Document:

Exhibit 10.1

 

[Certain identified information has been
excluded from the exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.]

 

Non-Exclusive
Distribution and Supply Agreement

 

 

This Non-Exclusive Distribution and Supply Agreement is entered
into as of December 14, 2020 (the “Effective Date”) by and between Sonoma Pharmaceuticals, Inc., a Delaware corporation
having a place of business at 645 Molly Ln, Suite 150, Woodstock, GA 30189 (“Supplier”) and Gabriel Science, LLC, a
Colorado limited liability company, having a place of business at 6309 Monarch Park Place, Suite 206, Niwot, CO 80503 (“Distributor”).

 

Whereas,
Supplier manufactures certain products based on the Proprietary Rights (as such term is defined below) and subject to the
Label Claims as approved by the Government Authorities, which it is willing to supply to Distributor on the terms and subject to
the conditions of this Agreement;

 

Whereas,
as between Distributor and Supplier, all right, title and interest in and to Supplier’s Proprietary Rights (as such
term is defined below) related to the Products and Supplier’s business remains with Supplier.

 

Whereas,
Distributor wishes to obtain from Supplier non-exclusive rights to distribute the Products in the Field in the Territory through
the Channels (as such term is defined below);

 

Now,
Therefore, in consideration of the foregoing premises and the mutual promises and covenants set forth below, the Parties
mutually agree as follows:

 

		1.	Definitions.

 

“Affiliate” means, with
respect to any person or entity (a) any other person or corporation directly or indirectly controlling, controlled by, or under
common control with a Party to this Agreement, or (b) any partnership, joint venture or other entity directly or indirectly controlled
by, controlling, or under common control with, a Party to this Agreement but in each case only for so long as such ownership or
control shall continue. For purposes of this definition, the term “control” as applied to any person or entity means
the possession, directly or indirectly, of the power to direct or cause the direction of the management of that person or entity,
whether through ownership of voting securities or otherwise.

 

“Agreement” means this
Non-Exclusive Distribution and Supply Agreement, as amended from time to time by both parties.

 

“Business Day” means a
day (excluding Saturdays, Sundays and public holidays) on which banks are generally open for business in the United States of America
for the transaction of normal banking business.

 

“Channels” has the meaning
given to it in Attachment A hereto.

 

 

 

 

    	 	1	 

     

    

 

“Distribution Rights” shall
have the meaning assigned to it under Section 2.1 of this Agreement.

 

“Effective Date” has the
meaning ascribed thereto in the preamble.

 

“Field” has the meaning
given to it in Attachment A hereto.

 

“Government Authority”
means any federal, state or public authority, exercising governmental powers and having jurisdiction in connection with this Agreement;
and all statutes, laws, ordinances, regulations, orders, decrees, permits, licenses, approvals, writs, process and rules issued
thereby that may operate in connection with this Agreement in the Territory.

 

“Initial Term” shall have
the meaning set forth in Section 10.1.

 

“Instructions for Use”
means the instructions for use approved by the U.S. Food and Drug Administration or any other Government Authority.

 

“Label Claims” means the
label claims obtained for a Product as approved by the Government Authority.

 

“Marketing Authorization”
means the permit, authorization and/or license for the Products issued by the relevant health authorities in the Territory, the
underlying applications thereto, and any supplements and amendments to such Government Authorizations that authorize the holder
of such license to market and sell the Products in the Territory.

 

“Party” shall mean each
of Supplier and Distributor.

 

“Permitted Use” means use
in accordance with applicable Label Claims.

 

“Patents” means the patent(s)
owned by Supplier.

 

“Patent Applications” means
the patent application(s) filed by Supplier.

 

“Proprietary Rights” means
the Trade Names, Trademark(s), Trademark Application(s), Patent(s), Patent Application(s), copyrights, trade secret rights and
all other intellectual and industrial property rights of any sort related to the Product and Supplier’s business.

 

“Product” means the hypochlorous-acid
based products, in the volumes, and packaging specified on Attachment A of this Agreement. The Parties agree that they may,
from time to time and by mutual written agreement, include new Products in such Attachment A; provided, however, that pricing
must be agreed to by the Parties before adding any new Product to such Attachment A.

 

“Recall” shall have the
meaning assigned to it under Section 7.3 of this Agreement.

 

 

 

 

    	 	2	 

     

    

 

“Subdistributor” means
any third party appointed to act for Distributor in promoting, marketing, selling and distributing the Products in the Territory
for the Permitted Use in the Field as permitted under Section 2.2 hereof.

 

‘Term” means the Initial
Term and any extension thereof pursuant to Section 10.1 hereof.

 

“Territory” means the United
States.

 

“Trademark(s)” means the
trademark application(s) filed by Supplier, any derivatives thereof, any other symbols related to the Products and all goodwill
associated therewith.

 

“Trade Names” means any
name under which Supplier markets a product or service or that Supplier uses in connection with its business.

 

		2.	Distribution Rights.

 

2.1             
Non-Exclusive. On the terms and subject to the conditions of this Agreement, Supplier hereby appoints Distributor,
and Distributor hereby accepts appointment as Supplier’s non-exclusive distributor of Products through the Channels in the
Territory for sale for the Permitted Use in the Field in accordance with the terms of this Agreement (the “Distribution Rights”).
Distributor may promote Products on its website but may not sell Products through any website without prior written approval from
Supplier that will be granted in Supplier’s sole discretion. The Supplier may withdraw approval in the event of breach of
any term of this Agreement including, but not limited to, sales outside the Territory. Distributor shall not have any right to,
and shall not, promote, market, import, offer for sale, sell and/or distribute or use any Products outside of the Channels or outside
of the Territory or for any use outside of the Field.

