Document:

BioElectronics Corporation - Exhibit 10.11 - Prepared By TNT Filings Inc.

 

Exhibit 10.11 

REGISTRATION RIGHTS AGREEMENT 

This Registration Rights Agreement (the
"Agreement") is made as of April 4, 2005, by and between BioElectronics
Corporation, a Maryland corporation (the "Company"), and those persons whose
names appear on Schedule A, as such Schedule A is amended from time to time
(collectively, the "Investors"). 

WITNESSETH: 

WHEREAS, the Company
has entered into a subscription agreement with each of the Investors (each, a
"Subscription Agreement" and collectively, the "Subscription Agreements"),
pursuant to which each Investor has agreed to purchase units ("Units") as set
forth in the Subscription Agreements. Each Unit is comprised of one share of the
Company’s Common Stock (defined below), and a stock purchase warrant (a
"Warrant") to purchase one share of Common Stock for $0.30, subject to
adjustment; and WHEREAS, as a condition to the consummation of the
transactions contemplated by each of the Subscription Agreements, the Company
has agreed to grant certain registration rights to the Investors on the terms
and conditions set forth in this Agreement. 

NOW, THEREFORE, in consideration of
the premises and mutual agreements contained herein, the parties hereto agree as
follows: 

1. Definitions. The following terms used in this Agreement
shall have the meanings set forth below: 

1.1 "Commission" shall mean the Securities and Exchange
Commission or any other federal agency at the time administering the Securities
Act. 

1.2 "Common Stock" shall mean the common
stock, par value $.001 per share, of the Company, or in the case of a
conversion, reclassification or exchange (or any other adjustment or
readjustment under Section 4 of the Warrants) of such shares of Common Stock,
shares of the stock issued or issuable in respect of such shares of Common
Stock, and all provisions of this Agreement shall be applied appropriately
thereto and to any such stock resulting therefrom. 

1.3 "Exchange Act" shall mean the Securities
Exchange Act of 1934, as amended, or any similar federal statute enacted
hereafter, and the rules and regulations of the Commission thereunder, all as
the same shall be in effect from time to time. 

1.4 "Form SB-2" shall mean such form under the
Securities Act as in effect on the date hereof or any registration form under
the Securities Act subsequently adopted by the Commission which permits
inclusion or incorporation of substantial information by reference to other
documents filed by the Company with the Commission. 

1.5 "Other Stockholders" shall mean any other
stockholders of the Company (including any other investors) who are granted
registration rights that would affect the rights granted to the Investors under
this Agreement. 

1.6 "Person" shall mean any individual, firm,
corporation, partnership, limited liability company, trust, incorporated or
unincorporated association, joint venture, joint stock company, government (or
an agency or political subdivision thereof) or other entity of any kind. 

1.7 "Register," "Registered" and
"Registration" shall refer to a registration effected by preparing and filing a
registration statement in compliance with the Securities Act and the declaration
or ordering of effectiveness of such registration statement by the Commission.

1.8 "Registrable Securities" shall mean the
shares of Common Stock comprising the Units and the shares of Common Stock
issuable upon the exercise of the Warrants. As to any particular Registrable
Securities, once issued such securities shall cease to be Registrable Securities
when (i) 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, (ii) they
shall have been distributed to the public pursuant to Rule 144 (or any successor
provision) under the Securities Act, (iii) they shall have been otherwise
transferred, new certificates for them not bearing a legend restricting further
transfer shall have been delivered by the Company and subsequent disposition of
them shall not require registration or qualification of them under the
Securities Act or any similar state law then in force, or (iv) they shall have
ceased to be outstanding. 

1.9 "Registration Expenses" shall mean all
expenses incurred by the Company in compliance with Section 3 of this Agreement,
including, without limitation, all registration and filing fees, listing fees,
printing expenses, fees and disbursements of counsel and accountants for the
Company, blue sky fees and expenses, the expenses of any special audits incident
to or required by any such registration and the expense of any "comfort letters"
(but excluding the compensation of regular employees of the Company, which shall
be paid in any event by the Company). 

1.10 "Securities Act" shall mean the
Securities Act of 1933, as amended, or any similar federal statute enacted
hereafter, and the rules and regulations of the Commission thereunder, all as
the same shall be in effect from time to time. 

1.11 "Selling Expenses" shall mean all selling
fees and commissions or underwriter’s fees, discounts or commissions applicable
to the sale of Registrable Securities and any out-of-pocket expenses of the
holders of Registrable Securities, including any travel costs and counsel fees,
if any. 2. Registration. 

2.1 Registration on Form SB-2. The Company
will file, within 180 days of the date on which the final Subscription Agreement
is accepted by the Company and the transactions thereby are consummated (the
"Final Closing Date"), a registration statement on Form SB-2 (or such other form
as is appropriate) registering the offer and sale of the Registrable Securities
by the holders thereof. The Company shall keep such registration statement
effective until the first anniversary of the Final Closing Date. 

1 Piggy-Back Registration. If at any time following the first
anniversary of the Final Closing Date there is not an effective registration
statement covering all of the Registrable Securities issuable upon exercise of
the Warrants and the Company shall determine to prepare and file with the
Commission a registration statement under the Securities Act relating to an
offering for its own account or the account of others of any of its equity
securities, other than on Form S-4 or Form S-8 (each as promulgated under the
Securities Act) or their then equivalents relating to equity securities to be
issued solely in connection with any acquisition of any entity or business or
equity securities 

issuable in connection with stock option or other employee
benefit plans, respectively, then the Company shall send to each Investor
written notice of such determination and, if within fifteen (15) days after
receipt of such notice, any such Investor shall so request in writing, the
Company shall include in such registration statement all or any part of such
Registrable Securities issuable upon exercise of the Warrants that such Investor
requests to be registered to the extent the Company may do so without violating
registration rights of others which exist as of the date of this Agreement,
subject to customary underwriter cutbacks applicable to all holders of
registration rights. 3. Expenses of Registration. All Registration Expenses
incurred in connection with any registration, qualification or compliance
pursuant to this Agreement will be borne by the Company, and all Selling
Expenses will be borne by the Investors. 4. Registration Procedures. 

2 With respect to any registration of Registrable Securities
effected by the Company pursuant to this Agreement, the Company will confirm
initiation of the registration by giving written notice of initiation and
completion thereof to all of the Investors and will, at its expense: 

(a) Prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectus used in connection
with such registration statement as may be necessary to comply with the
provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement; 

(b) Furnish such number of prospectuses and other documents
incident thereto, including any amendment of or supplement to the prospectus, as
an Investor from time to time may reasonably request; 

(c) Notify each seller of Registrable Securities covered by
the registration statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event
as a result of which the prospectus included in the registration statement, as
then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading or incomplete in the light of the
circumstances then existing, and at the request of any such seller, prepare and
furnish to such seller a reasonable number of copies of a supplement to or an
amendment of such prospectus as may be necessary so that, as thereafter
delivered to the purchasers of such shares, such prospectus shall not include an
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading or
incomplete in the light of the circumstances then existing; 

(d) List all such Registrable Securities registered in the
registration on each securities exchange or automated quotation system on which
the Common Stock of the Company is then listed; 

(e) Provide a transfer agent and registrar for all Registrable
Securities and a CUSIP number for all such Registrable Securities, not later
than the effective date of the registration statement; 

(f) Make available for inspection by any Investor and any
attorney or accountant retained by any such Investor, all financial and other
records, pertinent corporate documents and properties of the Company, and cause
the Company's officers and directors to supply all information reasonably
requested by any such Investor, attorney or accountant in connection with the
registration statement; 

(g) Furnish to each selling Investor upon request a copy of
all documents filed with and all correspondence from or to the Commission in
connection with the registration statement; and 

(h) Make available to its stockholders, as soon as reasonably
practicable, an earnings statement covering the period of at least 12 months,
but not more than 18 months, beginning with the first month after the effective
date of the registration statement, which earnings statement shall satisfy the
provisions of Section 11(a) of the Securities Act. 

