Document:

Exhibit 10.2

 

Execution Version

 

SECOND AMENDMENT TO SECOND AMENDED
 AND RESTATED CREDIT AGREEMENT

 

This SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is dated as of October 2, 2013 and is made by and among COVANCE INC., a Delaware corporation (the “Borrower”), each of the Guarantors and the Lenders signatory hereto, and PNC BANK, NATIONAL ASSOCIATION, as agent (the “Agent”).

 

WITNESSETH:

 

WHEREAS, the parties hereto are parties to a Second Amended and Restated Credit Agreement dated as of March 7, 2012 (as amended from time to time, including hereby, the “Agreement”) whereby the Lenders extended certain credit facilities to the Borrower; and

 

WHEREAS, the Borrower has entered into on or about the date hereof a certain Note Purchase Agreement in the aggregate original principal amount of $250,000,000 with the note purchasers identified therein (the “Note Purchase Agreement”);

 

WHEREAS, the Note Purchase Agreement contains certain terms conditions and provisions that were not incorporated, or were only partially incorporated, in the Agreement;

 

WHEREAS, the Borrower requested that the Agent and Lenders provide their consent to its entry into and performance under the Note Purchase Agreement; and

 

WHEREAS, the Borrower has requested, and the Agent and Lenders have conditioned the granting of such consent on, the making of certain modifications to the Agreement, all as hereinafter set forth.

 

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.                                      Definitions.  Capitalized terms used herein and not otherwise defined have the meanings given them in the Agreement.

 

2.                                      Amendments.  Effective as of the Effective Date (hereinafter defined), the Amendment is hereby amended as follows:

 

(a)                                 The following new definitions are hereby inserted in Section 1.1 of the Agreement in the proper alphabetical locations, as follows:

 

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Covered Entity means (i) the Borrower, each of the Borrower’s Subsidiaries, all Guarantors and all pledgors of Collateral and (ii) each Person that, directly or indirectly, is in control of a Person described in clause (i) above.  For purposes of this definition, control of a Person shall mean the direct or indirect (x) ownership of, or power to vote, 25% or more of the issued and outstanding equity interests having ordinary voting power for the election of directors of such Person or other Persons performing similar functions for such Person, or (y) power to direct or cause the direction of the management and policies of such Person whether by ownership of equity interests, contract or otherwise.

 

Material Credit Facility means, as to the Borrower and its Subsidiaries,

 

(i)                                     the Note Purchase Agreement, including any renewals, extensions, amendments, supplements, restatements, replacements or refinancing thereof; and

 

(ii)                                  each other agreement creating or evidencing indebtedness for borrowed money (including without limitation all obligations evidenced by bonds, debentures, notes, loan agreements and similar instruments) entered into on or after October 2, 2013 by the Borrower or any Subsidiary, or in respect of which the Borrower or any Subsidiary is an obligor or otherwise provides a guarantee or other credit support, in a principal amount outstanding or available for borrowing equal to or greater than $50,000,000 (or the equivalent of such amount in the relevant currency of payment, determined as of the date of the closing of such facility based on the exchange rate of such other currency).

 

Note Purchase Agreement means that certain Note Purchase Agreement, dated as of October 2, 2013, among the Borrower and the purchasers party thereto relating to the issuance and sale of the Senior Notes, a true, correct and complete copy of which has been delivered to the Lenders.

 

Reportable Compliance Event means that any Covered Entity becomes a Sanctioned Person, or is charged by indictment, criminal complaint or similar charging instrument, arraigned, or custodially detained in connection with any Anti-Terrorism Law or any predicate crime to any Anti-Terrorism Law, or has knowledge of facts or circumstances to the effect that it is reasonably likely that any aspect of its operations is in actual violation of any Anti-Terrorism Law.

 

Sanctioned Country means a country subject to a sanctions program maintained under any Anti-Terrorism Law.

 

Sanctioned Person means any individual person, group, regime, entity or thing listed or otherwise recognized as a specially designated, prohibited, sanctioned or debarred person, group, regime, entity or thing, or subject to any limitations or prohibitions (including but not limited to the blocking of property or rejection of transactions), under any Anti-Terrorism Law.

 

Senior Notes means, collectively, the Borrower’s (i) 3.25% Senior Notes, Series 2013A, due November 15, 2018 issued in the aggregate principal amount of $15,000,000, (ii) 3.90% Senior Notes, Series 2013B, due November 15, 2020 issued in the aggregate principal amount of $50,000,000, (iii) 4.50% Senior Notes, Series 2013C, due November 15, 2023 issued in the aggregate principal amount of $90,000,000 and (iv) 4.65% Senior

 

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Notes, Series 2013D, due November 15, 2025 issued in the aggregate principal amount of $95,000,000.

 

(b)                                 The following definitions in Section 1.1 of the Agreement are hereby amended and restated in their entirety to read as follows:

 

Anti-Terrorism Laws means any Laws relating to terrorism, trade sanctions programs and embargoes, import/export licensing, money laundering or bribery, and any regulation, order, or directive promulgated, issued or enforced pursuant to such Laws, all as amended, supplemented or replaced from time to time.

 

Intercreditor Agreement means the intercreditor agreement dated on or about November 15, 2013 in the form of Exhibit 1.1(I) attached hereto, together with any and all amendments, restatements, modifications thereof that have been approved by the requisite “secured creditors” named therein in accordance with the terms thereof.

 

Law means any law(s) (including common law), constitution, statute, treaty, regulation, rule, ordinance, opinion, issued guidance, release, ruling, order, executive order, injunction, writ, decree, bond, judgment, authorization or approval, lien or award of or any settlement arrangement, by agreement, consent or otherwise, with any Official Body, foreign or domestic.

 

Material Adverse Effect means any set of circumstances or events which has a material adverse effect on (i) the business, operations, financial condition, assets or properties of the Loan Parties taken as a whole, (ii) the ability of the Borrower to perform its obligations under any Loan Document, (iii) the ability of any other Loan Party to perform its obligations under any Loan Document, or (iv) the validity or enforceability of this Agreement or any of the other Loan Documents or the rights or remedies of the Agent or Lenders hereunder or thereunder.

 

(c)                                  The last sentence of the definition of “Obligation” in Section 1.1 of the Agreement is hereby amended and restated in its entirety to read as follows:  “Obligations shall include the liabilities to a Lender or Affiliate of a Lender under any Lender-Provided Hedge but shall not include the liabilities to other Persons under any other Hedge.”

 

(d)                                 Clause (vi) of the definition of “Permitted Liens” in Section 1.1 of the Agreement is hereby amended and restated in its entirety to read as follows:

 

(vi)                              Liens, security interests and mortgages (a) in favor the Agent for the benefit of the Banks securing the Obligations (including without limitation liabilities under any Lender-Provided Hedge), and (b) in favor of PNC Bank, National Association, as collateral agent for the Lenders and the holders of the Senior Notes, securing the Obligations (including without limitation liabilities in connection with any Lender-Provided Hedge) and obligations of the Loan Parties as borrower or guarantor, as applicable, in connection with the Note Purchase Agreement and the Senior Notes, equally and ratably, pursuant to the Intercreditor Agreement.

 

(e)                                  Exhibit 1.1(I) (Form of Intercreditor Agreement) is hereby added to the Agreement in the form of Exhibit 1.1(I) (Form of Intercreditor Agreement) attached hereto.

 

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(f)                                   Section 5.1.4 of the Agreement is hereby amended by inserting at the end thereof the following sentence:  “This Agreement and the other Loan Documents have been duly authorized by all necessary corporate action on the part of the Loan Parties.”

 

(g)                                  Section 5.1.5 of the Agreement is hereby amended and restated in its entirety to read as follows:

 

5.1.5                     No Conflict.

 

The execution, delivery and performance by the Loan Parties of this Agreement and the other Loan Documents will not (i) result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of any Loan Party or any Subsidiary of a Loan Party under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or by laws, shareholders agreement or any other agreement or instrument to which any Loan Party or any Subsidiary of a Loan Party is bound or by which any Loan Party or any Subsidiary of a Loan Party or any of their respective properties may be bound or affected, (ii) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree or ruling of any court, arbitrator or Official Body applicable to any Loan Party or any Subsidiary of a Loan Party, or (iii) violate any provision of any statute or other rule or regulation of any Official Body applicable to any Loan Party or any Subsidiary of a Loan Party.