 

2.2             
Limitation on Rights. The Distribution Rights are limited to, and may be exercised by Distributor and/or its permitted
Subdistributor, solely for the purpose of promoting marketing, import, offering for sale, selling and/or distributing the Products
for the Permitted Use, through the Channels, in the Field, in the Territory. Distributor may appoint Subdistributors, but only
pursuant to written agreements with third parties reasonably acceptable to Supplier, which agreements shall contain obligations
of the third party materially similar to the obligations of Distributor hereunder, and no less favorable to Supplier’s rights
than the provisions contained in this Agreement. Any Subdistributor shall be subject to Supplier’s prior written approval
which may be withdrawn in the event Subdistributor breaches any term of this Agreement. Distributor shall be liable to Supplier
for acts or omissions of any Subdistributor not in conformity with the terms of this Agreement or any agreement between Distributor
and any Subdistributor.

 

2.3             
Limitation on Rights. The license granted in Section 2.1 is limited solely to distribution and sale of the Products,
directly or indirectly through Subdistributors. Distributor shall have no right to distribute or sell Products outside the Channels.
Distributor shall not have any right to and shall not export, market, sell or distribute any Products outside of the Territory
or for any use outside of the Field.

 

		3.	Purchase Orders and Delivery.

 

3.1             
Forecast. Within five (5) days after the Effective Date, and on the first day of each month, Distributor shall provide
Supplier with a written non-binding rolling forecast, by month and by Product, of the quantities of Products Distributor expects
Supplier to ship to Distributor for each month covered by the forecast.

 

 

 

 

    	 	3	 

     

    

 

3.2             
Terms and Conditions. Purchase Orders by Distributor shall be subject to acceptance by Supplier at Woodstock, Georgia,
or such other place(s) as may be designated by Supplier. Except as modified by this Agreement, all Purchase Orders shall be accepted
subject to (a) a minimum purchase quantities specified in Attachment A, and (b) to the terms and conditions of Supplier’s
Terms and Conditions of Sale (“General Terms and Conditions”), a copy of which is attached hereto as Attachment
B and incorporated herein by reference. In the event of any inconsistency between the General Terms and Conditions and any
provision of this Agreement, this Agreement shall be controlling.

 

3.3             
Packaging and Labeling. Supplier shall be responsible for all packaging and labeling of Products purchased under
the Agreement. Distributor shall not modify, alter, remove, or add to, or authorize Subdistributor or other third party to modify,
alter, remove or add to, any labeling of any Product without the prior written consent of Suppler. Supplier shall have the right
to modify the Product packaging and labeling at any time, including, without limitation, to address modifications required or suggested
by the relevant Government Authority issuing the Market Authorization.

 

		4.	Pricing and Payment.

 

4.1             
Initial Fee. Within ten (10) Business Days of the Effective Date, Distributor shall make an initial stocking order
of $[____].

 

4.2             
Purchase Price. The purchase price for each Product (“Purchase Price”) is set forth on Attachment
A.

 

4.3             
Purchase Price Changes. Supplier will notify Distributor before raising the Purchase Prices, but Supplier shall have
the right to increase Purchase Prices of Products at its discretion, but [____] during the Term. Supplier shall notify Distributor
in writing at least [____] days in advance of the effectiveness of any increase.

 

		5.	Marketing and Sales.

 

5.1             
Business Plan. Distributor agrees to use all commercially reasonable efforts to successfully promote and sell Products
through the Channels for the Permitted Use in the Field in the Territory on a continuing basis under this Agreement. During the
Term, Distributor agrees not to promote, market, distribute or sell any products that are competitive with the Products.

 

5.2             
Compliance with Laws. Distributor agrees to ascertain and materially comply with all applicable laws and regulations
and standards of industry or professional conduct in connection with the use, marketing, offer for sale, sale, distribution and
promotion of the Products, including, without limitation, those applicable to exportation, importation, product claims, labeling,
approvals, registrations and notifications.

 

5.3             
Compliance with Label Claims, Etc. Distributor agrees to market the Products consistent with all applicable Label
Claims. Distributor shall not, and shall cause its Affiliates not, to make any representations or warranties relating to the Products
except for those approved by the supplier or on the label. Distributor agrees not to make, and agrees to cause its Subdistributors
not to make, any representation or warranty, whether oral or in writing, regarding the Products that is not consistent with the
Label Claims authorized for the Product in the Field in the Territory.

 

5.4             
Marketing Materials. Distributor shall supply all sales and marketing material in the Territory at its sole expense
and, upon Supplier’s request, shall obtain Supplier’s approval before using any such material. Supplier shall approve
all claims and language used to describe the Products. Supplier shall not unreasonably withhold or delay this approval. Any sales
and marketing materials not objected to in writing by Suppler within thirty (30) days, or such longer period as Supplier may reasonably
request, after receipt by Supplier for review shall be deemed approved by Supplier. Supplier shall supply Distributor, as reasonably
requested from time to time, with information required in order to prepare sales and marketing materials. Supplier will support
the Distributor with a reasonable quantity of samples, brochures or additional marketing and/or promotional materials.

 

 

 

 

    	 	4	 

     

    

 

5.5          
Government Contracts. Distributor shall not resell Products to any Governmental Authority or its respective agencies
without express written approval from Supplier. Unless otherwise separately agreed to in writing between Supplier and Distributor,
no provisions required in any US government contract or subcontract related thereto shall be a part of this Agreement, imposed
on or binding on Supplier, and this Agreement is not deemed an acceptance of any government provisions that may be included or
referenced in Distributor's request for quotation, Purchase Order, or any other document.

