Document:

Exhibit
10.3

 

WORLDWIDE
EXCLUSIVE LICENSE AGREEMENT

 

THIS
LICENSE AGREEMENT (hereinafter “Agreement”), effective as of April 30, 2019 (the “Effective Date”), is
entered into between Drywave Technologies USA, Inc., a Delaware corporation (“DWTI”), having a place of business in
Denver, Colorado, and Bed Therapies, LLC a Texas Limited Liability Company (“BT”), having a place of business in Dallas,
Texas.

 

RECITALS

 

WHEREAS,
DWTI is the owner or exclusive licensee of certain technology, patent rights and know-how related to the DWTI Technology and Assets
(as defined below);

 

WHEREAS,
the parties recognize that in order to attract additional capital investment from investors the parties are willing to enter into
an exclusive, worldwide license agreement as stated herein.

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants herein contained, the parties hereby agree as follows:

 

1.
DEFINITIONS.

 

1.1
“Affiliate” shall mean, with respect to a party, any entity that controls or is controlled by such party, or
is under common control with such party. For purposes of this definition, an entity shall be deemed to control another entity
if it owns or controls, directly or indirectly, at least fifty percent (50%) of the voting equity of another entity (or other
comparable interest for an entity other than a corporation).

 

1.2
“Confidential Information” shall mean all information and data that (a) is provided by one party to the other
party under this Agreement, and (b) if disclosed in writing or other tangible medium is marked or identified as confidential at
the time of disclosure to the recipient, is acknowledged at the time of disclosure to be confidential, or otherwise should reasonably
be deemed to be confidential. Notwithstanding the foregoing, Confidential Information of a party shall not include that portion
of such information and data which, and only to the extent, the recipient can establish by written documentation: (i) is known
to the recipient as evidenced by its written records before receipt thereof from the disclosing party, (ii) is disclosed to the
recipient free of confidentiality obligations by a third person who has the right to make such disclosure, (iii) is or becomes
part of the public domain through no fault of the recipient, or (iv) the recipient can reasonably establish is independently developed
by persons on behalf of recipient without access to or use of the information disclosed by the disclosing party (each, a “Confidentiality
Exception”).

 

1.3
“Field” shall mean manufacturing and sales of Products utilizing DWTI Technology and Assets.

 

1.4
First Commercial Sale” shall mean the first sale of the Products by BT, or their respective Affiliates to customers
who are not Affiliates in any Territory after all applicable marketing approvals (if any) have been granted by the applicable
governing authority.

 

    	1

     

    

 

1.5
“Markets” shall mean any and all markets.

 

1.6
“Net Sales” shall mean the gross sales price of the Products invoiced by BT, its sublicensee or their respective
Affiliates to customers who are not Affiliates (or who are Affiliates but are the end users of the Products) less, (a) freight
and insurance costs incurred by BT, or their respective Affiliates (as applicable) in transporting the Products in final form
to such customers; and (b) sales, use, value-added and other direct taxes incurred on the sale of the Product in final form to
such customers.

 

1.7
“Products” shall mean products that use any DWTI Technology including dry hydrotherapy massage Products and
that are labeled, promoted, marketed and sold solely for use in the Field. Products do not include services offered for fees that
would be charged by any party using the DWTI Technology.

 

1.8 “Royalty
Term” shall mean, the period equal to the longer of (a) if, at the time of the First Commercial Sale of a Product
in Territory, the use, offer for sale, sale or import of such Product in Territory would infringe a Valid Claim (if such
Valid Claim were in an issued patent), the term for which such Valid Claim remains in effect and would be infringed (if such
Valid Claim were in an issued patent), and (b) ten (10) years following the date of the First Commercial Sale of a Product in
Territory.

 

1.9
“Territory” shall mean all countries worldwide.

 

1.10
“Valid Claim” shall mean either (a) a claim of an issued and unexpired patent included within the DWTI Patent
Rights, which has not been held permanently revoked, unenforceable or invalid by a decision of a court or other governmental agency
of competent jurisdiction, unappealable or unappealed within the time allowed for appeal, and which has not been admitted to be
invalid or unenforceable through reissue or disclaimer or otherwise, or (b) a claim of a pending patent application included within
the DWTI Patent Rights, which claim was filed in good faith and has not been abandoned or finally disallowed without the possibility
of appeal or refiling of such application.

 

1.11 “DWTI
IP Rights” shall mean, collectively, the DWTI Know-How Rights, the DWTI Patent Rights and the DWTI Technology and
Assets as set forth and described herein.

 

1.12
“DWTI Know-How Rights” shall mean, collectively, DWTI’s rights in all trade secret and other know-how
rights regarding the Products (or the use thereof) reasonably necessary or useful to develop, manufacture, obtain regulatory approval
for, commercialize or use the Products in the Field.