 

(h)                                 Section 5.1.9.2 of the Agreement is hereby amended and restated in its entirety to read as follows:

 

5.1.9.2           Margin Stock.

 

None of the Loan Parties or any Subsidiaries of any Loan Party engages or intends to engage principally, or as one of its important activities, in the business of extending credit for the purpose, immediately, incidentally or ultimately, of purchasing or carrying margin stock (within the meaning of Regulation U).  No part of the proceeds of any Loan has been or will be used, immediately, incidentally or ultimately, for the purpose of purchasing or carrying any margin stock, or extending credit to others for the purpose of purchasing or carrying any margin stock, or to refund Indebtedness originally incurred for such purpose, which purpose, in any case, causes a Lender to be in violation of or is inconsistent with the provisions of the regulations of the Board of Governors of the Federal Reserve System.  None of the Loan Parties or any Subsidiary of any Loan Party holds or intends to hold margin stock, in such amounts that more than 5% of the reasonable value of the assets of any Loan Party or Subsidiary of any Loan Party are or will be represented by margin stock, if the holding or intent to hold thereof causes a Lender to be in violation of or is inconsistent with the provisions of the regulations of the Board of Governors of the Federal Reserve System.

 

(i)                                     Section 5.1.11 of the Agreement is hereby amended and restated in its entirety to read as follows:

 

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5.1.11              Taxes.

 

Each Loan Party and each Subsidiary of a Loan Party has filed all federal, state, local and other tax returns that are required to have been filed in any jurisdiction, and have paid or made adequate provisions for all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon them or their properties, assets, income or profits, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (i) the amount of which is not material in relation to the business, operations, affairs, financial condition, assets or properties of the Borrower and its Subsidiaries taken as a whole, or (ii) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the Borrower or a Subsidiary, as the case may be, has established adequate reserves in accordance with GAAP.  The Borrower knows of no basis for any other tax or assessment that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  The charges, accruals and reserves on the books of the Borrower and its Subsidiaries in respect of U.S. federal, state or other taxes for all fiscal periods are adequate.  The U.S. federal income tax liabilities of the Borrower and its Subsidiaries have been finally determined (whether by reason of completed audits or the statute of limitations having run) for all fiscal years up to and including the fiscal year ended December 31, 2011, except for Covance Central Laboratory Services LP, which is under audit for the fiscal year ended December 31, 2011.

 

(j)                                    Section 5.1.14 of the Agreement is hereby amended by adding the following sentence at the end thereof:

 

To the actual knowledge of the Borrower after due inquiry, there is no violation by any Person of any right of the Borrower or any of its Subsidiaries with respect to any patent, copyright, proprietary software, service mark, trademark, trade name or other right owned or used by the Borrower or any of its Subsidiaries which would reasonably be expected to result in a Material Adverse Effect.

 

(k)                                 Section 5.1.21 of the Agreement is hereby amended and restated in its entirety to read as follows:

 

5.1.21              Senior Debt Status.

 

The Obligations of each Loan Party under this Agreement, the Guaranty Agreement and each of the other Loan Documents to which it is a party do rank and will rank at least pari passu in priority of payment with all other Indebtedness of such Loan Party outstanding under each Material Credit Facility.  There is no Lien upon or with respect to any of the properties or income of any Loan Party or Subsidiary of any Loan Party which secures indebtedness or other obligations of any Person except for Permitted Liens.

 

(l)                                     Section 5.1.22 of the Agreement is hereby amended and restated in its entirety to read as follows:

 

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5.1.22              Anti-Terrorism Laws.

 

Borrower represents and warrants, except as could not reasonably be expected to result in a Material Adverse Effect and could not reasonably be expected to result in a violation of Anti-Terrorism Laws by, or other liability of, any Lender or the Agent, that (i) no Covered Entity is a Sanctioned Person and (ii) no Covered Entity, either in its own right or through any third party, (A) has any of its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned Person in violation of any Anti-Terrorism Law; (B) does business in or with, or derives any of its income from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law; or (C) engages in any dealings or transactions prohibited by any Anti-Terrorism Law.

 

(m)                             A new Section 7.1.14 to the Agreement is hereby inserted after Section 7.1.13 of the Agreement, to read as follows:

 

7.1.14              Pari Passu Ranking.

 

The Obligations are and at all times shall remain direct obligations of the Borrower ranking pari passu with all Indebtedness outstanding under any Material Credit Facility.

 

(n)                                 Section 7.2.1(viii) of the Agreement is hereby amended and restated in its entirety to read as follows:

 

(viii)                        Indebtedness of the Borrower and its Subsidiaries secured by Liens: (a) permitted by clause (vi)(a) of the definition of Permitted Liens; (b) permitted by clause (vi)(b) of the definition of Permitted Liens, provided that the Obligations are secured equally and ratably, pursuant to the Intercreditor Agreement, with obligations of the Loan Parties as borrower or guarantor, as applicable, in connection with the Note Purchase Agreement and the Senior Notes; and (c) permitted by clause (x) of the definition of Permitted Liens, provided that (x) the aggregate amount of such Indebtedness under this clause (c) outstanding at any time does not exceed twenty percent (20%) of Consolidated Net Worth, and (y) the Obligations rank pari passu with such Indebtedness under this clause (c) in accordance with Section 7.1.14 [Pari Passu Ranking] pursuant to documentation reasonably acceptable to the Agent in substance and in form, including, without limitation, an intercreditor agreement and opinions of counsel to the applicable Loan Parties from counsel that is reasonably acceptable to the Agent.

 

(o)                                 Section 7.2.6(vii) of the Agreement is hereby amended and restated in its entirety to read as follows:

 

(vii)                           any sale, transfer or lease of assets, other than those specifically excepted pursuant to clauses (i) through (vi) above, provided that (a) at the time of any disposition, no Event of Default shall exist or shall result from such disposition, and (b) the aggregate net book value of all assets so sold by the Loan Parties and their Subsidiaries shall not exceed in any fiscal year twenty-five percent (25%) of Consolidated Net Worth.

 

(p)                                 A new Section 7.2.14 to the Agreement is hereby inserted after Section 7.2.13 of the Agreement, to read as follows:

 

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7.2.14              Anti-Terrorism Laws.

 

Borrower covenants and agrees that (i) except as could not reasonably be expected to result in a Material Adverse Effect and could not reasonably be expected to result in a violation of Anti-Terrorism Laws by, or other liability of, any Lender or the Agent, no Covered Entity will become a Sanctioned Person, (ii) except as could not reasonably be expected to result in a Material Adverse Effect and could not reasonably be expected to result in a violation of Anti-Terrorism Laws by, or other liability of, any Lender or the Agent, no Covered Entity, either in its own right or through any third party, will (B) have any of its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned Person in violation of any Anti-Terrorism Law; (B) do business in or with, or derive any of its income from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law; (C) engage in any dealings or transactions prohibited by any Anti-Terrorism Law or (D) use the Advances to fund any operations in, finance any investments or activities in, or, make any payments to, a Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law, (iii) except as could not reasonably be expected to result in a Material Adverse Effect and could not reasonably be expected to result in a violation of Anti-Terrorism Laws by, or other liability of, any Lender or the Agent, the funds used to repay the Obligations will not be derived from any unlawful activity, (iv) except as could not reasonably be expected to result in a Material Adverse Effect and could not reasonably be expected to result in a violation of Anti-Terrorism Laws by, or other liability of, any Lender or the Agent, each Covered Entity shall comply with all Anti-Terrorism Laws and (v) the Borrower shall promptly notify the Agent in writing upon the occurrence of a Reportable Compliance Event that would reasonably be expected to result in a Material Adverse Effect or would reasonably be expected to result in a violation of Anti-Terrorism Laws by, or other liability of, any Lender or the Agent.