 

		6.	Intellectual Property.

 

6.1             
No rights to Intellectual Property. Unless otherwise expressly set forth in this Section, this Agreement shall not
be interpreted or construed to transfer, assign, license or grant to a Party or any third party any right to or under any patent,
trade secret, trademark, trade name or other intellectual property right of the other Party.

 

6.2             
Identification of Supplier Rights. Distributor shall properly
identify and accurately describe all Products as products of Supplier. Distributor shall not alter, remove, deface or obscure any
notice of any Proprietary Right on any Product and shall not add to any Product any other trade name, trademark or notice of any
other person or entity without the prior written consent of Supplier. Distributor shall not rebottle or repackage any Product.

 

6.3             
No Use of Supplier Trade Names and Trademarks. Neither Distributor nor any Distributor Affiliate or Subdistributor
shall, either during the Term nor after expiration, termination or dissolution of this Agreement, use a company name (whether in
its charter documents or otherwise) that includes the element “Oculus” , “Sonoma” and / or Microcyn®
(technology) or any other Trademark or Trade Name (collectively, “Supplier Marks”) that is similar to or could be confused
with any Supplier Mark. Neither Distributor nor any Subdistributor is authorized to license or permit any third party to use a
name or trademark which includes a Supplier Mark or any word or words that is similar to, could be confused with, or is disparaging
of any Supplier Mark. Distributor may use the name Microcyn® technology in marketing materials.

 

6.4             
Protection of Proprietary Rights. Distributor shall comply
with all directives issued by Supplier respecting the use or protection of Supplier’s Proprietary Rights and shall not use
or suffer the use of any of the same in any manner which contravenes Supplier’s directives or which otherwise may, in Supplier’s
opinion, tend to lessen the value thereof, or impair the goodwill or reputation of Supplier, of any Supplier Affiliate, and/or
of its respective products and/or services.

 

6.5             
Assistance with Intellectual Property Matters. If requested
by Supplier, Distributor shall assist Supplier in registering or otherwise protecting Supplier’s Proprietary Rights within
the Territory, all strictly in Supplier’s name and for Supplier’s benefit.

 

6.6             
Notice of Infringement. Distributor shall immediately notify
Supplier of any infringement, misuse, misappropriation, tort, unfair competition, passing off or violation relating to any Supplier
Proprietary Right that comes to Distributor’s attention. In the event of any such infringement, misuse, misappropriation,
tort, unfair competition, passing off or violation relating to the activities of Distributor, any Subdistributor or any third party
acquiring any Product directly or indirectly from Distributor or any Subdistributor, Distributor shall take all steps reasonably
requested by Supplier to terminate any such infringement, misuse, misappropriation, tort, unfair competition, passing off or violation.

 

6.7             
Proceedings. Supplier shall have exclusive control over
the commencement, prosecution and settlement of any legal proceeding with respect to any infringement, misuse, misappropriation,
tort, unfair competition, passing off or violation relating to any patent, trade secret, trademark, trade name or other Supplier
Proprietary Rights. In connection with any such legal proceeding, Distributor shall provide such assistance related to such proceeding
as Supplier may reasonably request; provided that Supplier shall reimburse the expenses reasonably incurred by Distributor in providing
such assistance in accordance with Supplier’s request for the same. Distributor shall not have any right to commence, prosecute
or settle any legal proceeding with respect to any infringement, misuse, misappropriation, act of tort, unfair competition, passing
off or violation relating to any Supplier Proprietary Rights.

 

 

 

 

    	 	5	 

     

    

 

		7.	Non-Conformities and Recall.

 

7.1             
Non-Conformities. Upon delivery of the Products, Distributor shall inspect the Products and shall notify the Supplier
promptly, and no later than ten (10) Business Days after the delivery date, by email or written communication delivered as provided
herein, of any shortages or non-conformity of the delivered Products apparent from a visual inspection. Distributor shall include
supporting evidence and documents reasonably acceptable to Supplier to support any such shortages or nonconformities. With respect
to shortages or nonconformity discoverable by way of visual inspection, the Product shall be deemed to have been delivered in good
saleable condition after expiry of said ten (10) Business Day period after the delivery date to Distributor.

 

Upon request of Supplier, Distributor shall make available to
Supplier samples of the Products which Distributor believes to be defective. In case of non-conformity to the Marketing Authorization(s)
of any quantity of the Product delivered pursuant hereto, Supplier shall replace, at its expense, the quantities concerned within
twenty (20) Business Days from receipt of the relevant notice and supporting documentation from Distributor.

 

7.2             
Traceability and Complaints.

 

7.2.1       
During the Term, and for a period of 5 (five) years after the end of the Term Distributor shall keep and maintain records
of all sales and other distributions of Products made by Distributor or its Subdistributors sufficient to effectively, efficiently
and economically implement any Recall or investigation of any Product, but at a minimum containing information about:

 

	 	(i)	Product description;
		(ii)	Customer identification (name and location); and

		(iii)	Shipping date.

 

All complaints received by Distributor shall be communicated
to Supplier within five (5) Business Days. All traceability information accompanied by the complaint shall be made available to
Supplier.

 

7.2.2       
Upon Supplier’s request, Distributor shall make such records available to Supplier and otherwise cooperate as reasonably
required to effectively, efficiently and economically implement any Recall or investigation.