4.2 It shall be a condition precedent to the obligations of
the Company to take any 

action pursuant to this Agreement in respect
of the Registrable Securities of any Investor that such Investor shall furnish
to the Company, within 15 days of the date on which a request is made by the
Company, such information regarding itself, the Registrable Securities held by
it, its intended method of distribution of such Registrable Securities or
otherwise as the Company shall reasonably request and as shall be required in
connection with the action to be taken by the Company. 4.3 In connection with
the preparation and filing of the registration statement under this Agreement,
the Company will give the Investors on whose behalf such Registrable Securities
are to be registered and their respective counsel and accountants the
opportunity to review the registration statement, each prospectus included
therein or filed with the Commission, and each amendment thereof or supplement
thereto, and will give each such Investor such access to the Company's books and
records and such opportunities to discuss the business of the Company with its
officers, its counsel and the independent public accountants who have certified
the Company's financial statements, as shall be necessary, in the opinion of
such Investors or their counsel, in order to conduct a reasonable and diligent
investigation within the meaning of the Securities Act. 

5. Indemnification. 

5.1 To the extent permitted by law, the
Company will indemnify and hold harmless each Investor, each of its officers,
directors and partners, and each Person, if any, controlling such Investor,
against all losses, claims, damages and liabilities (or actions, proceedings or
settlements in respect thereof), joint or several, to which they may become
subject under the Securities Act or otherwise, insofar as such losses, claims,
damages, or liabilities (or actions, proceedings or settlements in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue
statement, or any misstatement of a material fact or alleged misstatement of a
material fact contained in the registration statement, including any prospectus,
offering circular or other document, notification or the like, or any amendments
or supplements thereto, or arise out of or are based upon the omissions or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, or any violation by
the Company of the Securities Act or any rule or regulation thereunder
applicable to the Company and relating to action or inaction required of the
Company in connection with the registration, qualification or compliance; and
will reimburse each such Investor, each of its officers, directors and partners,
and each Person, if any, controlling such Investor, for any legal or other
expenses reasonably incurred by them in connection with investigating or
defending or settling any such loss, claim, damage, liability, or action;
provided, however, that the Company shall not be liable in any such case for any
such loss, claim, damage, liability, or action to the extent that it arises out
of or is based upon an untrue statement or alleged untrue statement or omission
or alleged omission or misstatement or alleged misstatement made in reliance
upon and based upon written information furnished to the Company for use in
connection with such registration by any such Investor or controlling Person.

5.2 To the extent permitted by law, each
Investor will, if Registrable Securities held by such Investor are included in
the securities as to which the registration, qualification or compliance is
being effected, indemnify and hold harmless the Company, each of its directors
and officers who have signed the registration statement, each Person, if any,
who controls the Company (other than such Investor), each other such Investor
and each of their officers, directors and partners, and each Person controlling
such Investor or other stockholder, against all losses, claims, damages and
liabilities (or actions, proceedings or settlements in respect thereof) to which
the Company or any such director, officer, controlling Person, agent or attorney
may become subject, under the Securities Act or otherwise, insofar as such
losses, claims, damages, or liabilities (or actions, proceedings or settlements
in respect thereof) arise out of or are based upon any untrue statement or
alleged untrue statement or misstatement of a material fact or alleged
misstatement of a material fact 

contained in the registration statement,
including any prospectus or any amendments or supplements thereto, or arise out
of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, in each case to the extent, but only to the extent, that
such untrue statement or alleged untrue statement or omission or alleged
omission or misstatement or alleged misstatement was made in such registration
statement, prospectus, or amendments or supplements thereto, in reliance upon
and in conformity with written information with respect to such Investor
furnished by such Investor expressly for use in connection with such
registration; and each such Investor will reimburse any legal or other expenses
reasonably incurred by the Company, each of its directors and officers, each
other Investor and each of their officers, directors and partners and each
Person controlling such other Investor or other stockholder for any legal or any
other expenses reasonably incurred in connection with investigating or defending
any such loss, claim, damage, liability, or action, in each case only to the
extent that such untrue statement or alleged untrue statement or omission or
alleged omission is made in the registration statement, prospectus, offering
circular or other document in reliance upon and in conformity with written
information furnished to the Company by such Investor and stated to be
specifically for use therein. 

1 
Promptly after receipt by an
indemnified party under this paragraph of notice of the commencement of any
action, such indemnified party will, if a claim in respect thereof is to be made
against any indemnifying party under this paragraph, notify the indemnifying
party in writing of the commencement thereof and the indemnifying party shall
have the right to participate in, and, to the extent the indemnifying party so
desires, jointly with any other indemnifying party similarly given notice to
assume the defense thereof with counsel mutually satisfactory to the parties;
provided, however, that if the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have reasonably concluded that there may be reasonable defenses available to it
which are different from or additional to those available to the indemnifying
party, or if the interests of the indemnified party may reasonably be deemed to
conflict with the interests of the indemnifying party, the indemnified party
shall have the right to select a separate counsel and to assume such legal
defense and otherwise to participate in the defense of such action, with the
expense and fees of such separate counsel and other expenses relating to such
participation to be reimbursed by the indemnifying party as incurred. The
failure to notify an indemnifying party promptly of the commencement of any such
action, if prejudicial to his ability to defend such action, shall not relieve
such indemnifying party of liability to the indemnified party under this
paragraph, but such liability shall be reduced in accordance with the extent of
such prejudice. 

6. No Conflict of Rights.
The Company will not hereafter enter into any agreement with respect to its
securities which is inconsistent with the rights granted to the Investors in
this Agreement. Without limiting the generality of the foregoing, the Company
will not hereafter enter into any agreement with respect to its securities which
grants or modifies any existing agreement with respect to its securities to
grant to any holder of its securities in connection with an incidental
registration of such securities equal or higher priority to the rights granted
to the Investors in this Agreement. 

7. Exchange Act Compliance.
From and after such time as the Company becomes subject to the reporting
requirements of the Exchange Act, the Company shall file the reports required to
be filed by it under the Securities Act and the Exchange Act and the rules and
regulations adopted by the Commission thereunder, and will take all actions
reasonably necessary to enable holders of Registrable Securities to sell such
securities without registration under the Securities Act within the limitation
of the provisions of (a) Rule 144 under the Securities Act, as such Rule may be
amended from time to time, (b) Rule 144A under the Securities Act, as such Rule
may be amended from time to time, if applicable or (c) any similar rules or
regulations adopted by the Commission. Upon the 

request of any Investor holding Registrable Securities, the
Company will deliver to such Investor a written statement as to whether it has
complied with such requirements. 