 

(q)                                 Section 8.1.2 of the Agreement is hereby amended and restated in its entirety to read as follows:

 

8.1.2                     Breach of Warranty.

 

Any representation or warranty made at any time by any of the Loan Parties herein or by any of the Loan Parties in any other Loan Document, or in any certificate, other instrument tor statement furnished pursuant to the provisions hereof or thereof, shall prove to have been false or misleading in any material respect (or, in the case of any representation or warranty contained in Section 5.1.22, false or misleading in any respect, after taking into account any materiality thresholds incorporated therein) as of the time it was made or furnished;

 

(r)                                    Section 8.1.5 of the Agreement is hereby amended and restated in its entirety to read as follows:

 

8.1.5                     Defaults in Other Agreements or Indebtedness.

 

A default or event of default shall occur at any time under the terms of any other agreement involving borrowed money or the extension of credit or any other

 

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Indebtedness under which any Loan Party or Material Subsidiary of any Loan Party may be obligated as a borrower or guarantor in a principal amount in excess of $30,000,000.00 in the aggregate, and such breach, default or event of default consists of the failure to pay (beyond any period of grace permitted with respect thereto, whether waived or not) any indebtedness when due (whether at stated maturity, by acceleration or otherwise) or if such breach or default permits or causes the acceleration of any indebtedness (whether or not such acceleration, or breach or default permitting acceleration, shall have been waived) or the termination of any commitment to lend;

 

(s)                                   Section 8.1.11 of the Agreement is hereby amended by deleting the phrase “and, in the case of the occurrence of (i), (ii), (iii) or (iv) above, the Required Lenders determine in good faith that the amount of the Borrower’s liability is likely to exceed 10% of its Consolidated Net Worth” that appears after clause (iv) thereof and replacing such phrase with the following:

 

and, in the case of the occurrence of (i), (ii), (iii) or (iv) above, the Required Lenders determine in good faith that the amount of the Borrower’s liability is likely to exceed the lesser of 10% of its Consolidated Net Worth and an amount that would reasonably be expected to have a Material Adverse Effect.

 

3.                                      Ratification.  The parties ratify the Agreement as amended hereby and the other Loan Documents as if all of the terms and conditions were set forth herein.

 

4.                                      Representations and Warranties.  The Borrower and the Guarantors represent and warrant to the Agent and the Lenders that:  (a) assuming effectiveness of the modifications to the Agreement set forth herein, there exists no Events of Default or Potential Defaults under the Agreement, and (b) the representations and warranties set forth in the Agreement, other than those which relate solely to an earlier date or time, remain true and correct on the date hereof.

 

5.                                      Conditions to Amendment. Concurrently with the execution and delivery of this Amendment, and as a condition of its effectiveness:

 

(a)                                 the Loan Parties shall have delivered this Amendment, duly executed by the Loan Parties, the Lenders and the Agent;

 

(b)                                 the Loan Parties shall have delivered to the Lenders a true, correct and complete copy of the Note Purchase Agreement, in form and substance satisfactory to the Agent, and duly executed and delivered on or about the date hereof;

 

(c)                                  the Loan Parties shall have delivered such third-party approvals and consents as may be necessary in connection herewith and/or as a result of Note Purchase Agreement.

 

(d)                                 the Loan Parties shall have paid on the date hereof all costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) incurred by the Agent in connection with this Amendment;

 

(e)                                  the Borrower shall have delivered to the Lenders a certificate as to pro forma compliance as of the date hereof with the requirements of proviso (x) to Section 7.2.1(viii)(c) but taking into account a full advance of the aggregate principal amount of the Senior Notes; and

 

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(f)                                   the Agent shall have received such other documents, instruments, documents and certificates as the Agent, any Lender or their respective counsel may have reasonably requested.

 

6.                                      Post-Closing Conditions.  Prior to funding of the note purchase price under the Note Purchase Agreement, and in any event by November 15, 2013, the Agent, the Loan Parties and the note purchasers identified in the Note Purchase Agreement shall have entered into, duly executed and delivered the Intercreditor Agreement.  The Lenders acknowledge and agree that, in order to effectuate the provisions of the Intercreditor Agreement, the Pledge Agreement and Subsidiary Pledge Agreement may be amended and restated in form and substance satisfactory to the Agent.  Concurrently with the execution and delivery of the Intercreditor Agreement, the Loan Parties shall also deliver opinions of counsel to the Loan Parties in form and substance reasonably satisfactory to the Agent.

 

7.                                      Effective Date.  This Amendment shall be effective on the first date on which this Amendment is executed by the Borrower, the Guarantors, the Agent and Lenders and the conditions precedent set forth in Section 5 have been satisfied.

 

8.                                      Counterparts.  This Amendment may be executed in counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument.

 

9.                                      Governing Law.  This Amendment shall be deemed a contract under the laws of the Commonwealth of Pennsylvania and for all purposes shall be governed by the laws of the Commonwealth of Pennsylvania without regard to its conflicts of laws principles.

 

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IN WITNESS WHEREOF, the parties hereto, by their officers thereunto duly authorized, have executed this Amendment as of the day and year first above written.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
COVANCE   INC., a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Robert S.Pringle
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
Robert   S. Pringle
    
	
 
    	
 
    	
Title:   
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
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GUARANTORS:
    	
 
    
	
 
    	
 
    
	
 
    	
COVANCE   CENTRAL LABORATORY SERVICES INC., a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Alison A. Cornell
    
	
 
    	
 
    	
Name:   Alison A. Cornell
    
	
 
    	
 
    	
Title:   Senior Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
COVANCE   CENTRAL LABORATORY SERVICES LIMITED PARTNERSHIP, an Indiana   limited partnership
    
	
 
    	
 
    
	
 
    	
By:   
    	
Covance   Central Laboratory Services Inc., a Delaware corporation, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 /s/ Alison A. Cornell
    
	
 
    	
 
    	
Name:   Alison A. Cornell
    
	
 
    	
 
    	
Title:   Senior Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
COVANCE   PRECLINICAL CORPORATION, a Washington Corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Alison A. Cornell
    
	
 
    	
 
    	
Name:   Alison A. Cornell
    
	
 
    	
 
    	
Title:   Senior Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
COVANCE   LABORATORIES INC., a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Alison A. Cornell
    
	
 
    	
 
    	
Name:   Alison A. Cornell
    
	
 
    	
 
    	
Title:   Senior Vice President
    
	
 
    
	
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Agent and Lenders:
    
	
 
    	
 
    
	
 
    	
PNC   BANK, NATIONAL ASSOCIATION, individually and as   Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Edward M. Tessalone
    
	
 
    	
 
    	
Name:   Edward M. Tessalone
    
	
 
    	
 
    	
Title:   Senior Vice President
    
	
 
    	
 
    	
 
    
	
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BANK   OF TOKYO-MITSUBISHI UFJ
    
	
 
    	
LTD., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   B. McNany
    
	
 
    	
Name:   B. McNany
    
	
 
    	
Title:   Vice President
    
	
 
    	
 
    
	
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TD   BANK, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Alan Garson
    
	
 
    	
Name:   Alan Garson
    
	
 
    	
Title:   Senior Vice President
    
	
 
    	
 
    
	
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JPMORGAN   CHASE BANK, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Deborah R. Winkler
    
	
 
    	
Name:   Deborah R. Winkler
    
	
 
    	
Title:   Vice President
    
	
 
    	
 
    
	
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BANK   OF AMERICA, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   David J. Bardwil
    
	
 
    	
Name:   David J. Bardwil
    
	
 
    	
Title:   SVP
    
	
 
    	
 
    
	
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BARCLAYS   BANK PLC, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:  
    	
/s/   Daniel Packham
    
	
 
    	
Name:   Daniel Packham
    
	
 
    	
Title:   Director
    

 

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DEUTSCHE BANK AG NEW YORK
    
	
 
    	
BRANCH, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Ming K. Chu
    
	
 
    	
 
    	
Name:   Ming K. Chu
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Virginia Consenza
    
	
 
    	
 
    	
Name:   Virginia Consenza
    
	
 
    	
 
    	
Title:   Vice President
    

 

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CITIBANK,   N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By   
    	
/s/   Stephen G. O’Keefe
    
	
 
    	
 
    	
Name:   Stephen G. O’Keefe
    
	
 
    	
 
    	
Title:   Senior Vice President
    

 

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WELLS   FARGO BANK, NATIONAL
    
	
 
    	
ASSOCIATION, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Monique Gasque
    
	
 
    	
 
    	
Name:   Monique Gasque
    
	
 
    	
 
    	
Title:   Vice President
    

 

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RBS   CITIZENS, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Barrett D. Bencivenga
    
	
 
    	
 
    	
Name:   Barrett D. Bencivenga
    
	
 
    	
 
    	
Title:   Senior Vice President
    

 

[Signatures to Second Amendment continue on following page]

 

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HSBC   BANK USA, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert Moravec
    
	
 
    	
 
    	
Name:   Robert Moravec
    
	
 
    	
 
    	
Title:   Sr. Relationship Manager
    

 

22EXECUTION COPY

 

London/090/075921-00001/RBF/MEXG:

L_LIVE_EMEA1:13015405v3

 

Licence and Supply 

Agreement

 

between

 

Akers Biosciences, Inc.

