16 “Tangdu
        Gamma Knife Therapeutic Center” cooperatively established by both parties shall
        be under the radiation therapeutic department of Tangdu Hospital to inside
        and
        the independent unit to outside. Both parties shall jointly set up the
        administration commission, and appoint 1 director and 1 deputy director in
        the
        administration commission. The director should be appointed by Party B while
        the
        deputy director should be appointed by Party A. The term of the director
        and
        deputy director is 4 years and they can be consecutive in office after
        recommendation of appointing party.

       

      Article
        17 The
        administration commission established by both parties shall be the supreme
        authority of the Center that can decide all the significant matters in the
        Center. The Center shall not have right to sign property right transfer,
        impawn,
        pledge, warrant and other contracts to undertake the relevant legal
        liability.

       

      Both
        parties should negotiate to make the decision for the following key items,
        otherwise the liability party should undertake the responsibility
        independently.

       

      1. Working
        out and modification of the regulations in the Center;

       

      2. Termination
        and cancellation of the Center;

       

      3. Serious
        financial problems in the Center;

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      4. The
        key
        human resource arrangement in the Center;

       

      5. Other
        significant matters in the Center.

       

      Article
        18 If
        the
        director fails to implement his authority for some reasons, the deputy director
        should exert the authority. If the deputy director fails to implement his
        authority for some reasons, other principal appointed by the Center should
        exert
        the authority.

       

      Article
        19 The
        administration commission shall hold six meetings annually and once every
        two-month normally. The meeting should be cooperatively presided by the director
        and deputy director of both parties. Administration commission can hold the
        temporary meeting for emergence and important matters. Special record should
        be
        made in each meeting, which shall come into force with attending person’s
        signature and be kept in filing.

       

      Chapter
        VII    
        Administration
        Organization

       

      Article
        20 The
        Center shall establish the office affiliated to the administration commission,
        which should be responsible for the daily affairs in the Center. One director
        and one deputy director should be arranged in the administrative office.
        The
        director should be recommended by Party A and the deputy director should
        be
        assigned by Party B. The term of director and the deputy director is 4 years
        and
        they can be consecutive in office after employment of the administration
        commission. The medical, technical and nursing personnel in the Center should
        be
        examined and employed by the Center Administrative Office.

       

      Article
        21 Responsibility
        of the office director are to exert various resolutions made by the
        administration commission, plan and arrange the daily management work of
        the
        Center. The deputy director should help the director in work.

       

      Article
        22 If
        the
        director or deputy director is abuse of the power and the serious dereliction
        of
        duty, the medical, technical and nursing personnel can’t be competent for the
        assignment work; the administration commission can dismiss them at any time
        and
        their corresponding responsibility can be investigated by law.

       

      Chapter
        VIII    
        Labor
        Management

       

      Article
        23 The
        employment and dismission of the medical, technical and nursing personnel
        in the
        Center should be based on the allocation of Party A. Salaries labor insurance,
        labor protection, life welfare and rewards & punishment system, etc. For the
        medical, technical and nursing personnel in the Center shall be handled in
        accordance with the regulations of military and relevant labor management
        in
        Xi’an City, or the administration commission can discuss and work out the scheme
        with which the Center signs the labor contract with employees to formulate
        the
        detailed items. The Party, political, labor union and youth member relationship
        of the personnel employed by the Center should be uniformly managed in
        hospital.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      Article
        24 Employment,
        salary treatment, social insurance, welfare and travel expense standard,
        etc. of
        the working personnel in the Center should be decided by the administration
        commission.

       

      Chapter
        IX    
        Financial
        Management

       

      Article
        25 The
        Center shall conduct the business independently and be responsible for its
        own
        profits and losses. Party B should assign one financial supervisor and Party
        A
        should assign one cashier to control the finance in the Center. Calculate
        the
        cost monthly, the profit after deducting the cost should be distributed based
        on
        the contracted proportion of both parties.

       

      Article
        26 The
        Center should draw employee’ welfare and rewarding fund in accordance with the
        stipulations of the relevant laws and regulations issued by the Ministry
        of
        Health of the People’s Republic of China, the General Logistics Department and
        Xi’an Municipal People’s Government. Annual drawing proportion should be decided
        based on the actual income and expenditure in the Center by the administration
        commission.

       

      Chapter
        X     Property
        Right Ownership

       

      Article
        27 The
        ownership of the land and gamma knife room in the Center should belong to
        Party
        A. The ownership of the gamma knife and its auxiliary equipments in the Center
        during cooperation period (including advance termination and cancellation
        period
        of the contract) should belong to Party B. After expiration of cooperation,
        the
        equipment should be depreciated in accordance with depreciation term and
        proportion on large-size medical equipment stipulated in the “Management
        Regulation for Medical Equipment in the Military Hospital”. If there is residual
        value, the residual value should belong to both parties. Party A should have
        the
        priority of the transferee right, and purchase the equipment based on 50%
        of the
        residual value from Party B.