8. Miscellaneous. 

2 Directly or Indirectly. Where any provision in this
Agreement refers to action to be taken by any Person, or which such Person is
prohibited from taking, such provision will be applicable whether such action is
taken directly or indirectly by such Person. 

8.2 Governing Law. This Agreement will be
deemed to have been made and delivered in New York, New York and will be
governed as to validity, interpretation, construction, effect and all other
respects by the internal laws of the State of New York. The Company and the
Investors agree that any legal suit, action or proceeding arising out of or
relating to this Agreement shall be instituted exclusively before the American
Arbitration Association. The arbitrator shall render a written opinion. Any
award the arbitrator makes shall be final and binding on both parties, and
judgment on it may be entered in any court having jurisdiction. The arbitrator
is authorized to award attorneys’ fees and expenses to the prevailing party in
any such arbitration. 

8.3 Section Headings. The headings of the sections and
subsections of this Agreement are inserted for convenience only and may not be
deemed to constitute a part thereof. 

8.4 Notices. All communications and notices
under this Agreement must be in writing and delivered by hand or mailed by
overnight courier that can provide receipt of delivery or by registered or
certified mail, postage prepaid: 

  If to the Company: Andrew Whelan, President BioElectronics
  Corporation 401 Rosemont Avenue Third Floor, Rosenstock Hall Frederick,
  Maryland 21701 

  With a copy to: Pryor Cashman Sherman & Flynn LLP 410 Park
  Avenue New York, New York 10022 

  Attn: Eric M. Hellige, Esq. 

  If to any Investor: To the address set forth on such
  Investor’s Subscription Agreement 

8.5 Successors and Assigns. This Agreement will inure to the
benefit of and be binding upon the successors and assigns of each of the
parties. 

8.6 Entire Agreement; Amendment and Waiver.
This Agreement constitutes the entire understanding of the parties hereto
relating to the subject matter hereof and supersedes all prior agreements or
understandings with respect to the subject matter hereof among such parties.

8.7 Counterparts; Fax Execution. This
Agreement may be executed in one or more counterparts, each of which will be
deemed an original and all of which together will be considered one and the same
agreement. This Agreement may be executed by fax delivery of a signed signature
page to the other parties and such fax execution will be effective for all
purposes. 

8.8 Severability. Any provision of this
Agreement which is determined to be illegal, prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such illegality, prohibition or unenforceability without invalidating the
remaining provisions hereof which shall be severable and enforceable according
to their terms and any such prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other
jurisdiction. 

[remainder of page intentionally left blank; signature page
follows] 

EXECUTED: 

BIOELECTRONICS CORPORATION 

By: /s/ Andrew Whelan     Name: Andrew Whelan 
Title: President 

BUCKMAN, BUCKMAN & REID, INC., as Attorney-in-Fact for the Investors 

By:_______________________________ Name: Title:BioElectronics Corporation - Exhibit 10.12 - Prepared By TNT Filings Inc.

 

Exhibit 10.12 

DISTRIBUTION AGREEMENT 

This DISTRIBUTION AGREEMENT is entered into as of June 30,
2005 (the "Effective Date") between BIOELECTRONICS
CORPORATION, a Maryland corporation with offices at
401 Rosemont Avenue, Frederick, Maryland 21701 (the "Company"), and MaxMed
Technologies, Inc , a Delaware Corporation with offices at 9265 Dowdy Drive,
Suite 11, San Diego, California 92126 (the "Distributor"). 

RECITALS 

A. The Company has developed a proprietary line of
products (collectively, the "Products") designed to deliver traditional pulsed
electromagnetic field therapy through microchip embedded dermal patch
applications for treatment of a wide range of medical conditions by promoting
soft tissue healing on a cost-effective basis. 

B. The Company’s initial line of Products is distributed
to both medical and consumer retail markets under the ActiPatchTM Therapy trade
name in three models differentiated primarily by the size of ActiPatch unit and
associated adhesive patches (the "ActiPatch Models"). 

C. The Distributor manufactures custom foot orthotics
products, marketed under the MaxMed sTM brand names, trademarks, copyrights and
logos set forth thereon or in connection therewith (the "Distributor Brand
Features"), and distributed nationwide to podiatrists. 

D. The parties desire to provide for the Distributor’s promotion and sale
of Products embedded into its custom othotics, on the terms and conditions of
this Agreement. 

Accordingly, the parties hereby agree as follows: 

AGREEMENT 

1. Definitions and Construction. 

1.1 Definitions. As used in this Agreement, the following terms have
the respective meanings set forth below: 

"ActiPatch Models" has the general meaning set forth in
Recital B, with Product and technical specifications set forth in Schedule A for
the two ActiPatch Models comprising the initial Covered Products. 

"Additional Products" has the meaning set forth in Section 2.2. 

"Affiliate" means, with respect to any Person, any other Person that directly
or indirectly controls, is controlled by or is under common control with the
Person in question. 

"Agreement" means this Distribution Agreement, as amended from time to time.

1

"Applicable Law" means, with respect to a Party, any
legislation, regulation, rule or procedure passed, adopted, implemented or
amended by any federal, state, local or foreign governmental or legislative
body, or any notice of a decision, finding or action by any federal, state,
local or foreign governmental agency, court or other administrative body, in
each case to the extent it has become effective, binding on the Party, its
assets or operations or applicable to the subject matter or its performance of
this Agreement, from and after the date compliance therewith is mandated by the
terms thereof. 

"Appointment" has the meaning set forth in Section 2.1. 

"Company" means BioElectronics Corporation, a [Maryland] corporation, and its
successors and permitted assigns. 

"Company Brand Features" means (a) the ActiPatchTM Therapy
trade name, trademark, copyrights and logos set forth on the ActiPatch Models or
in connection therewith and (b) any other trade names, trademarks, copyrights
and logos set forth on Additional Products or used in connection therewith. 

"Company Support Services" has the meaning set forth in Section 6. 

"Contract Year" means (a) the first twelve months of the Term, commencing on
the Effective Date, and (b) each successive twelve-month period during the Term.

"Covered Product Improvements" means any enhancements,
refinements or other improvements to the Covered Products developed by the
Company during the Term, commencing upon their initial availability to the
Medical Market. 

"Covered Products" means (a) ActiPatch Model 500 described in
Schedule A, (b) any Additional Products included in the Appointment pursuant to
Section 2.2 and (b) any Covered Product Improvements. 

"Distributor" means MaxMed Technologies, Inc., a California corporation, and
its successors and permitted assigns. 

"Distributor Brand Features" has the meaning set forth in Recital C. 

"Effective Date" means the date of this Agreement first set forth above. 

"Exclusivity Conditions" means the conditions set forth in Section 2.3 to the
continuing exclusivity of the Appointment within the Territory after the first
two Contract Years. 

"FDA" means the United States Food and Drug Administration. 

"Indemnified Party" and "Indemnifying Party" have the respective meanings set
forth in Section 9.1. 

"Information" has the meaning set forth in Section 8.1. 

"Initial Promotional Commitment" has the meaning set forth in Section 3.1.