 

1.13 “DWTI
Patent Rights” shall mean, collectively, DWTI’s rights, as partially set forth in Schedule 1.4, in (a) all
patent applications heretofore or hereafter filed which claim, and only to the extent they claim, alone or in the Products
(or, in each case, the use thereof) reasonably necessary or useful to develop, manufacture, obtain regulatory approval for,
commercialize or use the Products in the Field; (b) all patents that have issued or in the future issue from any of the
foregoing patent applications, including without limitation utility models, design patents and certificates of invention; and
(c) all divisionals, continuations, continuations-in-part, reissues, renewals, extensions or additions to any such patents
and patent applications.

 

    	2

     

    

 

1.14
“DWTI Technology and Assets” shall mean, collectively, all drawings, bill of materials, compositions, methods,
processes, uses, technology, data and information, now existing or hereafter arising, that comprise, are responsible for, derive
or result from or relate to (a) methods and processes for designing, optimizing and manufacturing such Products (b) the Trademarks,
service marks and trade dress rights, including each material unregistered trademark, service mark and trade name, and any goodwill
associated therewith, set forth on Schedule 1.5 (the “DWTI Marks”), (c) any future Products not developed or commercialized
on the Effective Date that may use DWTI IP Rights.

 

2.
REPRESENTATIONS AND WARRANTIES.

 

Each
party represents and warrants to the other party as follows:

 

2.1 Organization.
Such party is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is
organized.

 

2.2 Authorization
and Enforcement of Obligations. Such party (a) has the requisite power and authority and the legal right to enter into
this Agreement and to perform its obligations hereunder; and (b) has taken all requisite action on its part to authorize the
execution and delivery of this Agreement and the performance of its obligations hereunder. This Agreement has been duly
executed and delivered on behalf of such party, and constitutes a legal, valid, binding obligation, enforceable against such
party in accordance with its terms.

 

2.3
Consents. All necessary consents, approvals and authorizations of all governmental authorities and other persons or entities
required to be obtained by such party in connection with this Agreement have been obtained.

 

2.4
No Conflict. The execution and delivery of this Agreement and the performance of such party’s obligations hereunder
(a) do not conflict with or violate any requirement of applicable laws, regulations or orders of governmental bodies; and (b)
do not conflict with, or constitute a default under, any contractual obligation of such party.

 

2.5
DISCLAIMER OF WARRANTIES. DWTI MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE LICENSED IP RIGHTS,
INCLUDING WITHOUT LIMITATION, ANY REPRESENTATION OR WARRANTY REGARDING VALIDITY, ENFORCEABILITY, MERCHANTABILITY, FITNESS FOR
A PARTICULAR PURPOSE OR NONINFRINGEMENT. THE LICENSED IP RIGHTS ARE PROVIDED “AS IS.”

 

    	3

     

    

 

3.
LICENSES AND ASSIGNMENTS .

 

3.1
License Grant to BT.

 

On
the terms and conditions of this Agreement, DWTI hereby grants to BT an exclusive, unlimited, royalty bearing license under the
DWTI IP Rights to manufacture, use, and offer for sale the Products for use in the Field and in the Territory.

 

BT
shall have the right to grant sublicenses (a) to third parties, other than Affiliates, for the purpose of manufacturing and selling
Products. Any such sublicense shall be subject and subordinate to the terms and conditions of this Agreement, and BT shall remain
responsible for all payments due to DWTI hereunder.

 

3.2 No
Implied Licenses. Only licenses and rights expressly granted herein shall be of legal force and effect. No license or
other right shall be created hereunder by implication, estoppel or otherwise.

 

4.
FINANCIAL TERM.

 

4.1
License Fee.

 

The
License Fee shall be $2,000,000.00, and payable as follows:

 

(a)
$350,000.00, plus $1,000 escrow fee, due on or before April 30, 2019 (“First Payment”);

(b)
$200,000.00 due on or before October 30, 2019 (“Second Payment”); and

(c)
$1,450,000.00 due on or before March 2, 2020 (“Third Payment”)

 

4.2
Royalty. After payment of the $2,000,000 License Fee and not later than April 30, 2020, BT will pay to DWTI a Royalty of
3% of Net Sales of the Product in the Territory beginning May 1, 2020 and continuing for the Royalty Term.

 

4.3
Payment Method. All payments by BT to DWTI hereunder shall be in United States Dollars in immediately available funds and
shall be made by wire transfer from a United States bank located in the United States to such bank account as designated from
time to time by DWTI to BT.