 

and

 

Sono International Limited

 

and

 

BreathScan International (Guernsey)
Limited

 

and

 

BreathScan International Limited

 

relating to products utilising certain breath condensate technology

 

	Simmons & Simmons	

 

Simmons & Simmons LLP CityPoint One Ropemaker Street
London EC2Y 958 United Kingdom T +44 20 7628 2020 F +44 20 7628 2070 DX Box No 12

 

    	 

    	 

    

 

CONTENTS

 

	1.	Interpretation	1
	 	 	 
	2.	Termination of Existing Agreements	4
	 	 	 
	3.	Commencement and term	5
	 	 	 
	4.	Licence and supply of Products	5
	 	 	 
	5.	Right to manufacture Products	6
	 	 	 
	6.	Minimum Purchase Requirements	6
	 	 	 
	7.	Forecasts	7
	 	 	 
	8.	Orders	7
	 	 	 
	9.	Manufacture, quality and packing	8
	 	 	 
	10.	Delivery	9
	 	 	 
	11.	Acceptance and defective products	10
	 	 	 
	12.	Title and risk	11
	 	 	 
	13.	Payments	11
	 	 	 
	14.	Terms of payment	12
	 	 	 
	15.	Expert determination	13
	 	 	 
	16.	Insurance	13
	 	 	 
	17.	Warranties	14
	 	 	 
	18.	Indemnity	15
	 	 	 
	19.	Assignment and subcontracting	15
	 	 	 
	20.	Confidentiality	15
	 	 	 
	21.	Termination	16
	 	 	 
	22.	Obligations on termination	17
	 	 	 
	23.	Survival of obligations	17
	 	 	 
	24.	Force majeure	17
	 	 	 
	25.	Costs	18
	 	 	 
	26.	Severance	18
	 	 	 
	27.	Dispute resolution procedure	18
	 	 	 
	28.	Further assurance	18

 

	 	

 

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	29.	Variation and waiver	18
	 	 	 
	30.	Notices	19
	 	 	 
	31.	Entire agreement	20
	 	 	 
	32.	Rights of third parties	21
	 	 	 
	33.	Counterparts	21
	 	 	 
	34.	Governing law and jurisdiction	21
	 	 	 
	SCHEDULE 1 : PRODUCTS	23
	 	 
	SCHEDULE 2 : COMPONENTS	24
	 	 
	SCHEDULE 3 : SPECIFICATIONS	25
	 	 
	SCHEDULE 4 : LICENSED PATENTS AND LICENSED TRADE MARKS	27
	 	 
	SCHEDULE 5 : EXISTING AGREEMENTS	28
	 	 
	SCHEDULE 6 : PRODUCT LIMITED WARRANTY	29

 

	 	

 

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THIS AGREEMENT is dated 19 June 2012
(the "Effective Date") and made

 

BETWEEN:

 

		(1)	AKERS BIOSCIENCES. INC., (the "Supplier"), registered in the state of New Jersey, USA and having
its principal place of business at 201 Grove Road, Thorofare, New Jersey 08086, USA;

 

		(2)	SONO INTERNATIONAL LIMITED, (the "Customer'), registered in England and
Wales as company number 07121719 and having its registered office at 2nd Floor, 37 lxworth Place, London, United Kingdom, SW3 3QH;

 

		(3)	BREATHSCAN INTERNATIONAL  (GUERNSEY) LIMITED ("BSI Guernsey"), registered in Guernsey and having its
principal place of business located at 18-20 Le Pollet, St Peter Port, Guernsey, GY1 1WH; and

 

		(4)	BREATHSCAN INTERNATIONAL LIMITED ("BSIL"), registered in England and Wales as company number 07159500
and having its registered office at Richmond Terrace, 49 London Road, Tunbridge Wells, Kent, United Kingdom, TN1 1DT.

 

BACKGROUND:

 

		(A)	The Supplier carries on the business of manufacturing and selling the Products.

 

		(B)	The Supplier entered into the Existing Agreements with BSI Guernsey and BSIL regarding the exclusive distribution of Products.

 

		(C)	The Supplier, BSI Guernsey and BSIL now wish to terminate
the Existing Agreements and the Customer now wishes to buy, and the Supplier now wishes to supply, the Products and Components,
on the terms and conditions set out in this Agreement.

 

AGREED TERMS:

 

		1.	Interpretation

 

		1.1	The definitions and rules of interpretation in this clause apply in this Agreement.

 

 "ADR Notice" has the meaning
given in clause 27.1.

 

"Ampoules" means
the ampoules listed in Part Ill of Schedule 2.

 

"Brand Development and
Marketing Agreement" means the agreement to be entered into between Supplier and the BreathScan International Group under
which the BreathScan International Group will develop brand value for the breath condensate technology and develop the associated
well being programmes and applied technologies for behaviour and attitude shifts for governments, corporates, retailers and consumers.

 

"BreathScan International
Group" means the Group of companies including BSI Guernsey and BSIL.

 

"Business
Day" mean a day (other than a Saturday, Sunday or public holiday) when banks in London and New Jersey are open for business.

 

    	 

    	 

    

 

"Components" means
the Ampoules, Indicator Reagents and Filter Plugs, packaged loose and in bulk.

 

"Conditions Precedent"
means the conditions set out in clause 3.

 

"Conditions Precedent
Notice Date" means the date on which the Customer notifies the Supplier that all Conditions Precedent have been satisfied
(or waived) in accordance with clause 3.

 

"Confidential Information"
has the meaning given in clause 20.

 

"Delivery"
means completion of delivery of an Order in accordance with clause 10.2 or clause 10.5(A).

 

"Deliverv
Date" means the date specified for delivery of an Order in accordance with clause 8.3.

 

"Deliverv Location"
means the Supplier's manufacturing facility at 201 Grove Road, Thorofare, New Jersey 08086 USA.

 

"Dispute" has the meaning given
in clause 27.1.

 

"Dispute Notice" has the meaning given in clause 27.1.

 

"Distribution
Agreement" means the distribution agreement(s) to be entered into between the Customer and the BreathScan International
Group on or around the Effective Date in connection with the distribution of the Products.

 

"Existing Agreements"
means the agreements listed in schedule 5.

 

"Field"
means any use, including relating to the operation of vehicles, employer screening programmes and the armed forces, but excluding
use by the US Military.

 

"Filter Plugs" means those filter plugs listed in Part I of Schedule 2 and any other filter plugs manufactured from time to
time by or for the Supplier or any member of the Supplier's Group.

 

"Force Majeure Event"
has the meaning given in clause 24.

 

"Group" means
in relation to a company, that company, its subsidiaries, its holding companies and their subsidiaries.

 

"Independent Expert'
means a person appointed In accordance with clause 15.

 

"Indicator
Reagents" means those indicator reagents listed in Part II Schedule 2 and any other reagents manufactured from time to
time by or for the Supplier or any member of the Supplier's Group.

 

"Initial Term"
means the initial term of the Agreement as defined in clause 3.

 

"Intellectual Property
Rights" means all patents, rights to inventions, utility models, copyright and related rights, trade marks, service marks,
trade, business and domain names, rights in trade dress or get-up, rights in goodwill or to sue for passing off, unfair competition
rights, rights in designs, rights in computer software, database right, topography rights, moral rights, rights in confidential
information (including know-how and trade secrets) and any other intellectual property rights, in each case whether registered
or unregistered and including all applications for and renewals or extensions of such rights, and all similar or equivalent rights
or forms of protection in any part of the world.

 

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"Licensed
Know How" means unpublished research and development information, unpatented inventions, unpublished technical data and
trade secrets that are necessary or desirable for manufacturing, importing, offering for sale, selling, distributing, using, advertising
or labelling the Products or the Components.

 

"Licensed
Patents" means all patents and patent applications owned or controlled by the Supplier or a member of the Supplier's Group,
including those patents and patent applications identified in Part 1 of Schedule 4.

 

"Licensed Trade Marks"
means all trade mark registrations and applications, and unregistered rights, for BREATHSCAN and the BREATHSCAN logo which
are owned or controlled by the Supplier or a member of the Supplier's Group, including the trade mark registration identified in
Part II of Schedule 4.

 

"Loans"
means loans to be made available by the Customer to the BreathScan International Group on or around the Effective Date.

 

"Minimum Purchase Amount(s)" has
the meaning given in clause 6.

 

"Month" means a calendar month.

 

"NF Approval" means
Norme Francaise approval by the Laboratoire National de Metrologie et d'Essai (as delegated by the Association Franyaise de la
Normalisation) confirming that the Products comply with applicable French product standards (including, French standard NF
X20702 of July 2007 and/or European standard NF EN 15964 of April 2011).

 

"Order" means an order
for Products submitted by the Customer in accordance with clause 8.

 

"Order Number'' means the
reference number to be applied to an Order by the Supplier in accordance with clause 8.4.