 

7.3             
Recalls. The Parties shall cooperate fully with one another in any of the following events involving a recall of
Product resulting in a market withdrawal covered by this Agreement, including any correction, post-sale warning or mailing of information
(the “Recall”):

 

7.3.1       
A Recall is requested or ordered by Government Authority issued due to the Products not meeting the Label Claims or manufacturing
related issues or Supplier requests a Recall for Product quality or manufacturing related issues;

 

7.3.2       
A Recall is requested or ordered by a Government Authority issued due to off-Label promotion, illegal marketing or misrepresentation
of Product quality; and

 

 

 

 

    	 	6	 

     

    

 

7.3.3       
Any Recall other than those specified in Sections 7.3.1 and 7.3.2 above.

 

Each Party shall inform the other Party in writing on a reasonably
timely basis in light of the events concerning any Product related issues that have the potential to result in a Recall in the
Territory or elsewhere if impacting this Agreement. Supplier and Distributor and its Subdistributors shall further cooperate with
one another using reasonable efforts and acting in good faith in conducting a Recall. The Parties will provide reasonable assistance
to each other to investigate the root cause(s) related to a Recall subject to this Agreement.

 

The out-of-pocket costs and expenses incurred in connection
with a Recall under subsection 7.3.1 shall be borne by Supplier; the out-of-pocket costs and expenses incurred in connection with
a Recall under subsection 7.3.2 shall be borne by Distributor; the out-of-pocket costs and expenses incurred in connection with
a Recall under subsection (7.3.3) shall be borne by Supplier and Distributor on a 50%-50% basis.

 

		8.	Confidentiality.

 

8.1             
Confidential Information. All information disclosed or exchanged by the Parties under this Agreement, including all
intellectual property related to the Products, shall constitute confidential information of the disclosing Party (the “Confidential
Information”). Each Party agrees (i) to hold the other Party’s Confidential Information in confidence and to take all
reasonable precautions to protect such Confidential Information (including, without limitation, all precautions each Party employs
with respect to its confidential materials, but in no case less than reasonable care), (ii) not to disclose such Confidential Information
other than to its employees and agents who need to know such information and who are informed of the confidential nature of such
information and bound by confidentiality and non-use obligations regarding such information, (iii) not to divulge any such Confidential
Information or any information derived therefrom to any third person; provided, however, that if disclosure is required by a competent
Government Authority, prior to such disclosure, the receiving Party shall give prompt written to the disclosing Party sufficient
to allow the disclosing Party the opportunity to pursue its legal and equitable remedies regarding such potential disclosure, and
the receiving Party shall (A) assert the confidential nature of the Confidential Information to the Government Authority; (B) seek
an appropriate protective order and/or narrow the scope of such order to only that portion of the Confidential Information which
is required by law to be disclosed; (C) use its reasonable best efforts to obtain confidential treatment for any Confidential Information
that is so disclosed; and (D) cooperate fully with the disclosing Party in protecting such disclosure; and (iv) not to remove or
export from the United States and/or the Territory or re-export any such Confidential Information or any direct product thereof
(e.g., Products by whomever made) unless expressly consented to in writing by the other Party and except in compliance with all
licenses and approvals required under applicable local and foreign export laws and regulations. Any employee given access to any
such Confidential Information must have a legitimate “need to know” and shall be similarly bound in writing. Without
granting any right or license, the Parties agree that the foregoing sub-sections (i), (ii), (iii) and (iv) shall not apply with
respect to information the other Party can document (W) is in or (through no improper action or inaction by the other Party, agent
or employee enters) the public domain, or (X) was rightfully in its possession or known by it prior to receipt from the disclosing
Party, or (Y) was rightfully disclosed to it by another person without a duty of confidentiality owed to the other Party, or (Z)
was independently developed by it, by persons without access to such information and without use of any information of the other
Party. Each Party must promptly notify the other Party of any information it believes comes within any circumstance listed in the
immediately preceding sentence and will bear the burden of proving the existence of any such circumstance by clear and convincing
evidence including contemporaneous written records. The Parties’ obligations under this Section 8 shall terminate five (5)
years after the termination or expiration of this Agreement. Distributor shall use the Confidential Information solely to promote,
distribute, and sell the Product through the Channels for the Permitted Use in the Field in the Territory.

 

8.2             
Return of Confidential Information. Immediately upon termination of this Agreement, at the written request of Supplier,
Distributor will turn over, or shall cause to have turned over, to Supplier all Confidential Information received from the other
Party and all documents or media containing any such Confidential Information, and any and all copies or extracts thereof.

 

 

 

 

    	 	7	 

     

    

 

8.3             
Remedies; Equitable Relief. The Parties acknowledge and agree that due to the unique nature of their Confidential
Information, there can be no adequate remedy at law for any breach of its obligations hereunder, that any such breach may allow
the non-breaching Party or third parties to unfairly compete with the non-breaching Party resulting in irreparable harm to the
non-breaching Party, and therefore, that upon any such breach or any threat thereof, the non-breaching Party shall be entitled
to appropriate equitable relief in addition to whatever remedies it might have at law and to be indemnified by the breaching Party
from any damages and expenses (including reasonable and documented attorney’s fees), in connection with any breach or enforcement
of each Party’s obligations hereunder or the unauthorized use or release of any such Confidential Information. Each Party
will notify the other in writing immediately upon the occurrence of any such unauthorized release or other breach. Any breach of
this Section 8 will constitute a material breach of this Agreement.

 

		9.	Representations, Warranties, Indemnification and Insurance.

 

9.1             
Supplier’s Representations. Supplier hereby represents and warrants the following:

 

(a)             
It is a corporation duly organized, validly existing and in good standing under the laws of Delaware;

 

(b)             
It has the legal power and authority to enter into and be bound by the terms and conditions of this Agreement and to perform
its obligations under this Agreement;

 

(c)              
It has taken all necessary action to authorize the execution and delivery of this Agreement. This Agreement has been duly
executed and delivered on behalf of it and constitutes a legal, valid, binding obligation, enforceable against it in accordance
with its terms;

 

(d)             
It is not subject to any legal, contractual or other restrictions, limitations or conditions which conflict with its rights
and obligations under this Agreement or which might affect adversely its ability to perform under this Agreement;

 

(e)             
To the best of its knowledge, there are no investigations, adverse third party allegations, claims or actions against it,
including any proceedings or any pending or threatened action against it by or before any Government Authority, relating to the
Product;

 

(f)               
The execution and delivery of this Agreement will not (i) violate Supplier’s charter documents or other organizational
document, (ii) conflict with or result in a violation or breach of, or constitute a default under, any contract, agreement or instrument
to which it is a party or by which it is bound, or (iii) violate or conflict with any law, rule, regulation, judgment, order or
decree of any court applicable to it; and

 

(g)             
Supplier represents and warrants that all Product will be manufactured in accordance with good manufacturing practices and
when supplied will comply with the Label Claims.