 

4.4
Interest. BT additionally shall pay DWTI interest on all amounts due hereunder which are not paid on or before the due
date therefor, calculated at a rate equal to the lesser of two percent (2%) per month, or the maximum rate permitted by law, whichever
is lower, calculated on the number of days such payment is past due, compounded monthly.

 

5.
COMMERCIALIZATION BY BT

 

5.1
Responsibility. BT shall be solely responsible, at its sole cost, for conducting the manufacturing, sales and commercialization
of the Products.

 

    	4

     

    

 

5.2
ETL. DWTI agrees to assign to BT all ETL certifications as exclusive licensee of the Products. All communication, changes
or modifications to the ETL listing, shall be the sole responsibility, at the sole cost of BT.

 

5.3
Diligence. BT shall use commercially reasonable efforts to actively manufacture and sell the Products in the Territory.
Commercially reasonable efforts shall mean those efforts and resources consistent with the exercise of prudent scientific and
business judgment, as applied to other pharmaceutical products of similar market potential and market size and at a similar stage
in the development or life of such product.

 

6.
INTELLECTUAL PROPERTY

 

6.1
Prosecution and Maintenance.

 

BT
shall have the sole right, at its sole expense, to prepare, file, prosecute and maintain DWTI Patent Rights. In so doing, DWTI
shall consider in good faith the interests of DWTI and DWTI shall assist BT, upon request and at BT’s sole expense, and
to the extent commercially reasonable, in connection therewith.

 

In
the event BT determines that it is no longer interested in maintaining any DWTI Patent Rights, DWTI shall have the sole right,
at its sole expense, to prepare, file, prosecute and maintain, and only to the extent they claim, the Products or the use thereof.
DWTI shall consider in good faith the interests of BT in so doing. BT shall assist DWTI, upon request and at BT’s sole expense,
and to the extent commercially reasonable, in connection therewith.

 

6.2
Enforcement.

 

In
the event BT becomes aware of actual or threatened infringement of DWTI Patent Rights related to Products, BT shall promptly notify
DWTI and confirm it in writing. BT shall have the sole right and the obligation, at its expense, to enforce DWTI Patent Rights.
To the extent the infringement of the DWTI Patent Rights is within the Field of Use, BT shall have sixty (60) days after discovering
the potential infringement to determine whether to enforce the DWTI Patent Rights. BT shall consider in good faith the interests
of DWTI in so doing.

 

Any
recovery obtained in connection with the enforcement of the DWTI Patent Rights by a party hereunder shall be distributed in the
following priority: (i) the party bringing the legal action (and both parties, if brought jointly) shall be reimbursed for any
expenses incurred in the action (including attorneys’ fees); and (ii) BT shall be entitled to retain ninety percent (90%)
and DWTI shall be entitled to receive ten percent (10%), of any recovery after expenses; and (iii) all other damages or recovery
and any special or punitive damages shall be divided in proportion to the share of expenses paid by each.

 

Each
party shall cooperate with the other in proceedings instituted hereunder, provided expenses are borne by the party bringing suit.
Litigation shall be controlled by the party bringing suit, except that BT shall control the litigation if brought jointly. Notwithstanding
anything herein to the contrary, DWTI shall have the right, at any time, to employ separate counsel of its choice and to join
and participate in any suit brought by BT, but the fees and expenses of such counsel shall be at the expense of DWTI.

 

    	5

     

    

 

Notwithstanding
anything herein to the contrary, neither DWTI nor BT shall settle or compromise any suit with respect to DWTI Patent Rights in
the Field of Use without the other party’s written consent, which consent shall not be unreasonably withheld. Further, in
no event shall Licensee enter into a settlement or compromise of any such claim if such settlement or compromise would adversely
affect in any way the rights of DWTI to the DWTI Patent Rights.

 

7.
CONFIDENTIALITY.

 

7.1 Confidentiality.
During the term of this Agreement and the Development and Supply Agreement and for a period of five (5) years following the
expiration or earlier termination of either this Agreement or the Development and Supply Agreement, whichever is later, each
party shall maintain in confidence the Confidential Information of the other party, shall not use or grant the use of the
Confidential Information of the other party except as expressly permitted hereby, and shall not disclose the Confidential
Information of the other party except on a need-to-know basis to such party’s directors, officers, employees and
consultants, to the extent such disclosure is reasonably necessary in connection with such party’s activities as
expressly authorized by this Agreement. To the extent that disclosure to any person is authorized by this Agreement, prior to
disclosure, a party shall obtain written agreement of such person to hold in confidence and not disclose, use or grant the
use of the Confidential Information of the other party except as expressly permitted under this Agreement. Each party shall
notify the other party promptly upon discovery of any unauthorized use or disclosure of the other party’s Confidential
Information.