"Know How" means any and all processes, techniques, methods, compositions,
formulae, technical data and other information, whether or not a trade secret.

2

"Custom Foot Orthotic Market" means (a) licensed podiatrists
who sell or could be candidates to sell Products at retail to their patients or
clients and (b) hospitals, clinics, physical rehabilitation facilities, nursing
homes, home healthcare dealers and other healthcare facilities under the
direction or supervision of licensed podiatrists or other health care
professionals who sell or could be candidates to sell Products at retail to
patients, guests or clients of those facilities. 

"Outside Territory" means any jurisdiction outside the Territory where the
Covered Products may be sold in the Custom Orthotic Market in accordance with
Applicable Law. 

"Party" means the Company, the Distributor or their respective successors or
permitted assigns. 

"Person" means an individual, any form of business
enterprise, including a corporation, limited liability company, partnership or
limited partnership, and any other juridical entity or its representative,
including a trust, trustee, estate, custodian, administrator, personal
representative, nominee or any other entity acting on its own behalf or in a
representative capacity. 

"Products" has the meaning set forth in Recital A. 

"Proprietary Rights" means all legal, equitable or moral
intellectual property rights or proprietary rights or benefits, including
copyrights, patents and patent applications, formulae, processes, moral rights,
trademarks, trade names, rights of priority, mask and derivative work rights,
Know How and trade secret rights. 

"Supplemental Product Wraps" has the general meaning set forth in Section
5.1, with the technical specifications set forth in Schedule B. 

"Term" has the meaning set forth in Section 10.1. "Territory"
means the United States of America. "Volume Target" has the meaning set forth in
Section 2.3. 

1.2 Construction. Unless otherwise expressly provided
herein, all references to Recitals, Sections or Schedules refer to recitals,
sections or schedules to this Agreement. The Schedules are hereby incorporated
in and made a part of this Agreement as if set forth in full herein. Capitalized
terms used in the Schedules and not otherwise defined shall have the respective
meanings ascribed to them in this Agreement. 

2. Appointment of the Distributor 

2.1 Sales of Covered Products to the Custom Foot Orthotics
Market. Subject to the terms and conditions set forth in this Agreement, the
Company hereby appoints the Distributor to act as its exclusive distributor of
the Covered Products to the Custom Foot Orthotic Market in the Territory during
the Term (the "Appointment"). At the Distributor’s election, the Appointment may
also include the non-exclusive right and license to distribute and sell the
Covered Products in the Custom Foot Orthotic in the Outside Territory. 

2.2 Additional Covered Products. If the Company develops additional
Products (other than its ActiPatch Models) for sale to the Custom Foot Orthotic
("Additional Products") at any time 

3

during the Term, it will give timely written notice to the
Distributor in each instance, describing the Additional Product in reasonable
detail, including its regulatory status, and specifying the projected launch
date and the offered price per unit to the Distributor. The Distributor shall
have a right of first refusal to add the Additional Product to the Appointment
as a Covered Product for purchase from the Company at the offered price per unit
on the terms and conditions set forth in this Agreement. If the Distributor
exercises the foregoing right of first refusal for a particular Additional
Product within thirty (30) days after notice from the Company, that Product
shall thereafter be added to the Appointment, and Schedule A shall be deemed to
be amended accordingly for all purposes of this Agreement. If the Distributor
fails to exercise the foregoing right of first refusal for a particular
Additional Product within thirty (30) days after notice from the Company or if
the Parties are unable to agree on any unresolved terms of the Appointment for
that Product within forty-five (45) days thereafter, the Company may implement
alternative distribution arrangements for the Product on terms no less favorable
to the Company than the terms offered to the Distributor. 

2.3 Exclusivity Conditions. The exclusivity of the
Appointment within the Territory is (a) conferred for the first two Contract
Years for payment of three hundred thousand dollars ($300,00.) in the form of a
Note, and in reliance on the Distributor’s undertaking in Section 3.1 for the
Promotional Commitment, (b) conditioned for the third Contract Year on the
Distributor’s performance of the Promotional Commitment and (c) conditioned for
each successive Contract Year on the Distributor’s fulfillment of the volume
benchmarks set forth below (each, a "Volume Target") for its purchase of Covered
Products from the Company on the terms set forth in Section 4 during the
immediately preceding Contract Year. 

	Appointment Exclusivity for	Volume Target for
	Specified Contract Year	Specified Contract Year
	 	 
	3	50 thousand units in the 1st.
    and 2nd Contract Year
	4	75 thousand units in the 3rd
    Contract Year
	5	100 thousand units in the 4th
    Contract Year

2.4 Remedies for Failure to Meet Exclusivity Conditions.
If the Distributor fails to satisfy its Exclusivity Condition for any Contract
Year and any failure based on achieving a Volume Target is not caused by the
Company’s inability to deliver Covered Products in accordance with Section 4,
the Company may elect, in its sole discretion, to either (a) continue the
exclusivity of the Appointment within the Territory for a Contract Year,
notwithstanding the Distributor’s failure to meet the Volume Target for that
Contract Year, if the Distributor commits to make mutually acceptable
promotional expenditures under Section 3 for that Contract, (b) implement
non-exclusive distribution arrangements with third parties for sales of the
Covered Products to the Custom Foot Orthotic in the Territory or (c) terminate
this Agreement pursuant to Section 10.3. 

2.5 Volume Incentive Compensation. The Company will
issue the Distributor 20 incentive compensation warrants for each ActiPatch unit
it purchases and pays for over 50,000 units in the first two Contract Years of
this Agreement. Each Incentive Warrant will allow its holder to immediately
purchase one share of Common Stock for $0.50, subject to adjustment, until three
(3) years after the date of issuance. The Warrants will be redeemable by the
Company, commencing 60 days from the date of issuance at a price of $.01 per
Warrant at any time prior to their exercise or expiration upon 30 days’ prior
written notice; provided, however, that (i) the closing sales price for the
Common Stock for at least 30 consecutive calendar days ending on the third day
prior to the date notice of redemption is given by the Company has been at least
$1.00 per share and (ii) a registration statement relating to the shares of
Common Stock issuable upon exercise of the Warrants has been declared effective
by the Securities 

4

Exchange Commission and is available for the resale of such shares of Common
Stock during such 30-day notice period. 

3. Promotion of Covered Products 

3.1 Promotion of Covered Products. Throughout the
Term, the Distributor will use commercially reasonable efforts and commit
adequate capital and human resources to promote, advertise and market the
Covered Products in the Custom Foot Orthotic throughout the Territory in
accordance with this Section 3. The Distributor shall implement a
promotional, advertising and marketing budget of not less than thirty thousand
dollars ($30,000.) for the performance of its undertakings in this Section
3 during the first Contract Year (the "Initial Promotional Commitment"). 

3.2 Reports. The Distributor will keep the Company
continuously informed of its promotional, advertising and marketing efforts
hereunder and will furnish the Company, on a quarterly basis, reasonably
detailed reports of its current initiatives and quarterly expenditures for the
performance of its undertakings in Section 3.1. The report for the fourth
quarter of the first Contract Year shall include a certification relating to the
Distributor’s satisfaction of the Initial Promotional Commitment. 