 

"Products"
means the products set out in schedule 1 and any other products utilising the Supplier's Group's breath condensate technology from
lime to time, packaged loose in bulk and individually labelled.

 

"Product
Limited Warranty" means the warranty as specified in schedule 6 (as may be modified from time to time) made by the manufacturer
of the Products and given to end users.

 

"Representatives"
has the meaning given in clause 20.2.

 

"Specification" means
the specification of the Products or Components set out in schedule 3.

 

"Subsequent Term"
has the meaning given in clause 3.

 

"Supplier
Intellectual Property" means any and all Intellectual Property Rights owned or controlled from time to time by the
Supplier or a member of the Supplier's Group relating to the Products or Components including (without limitation) the
Licensed Patents, Licensed Know How and Licensed Trade Marks.

 

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"Territory" means worldwide excluding
the United States, Canada and Mexico.

 

"US Military" means
any current armed forces personnel of the United States of America.

 

"VAT" means
value added tax chargeable under the Value Added Tax Act 1994 and any similar replacement or additional tax.

 

		1.2	Clause, schedule and paragraph headings shall not affect the interpretation of this Agreement.

 

		1.3	A "person" includes a natural person, corporate or unincorporated body (whether
or not having separate legal personality) and that person's legal and personal representatives, successors and permitted assigns.

 

		1.4	The schedules form part of this Agreement and shall have effect as if set out in full in the body
of this Agreement and any reference to this Agreement includes the schedules.

 

		1.5	A reference to a "company" shall include any company, corporation or other body
corporate, wherever and however incorporated or established.

 

		1.6	Unless the context otherwise requires, words in the singular shall include the plural and vice
versa.

 

		1.7	Unless the context otherwise requires, a reference to one gender shall include a reference to the
other gender.

 

		1.8	A reference to a statute, statutory provision or any subordinate legislation made under a statute
is to such statute, provision or subordinate legislation as amended or re-enacted from time to time and, In the case of a statute,
includes any subordinate legislation made under that statute from time to time.

 

		1.9	A reference to "writing" or "written" includes faxes and email.

 

		1.10	A reference to an agreement is a reference to that agreement
as varied or novated (in each case, other than in breach of the provisions of this Agreement) at any time.

 

		1.11	References to clauses and schedules are to the clauses and schedules of this Agreement; references
to paragraphs are to paragraphs of the relevant schedule.

 

		1.12	Any phrase introduced by the terms "including", "include", "in particular"
or any similar expression shall be construed as illustrative and shall not limit the sense of the words preceding those terms.

 

		2.	Termination of Existing Agreements

 

		2.1	In
                                                             partial consideration of the Loans, the Distribution Agreement, the
                                                             Brand Development and Marketing Agreement and this Agreement, as
                                                             of the Effective Date:

 

		(A)	BSI Guernsey, BSIL and the Supplier agree, and the Customer acknowledges, that the Existing Agreements are hereby terminated in
their entirety and superseded by this Agreement;

 

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		(B)	BSI Guernsey, BSIL and the Supplier hereby release and discharge, any actions, claims, rights,
demands and set-offs, in any jurisdiction, whether or not presently known to BSI Guernsey, BSIL, the Supplier, any member of their
Groups or to the law, and whether in law or equity, that they or any member of their Groups, may have or hereafter can, shall or
may have against BSI Guernsey, BSIL, the Supplier or any member of their Groups arising out of or in connection with the Existing
Agreements or the termination thereof; and

 

		(C)	BSI Guernsey, BSIL and the Supplier agree, on behalf of themselves and on behalf of their respective
successors, assigns and Groups not to sue, commence, voluntarily aid in any way, prosecute or cause to be commenced or prosecuted
against any of BSI Guernsey, BSIL or the Supplier or any member of their Groups, any action, suit or other proceeding in any jurisdiction in connection with the Existing Agreements or the termination thereof.

 

		3.	Commencement and term

 

		3.1	This Agreement comes into force and effect on the Effective Date and shall, subject to the provisions
of clause 21, remain in force and effect for an initial period of three (3) years after the Conditions Precedent Notice Date (the
period from the Effective Date to the end of such three (3) year period shall be referred to as the "Initial Term")
after which time, unless mutually agreed otherwise by the Supplier and Customer in writing, it shall automatically renew on a three
(3) year rolling basis (each subsequent three (3) year period comprising a "Subsequent Term").

 

		3.2	The Conditions Precedent which must be satisfied (or waived by the Customer) are as follows:

 

		(A)	a review by the Customer of the Supplier's Licensed Patents with an outcome that is satisfactory
to the Customer;

 

		(B)	freedom to operate searches being conducted by the Customer with an outcome that is satisfactory
to the Customer; and

 

		(C)	NF Approval for the Products being obtained by the Customer or its nominee with support from the
Supplier.

 

		3.3	The Customer shall inform the Supplier in writing promptly following the satisfaction (or waiver
by the Customer) of (A), (B) and (C) in clause 3.2.

 

		4.	Licence and supply of Products

 

		4.1	Subject to the terms and conditions of this Agreement, the Supplier hereby grants to the Customer
an exclusive licence (with the right to sub-license) under the Supplier Intellectual Property to import, offer for sale, sell,
distribute, use, promote or label the Products for the Field in the Territory during the Initial Term and any Subsequent Term.

 

		4.2	During the Initial Term and any Subsequent Term, the Supplier shall exclusively manufacture and
supply to the Customer the Products or Components in such quantities as ordered by the Customer for the Field in the Territory
in accordance with the terms and conditions of this Agreement.

 

		4.3	The Supplier shall not supply, and the Supplier shall procure that those to whom it supplies Products
or Components shall not supply, Products or Components directly or indirectly to third parties for sale in the Field in the Territory
during the Initial Term or any Subsequent Term.

 

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		4.4	Notwithstanding the Customer's right to use the Licensed Trade Mark pursuant to clauses 4 or 5
of this Agreement, nothing in this Agreement shall prevent (a) Customer, its sub licensees or distributors (including the BreathScan
International Group) from rebranding or using any other trade mark or name on or in relation to the Products or (b) BreathScan
International Group (or its nominee) from obtaining and owning rights in the BREATHSCAN mark or variations thereof in the Territory.

 

		5.	Right to manufacture Products

 

		5.1	Subject to the terms and conditions of this Agreement, and in particular clause 5.2, the Supplier
hereby grants to the Customer an exclusive, royalty-free licence (with the right to sub-license) under the Supplier Intellectual
Property to make and have made the Products for the Field in the Territory for the Initial Term and any Subsequent Term.

 

		5.2	The licence granted pursuant to clause 5.1 shall become effective if the Customer notifies the
Supplier in writing that, in the Customer's opinion:

 

		(A)	the actual or potential demand for any of the Products in any part of the Territory indicates that
it is commercially reasonable for the Customer (or its designee) to manufacture the Products; or

 

		(B)	the Supplier is unable for whatever reason to supply or deliver to the Customer the Products that
the Customer forecasts or orders in accordance with clauses 7, 8 or 10.

 

		5.3	Following notification by the Customer pursuant to clause 5.2:

 

		(A)	the Supplier shall exclusively supply to the Customer the Components in such quantities as ordered
by the Customer for the Field in the Territory for the Initial Term and any Subsequent Term in accordance with the terms and conditions
of this Agreement, and references in clauses 6.3, 7, 8, 9, 10, 11, 12, 14, 15, 17, 18, and 22 to Products shall be read as references to
Products and Components; and

 

		(8)	the Supplier shall provide to the Customer, at cost,
fully assembled working machines to manufacture and label the Products, together with Licensed Know How, instructions and technical
assistance as may be requested by the Customer from time to time in connection with the building, running, servicing and maintaining
of any machinery to manufacture and label the Products.

 

		5.4	For the avoidance of doubt, the licences granted pursuant to clauses 4.1 and 5.1 and the supply
obligations pursuant to clauses 4.2 and 5.3 shall all run concurrently following notification by the Customer pursuant to clause
5.2.

 

		6.	Minimum Purchase Requirements

 

		6.1	The Customer shall during the Initial Term order not less than 4,250,000 (four million two hundred
and fifty thousand) units of Products from the Supplier. Thereafter, the Customer shall order an average of 1,000,000 (one million)
units of Products per year over each three (3) year rolling period (collectively the "Minimum Purchase Amounts").