       

      The
        ownership for purchasing the equipment after establishment of the Center
        should
        belong to the Center. The disposal principle after expiration should be the
        same
        as that in above article.

       

      Chapter
        XI    
        Insurance

       

      Article
        28 Various
        insurances in the Center should be insured in the insurance company. The
        insurance type, insurance value and insurance period, etc. should be decided
        by
        the Center administration commission according to the regulations in insurance
        company. If the insured value incurs, each partys should get 50% of it according
        to the distribution principle.

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      Chapter
        XII    
        Modification,
        Alternation and Cancellation of Contract

       

      Article
        29 Any
        alternation or cancellation for the agreement and its appendix shall not
        become
        effective till both parties’ negotiation and the written agreement
        signed.

       

      Article
        30 If
        the
        agreement can’t be executed because of the force majeure, in this case, the
        agreement can be terminated in advance via both parties’ negotiation and
        confirmation.

       

      Chapter
        XIII    
        Special
        Stipulations for Breach Liability

       

      Article
        31 If
        either
        party fails to perform the obligations regulated in the agreement or breach
        of
        the regulations; the Center can’t operate or can’t reach the operation purpose
        stipulated in the agreement, which should be deemed to be breach. The party
        that
        breaks the regulations should pay RMB three million as penalty to the other
        party and the other party can terminate the agreement unconditionally. During
        claiming the penalty, the other party can ask the breach party to continually
        perform its obligation until the completion of the contract.

       

      Chapter
        XIV    
        Force
        Majeure

       

      Article
        32 Because
        of the force majeure such as earthquake, flood, fire, war or other incident
        that
        can’t be foreseen and its results can’t be prevented or avoided, one party
        should inform the accident to its counterparty timely via fax, and supply
        the
        detailed accidents, the effective certifying documents to explain the failure
        performance of the contract, or the reason for deferring within 15 days since
        the accident happens, the certifying documents should be issued by the
        notarization office where the accident happens. Both parties should decide
        whether to cancel the agreement or partially exempt the liability for performing
        the agreement or defer to perform the agreement or based on the impact degree
        for performance of the agreement because of the accident.

       

      Chapter
        XV    
        Applicable
        Law

       

      Article
        33 Formulation,
        effective force, interpretation, performance and interpretation for the disputes
        of the agreement should be protected and ruled by the laws of the People’s
        Republic of China.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      Chapter
        XVI    
        Disputes
        and Settlement

       

      Article
        34 All
        the
        disputes caused because of performance of the agreement or relating with
        the
        agreement, which should be solved via both parties’ friendly negotiation. If it
        fails to solve, the disputes should be submitted to the arbitration organization
        or the people’s court signed in the agreement for arbitration and
        solving.

       

      Article
        35 During
        arbitration or litigation, the agreement should be continually performed
        except
        the articles that are being arbitrated or litigated by both
        parties.

       

      Chapter
        XVII    
        Legal
        Effect and Other Items of Agreement

       

      Article
        36 The
        agreement and its appendix shall go into legal effect after signing them
        by the
        legal representative or authorized representative of both parities.

       

      Article
        37 Either
        party should timely inform its counterparty with written form on right and
        responsibility involved. The legal address listed in the agreement should
        be the
        mail address of each party.

       

      Article
        38 The
        replacement for the legal person representatives of both parties should not
        influence the normal performance of the agreement.

       

      Article
        39 Other
        items not covered in the contract should be friendly negotiated by both
        parties.

       

      Article
        40 The
        agreement is made in quadruplicating, each party shall take two copies of
        original, which will have the equal legal effect.

       

      

        
          	
                  Party
                    A (common seal):

                	
                  Legal
                    representative (signature):

                
	 	 
	 	 
	
                  Party
                    B (common seal):

                	
                  Legal
                    representative
                    (signature):

                
	 	 
	 	 
	
                   

                	
                   Signed
                    date: May 18, 2001

                

        

      

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

         

      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

      
        

        

        Cooperation
          Establishment of

        “Tangdu
          PET Diagnosis Center” and

        “Tangdu
          Y Knife Therapeutic Center”

         

        

         

        Supplementary
          Agreement

        

         

        

         

         

        Tangdu
          Hospital Affiliated to the Fourth Military Medical University

         

        Masep
          Medical Science & Technology Development (Shenzhen) Co.,
          Ltd.