3.3 Use of Company’s Brand Features. At all times
during the Term, the Distributor will promote and market the Covered Products
under one or more of the Distributor Brand Features and the Company’s Brand
name. 

3.4 Promotional Materials. As promptly as practicable
after the Effective Date, the Distributor will produce a new brochure featuring
the Covered Products in form and substance reasonably acceptable to the Company.
Throughout the Term, the Company will provide the Distributor with a current
version of its current brochures for Covered Products and any advertising and
other promotional materials the Company may in its sole discretion develop for
Covered Products. No medical claims for a Covered Product or its underlying
technology included in brochures, advertising and other promotional materials
developed or used by the Distributor shall be inconsistent with those included
in the Company’s promotional materials for that Covered Product. 

3.5 Participation at Conventions. During the Term, the
Distributor will (a) send qualified representatives to promote the Covered
Products at all the major conventions held in the Territory for all sectors of
the Custom Foot Orthotics Market and (b) cause the Covered Products to be
displayed at those conventions where product displays are permitted. 

3.6 Testing and Endorsements. At the Company’s
request, the Distributor will provide commercially reasonable assistance to the
Company in (a) testing and qualifying Covered Products for new applications or
indicated treatments germane to the Custom Foot Orthotics Market, (b) testing
and qualifying any Covered Product Improvements for existing or new applications
or indicated treatments germane to the Custom Foot Orthotics Market and (c)
obtaining the endorsement of Covered Products by prominent members of the Custom
Foot Orthotics Market. 

4. Purchase of Covered Products 

4.1 Orders. The Distributor will submit its orders for
Covered Products in writing to the Company, whether by U.S. mail, facsimile,
electronic communications or as otherwise mutually agreed. Only orders accepted
and confirmed in writing by the Company will be deemed valid and binding on the
Parties. Upon execution of the Agreement, the Distributor will submit an initial
order for 1,000 units. 

5

Within ten (10) days after the Effective Date, the
Distributor will submit an Initial Purchase Commitment order for three thousand
(3,000) units of the Covered Products, with the payment and delivery terms set
forth in Section 4.2 and Section 4.3, respectively. 

4.2 Payment. The Distributor shall pay the Company for
each unit of the Covered Products ordered hereunder at its "Unit Price to
Distributor" listed in Schedule A. Orders accepted and confirmed in writing by
the Company shall be due and payable by Distributor on net 30 day terms, FOB
factory, except for the initial order pursuant to Section 4.1, which shall be
payable to the Company twenty percent (20%) as a non-refundable deposit upon
execution of this Agreement, which shall be equally allocated and deducted from
the payments foe the Initial Purchase Commitment. The Distributor will make
payments to the Company under this Agreement in U.S. dollars by wire transfer to
an account designated in writing by the Company. Any overdue payments hereunder
shall bear interest from the due date at 1.5% per month. 

4.3 Delivery. The Company shall use commercially
reasonable efforts to ensure timely bulk shipments of Covered Products in
accordance with the delivery terms of orders for Covered Products accepted and
confirmed in writing by the Company hereunder. The units covered by the Initial
Purchase Commitment shall be delivered 1,000 immediately and the remaining 2,000
delivered by December 31, 2005. 

4.4 Non-Competition. The Distributor shall not,
directly or indirectly through any vehicle or means, promote or sell any
products or lines of products during the Term that are similar to the Covered
Products in form or operation or that otherwise compete with the Covered
Products.* We should state that they cannot add additional products as opposed
to" promote or sell" 

4.5 Reports. The Distributor will keep the Company
continuously informed of its sales and marketing efforts and will furnish the
Company, on a quarterly basis, reasonably detailed market analyses and reports
concerning its sales strategy, sales forecasts, inventory, sales volumes and
other pertinent facts relating to its sales of the Covered Products. 

5. Packaging and Processing of Covered Products 

5.1 Processing of ActiPatch Units. The Distributor
will repackage and label each unit of the ActiPatch Models distributed hereunder
to (a) insert the unit into? a neoprene or similar wrap (in lieu of the adhesive
patch used for the Medical Market) in accordance with the specifications set
forth in Schedule B ("Supplemental Product Wraps") and (b) repackage the
combined unit and Supplemental Product Wrap in a container to be manufactured by
or for the account of the Distributor, together with an instruction insert to be
printed by the Distributor in a format supplied by the Company. 

5.2 Product Labeling. Covered Products shipped
to customers by or for the account of the Distributor hereunder shall be labeled
by the Distributor in accordance with the Distributor Brand Features and shall
include (a) serial numbers based on the Distributor’s tracking protocols. (b)
appropriate acknowledgement of Product manufacture by the Company, in a format
reasonably acceptable to the Company incorporating the Company Brand Features,
and (c) all other labeling content or features required for compliance with
Applicable Law in a particular jurisdiction. 

5.3 Recordkeeping. The Distributor will maintain,
throughout the Term and for not less than six years thereafter, complete and
accurate books of account and records (including documents supporting entries in
the books of account) of all transactions relating to its sales of Covered
Products. In the event the Company notifies the Distributor of a recall of any
Covered Products, the Distributor will make those records available to the
Company and otherwise cooperate with and assist the Company in effecting the
recall at the Company’s expense. We need to establish a lot number tracking
system that we 

6

should provide to MaxMed with each delivery. They in turn need to maintain a
tracking system for the distribution of each lot for the purpose of recall. 

5.4 Access to Records. The Company and its duly
authorized representatives shall have the right, from time to time upon
reasonable notice and at reasonable times during the Term and for six years
thereafter, to examine the Distributor’s books of account, records and all other
documents and materials in its possession or under its control with respect to
the subject matter hereof and transactions hereunder, with free and full access
thereto and the right to make copies thereof. 

5.5 Company Brand Features and Proprietary Rights. The
Distributor will not at any time or in any manner (a) use the Company Brand
Features in any advertising, labeling, packaging or printed matter of any kind
without the Company’s prior written consent, (b) take any other action adversely
affecting the Company’s Proprietary Rights in the Products, the Company Brand
Features or any registration thereof or which, directly or indirectly, reduces
the value of the Company Brand Features or detracts from the Company’s
reputation, (c) take any action in connection with the promotion and
distribution of Covered Products otherwise than in compliance with Applicable
Law or (d) register or apply to register any Company Brand Features or any
trademark or logo similar thereto anywhere in the world. If the Distributor
learns of any infringement or replication of the Company Brand Features, it will
promptly notify the Company thereof and cooperate with the Company in all
respects to remedy the infringement. 

6. Company Support Services.
Subject to timely payment for orders under Section 4.2 and to reasonable notice
and scheduling considerations, the Company will perform the support obligations
specified in this Section 6 ("Company Support Services"), at no additional cost
to the Distributor, throughout the Term. Other than the Company Support
Services, the Company shall have no obligation to provide any support services
to the Distributor or its customers without payment of mutually acceptable fees
or expense reimbursement. 

6.1 Training. The Company will use reasonable
commercial efforts to make its technical personnel available, through telephonic
conferencing facilities, to provide training and product education for the
Covered Products to members of the Distributor’s marketing and sales staff on
all aspects of the use and operation of the Covered Products. 

6.2 Customer Support. The Company will maintain a
dedicated toll-free number to provide telephonic responses to technical and
medical questions from the Distributor’s customers on the operation and
treatment indications of the Covered Products. 