 

		6.2	In the event that the Minimum Purchase Amounts are not ordered by the Customer, other than to the
extent that the shortfall in purchases was caused by the Supplier's default or by Force Majeure Events, then the Supplier shall
have the right (but not the obligation) to convert the exclusive licence granted to the Customer under clause 4 to a non-exclusive
licence save in countries or regions where the Customer has a fifty per cent (50%) share of the market for products which are the
same as or similar to the Products in the Field.

 

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		6.3	The Supplier shall maintain accurate and easily accessible records containing all data reasonably
required for the verification of the number of sales of units of the Products to the Customer. The Supplier agrees that the Customer
(or its appointed representatives) may at anytime during business hours on reasonable notice to the Supplier enter its premises,
provided that, in the event of an emergency, the Supplier shall grant the Customer immediate access to
its premises, to inspect such records.

 

		7.	Forecasts

 

		7.1	During the Initial Term and any Subsequent Term, the Customer shall give the Supplier not less
than five (5) Business Days before the beginning of each Month, a forecast of the Products it expects to purchase during the three
(3) Months following that Month.

 

		7.2	Forecasts shall be given in writing or, if given orally, shall be confirmed in writing within two (2) Business Days. The Customer
shall act in good faith when forecasting its requirements for Products.

 

		7.3	Forecasts provided under this clause 7 shall not constitute Orders.

 

		7.4	If the Supplier anticipates that it will be unable to meet the Customer’s forecasted requirements
provided in accordance with this clause 7:

 

		(A)	the Supplier shall inform the Customer in writing as soon as practicable;

 

		(B)	without limiting any other right or remedy that the Customer may have, the Customer may at its
option (and in addition or as an alternative to exercising its rights pursuant to clause 5) agree alternative delivery dates for
the relevant Products; and

 

		(C)	the Customer may source Products from a third party supplier. or manufacture Products pursuant
to clause 5 and such Products shall for the purposes of clause 6 be deemed to have been purchased from the Supplier.

 

		8.	Orders

 

		8.1	Not less than ten (10) Business Days before the beginning of each Month during the Initial Term
and any Subsequent Term, the Customer shall give the Supplier its Order for that Month.

 

		8.2	The Supplier shall supply Products in accordance with the Customer's Orders, except that, to the
extent that an Order exceeds the most recent forecast provided to the Supplier in accordance with clause 7 the Supplier shall supply
the Products in forecasts and shall be obliged to use its commercially reasonable endeavours to supply the Products ordered in
excess of forecasts (and shall not be under any obligation to supply the Products ordered in excess of forecasts if the Customer's
demand exceeds the Supplier's production capacity).

 

		8.3	Each Order shall:

 

		(A)	be given in writing by the Customer or, if given orally, shall be confirmed in writing by the Customer within two (2) Business Days;

 

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		(B)	specify the type and quantity of Products ordered; and

 

		(C)	unless the Supplier and Customer agree that the Customer may specify the date after placing the
Order, specify the date on which the Order is to be delivered ("Delivery Date"). If the Delivery Date is to be
specified after the placing of an Order, the Customer shall give the Supplier reasonable advance notice of the relevant information.

 

		8.4	The Supplier shall assign an Order Number to each Order received from the Customer and notify such
Order Numbers to the Customer. Each of the Supplier and Customer shall use the relevant Order Number in all subsequent correspondence
relating to the Order.

 

		8.5	The Customer may at any time prior to despatch of the Products amend or cancel an Order by written
notice to the Supplier. If the Customer amends or cancels an Order, its liability to the Supplier shall be limited to payment to
the Supplier of all costs reasonably incurred by the Supplier in fulfilling the Order up until the date of receipt of the notice
of amendment or cancellation, except that where the amendment or cancellation results from the Supplier's failure to comply with
its obligations under this Agreement the Customer shall have no liability to the Supplier in respect of it.

 

		8.6	If the Supplier declines an Order for Products in excess of forecasts, the Customer may source
Products from a third party supplier or manufacture Products pursuant to clause 5 and such Products shall for the purposes of clause
6 be deemed to have been purchased from the Supplier.

 

		9.	Manufacture, qualitv and packing

 

		9.1	The Supplier shall at all times maintain sufficient manufacturing capacity, stocks of raw materials
and packaging, and stocks of Products to enable it to meet the Customer's forecasted requirements of Products as notified to the
Supplier in accordance with clause 7.

 

		9.2	The Supplier shall manufacture, pack and supply the Products in accordance all .generally accepted
industry standards and practices that are applicable.

 

		9.3	The Supplier warrants that the Products supplied to the Customer by the Supplier under this Agreement
shall:

 

		(A)	conform to the Specification;

 

		(B)	be of satisfactory quality (appearance and finish, safety and durability) and fit for any purpose
held out by the Supplier or made known to the Supplier by the Customer;

 

		(C)	be free from defects in design, material and workmanship and remain so for twenty four (24) Months
after Delivery; and

 

		(D)	so far as it is aware, comply with all applicable statutory ·and regulatory requirements
for the Field in the Territory.

 

		9.4	The Supplier shall ensure that the Products are properly packed and secured in such manner as to
enable them to reach their destination in good condition.

 

		9.5	The Supplier shall obtain and maintain in force for the Initial Term and any Subsequent Terms all licences, permissions,
authorisations, consents and permits needed to manufacture and supply the Products in accordance with the terms of this Agreement.

 

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		9.6	The Supplier shall comply with all applicable laws, enactments, orders, regulations and other instruments
relating to the manufacture, packing, packaging, marking, storage, handling and delivery of the Products for the Field in the Territory.

 

		9.7	The Customer (or its nominee) shall have the right to enter the Supplier's premises to:

 

		(A)	inspect the manufacturing facilities and the equipment used by the Supplier in the manufacture of the Products;

 

		(B)	inspect and take samples of the raw materials, the packaging and the Products; and

 

		(C)	inspect stock levels of raw materials, packaging or Products.

 

		9.8	Inspections carried out pursuant to clause 9.7 shall be carried out during business hours on reasonable
notice to the Supplier, provided that, in the event of an emergency, the Supplier shall grant the Customer immediate access to
its premises.

 

		9.9	If following an inspection the Customer considers that the Products are not or are not likely to be
as warranted under clause 9.3, the Customer shall inform the Supplier and the Supplier shall immediately take such action as
is necessary to ensure that within thirty (30) days the Products are or will be as warranted under clause 9.3. The
Customer shall have the right to re-conduct inspections and take further samples after the Supplier has carried out its
remedial actions.

 

		9.10	If the Supplier determines that a recall of the Products is necessary, the Supplier shall promptly
inform the Customer of the same in writing. The Customer shall take such steps as it considers reasonably necessary to address
any such recall of the Products.

 

		9.11	The Customer shall keep a written record of any written complaints of which it becomes aware in
respect of the Products and shall promptly forward such complaints to the Supplier. The Supplier shall, at its own cost, take all
action necessary to promptly address and resolve such complaints.

 

		10.	Delivery

 

		10.1	The Supplier shall deliver each Order to the Delivery Location on or by the Delivery Date, provided
that the Supplier shall not deliver an Order more than live (5) Business Days in advance of the Delivery Date without the prior
written consent of the Customer.

 

		10.2	Delivery of an Order shall be complete on the completion of unloading of the Order at the Delivery
Location.

 

		10.3	The Supplier shall not deliver Orders by instalments except with the prior written consent of the
Customer. Where Orders are to be delivered by Instalments, they may be invoiced and paid for separately. References in this Agreement
to Orders shall, where applicable, be read as references to instalments.

 

		10.4	If an Order is not delivered on the specified Delivery Date or within ten (10) days following the
specified Delivery Date, then, without limiting any other right or remedy the Customer may have, the Customer may:

 

		(A)	refuse to take any subsequent attempted delivery of the Order;

 

		(B)	subject to allowing the Supplier thirty (30) days to deliver the Order, terminate this Agreement with immediate effect;

 

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		(C)	obtain substitute products from another supplier or manufacture Products itself and such Products
shall be deemed to count towards the Minimum Purchase Amount for the purposes of clause 6;

 

		(D)	claim damages for any other costs, expenses or losses resulting from the Supplier's failure to
deliver the Order on the Delivery Date,

 

provided
that the Supplier shall have no liability for any failure or delay in delivering an Order to the extent that such failure or delay
is caused by the Customer's failure to comply with its obligations under this Agreement.

 

		10.5	If the Customer fails to accept delivery of an Order on the specified Delivery Date, then, except
where such failure or delay is caused by the Supplier's failure to comply with its obligations under this Agreement:

 

		(A)	the Order shall be deemed to have
been delivered at 9.00 am on the Delivery Date; and

 

		(B)	the Supplier shall store the Order until delivery takes place, and charge the Customer for all
related costs and expenses (including insurance).