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        Cooperation
          Establishment of “Tangdu PET Diagnosis 

        Center”
          and “Tangdu Y Knife Therapeutic Center”

         

         

        Supplementary
          Agreement

         

        Based
          on
          the principal agreement of “Tangdu PET Diagnosis Center” and “Tangdu Y Knife
          Therapeutic Center” and in order to ensure the successful performance of the
          cooperation agreement, and comply with the principles of friendly negotiation,
          mutual benefit and sharing the risk together, Tangdu Hospital Affiliated
          to the
          Fourth Military Medical University (Party A) and Masep Medical Science
&
Technology Development (Shenzhen) Co., Ltd. (Party B) confirm and sign
          the
          supplementary agreement as follows.

         

        I. Total
          Amount of Investment:
          The
          assets invested because of the performance of the contract that is written
          confirmed by both parties shall be predominated.

         

        Masep
          Company: 1 PET; 2 Cyclotron; 3 PET auxiliary equipments; 4 Y knife on brain
          part; 5 Y knife on body part.

         

        Tangdu
          Hospital: 1 Location; 2 Equipment room (including civil engineering construction
          and inner decoration); 3 Professional technical personnel; 4 The brand of Tangdu
          Hospital Affiliated to the Fourth Military Medical University.

         

        II. Warranty,
          Maintenance and After-sales Service

         

        1. The
          warranty, maintenance and after-sales service for PET, cyclotron and the
          auxiliary equipments are seen in the appendix supplied by Adytech
          Company.

         

        2. The
          warranty, maintenance and after-sales service for Y knife on brain part
          are seen
          in the appendix supplied by Masep Company.

         

        3. The
          warranty, maintenance and after-sales service for Y knife on body part
          are seen
          in the appendix supplied by AOWO Company.

         

        III. Training
          for Technical Personnel

         

        1. Training
          for technical operator of PET and cyclotron shall be carried out according
          to
          the Appendix 3 supplied by Adytech Company.

         

        2. Training
          for technical operator of Y knife on brain and body part shall be carried
          out
          according to the appendix supplied by Masep Company (including training
          number,
          time and place).

         

        
          
             

          

          
            2

            
              

            

          

          
             

          

        

         

        IV. Preparation
          Time of the Center Building Location

         

        1. Time
          of
          supplying the building location for Y knife on brain and body part should
          not be
          later than October 1, 2001.

         

        2. Time
          of
          supplying the building location for PET and cyclotron should not be later
          than
          February 1, 2002.

         

        V. Formal
          Operation Time for the Center

         

        1. Formal
          operation time for Y knife on brain part won’t be later than December 31,
          2001.

         

        2. Formal
          operation time for Y knife on body part shouldn’t be later than December 31,
          2001.

         

        3. Formal
          operation time for PET and cyclotron shouldn’t be later than July 1,
          2002.

         

        VI. If
          Party
          B plans to get a loan via equipment mortgage type in the location where
          the
          Center is situated, Party A shall give a help on loan. If Party B fails
          to repay
          the loan interest to the financial unit, Party B should undertake the
          responsibility for breach and compensate the loss.

         

        VII. During
          paying the earnest money for the cyclotron, Party B should arrange the
          payment
          for the auxiliary equipments of PET and cyclotron (seen Appendix 2-l supplied
          by
          Adytech Company. List for Radio & Chemical Therapy Lab and Radio Protection
          Equipment in the PEC Center), the total amount is USD 200000. Taking the
          actual
          capital payment capacity of Party B carefully, Party A shall agree to help
          Party
          B advancing 50% of the total payment, namely USD 100000, the balance of
          USD
          100000 shall be paid by Party B. Both parties agree that Party B shall
          firstly
          repay USD 10000 (which Party A helps to pay for the equipment) to Party
          A from
          the distributed profit after formal operation and getting the profit in
          PET
          Center.

         

        VIII. Ownership
          of Equipments in Two Centers:
          Separate
          shared ownership for both parties during cooperation period can be seen
          in the
          principal agreement. The property right residual value of all the equipments
          in
          two centers after agreement expiration will be depreciated based on 15
          years;
          Party A shall have the priority to purchase the equipments of the residual
          value
          part with 50% of the lowest price from Party B.

         

        
          
             

          

          
            3

            
              

            

          

          
             

          

        

         

        IX. Approved
          Documents for Production and Marketing of Radioactive Medicine:
Party
          A
          and Party B shall comply with the national relevant laws & regulations for
          production & marketing the radioactive medicine to apply for “Operation
          License Registration Certificate for Radioactive Medicine”
and
          “Authorization
          Certificate for Radioactive Medicine Preparation”
          carefully and actively. The cost for applying the license shall be listed
          for
          cost accounting in the Center.