 

7.2
Terms of Agreement. Neither party shall disclose any terms or conditions of this Agreement to any third party without the
prior consent of the other party; provided, however, that a party may disclose the terms or conditions of this Agreement, (a)
on a need-to-know basis to its legal and financial advisors to the extent such disclosure is reasonably necessary, and (b) to
a third party in connection with (i) an equity investment in such party, (ii) a merger, consolidation or similar transaction by
such party, or (iii) the sale of all or substantially all of the assets of such party which relate to this Agreement.

 

7.3
Permitted Disclosures. The confidentiality obligations under this Section 7 shall not apply to the extent that a party
is required to disclose information by applicable law, regulation or order of a governmental agency or a court of competent jurisdiction;
provided, however, that such party shall provide written notice thereof to the other party, consult with the other party with
respect to such disclosure and provide the other party sufficient opportunity to object to any such disclosure or to request confidential
treatment thereof.

 

    	6

     

    

 

8.
INDEMNIFICATION AND INSURANCE.

 

8.1
By BT. BT shall indemnify and hold harmless DWTI, and its directors, officers, employees and agents, from and against all
losses, liabilities, damages and expenses, including reasonable attorneys’ fees and costs (collectively, “Liabilities”),
resulting from any claims, demands, actions or other proceedings by any third party to the extent resulting from (a) the breach
of any representation, warranty or covenant by BT under this Agreement; (b) the use of the DWTI IP Rights, by BT, its sublicenses
or their respective Affiliates, but only to the extent such (i) Liabilities are attributable to the combination of the use of
the DWTI IP Rights and any BT proprietary API; or (ii) Liabilities are the result of a breach of a representation or warranty
made by BT under the Asset Purchase Agreement; (c) the manufacture, use, sale, handling or storage of the Products by or on behalf
of BT, its sublicensees or their respective Affiliates, customers or end-users; or (d) the use of the Confidential Information
of DWTI by BT, its sublicensees or their respective Affiliates.

 

8.2
By DWTI. DWTI shall indemnify and hold harmless BT, and its directors, officers, employees and agents, from and against
all Liabilities resulting from any claims, demands, actions or other proceedings by any third party to the extent resulting from
(a) the breach of any representation, warranty or covenant by DWTI under this Agreement; (b) the use of the DWTI IP Rights, by
BT, or their respective Affiliates, except for (i) Liabilities that are attributable to the combination of the use of the DWTI
IP Rights and any BT proprietary API; or (ii) Liabilities that are the result of a breach of a representation or warranty made
by BT under the Asset Purchase Agreement; or (c) the use by DWTI of the Confidential Information of BT.

 

8.3
Procedure. If a party (the “Indemnitee”) intends to claim indemnification under this Section 8, it shall promptly
notify the other party (the “Indemnitor”) in writing of any claim, demand, action or other proceeding for which the
Indemnitee intends to claim such indemnification, and the Indemnitor shall have the right to participate in, and, to the extent
the Indemnitor so desires, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however,
that an Indemnitee shall have the right to retain its own counsel, with the fees and expenses to be paid by the Indemnitor, if
representation of such Indemnitee by the counsel retained by the Indemnitor would be inappropriate due to actual or potential
differing interests between the Indemnitee and any other party represented by such counsel in such proceeding. The obligations
of this Section 8 shall not apply to amounts paid in settlement of any claim, demand, action or other proceeding if such settlement
is effected without the consent of the Indemnitor, which consent shall not be withheld or delayed unreasonably. The failure to
deliver written notice to the Indemnitor within a reasonable time after the commencement of any such action, if prejudicial to
its ability to defend such action, shall relieve the Indemnitor of any obligation to the Indemnitee under this Section 8, but
the omission so to deliver written notice to the Indemnitor shall not relieve it of any obligation that it may have to any party
claiming indemnification otherwise than under this Section 8. The Indemnitee, its employees and agents, shall reasonably cooperate
with the Indemnitor and its legal representatives in the investigation of any claim, demand, action or other proceeding covered
by this Section 8.

 

    	7

     

    

 

9.
TERM AND TERMINATION.

 

9.1
Term. This Agreement shall commence on the Effective Date and, unless earlier terminated pursuant to this Section 9, shall
continue for the period of the Royalty Term.

 

9.2
Termination for Breach.

 

If
BT has breached its obligations under Section 4, then as its sole remedy for such breach, DWTI shall have the right to terminate
this Agreement, effective upon thirty days (30) written notice to BT.

 

If
a party has materially breached this Agreement (other than a breach by BT of its obligations under Section 4), and such material
breach shall continue for thirty (30) days after written notice of such breach was provided to the breaching party by the nonbreaching
party, the nonbreaching party shall have the right at its option to terminate this Agreement effective at the end of such thirty
(30) day period.