 

		10.6	Each Order shall be accompanied by a delivery note from the Supplier showing the Order Number,
the date of the Order, the type and quantity of Products included in the Order, including the code numbers of the Products, and,
in .the case of an Order being delivered by instalments, the outstanding balance of Products remaining to be delivered.

 

		10.7	If the Supplier requires the Customer to return any packaging materials to the Supplier, that fact must be clearly stated on
the delivery note accompanying the relevant Order, and· any such returns shall be at the Supplier's expense.

 

		11.	Acceptance and defective products

 

		11.1	The Customer shall not be deemed to have accepted any Products until it has had a reasonable time
to inspect them following Delivery, provided that the Customer shall be deemed to have accepted Products if it has not rejected
them within thirty (30) days of their Delivery, save in the case of a latent defect in the Products where any express or deemed
acceptance of Products shall not be effective.

 

		11.2	Subject to clause 11.1, if any Products delivered to the Customer do not comply with clause 9.3
or are otherwise not in conformity with the terms of this Agreement, then, without limiting any other right or remedy that the
Customer may have, the Customer may reject those Products and:

 

	 	(A)	require the Supplier to repair or replace the rejected Products at the Supplier's risk and expense within ten (10) Business Days of being requested to do so;

 

	 	(B)	require the Supplier to repay the price of the rejected Products in full (whether or not the Customer has previously required the Supplier to repair or replace the rejected Products); and

  

	 	(C)	claim damages for any other costs, expenses or losses resulting from the Supplier's delivery of Products that are not in conformity with the terms of this Agreement.

 

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		11.3	The Customer's rights and remedies under clause 11 are in addition to the rights and remedies available
to it in respect of the statutory conditions relating to description, quality, fitness for purpose and correspondence with sample
implied into this Agreement by the Sale of Goods Act 1979.

 

		11.4	The terms of this Agreement shall apply to any repaired or replacement Products supplied by the
Supplier.

 

		11.5	If the Supplier fails to promptly repair or replace rejected Products in accordance with clause
11.2(A), the Customer may, without affecting its rights under clause 11.2(C), obtain substitute products from a third party supplier,
or have the rejected Products repaired by a third party, and the Supplier shall reimburse the Customer for the costs it incurs
in doing so.

 

		11.6	If the Supplier and Customer dispute whether any Products comply with clause 9.3, either of the
Supplier and Customer may refer the matter to an Independent Expert for determination in accordance with clause 15.

 

		12.	Title and risk

 

		12.1	The risk in Products delivered to the Customer shall pass to the Customer on Delivery.

 

		12.2	The title to Products delivered to the Customer shall pass to the Customer on Delivery.

 

		13.	Payments

 

		13.1	In consideration of the execution of this Agreement, within 2 (two) Business Days after the Conditions
Precedent Notice Date, the Customer shall pay the Supplier an upfront one-off payment of USD$1,000,000 (one million United States
Dollars) by wire transfer to Supplier's bank account: Bank of America - ABA 026009593 - Swift Code BOFAUS3N - ACH 021200339 - For
credit to Akers Biosciences, Inc. Account 381019483829.

 

		13.2	In consideration for the supply of the Products, the Customer shall pay the Supplier:

 

		(A)	USD$0.30 (thirty United States cents) per Product unit sold to the Customer during the Initial
Term.

 

(8) USD$0.30
(thirty United States cents), increased annually in line with the Consumer Price Index, per Product unit sold to the Customer during
any Subsequent Terms.

 

		13.3	In the event that the Customer manufactures (or has manufactured on its behalf) the Products pursuant
to clause 5, in consideration for the supply of the Components, the Customer shall pay the Supplier the following amounts:

 

		(A)	during the Initial Term:

 

		(1)	USD$0.1023 (ten point two three United States cents) per Product unit manufactured by the Customer
using the Components if the Ampoules are supplied to the Customer pre-filled with Indicator Reagents.

 

		(2)	A price to be agreed between the Supplier and Customer
in USD$ per Product unit manufactured by the Customer using the Components supplied . separately in bulk to the Customer.

 

    	11

    	 

    

 

		(B)	during any Subsequent Terms:

 

		(1)	USD$0.1023 (ten point two three United States cents), increased annually in line with the Consumer
Price Index, per Product unit manufactured by the Customer using the Components if the Ampoules are supplied to the Customer pre-filled
with Indicator Reagents.

 

		(2)	A price to be agreed between the Supplier and Customer in USD$, increased annually in line with
the Consumer Price Index, per Product unit manufactured by the Customer using the Components supplied separately in bulk to the
Customer.

 

		13.4	The above payments in Clauses 13.1, 13.2 and 13.3 are inclusive of all taxes (including VAT) or
other charges on the Products or Components, the costs of packaging, insurance and carriage of the Products or Components.

 

		13.5	The Supplier shall notify the Customer in writing (supported by appropriate evidence) of the Consumer
Price Index applicable to clauses 13.2(B) and 13.3(B) in advance of any increase in price during a Subsequent Term.

 

		14.	Terms of payment

 

		14.1	The Supplier shall be entitled to invoice the Customer for each Order on or at any time after Delivery.
Each invoice shall quote the relevant Order Numbers.

 

		14.2	The Customer shall pay invoices in full within ninety (90) days of Delivery to the Customer (or
its designee) of Products to which the invoice relate. In the event that the licence in clause 5 is exercised, the Customer shall
pay invoices in full within ninety (90) days of shipment to a third party of Products manufactured by the Customer containing the
Components to which the invoice relates. Payment shall be made to the bank account nominated in writing by the Supplier.

 

		14.3	If either of the Supplier or Customer fails to make any payment due to the other under this Agreement
by the due date for payment ("Due Date"), then, without limiting the other’s remedies under clause 21.2, the defaulting
party shall pay interest on the overdue amount at the rate of 1% per
annum above Barclays Bank PLC's base rate from time to time. Such interest shall accrue on a daily basis from the Due Date until
the date of actual payment of the overdue amount, whether before or after judgment. The defaulting party shall pay the interest
together with the overdue amount. This clause shall not apply to payments that the defaulting party disputes in good faith.

 

		14.4	If the Customer disputes any invoice or other statement of monies due, the Customer shall immediately
notify the Supplier in writing. The Supplier and Customer shall negotiate in good faith to attempt to resolve the dispute promptly.
The Supplier shall provide all such evidence as may be reasonably necessary to verify the disputed invoice or request for payment.
If the Supplier and Customer have not resolved the dispute within thirty (30) days of the Customer giving notice to the Supplier,
the dispute shall be resolved in accordance with clause 27. Where only part of an invoice is disputed, the undisputed amount shall
be paid on the Due Date as set out in clause 14.2. The Supplier's obligations to supply the Products shall not be affected by any
payment dispute.

 

		14.5	Each of the Supplier and Customer may, without limiting
any other rights or remedies it may have, set off any amounts owed to it by the other party under this Agreement against any amounts
payable by it to the other party under this Agreement.

 

    	12

    	 

    

 

		14.6	All payments payable to the Supplier or the Customer under this Agreement shall become due immediately
on its termination. This clause 14.6 is without prejudice to any right to claim for interest under this Agreement.

 

		15.	Expert determination

 

		15.1	Where a dispute relating to the Specification, manufacture, quality or condition of the Products
is to be referred to an Independent Expert under this Agreement for determination, the Independent Expert shall be selected by
the Supplier subject to the approval of the Customer.

 

		15.2	The Supplier and Customer are entitled to make submissions to the Independent Expert and will provide
(or procure that others provide) the Independent Expert with all such assistance and documents as the Independent Expert may reasonably
require for the purpose of reaching a decision. Each of the Supplier and Customer shall with reasonable promptness supply each
other with all information and give each other access to all documentation and personnel as the other party reasonably requires
to make a submission under this clause.

 

		15.3	The Supplier and Customer agree that the Independent Expert may in its reasonable discretion determine
such other procedures to assist with the conduct of the determination as it considers appropriate, including (to the extent it
considers necessary) instructing professional advisers to assist it in reaching its determination.

 

		15.4	The Independent Expert shall act as an expert and not as an arbitrator. The Independent Expert's
decision shall be final and binding on the Supplier and Customer in the absence of fraud or manifest error.

 

		15.5	Each of the Supplier and Customer shall bear its own costs In relation to the reference to the
Independent Expert. The Independent Expert's fees and any costs it properly incurs in arriving at its determination (including
any fees and costs of any advisers appointed by the Independent Expert) shall be borne by the Supplier and Customer in equal shares
or in such proportions as the Independent Expert shall direct.