6.3 Covered Product Improvements If the Company
develops Covered Product Improvements, they will be integrated into the Covered
Products shipped to the Distributor hereunder, commencing upon their initial
availability to the Medical Market. 

6.4 Product Tests and Trials. The Company shall use
commercially reasonable efforts to secure FDA approval of indications for
additional treatments by Covered Products. All results from Product tests and
trials conducted by or for the account of the Company shall be promptly provided
to the Distributor. 

7. Representations and Warranties 

7.1 Representations and
Warranties of the Company. The Company represents and warrants to the
Distributor that (a) this Agreement has been duly authorized by all requisite
corporate action on its behalf and constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms, (b) its
execution and performance of this Agreement will not violate any 

7

Applicable Law or any contract under which it is bound and
(c) it owns or has valid licenses to all Proprietary Rights relating to the
Covered Products and has the right to grant the distributorship and license
rights provided herein without infringing any Proprietary Rights of third
parties. 

7.2 Representations and Warranties of the Distributor.
The Distributor represents and warrants to the Company that (a) this
Agreement has been duly authorized by all requisite corporate action on its
behalf and constitutes its legal, valid and binding obligation, enforceable
against it in accordance with its terms, (b) its execution and performance of
this Agreement will not violate any Applicable Law or any contract under which
it is bound, (c) it owns or has valid licenses to all Proprietary Rights
relating to the Private Label and has the right to implement and execute the
distributorship and license rights provided herein without infringing any
Proprietary Rights of third parties and (d) it has the infrastructure and other
resources necessary to perform its obligations hereunder. 

8. Confidentiality 

8.1 Confidentiality Undertaking. Each Party
acknowledge that its performance of this Agreement will entail the receipt of
confidential information of the other Party, including technical specifications
for the Products and information about business methods, prospects, costs,
markets, pricing policies, operational methods, concepts, technical processes,
applications and other trade secrets, as well as other business affairs and
methods not generally available to the public (collectively, "Information").
Each Party agrees that, subject to the exceptions set forth below, during the
term of this Agreement and for five years thereafter, it will (a) keep all
Information of the other Party strictly confidential, (b) not disclose any
Information of the other Party, without its consent, to any of its employees or
agents or any of its Affiliates’ employees or agents, other than those who have
a need to know and are subject to confidentiality obligations substantially
similar to those provided herein, (d) not use any Information of the other
Party, except as provided herein, for its own use or benefit or the use or
benefit of any Affiliate, (e) take all reasonable steps necessary to prevent any
breach of the foregoing obligations by any of its employees or agents or any of
its Affiliates’ employees or agents who receive or have access to Information of
the other Party and (f) not modify, reverse engineer, decompile, create other
works from or disassemble any software programs or firmware contained in the
Information of the other Party. 

8.2 Exceptions. For purposes of this Section 8,
Information will not include information that (a) is in the public domain at the
time of disclosure to a Party, (b) becomes part of the public domain after
disclosure to a Party through no fault, act or failure to act, error or breach
of this Section 8 by the recipient or (c) is required by order, statute or
regulation of any government authority to be disclosed to any court or other
body, provided that the recipient shall notify the disclosing Party
thereof to afford it the opportunity to obtain a protective order or other
relief. 

8.3 Remedies for Breach. Each Party acknowledges that
damages at law will be an insufficient remedy in the event that it violates the
terms of this Section 8 and that the other Party may apply for and obtain
immediate injunctive relief in any court of competent jurisdiction to restrain
the breach or threatened breach of its undertakings and covenants contained
herein. 

9. Indemnification 

9.1 For Breach. Each Party (an "Indemnifying Party")
shall indemnify and hold harmless the other Party and its officers, directors,
shareholders and employees (collectively, the "Indemnified Party") from and
against any and all judgments, penalties, fines and amounts paid in settlement,
including any interest assessments or other charges payable in connection
therewith, and all reasonable expenses, including attorneys’ fees, retainers and
disbursements, court costs, experts’ fees and travel expenses, incurred by the
Indemnified Party in connection with any threatened, pending or completed
action, claim, suit, investigation, hearing or other proceeding, whether civil,
criminal, 

8

administrative, arbitrative or investigative, any appeal
therein or any inquiry or investigation that could lead thereto, to which the
Indemnified Party is, was or at any time becomes a party, arising from the
breach by the Indemnifying Party of its representations and warranties under
Section 7 or its obligations under Section 8. 

9.2 For Product Defects. (a) The Company shall
indemnify and hold the Distributor harmless from and against any liabilities,
claims, causes of action, suits, damages and expenses (including reasonable
attorneys’ fees) arising out of alleged inherent defects in any of the Covered
Products existing at the time they are sold by the Company to the Distributor.

(b) The Distributor shall indemnify and hold the Company
harmless from and against any liabilities, claims, causes of action, suits,
damages and expenses (including reasonable attorneys’ fees) arising out of
alleged inherent defects in any of the Supplemental Product Wraps or product
packaging?. 

9.3 Defense of Claims. The Indemnifying Party under
this Section 9, at its sole cost and expense and with counsel reasonably
acceptable to the Indemnified Party, will take reasonable and appropriate action
to defend any suit, action, claim or proceeding subject to its indemnification
obligation hereunder. An Indemnifying Party will not defend any claim, action,
suit or proceeding in any way that would adversely affect or be in derogation of
any rights of the Indemnified Party, including its Proprietary Rights. 

9.4 Assumption of Defense. In the event that an
Indemnified Party reasonably determines that the Indemnifying Party has not
taken appropriate steps to defend its interests in any suit, action, claim or
proceeding giving rise to its indemnification rights under this Section 9, the
Indemnified Party shall have the right, at the sole cost and expense of the
Indemnifying Party, to assume the defense thereof with counsel of its own
choosing, provided that the Indemnifying Party shall not be responsible
under any circumstances for the costs of one counsel for all Indemnified
Parties. 

9.5 Settlement of Claims. No settlement or discharge
of any action, suit, claim or proceeding shall be made by an Indemnifying Party
without the prior written consent of the Indemnified Party, which consent shall
not be unreasonably withheld or delayed if the settlement or discharge includes
a general release by all adverse parties in favor of the Indemnified Party. 

10. Term and Termination 

10.1 Term. The Term shall commence on the Effective Date and continue
for five years, subject to earlier termination pursuant to Section 10.2 or
Section 10.3. 

10.2 Termination for Breach. Either Party may
terminate this Agreement upon notice that the other Party has committed a
material breach of one or more of its material obligations hereunder and has
failed to cure the breach within 30 days of written notice by the non-breaching
Party, specifying the nature of the breach in reasonable detail. 

10.3 Termination for Failure to Meet Exclusivity Condition.
The Company may terminate this Agreement pursuant to Section 2.4 within ninety
(90) days after the end of any Contract Year upon notice that the Distributor
has failed to satisfy its Exclusivity Condition for that Contract Year. 

10.4 Effect of Termination. The obligations of the Parties under
Sections 4, 5, 8 and 9 shall survive the expiration or termination of this
Agreement. 