 

9.3
Termination by BT. After the full payment of the License Fee, BT may terminate this Agreement at any time upon ninety (90)
days prior written notice to DWTI.

 

9.4
Effect of Expiration or Termination.

 

Expiration
or termination of this Agreement shall be without prejudice to any rights which shall have accrued to the benefit of a party prior
to such expiration or termination. Without limiting the foregoing, Sections 4.2, 4.3, 7, 8, and 10 shall survive any expiration
or termination of this Agreement.

 

Except
as otherwise expressly set forth in this Agreement, promptly upon the expiration or earlier termination of this Agreement, (a)
BT promptly shall prepare and provide DWTI with a final royalty report through the date of expiration or termination, and shall
pay to DWTI all royalties owing through such date, and (b) each party shall return to the other party all tangible items regarding
the Confidential Information of the other party and all copies thereof; provided, however, that each party shall have the right
to retain one (1) copy for its legal files for the sole purpose of determining its obligations hereunder.

 

10.
MISCELLANEOUS.

 

10.1
Governing Law. This Agreement shall be governed by, interpreted and construed in accordance with the laws of the State
of Colorado, without regard to the conflicts of law principles thereof. The courts of the State of Colorado shall have jurisdiction
over the parties hereto in all matters arising hereunder, and the exclusive venue for any such action shall be a state or federal
court located in Denver, Colorado, U.S.A.

 

10.2
Waiver. No waiver by a party hereto of any breach or default of any of the covenants or agreements herein set forth shall
be deemed a waiver as to any subsequent and/or similar breach or default.

 

    	8

     

    

 

10.3
Assignment. Neither this Agreement nor any right or obligation hereunder may be assigned or delegated, in whole or part,
by either party without the prior express written consent of the other; provided, however, that either party may, without the
written consent of the other, assign this Agreement and its rights and delegate its obligations hereunder in connection with the
transfer or sale of all or substantially all of its business, or in the event of its merger, consolidation, change in control
or similar transaction. Any permitted assignee shall assume all obligations of its assignor under this Agreement. Any purported
assignment in violation of this Section 10.3 shall be void.

 

10.4
Independent Contractors. The relationship of the parties hereto is that of independent contractors. The parties hereto
are not deemed to be agents, partners or joint venturers of the others for any purpose as a result of this Agreement or the transactions
contemplated thereby.

 

10.5
Further Actions. Each party shall execute, acknowledge and deliver such further documents and instruments and to perform
all such other acts as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

 

10.6
Notices. All requests and notices required or permitted to be given to the parties hereto shall be given in writing, shall
expressly reference the section(s) of this Agreement to which they pertain, and shall be delivered to the other party, effective
on receipt, at the appropriate address as set forth below or to such other addresses as may be designated in writing by the parties
from time to time during the term of this Agreement.

 

If
to DWTI:

DWTI,
Inc.

999
18th St.

Suite
3000

Denver,
CO 80202

 

If
to BT:

Bed
Therapies, Inc.

4524
Westway Ave.

Dallas,
TX 75205

Attn:
Jainal Bhuiyan

 

With
a copy to:

Jeffrey
Reeser

Polsinelli

1401
Lawerence, Suite 2300

Denver,
CO 80202

 

10.7
Force Majeure. Nonperformance of a party (other than for the payment of money) shall be excused to the extent that performance
is rendered impossible by strike, fire, earthquake, flood, governmental acts or orders or restrictions, failure of suppliers,
or any other reason where failure to perform is beyond the reasonable control and not caused by the negligence, intentional conduct
or misconduct of the nonperforming party; provided, however, that the nonperforming party shall use commercially reasonable efforts
to resume performance as soon as reasonably practicable.

 

    	9

     

    

 

10.8
No Consequential Damages. IN NO EVENT SHALL A PARTY BE LIABLE FOR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING
OUT OF THIS AGREEMENT OR THE EXERCISE OF ITS RIGHTS HEREUNDER, INCLUDING WITHOUT LIMITATION LOST PROFITS ARISING FROM OR RELATING
TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF SUCH DAMAGES. NOTHING IN THIS SECTION 10.8 IS INTENDED TO LIMIT OR
RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF EITHER PARTY UNDER SECTION 8 ABOVE.

 

10.9
Complete Agreement. This Agreement constitutes the entire agreement between the parties regarding the subject matter hereof,
and all prior representations, understandings and agreements regarding the subject matter hereof, either written or oral, expressed
or implied, are superseded and shall be and of no effect.

 

10.10
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original and together
shall be deemed to be one and the same agreement.