 

9.2             
Distributor’s Representations. Distributor hereby represents and warrants the following:

 

(a)             
It is a limited liability company duly organized, validly existing and in good standing under the laws of Colorado.

 

(b)             
Its legal representative is empowered with the necessary sufficient authority to bind the Distributor under the terms hereof.

 

 

 

 

    	 	8	 

     

    

 

(c)              
Distributor has taken all necessary action on its part to authorize the execution and delivery of this Agreement. This Agreement
has been duly executed and delivered on behalf of Distributor and constitutes a legal, valid, binding obligation, enforceable against
Distributor in accordance with its terms;

 

(d)             
Distributor is not subject to any legal, contractual or other restrictions, limitations or conditions that conflict with
its rights and obligations under this Agreement or that might affect adversely its ability to perform under this Agreement;

 

(e)             
To the best of its knowledge, there are no investigations, adverse third party allegations, claims or actions against it,
including any proceedings or any pending or threatened action against it by any Governmental Authority that may limit or in any
manner affect the compliance by Distributor of the obligations undertaken hereunder;

 

(f)               
The execution and delivery of this Agreement will not (i) violate the charter documents or other organizational documents
of Distributor, (ii) conflict with or result in a violation or breach of, or constitute a default under, any contract, agreement
or instrument to which Distributor is a party or by which it is bound, or (iii) violate or conflict with any law, rule, regulation,
judgment, order or decree of any court applicable to Distributor;

 

(g)             
As of the Effective Date, there are no claims pending or, to Distributor’s knowledge, threatened against Distributor
or any of its Affiliates or Subdistributors by any third party, which might affect adversely its ability to perform under this
Agreement. Distributor represents that it has not been notified of, nor does have knowledge of, any circumstances or set of circumstances
that would put Distributor in any such situation;

 

(h)             
Distributor represents and warrants that the Product will be used, promoted, marketed, imported, offered for sale, sold
and/or distributed in accordance with good practices and in material compliance with applicable law and Marketing Authorizations.

 

		9.3	Mutual Representations.

 

9.3.1       
The Parties understand and agree to comply with the U.S. Foreign Corrupt Practices Act, as revised, which prohibits the
promise, payment or giving of anything of value, either directly or indirectly, to any government official for the purpose of obtaining
or retaining business or any improper advantage. For purposes of this Section, “government official” means:

 

(a)       any
official, officer, representative, or employee of any non-U.S. government department, agency or instrumentality (including any
government-owned or controlled commercial enterprise), or

(b)       any
official of a public international organization or political party or candidate for political office.

 

The Parties shall furthermore ensure that their Affiliates that
have rights or obligations under this Agreement understand and agree to comply with the U.S. Foreign Corrupt Practices Act, as
revised with regard to activities performed under this Agreement.

 

 

 

 

    	 	9	 

     

    

 

9.3.2       
The Parties, their Affiliates and their members or shareholders are not engaged in or in any manner whatsoever related to
illegal or illicit acts or activities and the financial resources used for the compliance of the obligations undertaken hereunder
derive from legal activities and sources. The Parties further represent that they are in full compliance with all applicable laws,
rules and regulations that are applicable to their activities.

 

9.4             
Supplier Indemnification. Supplier hereby agrees to defend, hold harmless and indemnify Distributor and its agents,
directors, officers and employees from and against any liability or loss or liability for any and all judgments, claims, causes
of action, suits, proceedings, losses, damages, demands, fees, expenses, fines, penalties or costs (including reasonable attorney’s
fees, costs and disbursements) resulting from suits, claims, actions and demands, in each case brought by a third party arising
out of: (a) a breach of any of Supplier’s representations and warranties under Section 9.1 or 9.3 or of any warranty contained
in the General Terms and Conditions, (b) any bodily harm or death caused by defects in materials or workmanship of Products, or
on-label use of the Product, or (c) infringement, misuse, misappropriation, tort, unfair competition, passing off or violation
by Supplier’s Products or Supplier Marks of any patent, trade secret, trademark, trade name or other intellectual property
right of any third party.

 

9.5             
Distributor Indemnification. Distributor hereby agrees to defend, hold harmless and indemnify Supplier, its Affiliates,
and their respective agents, directors, officers and employees from and against any liability or loss or liability for any and
all judgments, claims, causes of actions, suits proceedings, losses, damages, demands, fees, expenses, fines, penalties or costs
(including reasonable attorney’s fees, costs, and disbursements), resulting from suits, claims, actions and demands, in each
case brought by a third-party arising out of: (a) any breach of Distributor’s obligations under this Agreement, (b) a breach
of any of Distributor’s representations and warranties under Section 9.2 or 9.3, (c) Written product claims, representations
or warranties made by Distributor, Distributor’s Subdistributor or any of their respective agents of in advertising, publicity,
promotion or sale of any Product where such product claims, representations or warranties were not provided by or approved by Supplier
or are inconsistent with the Label Claims, (d) any infringement, misuse, misappropriation or violation of any intellectual property
right of any third party by any trademark or trade name of Distributor or any of its Subdistributors or agents, (e) off-label promotion,
marketing sale or distribution of the Products and any bodily harm or death caused by the off-label promotion, marketing, sale
or distribution of the Product by Distributor, or (f) negligent handling by Distributor or any its Subdistributors or their respective
agents.