11. Limitation of Liability. Any liability
arising under this Agreement, under any cause of 

9

action or theory of liability, shall be limited to direct,
objectively measurable damages, which shall not exceed, under Section 9 or
otherwise, for any single matter, claim or proceeding, the greater of $100,000
or the aggregate amount of payments made by the Distributor hereunder during the
twelve months preceding the commencement of the matter, claim or proceeding. No
Party shall have any liability to any other Party or any third party for any
indirect, special, consequential or speculative damages, including lost profits,
lost data, loss of opportunity, loss of use or costs of procuring substitute
goods or services, business interruptions and loss of profits, irrespective of
any advance notice of the possibility thereof. These limitations shall apply
notwithstanding the failure of the essential purpose of any limited remedy. 

12. Publicity. Except as
provided herein, neither Party will use the name of the other Party in any press
release or other public announcement about the subject matter of this Agreement
without the other Party’s consent, which shall not be unreasonably withheld or
delayed. 

13. Independent Contractors; Expenses.
Each Party will act as an independent contractor hereunder, with sole
responsibility for its own operations, personnel and operating expenses, and
nothing contained in this Agreement will be construed to create a partnership or
joint venture between the Parties. Except as otherwise provided herein, each
Party shall bear its own expenses incurred in its performance of this Agreement.

14. Assignability. This
Agreement and a Party’s rights and obligations hereunder may not be assigned or
transferred for any reason without the written consent of the other Party, which
shall not be unreasonably withheld or delayed if the proposed assignee provides
the other Party with (a) representations and warranties to the effect set forth
in Section 7.1, if the Company is the proposed assignor, or in Section 7.2, if
the Distributor is the proposed assignor, and (b) an assumption of the proposed
assignor’s obligations under this Agreement, in form and substance reasonably
satisfactory to the other Party. 

15. Waiver of Provisions. 
The waiver of compliance at any time with any of the provisions, terms or
conditions contained in this Agreement will shall not be considered a waiver of
the provision, term or condition itself or of any of the other provisions, terms
or conditions hereof. Any waiver hereunder must be express and in writing by the
Party agreeing to waive any right hereunder. 

16. Captions. The headings
and captions in this Agreement and the Schedules are for convenience and
identification only and are in no way intended to define, limit or expand the
scope and intent of this Agreement or any provision hereof. 

17. Integration. This Agreement, including
the Schedules, contains the entire agreement of the Parties with respect to the
subject matter hereof. 

18. Amendment. This Agreement may not be
amended or modified except by a written instrument signed by both Parties. 

19. Governing Law. This
Agreement and the rights and obligations of the Parties shall be governed by and
construed in accordance with the laws of the State of Delaware, excluding any
conflict of laws rules of that State or other principle that might refer the
governance or construction of this Agreement to the laws of another
jurisdiction. 

20. Binding Effect. The
terms, conditions and provisions of this Agreement and all obligations of the
Parties shall inure to the benefit of, and be binding upon, the Parties and
their respective successors and permitted assigns. 

21. Severability. The invalidity or
unenforceability of any provision of this Agreement shall not 

10

affect any other provision hereof, and the remainder of this Agreement shall
be construed as if the invalid or unenforceable provision were omitted. 

22. Notices. Except as
otherwise provided in Section 4 1, all demands, notices, and communications
provided for in this Agreement shall be in writing and shall be either
personally delivered, mailed by registered or certified mail (return receipt
requested) or sent by reputable overnight courier service (delivery charges
prepaid) to the applicable address specified below, or at any new address that
the recipient Party has specified by prior written notice to the sending Party.
Any notice complying with these requirements shall be deemed to have been given
when delivered personally, on the third business day after deposit postage
pre-paid in the U.S. mail, or on the business day after deposit with a reputable
overnight courier, as the case may be. 

  If to the Distributor: 

  
    MaxMed Technologies, Inc. 

    9265 Dowdy Drive, Suite 11, 

    San Diego, California 92126 

    Attention: Thomas Pichler, President 

  

  
  If to the Company: 

  
    BioElectronics Corporation 

    5540 Hidden Waters Lane 

    Frederick, MD 21703 

    Attention: Andrew W. Whelan, President 

  

23. Counterparts. This Agreement may be
executed in any number of separate counterparts that together will constitute
but one and the same Agreement. 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the
date and year first above written. 

  	BIOELECTRONICS CORPORATION
	 	 
	 	 
	 	 
	By: /s/ Andrew J. Whelan
	Andrew J. Whelan,  
      President
	 	 
	 	 
	MAXMED, INC.	 
	 	 
	 	 
	 	 
	By: /s/ Thomas Pichler
	Thomas Pichler, President

11

Schedule A 

COVERED PRODUCTS 

Covered Product Specifications and Unit Prices

	 	Size of	Effective	Unit Price
	Model	Patch Unit	Therapeutic Area	to Distributor
	 	 	 	 
	ActiPatch 500FS	8 cm x 2.5 cm	28 square cm.	$25.00
	 	 	 	 

	 	 
	Single Order Volume	 
	Discount	Discount
	5,000 - 7,499 units	5%
	7,500 - 9,999	8%
	10,000 & over	12%
	 	 

Covered Product Technical Specifications 

Power supply........................................................3.0 volts
DC 

Nominal carrier frequency...................................27.1 MHz 

Pulse frequency....................................................1,000 per
second 

Pulse duration.......................................................100
microseconds 

Peak(1) spatial power density................................75
microwatts/cm2 

Maximum internal voltage...................................5 volts 

_________________________ 

(1) Peak spatial power density is the RF power per unit area, measured during
each pulse of the carrier frequency. 

Approved Indications for Covered Products 

As of the Effective Date, ActiPatch Therapy is indicated by the FDA for
treatment of edema following blepharoplasty. 

PROMISSORY NOTE AGREEMENT

	$300,000	San
    Diego, California
	 	
    June 14, 2005

AGREEMENT made as of the __th
Day of June 2005 by and between MaxMed Technologies, Inc ("Borrower"), a
Delaware corporation, with offices at 9265 Dowdy Drive, Suite 11, San Diego,
California 92126 and BioElectronics Corporation, a Maryland corporation , having
an office at 401 Rosemont Avenue, Frederick, Maryland 21701 , ("Lender" or
"Holder"). 

WITNESSETH 

WHEREAS, Borrower desires
to borrow three hundred thousand dollars ($300,000.) from the Lender; and 

WHEREAS, Lender is willing
provide a $300,000 loan upon the terms and conditions hereinafter set forth;

NOW, THEREFORE, the parties hereto, in exchange for the mutual
covenants herein contained and intending to be legally bound hereby agree as
follows: 

RECITAL 

MaxMed Technologies, Inc ("Borrower"), for value received,
hereby promises to pay to the order of BioElectronics Corporation , ("Holder"),
the principal amount of three hundred thousand dollars ($300,000) dollars, in
installments, as hereinafter defined, on or before July 1, 2007, provide
security collateral of ____________ shares of common stock of MaxMed
Technologies, Inc., and to pay interest from the date hereof on the unpaid
principal amount hereof at the rate set forth below, all on the terms and
conditions set forth herein. Payment for all amounts due hereunder shall be made
in lawful money of the United States of America to Holder. 