 

10.11
Headings. The captions to the several sections hereof are not a part of this Agreement, but are included merely for convenience
of reference only and shall not affect its meaning or interpretation.

 

10.12
Severability. If any provision of this Agreement shall be held to be invalid, illegal, or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired; provided that the essential
benefits to the parties hereunder remain intact.

 

    	10

     

    

 

IN
WITNESS WHEREOF, the parties hereto have each caused this Agreement to be executed by their duly-authorized representatives as
of the Effective Date.

 

	 	DRYWAVE
    TECHNOLOGIES USA, INC.
	 	 
	 	By:	
	 	Name:
    	Steve
    R. Howe
	 	Title:
    	President
	 	 
	 	BED
    THERAPIES, LLC
	 	 
	 	By:
    	
	 	Name:	Jainal
    Bhuiyan
	 	Title:	Manager

 

    	11

     

    

 

IN
WITNESS WHEREOF, the parties hereto have each caused this Agreement to be executed by their duly-authorized representatives as
of the Effective Date.

 

 

	 	DRYWAVE
    TECHNOLOGIES USA, INC.
	 	 
	 	By:	
	 	Name:
    	Steve
    R. Howe
	 	Title:
    	President
	 	 
	 	BED
    THERAPIES, LLC
	 	 
	 	By:
    	
	 	Name:	Jainal
    Bhuiyan
	 	Title:	Manager

 

    	12

     

    

 

SCHEDULE
1.4

 

DWTI
PATENT RIGHTS

 

US
Patent Number 7,311,683

 

Patent
Application number 61/365,458

 

    	13

     

    

 

SCHEDULE
1.5

 

DWTI
MARKS

 

 

 

BT®

 

Making
the World Feel Better TM

 

 

 

    	14Exhibit
10. 4

 

Execution
Copy

 

CONTRACT
SERVICES AGREEMENT

 

THIS
CONTRACT SERVICES AGREEMENT (this “Agreement”), effective as of January 1, 2020 (the “Effective
Date”), is by and between Solajet Financing Company, Colorado Limited Liability Company, a wholly owned subsidiary
of Bed Therapies, Inc., Texas corporation, with offices located at 999 18th St., Suite 3000, Denver, CO 80202 (the “Company”),
and DryRx, LLC, a Nevada limited liability company, which has an office located in, Ft. Collins, CO 80524 (“DX”).

 

WHEREAS,
DX, is engaged in the business of developing, manufacturing and marketing products and proprietary technologies for the health
and wellness industry;

 

WHEREAS,
DX has developed or acquired certain assets related to dry-hydrotherapy that support the Products as described in this Agreement.
This agreement shall relate to manufacturing, development and servicing of the SolaJet DRYWAVE Massage systems;

 

WHEREAS,
DX and the Company wish to replace the original agreement dated, July 22, 2018 with a term of 2 years (the “Prior Agreement”),
with this Agreement;

 

WHEREAS,
the Company wishes to engage DX as an independent contractor to provide and employ trained personnel as is reasonable, for development
of product, manufacturing and service support, (the “Services”); and

 

WHEREAS,
DX is willing to provide the Services on a non-exclusive basis.

 

NOW,
THEREFORE, in consideration of the mutual promises and covenants set forth below, the Company and DX agree as follows:

 

	1.	TERM
    AND TERMINATION

 

	 	1.1	Unless
    terminated earlier as provided herein, this Agreement shall have a term of two (2) years commencing upon execution of this
    agreement by both parties, unless terminated sooner. By written agreement by all parties this agreement may extend for up
    to 3 successive years.
	 	 	 
	 	1.2	Termination
    for Breach. If either party materially defaults in its performance or breaches any material term or condition of this
    Agreement, then the other party may give written notice to the breaching or defaulting party that if the breach or default
    is not cured within thirty (30) days, the Agreement may be terminated. If such notice is given and the material breach or
    default is not cured during such thirty (30) day period, then the party giving notice of such breach or default will thereafter
    have the right to terminate this Agreement effective immediately.

 

    	 

    	 

    

 

	1.3	Effect
    of Expiration or Termination.

 

	 	1.3.1	Expiration
    or termination of this Agreement shall be without prejudice to any rights which shall have accrued to the benefit of a party
    prior to such expiration or termination. Without limiting the foregoing, Sections 5.3, 6, and 8 shall survive any expiration
    or termination of this Agreement.
	 	 	 
	 	1.3.2	Except
    as otherwise expressly set forth in this Agreement, promptly upon the expiration or earlier termination of this Agreement,
    (a) the terminating party will immediately pay to the other party any amounts owing to the other party through such date,
    and (b) each party shall return to the other party all tangible items regarding the Confidential Information of the other
    party and all copies thereof; provided, however, that each party shall have the right to retain one (1) copy for its legal
    files for the sole purpose of determining its obligations hereunder. Any amounts owed by the non-terminating party shall be
    paid within 90 days.
	 	 	 