 

9.6             
Insurance. Each Party agrees to maintain general commercial and product liability insurance consistent with industry
standards for a product of this nature. Distributor shall provide Supplier with evidence of such coverage upon written request.

 

9.7             
Warranties Disclaimer; Non-Reliance. EXCEPT FOR THE LIMITED EXPRESS WARRANTIES DESCRIBED IN SECTION 9.1, (A) NEITHER
SUPPLIER NOR ANY PERSON ON SUPPLIER'S BEHALF HAS MADE OR MAKES ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY WHATSOEVER, INCLUDING
ANY WARRANTIES OF: (i) MERCHANTABILITY; OR (ii) FITNESS FOR A PARTICULAR PURPOSE; OR (iii) TITLE; OR (iv) NON-INFRINGEMENT WHETHER
ARISING BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE, ALL OF WHICH ARE EXPRESSLY DISCLAIMED, AND
(B) DISTRIBUTOR ACKNOWLEDGES THAT IT HAS NOT RELIED ON ANY REPRESENTATION OR WARRANTY MADE BY SUPPLIER, OR ANY OTHER PERSON ON
SUPPLIER'S BEHALF, EXCEPT AS SPECIFICALLY DESCRIBED IN SECTION 9.1 OF THIS AGREEMENT.

 

		10.	Term and Termination.

 

10.1        
Term. The initial term of this Agreement shall be one (1) year from its Effective Date (the “Initial Term).
The Initial Term may be renewed for successive one-year terms by mutual agreement of the parties.

 

 

 

 

    	 	10	 

     

    

 

10.2        
Termination by Either Party. Either Party may terminate this Agreement:

 

[____]

10.2.1  
In the event that the Agreement is discontinued or terminated in accordance with the terms of this Agreement, Supplier at
its sole discretion may purchase back unsold Products or allow Distributor to continue to sell existing inventory for a period
of [____] after Termination.

 

10.3        
Termination by Supplier. Supplier may terminate this Agreement [____].

 

10.4        
No Liability. Neither Party shall incur any liability whatsoever for any damage, loss or expense of any kind suffered
or incurred by the other (or for any compensation to the other) arising from or incident to any termination of this Agreement by
such Party that complies with the terms of the Agreement whether or not such Party is aware of any such damage, loss or expense.

 

10.5        
Survival. Except to the extent expressly provided to the contrary, the following provisions shall survive the termination
of this Agreement: Sections 1, 6.7, 7.2, 8, 9.4, 9.5, 10.4, 10.5, 11 and Attachment C.

 

		11.	Miscellaneous.

 

11.1        
Liability. Nothing in this Agreement shall be effective to limit or restrict any liability of any Party in respect
of (i) death, personal injury, loss or claim resulting from fraud, gross negligence or willful misconduct as otherwise prohibited
by law; or (ii) any fraudulent or negligent misrepresentation.

 

Subject to clauses (i) and (ii) above, the Parties will not
be liable to the other for any punitive, incidental, special, indirect or consequential damages, including loss of profits, revenue
or income, diminution in value or loss of business reputation or opportunity relating to the breach or alleged breach of this Agreement.

 

The Parties acknowledge that monetary damages may be inadequate
for a breach of this Agreement by any Party. Accordingly, the Parties agree that any other Party may seek the granting of injunctive
relief as one of the remedies available to it in respect of any breach by any Party.

 

11.2        
Entire Agreement. This Agreement, together with its Attachments, which by this reference are incorporated herein,
contains the entire agreement of the Parties regarding the subject matter hereof and supersedes all prior agreements, understandings
and negotiations regarding the same. This Agreement may not be modified or supplemented except by a written instrument signed by
the Parties. Furthermore, it is the intention of the Parties that this Agreement shall be controlling over additional or different
terms of any Purchase Order or similar Distributor document, even if accepted in writing by the Parties, and waivers and amendments
shall be effective only if made by negotiated waiver agreements referencing this Agreement and clearly understood by the Parties
to be an amendment or waiver

 

11.3        
Severability. If any provision of this Agreement shall be held illegal or unenforceable, that provision shall be
limited or eliminated to the minimum extent necessary so that this Agreement shall otherwise remain in full force and effect.

 

11.4        
Further Assurances. Each Party hereto agrees to execute, acknowledge and deliver such further instruments, and to
do all such other acts as may be reasonably necessary or appropriate in order to carry out the purposes and intent of this Agreement.

 

 

 

    	 	11	 

     

    

 

11.5        
Use of Party’s Name. Except as provided in this Agreement, or right, express or implied, is granted by this
Agreement to either Party to use in any manner the name or trademark of the other.

 

11.6        
Assignment. This Agreement may not be assigned by either Party without the prior consent of the other Party (and
any attempt to do so will be void), which consent shall not be unreasonably withheld, condition or delayed. Any attempted or purported
assignment or transfer of rights infringe the provisions of this Section and shall be null and void.

 

11.7        
Notices. All notices, consents, or approvals required by this Agreement shall be in writing sent by certified or
registered mail, postage prepaid, or through a reputable expedited courier service, to the Parties at the addresses set forth in
the preamble of this Agreement or such other addresses as may be designated in writing by the respective Parties. Notice shall
be deemed effective on the date of confirmed receipt shown on the return receipt or on the third day following delivery to a reputable
courier.