         

        X. Performance
          of the National and Military Profit & Tax Policy:
          During
          operation of the “two centers”, if the national or military policies are
          adjusted, the “Center” should abide by the national and military policy &
regulations to pay for the income tax and the “tax” should be listed for cost
          accounting in the Center.

         

        XI. The
          supplementary agreement is made in quadruplicating, each party shall take
          two
          copies of the original, which will have the equal legal effect with
“Agreement
          for Cooperation Establishment of Tangdu PET Diagnosis Center”
and
          “Agreement
          for Cooperation Establishment of Tangdu Gamma Knife Therapeutic
          Center”.
          The
          breach responsibility should be carried out referring to the principal
          agreement.

         

        XII. The
          agreement shall become legal effective from the day when formally putting
          the
          signature of the legal representatives or authorized representatives of
          both
          parties.

         

        
           

          

            
              	
                      Party
                        A (common seal):

                    	
                      Legal
                        representative (signature):

                    
	 	 
	 	 
	
                      Party
                        B (common seal):

                    	
                      Legal
                        representative
                        (signature):

                    
	 	 
	 	 
	
                       

                    	
                       Signed
                        date: May 18, 2001

                    

            

          

           

        

        
          
             

          

          
            4

            
              

            

          

          
             

          

        

      

       

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

      Cooperation
        Modification Agreement

       

       

      Party
        A: Tangdu Hospital Affiliated to the Fourth Military Medical
        University

      Address:
        Baqiao District, Xi’an City, Shaanxi Province.

      Legal
        person representative: Cheng Shiyin

       

      Party
        B: Masep Medical Science & Technology Development (Shenzhen) Co.,
        Ltd.

      Address:
        B Section 1# Building B1, No.7 South Hi-tech Avenue, Shenzhen Hi-tech
        Zone

      Legal
        person representative: Danny Qiu

       

      Party
        C: Shaanxi New Century Science & Technology Investment Development Co.,
        Ltd.

      Address:
        No.28, South section of Hanguang Road, Xi’an City, Shaanxi
        Province.

      Legal
        person representative: Rao Yubin

       

      As
        for
        the cooperation and the future operation development of above three parties,
        Party A, Party B and Party C agree to reach the following items on cooperation
        establishment of “Tangdu PET Diagnosis Center”:

       

      1. Party
        B
        shall modify all the rights and responsibilities of Party B in the “Agreement
        for Cooperation Establishment of Tangdu Gamma Knife Therapeutic
        Center”,
        “Agreement
        for Cooperation Establishment of Tangdu PET Diagnosis Center”
and
        “Supplementary
        Agreement for Cooperative Establishment of Tangdu PET Diagnosis
        Center”
and
        “Tangdu
        Gamma Knife Therapeutic Center”
signed
        on May 18, 2001 by Party A and Party B ( hereinafter referred to as the
        Cooperation Agreement) into Party C under the precondition without influence
        for
        the right of Party A since March 1, 2006. Party A agrees the modification
        made
        by Party B, and Party C agrees to accept this modification.

       

      2. Three
        parties agree that Party C will be responsible for the right and obligation
        of
        Party B stipulated in the cooperation agreement from March 1, 2006. Namely,
        Party C shall enjoy all the rights and perform the corresponding obligations
        of
        Party B stipulated in the cooperation agreement.

       

      3. Party
        B
        promises to stamp the common seal on the initial cooperation documents,
        materials and financial documents copies related with “Tangdu PET and Gamma
        Knife Diagnosis Therapeutic Center” and hand over them to Party C within 3 days
        when the agreement becomes legal effective and Party B should withdraw its
        assigned financial supervision accountant before March 1, 2006.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      4. Both
        Party A and Party C promise to strictly continuously perform the agreement
        in
        accordance with the items of cooperation agreement and either party should
        not
        modify or cancel the cooperation agreement without the written consent of
        the
        other party.

       

      5. Both
        Party B and Party C should strictly perform the agreement as the stipulated
        items. The breach party should pay RMB 500000 of penalties to the counterparty
        and the counterparty has the right to ask the breach party to correct the
        breach
        behavior and continually perform the agreement.

       

      6. Other
        items not covered in the agreement should be friendly negotiated by three
        parties and then, the three parties should sign the supplementary agreement
        for
        further confirmation.

       

      7. The
        agreement is made in sextuplicate, either of Party A, Party B and Party C
        should
        take two copies of the original. The agreement shall become legal effective
        from
        the day when the three parties formally put their signature and stamp their
        common seal.

       

       

      Party
        A:

      Authorized
        representative:

       

       

       

      Party
        B:

      Authorized
        representative:

       

       

       

      Party
        C:

      Authorized
        representative:

       

      

       

      
        	 	Signed date: February 2,
                2006

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