	 	1.3.3	If
    terminated by the Company, the Company shall pay DX five percent (5%) of Net Sales for a period of time equal to the number
    of months this Agreement was in place prior to termination not to exceed sixty (60) months. As a precondition to receiving
    this termination fee, DX shall be available to provide up to thirty (30) days of training at the request of the Company after
    termination of this Agreement.

 

	2.	THE
    SERVICES

 

	 	2.1	DX
    will provide manufacturing and support services in connection with the Products for and on behalf of the Company during the
    term of this Agreement as directed by the Company pursuant to the invoices prepared by DX on a monthly basis (collectively,
    the “Services”).
	 	 	 
	 	2.2	DX
    will assign and devote to the rendering of the Services such DX personnel as will ensure the timely and commercially reasonable
    performance of the Services.
	 	 	 
	 	2.3	DX
    will perform the Services in accordance with the standards specified by the Company from time to time.
	 	 	 
	 	2.4	Manufacturing
    and Operations. DX will be responsible for the manufacturing oversight and production operations of the current products
    and other products that may be introduced from time to time by the Company in the Business (collectively, the “Products”).
    Such responsibility shall include, but not be limited to:

 

	 	2.4.1	identification
    of suppliers and production relationships;
	 	2.4.2	compliance
    with associated regulatory affairs;
	 	2.4.3	recruitment
    and management of production staffing;
	 	2.4.4	implementation
    and tracking of quality and service;
	 	2.4.5	identification
    and maintenance of SolaJet service standards;
	 	2.4.6	coordination,
    management and rollout of Company service plan;

 

    	2

    	 

    

 

	3.	COMPENSATION
    AND EXPENSES

 

	 	3.1	Performance
    Incentive Fee. In addition invoiced services fees and preapproved overhead bonuses/commissions described herein, Company
    shall pay DX fifteen (15) days after the end of each quarter:

 

	 	3.1.1	10%
    of Net Selling Profit
	 	 	Net
    Selling Profit will be defined as Net Sales less COGS and all expenses associated with the Services and the other expenses
    paid pursuant to this Section 3.

 

	4.	RECONCILIATION
    OF AMOUNTS DUE

 

	 	4.1	Amounts
    paid to DX. Over the course of the Prior Agreement, the Company paid $2,348,129, for services rendered, including inventory.
    Part of the services rendered was for finished goods inventory of Solajet beds. As of December 31, 2019, the Company has balance
    of $1,241,129 for prepaid inventory, paid to DX. Effective January 1, 2020, DX agrees to transfer the title to the prepaid
    inventory to the Company as well as the storage agreement with Monarchline Logistics, Inc.

 

	5.	INTELLECTUAL
    PROPERTY

 

	 	5.1	Definitions.
	 	 	 
	 	 	a)
    “Intellectual Property” certain intellectual property or know how pertaining to sales strategies,
    marketing materials and selling tactics have been developed by DX and shall remain property of DX but shall be shared or utilized
    in the fulfilment of this Service Agreement.

 

	 	5.3		Acknowledgment.
	 	 	 	 
	 	 	 	a)
    No Rights. Company acknowledges the DX’s right, title and interest in and to any and all Background Intellectual
    Property and that, except as specified in this Agreement, Company will not acquire any rights whatsoever in or to Background
    Intellectual Property. Licenses. Company further acknowledges that the DX’s rights in the Background Intellectual
    Property may derive from licensing agreements between DX and third parties holding legal title (“Licensing Agreements”).
	 	 	 	b)
    Non-disclosure. DX must hold in confidence and may not disclose or make available to any third parties, other than
    to the Company’s affiliates who have undertaken a similar non-disclosure obligation, the Products or any Confidential
    Information (as hereinafter defined) made available pursuant to this Agreement. DX and the Company must also take such reasonable
    precautions (including the execution of an appropriate confidentiality agreement with its employees) that DX or the Company
    may request in an effort to make certain that the Confidential Information will continue to be held in confidence.

 

	 	5.4	Notice
    of Third Party Claims. DX shall immediately give written notice to the Company of any third party demand, claim or proceeding
    alleging that the exercise by DX of any of the rights granted to it by this Agreement, in the manner and for the purposes
    contemplated by this Agreement, infringes any intellectual property belonging to a third party.