 

11.8        
Relationship of the Parties. All Parties are independent contractors under this Agreement. Nothing contained in this
Agreement is intended nor is to be construed so as to constitute Supplier and Distributor as partners, agents or joint venturers
with respect to this Agreement. Neither Party hereto shall have any express or implied right or authority to assume or create any
obligations on behalf of or in the name of the other Party or to bind the other Party to any contract, agreement or undertaking
with any third party.

 

11.9        
Waiver. The waiver by either Party of a breach of any provisions contained herein shall be in writing and shall in
no way be construed as a waiver of any subsequent breach of such provisions or the waiver of the provision itself.

 

11.10    
Dispute Resolution and Applicable Law. Any dispute regarding this Agreement shall be governed by and construed in
accordance with the law of the State of Georgia, without regard to conflict of law principles. Each of the Parties hereby consents
to the exclusive jurisdiction of the federal and state courts in Cherokee County, Georgia, U.S.A over any and all disputes arising
hereunder. Further each of the Parties hereby expressly and irrevocably waives any claims or defense in any such action or proceeding
based on any alleged lack of personal jurisdiction, improper venue, forum non-conveniens or any similar basis.

 

11.11    
Captions. Section captions are for convenience only and in no way are to be construed to define, limit or affect
the construction or interpretation hereof.

 

11.12    
Force Majeure. A Party shall not be liable for nonperformance or delay in performance (other than obligations regarding
payment, confidentiality and Distribution Rights) caused by any event reasonably beyond the control of such Party including, but
not limited to, wars, hostilities, revolutions, riots, civil commotion, national emergency, strikes, lockouts, epidemics, fire,
flood, earthquake, force of nature, explosion, embargo, or any other Act of God, or any law, proclamation, regulation, ordinance,
or other act or order of any court, government or governmental agency.

 

11.13    
Counterparts. This Agreement may be executed in two or more counterparts, in original all of which shall be considered
one and the same agreement, and all of which shall become effective when one or more such counterparts have been signed by each
of the Parties and delivered to the other Party.

 

	Distributor	Supplier
	Gabriel Science, LLC.	Sonoma Pharmaceuticals, Inc.
	
         

        By: /s/ Mark G. Fontenot                     

        Name: Mark Fontenot

        Title: Managing Member
	
         

        By: /s/ Amy Trombly                            

        Name: Amy Trombly

        Title: CEO

	Date:  December 13, 2020	Date:  12/14/2020

 

 

Attachments

 

Attachment
A - Products and Pricing

Attachment B - Supplier’s General Terms
and Conditions

 

 

 

 

    	 	12	 

     

    

 

Attachment
A

to
Non-Exclusive Distribution Agreement

 

“Channels” means direct sales or indirect
sales to dentists, dental specialists, oral and maxillofacial surgeons, dental clinics, dental schools, and healthcare providers
treating head and neck conditions.

 

“Field” means the application as a cleanser
for human use.

 

“Products” and Pricing:

 

	Part No.	Item-Description	Unit Price
	100-1001	Microcyn Endocyn, [____] 	USD$[____]
	100-1002	Microcyn Solution, [____]	USD$[____]
	100-1003	Microcyn OTC Skin & Wound Cleanser, [____]	USD$[____]
	100-1004	Microcyn Skin & Wound Hydrogel Rx, [____]	USD$[____]

 

Minimum Order Quantities: [____] units per order, which
[____]. Minimum purchase order per Product is [____] units. Orders not meeting these minimum requirements are subject to special
order charges and pricing.

 

Payment Terms: [____]

 

Special Instructions:  Palletized. Ship international
ground freight (FOB).

 

 

 

 

 

 

    	 	13	 

     

    

 

Attachment
B

to
Non-Exclusive Distribution And Supply Agreement

 

Supplier’s
General Terms and Conditions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	14Document

Exhibit 4.1

DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934

The following is a brief description of the common stock, par value $0.01 per share (the “Common Stock”), of ABM Industries Incorporated (“we” or “the Company,”), which is the only security of the Company registered under Section 12 of the Securities Exchange Act of 1934, as amended.

The following description of the Common Stock is not, and does not purport to be, complete. It is subject to, and qualified in its entirety by reference to, the Company’s Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) and Amended and Restated Bylaws (the “Bylaws”), each of which is incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this exhibit is a part. Please review the Company’s Certificate of Incorporation and Bylaws and the applicable provisions of the General Corporation Law of the State of Delaware (the “DGCL”) for additional information.

Authorized Capital Stock

Our authorized capital stock consists of 100,000,000 shares of common stock, par value $0.01 per share, and 500,000 shares of preferred stock, par value $0.01 per share.

Common Stock

The stockholders are not entitled to vote cumulatively for the election of directors. Each share of common stock is entitled to receive dividends if, as and when declared by the Board of Directors of the Company out of funds legally available therefor. The common stock shares equally, on a share-for-share basis, in any cash dividends declared by the Board of Directors.

Stockholders of the Company have no preemptive or other rights to subscribe for additional shares. Subject to any right of holders of any preferred stock, all holders of common stock are entitled to share equally on a share-for-share basis in any assets available for distribution to stockholders on liquidation, dissolution or winding up of the Company. No common stock is subject to redemption or a sinking fund. All shares of common stock offered hereby are fully paid and nonassessable.

Preferred Stock

The shares of preferred stock may be issued from time to time in one or more series. The Board of Directors is authorized to establish from time to time the number of shares to be included in each such series, and to fix the designation, powers, preferences, and rights of the shares of each such series and the qualifications, limitations or restrictions thereof, including but not limited to the fixing or alteration of the dividend rights, dividend rate, conversion rights, voting rights, rights and terms of redemption (including sinking fund provisions), the redemption price or prices and the liquidation preferences of any wholly unissued series of shares of preferred stock. The issuance of preferred stock may have the effect of delaying, deferring or preventing a change 

Exhibit 4.1

in control of the Company without further action by the stockholders. The issuance of preferred stock with voting and conversion rights may adversely affect the voting power of the holders of the common stock.