TERMS OF NOTE 

The following is a statement of the rights of
the Holder of this Note and the conditions to which this Note is subject, and to
which the Holder and Borrower hereof, by the acceptance of this Note, agree:

1. Definitions. As used in this Note, the term "Holder or
"Lender" shall mean BioElectronics Corporation or any subsequent holder of this
Note. 

2. Interest. Interest shall accrue from the
date hereof until all outstanding principal and interest on this Note shall have
been paid in full at the rate of nine percent (9%) per annum on the unpaid
principal balance hereof and shall be payable on the Due Date. 

3. Events of Default. If any of the events specified in this
Section 3 shall occur (herein individually referred to as an "Event of
Default"): 

1

  (i) Default in payment of principal or interest under this
  Note when due; 

  (ii) A material default by the Borrower in
  any obligation, or breach by the Borrower of any representation, warranty,
  covenant or agreement, herein or in other documents signed by the Borrower in
  connection with the issuance of this Note, which is not cured or cannot be
  cured by the Borrower within ten (10) days after the Holder has given the
  Borrower written notice of such default; 

  (iii) The institution by the Borrower of
  proceedings to be adjudicated as bankrupt or insolvent, or the consent by it
  to the institution of bankruptcy or insolvency proceedings against it or the
  filing by it of a petition or answer or consent seeking reorganization or
  release under the federal Bankruptcy Code, or any other applicable federal or
  state law, or the consent by it to the filing of any such petition or the
  appointment of a receiver, liquidator, assignee, trustee or other similar
  official for all or any substantial part of its property, or the taking of any
  action by the Borrower in furtherance of any such action; 

  (iv) If, within sixty (60) days after the
  commencement of an action against the Borrower seeking any bankruptcy,
  insolvency, reorganization, liquidation or similar relief under any present or
  future statute, law or regulation, such action shall not have been resolved in
  favor of the Borrower or all orders or proceedings there under affecting the
  property of the Borrower stayed, or if the stay of any such order or
  proceeding shall thereafter be set aside, or if, within sixty (60) days after
  the appointment without the consent or acquiescence of the Borrower of any
  trustee or receiver for all or any substantial part of its property such
  appointment shall not have been vacated; 

Upon the occurrence of an Event of Default
specified in clauses (iii) or (iv) above, the principal amount of this Note, all
interest thereon and all other amounts payable hereunder shall thereupon and
concurrently therewith become due and payable and interest upon the principal
shall accrue at the rate of 15% per annum, all without any action by the Holder
of this Note, and without presentment, demand, protest or other notice of any
kind, all of which are hereby expressly waived by the Borrower, anything in this
Note to the contrary notwithstanding. 

4. Prepayment. The Borrower agrees to prepay
or reduce the principal sum due on this Note by paying an additional six dollars
($6.00) for each ActiPatchTM Therapy unit purchased from BioElectronics
Corporation prior to the Due Date until the principal sum, plus accrued interest
is paid in full. The Borrower may also at any time prepay in whole or part the
principal sum, plus accrued interest on the amount so prepaid to date of payment
of this Note, without penalty or premium. 

5. Security. Payment of this Note is secured by a security
interest in ________________ shares of common stock of MaxMed Technologies, Inc,
which the Borrower asserts has a current fair market value in excess three
hundred thousand dollars ($300,000.). Upon default in payment, or performance of
any obligation, or intentional act to dilute the value of the collateral, for
which this security interest is granted, or breach of any provision of this
agreement, then in such instance BioElectronics Corporation may declare all
obligations immediately due and payable and shall have all remedies of a secured
party under the Uniform Commercial Code. 

2

6. Representations. The Borrower represents
and warrants to the Holder that: (i) each of this Note and the Security
Agreement is a legal, valid and binding agreement of the Borrower, enforceable
against the Borrower in accordance with its terms; (ii) the execution and
delivery by the Borrower of this Note and the Security Agreement and the
performance by the Borrower of the transactions contemplated hereby and thereby
do not and will not conflict with, or result in a breach of, or constitute a
default under the Certificate of Incorporation of by-laws of the Borrower or any
agreement to which the Borrower is a party or to which the Borrower or its
assets may be bound or affected; (iii) the Borrower is not now, nor has been at
any time, in default of any Agreement with any lender or any creditor, nor has
there been a claim against the Borrower, or threat or notice of claim from any
creditor or shareholder; and(iiii) the Borrower currently has, ___________
shares of common stock outstanding, and _____________ fully diluted shares of
common stock. 

7. Waiver of Presentation, Demand, Etc. All
parties now or hereafter liable with respect to this Note, whether the Borrower,
Guarantor, endorser or any other person hereby expressly waive presentment,
demand of payment, protest, notice for demand of payment, protest and notice of
non-payment, or any other notice of any kind with respect thereto. No delay or
failure on the part of the Holder in the exercise of any right or remedy
hereunder or under the Security Agreement or at law or in equity, shall operate
as a waiver thereof, and no single or partial exercise by the Holder or of any
right or remedy hereunder or there under shall preclude or estop another or
further exercise or any other right or remedy. 

8 Defenses, Set-Offs, Counterclaims. Borrower
hereby agrees not to raise or interpose any defense, set-off or counterclaim of
any kind or nature whatsoever which it may have against the Holder in any action
brought upon this Note, and Borrower acknowledges that it has no defense of any
kind or nature to the enforcement of this Note, or to the binding nature of the
obligations represented hereby or thereby. 

9. Amendments. No amendment, modification,
alteration or change of any of the provisions of this Note shall be effective
unless in writing signed by the Borrower and the Holder and only to the extent
therein set forth. 

10. Governing Law; Jurisdiction. This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York excluding the body of law relating to conflict laws. Borrower
hereby consents to the exclusive jurisdiction of the state and federal courts
located in New York City, New York in connection with any lawsuit, claim or
other proceeding relating to this Note or the transactions contemplated hereby
or thereby. 

11. Consent to Service and Waiver of Jury
Trial. The Borrower hereby consents to service of any notice, process, motion or
other document in connection with any lawsuit or other proceeding arising out of
or relating to this Note or the Security Agreement by registered mail, return
receipt requested, to the address set forth below or such other address as the
Borrower shall provide Holder in writing and the Borrower hereby waives any
right to trial by jury in any such lawsuit or proceeding. 

12. Severability. In the event that any term
or provision of this Note shall be finally determined to be superseded, invalid,
illegal or otherwise unenforceable pursuant to applicable law by any authority
having jurisdiction, such determination shall not impair or otherwise affect the
validity, legality or enforceability of the remaining terms and provisions of
this Note, which shall be enforced as if the unenforceable term or provision
were deleted. 

3

IN WITNESS WHEREOF,
the undersigned has caused this Note to be issued this ____th day of
June 2005. 

	 	MaxMed
    Technologies, Inc. ("Borrower")
	 	9265 Dowdy
    Drive, Suite 11
	 	San Diego,
    California 92126
	 	 
	 	 
	 	 
	 	
    By:________________________
	 	Thomas Pichler,
    President
	 	 
	 	 
	 	BioElectronics
    Corporation, ("Holder")
	 	410 Rosemont
    Avenue
	 	Frederick,
    Maryland 21701
	 	 
	 	 
	 	
    By:________________________
	 	Andrew J. Whelan,
    President

4

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