 

    	3

    	 

    

 

	6	CONFIDENTIALITY

 

	 	6.1	For
    purposes of this Agreement, the term “Confidential Information” means any information disclosed to Company, orally
    or in writing, or known by DX directly or indirectly as a consequence of this Agreement, and not generally known outside of
    the DX and which in any way relates to the business of the DX or its affiliates including, but not limited to, information
    relating to research, development, inventions, discoveries, concepts, ideas (whether patentable or not), data, technical information,
    know-how, management practices, business strategy (including joint ventures, acquisitions or similar transactions), financial
    information, accounting, production, information systems, purchases, marketing, merchandising and selling materials.
	 	 	 
	 	6.2	Company
    hereby agrees that it shall not disclose any Confidential Information to anyone other than its employees who have a need to
    know or evaluate such information in order to perform Company’s obligations hereunder. Such employees shall be bound
    by this provision. Company shall not use Confidential Information for its own benefit or for the benefit of any third party
    without the DX’s written consent. Company’s obligations under this Agreement regarding Confidential Information
    shall not apply to any Confidential Information which:

 

a)
was known by Company before it was disclosed to it by DX and was not subject to any obligation of confidentiality;

 

b)
was in the public domain or entered the public domain through no fault of Company; or

 

c)
must be disclosed by operation of law or pursuant to a court order or ruling; but only to the extent of such disclosure.

 

	 	6.3	Company’s
    obligations under this Agreement regarding Confidential Information survives the termination or expiration of this Agreement.

 

	7	DX
    IS NOT AN AGENT OF THE COMPANY

 

	 	The
    relationship between the Company and DX established by this Agreement is not that of principal and agent, nor that of employer
    and employee, partners or joint venturers. DX is not granted any authority to create any obligation, express or implied, on
    behalf of, or in the name of, the Company, or to bind the Company in any manner whatsoever. DX will not make available, and
    the Company will not use, DX’s premises or facilities on a continuous basis unless agreed to between the parties pursuant
    to a separate agreement.

 

    	4

    	 

    

 

	8	GENERAL
    PROVISIONS

 

	 	8.1	Assignment.
    This Agreement may not be assigned by either party without the prior written consent of the other, except, in the case of
    the DX to entities which are, directly or indirectly, wholly-owned affiliates of DX.
	 	 	 
	 	8.2	Successors
    and Assigns. Except as limited by the Assignment provisions hereof, this Agreement, its terms and conditions will be binding
    upon and inure to the benefit of the parties hereto and their respective legal representatives, successors, and assigns.
	 	 	 
	 	8.3	Governing
    Law. This Agreement shall be governed by, and construed in accordance with, the laws of Colorado, conflict-of-law principles
    excluded.
	 	 	 
	 	8.4	Entire
    Agreement. This Agreement supersedes all prior or contemporaneous written or oral agreements and understandings relating
    to the subject matter hereof between DX and the Company. Neither party is entitled to rely on any representations of any officer,
    employee or agent of the other party which is not expressly set forth in this Agreement.
	 	 	 
	 	8.5	Amendments.
    This Agreement may not be amended, altered or changed unless in writing signed by the parties.
	 	 	 
	 	8.6	Severability.
    If any provision of this Agreement is, for any reason, held invalid or illegal in any respect, such invalidity or illegality
    will not affect the validity of this Agreement itself and there will be substituted for the affected provision, a valid and
    enforceable provisions which most closely approximates the intent and economic effect of the invalid provision. If such provision
    cannot be amended so as to be valid and enforceable, then such provision is severable from this Agreement, and the remaining
    provisions of this Agreement will remain valid and enforceable.
	 	 	 
	 	8.7	Waiver.
    Either party’s failure to enforce any provision of this Agreement or to require performance by the other party will
    not be construed as a waiver of such provision nor affect the validity of this Agreement or any part thereof, or either party’s
    right to enforce any provisions thereafter.
	 	 	 
	 	8.8	Counterparts.
    This agreement may be executed in two or more counterparts and delivered by e-mail or facsimile, all of which taken together
    will constitute one instrument.
	 	 	 
	 	8.9	Headings.
    The headings contained in this Agreement are for convenience and reference only and do not define, limit, extend, or describe
    the scope of this Agreement or the intent of any provision thereof.

 

[Remainder
of Page Intentionally Left Blank]

 

    	5

    	 

    

 

 

IN
WITNESS WHEREOF, the parties to this Agreement have executed this Agreement as of the Effective Date.

 

	SOLAJET
    FINANCING COMPANY, LLC	 	 	DRYRX,
    LLC.
	 	 	 	 	 
	By:	/s/
    Nickolay Kukekov	 	By:	/s/
    Todd Howe  
	Name:	Nickolay
    Kukekov    	 	Name:	Todd
    Howe 
	Its:	 Director      	 	Its:
    	Manager     

 

    	6

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