Participating Preferred Stock

Pursuant to the foregoing authority, the Board of Directors has established a series of preferred stock, par value $.01, with the designation participating preferred stock. Each share of participating preferred stock shall be identical in all respects with the other shares of participating preferred stock except as to the dates from and after which dividends thereon shall be cumulative. The Board of Directors initially authorized 50,000 shares of participating preferred stock; however, the Board of Directors may increase or decrease this number from time to time.

Dividends

Holders of full or fractional shares of participating preferred stock are entitled to receive, when and as declared by the Board of Directors, but only out of funds legally available therefor, dividends:

•on each date that dividends or other distributions (other than those payable in common stock of the Company) are payable on or in respect to common stock comprising part of the Reference Package (as defined in the Certificate of Incorporation), in an amount per whole share of participating preferred stock equal to the aggregate amount of dividends or other distributions that would be payable on such date to a holder of the Reference Package; and 
•on the last day of March, June, September, and December in each year, in an amount per whole share of participating preferred stock equal to the excess (if any) of $2.50 over the aggregate dividends paid per whole share of participating preferred stock during the three month period ending on such last day.

Dividends will be payable to the holders of record on the date, not exceeding sixty days prior to the dividend payment date, fixed by the Board of Directors. Dividends on each full or fractional share of participating preferred stock shall be cumulative from the date such share is originally issued; provided that any share originally issued after the record date and on or prior to the dividend payment date shall not be entitled to receive the dividend payable on such dividend payment date.

If any shares of participating preferred stock are outstanding, no dividends (other than a dividend in common stock or any other stock ranking junior to participating preferred stock) shall be declared or paid or set aside for payment or other distribution declared or made upon the common stock or upon any other stock ranking junior to participating preferred stock, nor shall any common stock nor any other stock of the Company ranking junior to participating preferred stock be redeemed, purchased or otherwise acquired by the Company unless, in each case, the full cumulative dividends (including the dividend to be due upon payment of such dividend, distribution, redemption, purchase or other acquisition) on all outstanding shares of participating preferred stock shall have been, or shall contemporaneously be, paid.

Exhibit 4.1

Merger, Consolidation or Reclassification

In the event of any merger, consolidation, reclassification or other transaction in which shares of common stock are exchanged for or changed into other stock or securities, cash and/or other property, then the shares of participating preferred stock shall at the same time be similarly exchanged or changed into an amount per whole share equal to the aggregate amount of cash, stock, securities, cash and/or other property, that a holder of the Reference Package would be entitled to receive as a result of the transaction.

For the purposes of the following “Liquidation Rights”, the consolidation or merger of, or binding exchange by, the Company with any other corporation shall not constitute a liquidation, dissolution or winding of the Company.

Liquidation Rights

In the event of any liquidation, dissolution or winding up of the affairs of the Company, whether voluntary or involuntary, the holders of full and fractional shares of participating preferred stock shall be entitled, before any distribution or payment is made on any date to the holders of common stock or any other stock ranking junior to participating preferred stock, to be paid in full an amount per whole share of participating preferred stock equal to the greater of:

•$100, or 
•the aggregate amount distributed or to be distributed prior to such date in connection with such liquidation, dissolution winding up to a holder of the Reference Package, together with accrued dividends to such distribution or payment date, whether or not earned or declared (such greater amount being referred to as the “Liquidation Preference”).

After payment of the Liquidation Preference is made in full to all holders of participating preferred stock, they have no right or claim to any of the remaining assets of the Company.

In the event the assets of the Company available for distribution to the holders of participating preferred stock upon any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, are insufficient to pay in full all amounts to which such holders are entitled to under the preceding paragraph, no such distribution shall be made on account of any shares of any other class or series of preferred stock ranking on a parity with the shares of participating preferred stock unless proportionate distributive amounts shall be paid on account of the shares of participating preferred stock, ratably in proportion to the full distributable amounts for which all such parity shares are respectively entitled upon such liquidation, dissolution or winding up.

Upon the liquidation, dissolution or winding up of the Company, the holders of shares of participating preferred stock then outstanding shall be entitled to be paid out of the assets of the Company available for distribution to its stockholders all amounts to which such holders are entitled to pursuant to the first paragraph of this section before any payment can be made to the holders of common stock or any other stock of the Company ranking junior to participating preferred stock.

Exhibit 4.1

Redemption Rights 

The shares of participating preferred stock are not redeemable.

Voting Rights

In addition to any other vote or consent of stockholders required by law or by our Certificate of Incorporation, each whole share of participating preferred stock shall, on any matter, vote as a class with any other capital stock comprising part of the Reference Package and voting on such matter and shall have the number of votes thereon that a holder of the Reference Package would have.

Certain Business Combinations

The Company’s Certificate of Incorporation requires that certain business combination transactions between the Company and a “Related Person” (beneficial owner of 10% or more of the Company’s voting stock) be approved by the affirmative vote of holders of not less than 70% of the then outstanding shares of voting stock unless certain specified conditions are met. If the conditions are met, then the transaction would require only such affirmative vote as is required by law, any national securities exchange or otherwise. Business combinations subject to this provision include a merger or consolidation of the Company with, or a sale or transfer of all or substantially all of the Company’s assets to, a Related Person. The “fair price” provision could make it more difficult, and may therefore discourage, an attempt by another company or group, through the acquisition of a substantial block of the Company’s common stock, to acquire control of the Company with a view to imposing a merger, consolidation or sale of the Company’s assets which may not be in the best interest of all of the stockholders.

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