 

		16.	Insurance

 

		16.1	During this Agreement and for a period of one (1) year afterwards the Supplier shall maintain in
force the following insurance policies with reputable insurance companies:

 

		(A)	public liability insurance for not less than USD$1 (one) million per claim; and

 

		(B)	product liability insurance for not less than USD$1 (one) million for claims arising from any single
event and not less than USD$5 (five) million in aggregate for all claims arising in any year.

 

		16.2	On taking out and on renewing each policy, on the Customer's written request, the Supplier shall
promptly send a copy of the receipt for the premium to the Customer. On the Customer's written request, the Supplier shall provide
the Customer with copies of the insurance policy certificates and details of the cover provided.

		16.3	The Supplier shall ensure that any subcontractors also maintain adequate insurance

		16.4	The Supplier shall:

 

    	13

    	 

    

 

		(A)	do nothing to invalidate any insurance policy or to prejudice the Customer's entitlement under
it; and

 

		(B)	notify the Customer if any policy is (or will be) cancelled or its terms are (or will be) subject
to any material change.

 

		16.5	The Supplier's liabilities under this Agreement shall not be deemed to be released or limited by
the Supplier taking out the insurance policies referred to in clause 16.1.

 

		16.6	If the Supplier fails or is unable to maintain insurance in accordance with clause 16.1, or fails
to provide evidence that it has paid the current year's premiums in accordance with clause 16.2, the Customer may, so far as it
is able, purchase such alternative insurance cover as it deems to be reasonably necessary and shall be entitled to recover all
reasonable costs and expenses it incurs in doing so from the Supplier.

 

		17.	Warranties

 

		17.1	The Supplier hereby represents and warrants that:

 

		(A)	it has the right, title, interest, power and authority to grant the rights and supply the Products
in accordance with the terms of this Agreement;

 

		(B)	it is the sole legal and beneficial owner of the Supplier Intellectual Property, no claim has been
made by any third party that disputes the Supplier's right, title and interest in and to the Supplier Intellectual Property and
the Supplier is unaware of any circumstances likely to give rise to such a claim;

 

		(C)	so far as it is aware, all Supplier Intellectual Property is valid and subsisting and is not subject
to, or likely to be subject to, amendment, challenge to validity, removal or surrender, and
there is nothing that might prevent any application in the Supplier Intellectual Property proceeding to grant;

 

		(D)	the exploitation of the Supplier Intellectual Property pursuant to clauses 4 and 5 does not and
will not infringe the rights of any third party; and

 

		(E)	it is unaware of any infringement or likely infringement of any of the Supplier Intellectual Property.

 

		17.2	The Customer will in all respects be independent from the Supplier and will not enter into any
contracts or make any warranties, guarantees or other commitments in connection with the Products on behalf of or in the name of
the Supplier.

 

		17.3	The only warranty that shall apply in respect of end users of Products shall be the Product Limited
Warranty in effect at the time of each sale to the end user. Supplier and its distributors shall make no warranty regarding the
Products other than those contained within the Product Limited Warranty.

 

		18.	Indemnity

 

		18.1	The Supplier shall indemnify the Customer against all liabilities, costs, expenses, damages and
losses (including any direct, indirect or consequential losses, loss of profit, loss of reputation and all interest, penalties
and legal and other professional costs and expenses) suffered or incurred by the Customer arising out of or in connection with:

 

    	14

    	 

    

		(A)	any claim made against the Customer for actual or alleged infringement of a third party's Intellectual
Property Rights arising out of, or in connection with the supply, import, offer for sale, sale, distribution, use, promotion, labelling
and/or manufacture of the Products;

 

		(B)	any claim made against the Customer by a third party arising out of, or in connection with, the
supply of the Products, to the extent that such claim arises out of the breach, negligent performance or failure in performance
of this Agreement by the Supplier, its employees, agents or subcontractors; and

 

		(C)	any claim made against the Customer by a third party for death, personal injury or damage to property
arising out of, or in connection with, defective Products, to the extent that the defect in the Products is directly attributable
to the acts or omissions of the Supplier, its employees, agents or subcontractors.

 

		18.2	In the event that the Supplier disputes whether the Customer has a valid claim under clause 18.1,
the matter shall be resolved in accordance with clause 27 and 34.

 

		18.3	Nothing in this clause shall restrict or limit the Customer's general obligation at law to mitigate
a loss which it may suffer or incur as a result of a matter that may give rise to a claim under this indemnity.

 

		19.	Assignment and subcontracting

 

		19.1	Neither the Supplier or Customer may subcontract the performance of any of its obligations under
this Agreement without the prior written consent of the other party, provided that both the Supplier and Customer may subcontract
the performance of their obligations under this Agreement to another member of their respective Groups without the other party's
prior written consent.

 

		19.2	Subject to the Customer's right to sublicense under this Agreement, neither the Supplier nor the
Customer shall assign or transfer any of its rights or benefits under this Agreement without the prior written consent of the other,
such consent not to be unreasonably withheld. The Supplier shall not assign or transfer the Supplier Intellectual Property or other
assets of its breath condensate technology business to any person without also assigning or transferring this Agreement to that
person.

 

		20.	Confidentiality

 

		20.1	Each party undertakes that it shall not at any time during this Agreement and for a period of five
(5) years after termination disclose to any person any confidential information disclosed to it by the other party concerning the
business or affairs of the other party or of any member of its Group, including information relating to a party's operations, business,
affairs, customers, clients, suppliers, processes, plans, product information, know-how, designs, trade secrets, software and market
opportunities ("Confidential Information"), except as permitted by clause 20.2.

 

		20.2	Each party may disclose the other party's Confidential Information:

 

		(A)	to its employees, officers, agents, consultants, subcontractors or investors ("Representatives")
who need to know such information for the purposes of carrying out the party's obligations under this Agreement or (in the case
of investors) to raise finances, provided that the disclosing party takes all reasonable steps to ensure that its Representatives
comply with the confidentiality obligation contained in this clause 20 as though they were a party to this Agreement. The disclosing party shall be responsible for its Representatives' compliance with the
confidentiality obligations set out in this clause; and

 

    	15

    	 

    

 

		(B)	as may be required by law, court order or any governmental or regulatory authority.

 

		20.3	Each party reserves all rights in its Confidential Information. No rights or obligations in respect
of a party's Confidential Information other than those expressly stated in this Agreement are granted to the other party or to
be implied from this Agreement.

 

		21.	Termination

 

		21.1	The Customer may at any time terminate this Agreement in whole or in part by giving the Supplier
not less than six (6) Months' notice in writing provided that no such termination shall take effect before expiry of the Initial
Term.

 

		21.2	Either of the Supplier or Customer shall be entitled to terminate this Agreement with immediate
effect by giving notice in writing to the. other party if:

 

		(A)	the other party fails to pay any undisputed amount due under this Agreement on the due date for
payment and remains in default not less than thirty (30) days after being notified in writing to make such payment; or

 

		(B)	the other party commits a material breach of its obligations under this Agreement and (if such
breach is remediable) fails to remedy that breach within a period of thirty (30) days after receipt of notice in writing requiring
it to do so; or

 

		(C)	the other party commits a series of persistent minor breaches which, when taken together, amount
to a material breach; or

 

		(D)	the other party is unable to pay its debts as they fall due within the meaning of Section 123 of
the Insolvency Act 1986 or enters into compulsory or voluntary liquidation (other than for the purpose of effecting a reconstruction
or amalgamation in such manner that the company resulting from such reconstruction or amalgamation, if a different legal entity,
shall agree to be bound by and assume the obligations of such other under the Agreement) and/or a petition is presented or a resolution
and/or order is passed for the administration or the winding-up, bankruptcy or dissolution of the other party;

 

		(E)	the other party compounds with or convenes a meeting of its creditors and/or gives notice to any
of its creditors that it has suspended or is about to suspend payment of any of its debts or is commencing negotiations with one
or more of its creditors with a view to rescheduling any of its indebtedness or makes an assignment for the benefit of its creditors;

 

		(F)	the other party has a receiver, manager, administrative receiver or an administrator appointed;

 

		(G)	the other party dissolves or ceases for any reason to carry on all or substantially the whole of
its business;

 

		(H)	the other party generally takes or suffers any similar action, application or proceeding to those
specified in (D) to (G) above in any jurisdiction to which it is subject; and/or

 

		(I)	any Force Majeure Event prevents the other party from performing its obligations under this Agreement
for any continuous period of three (3) Months.

 

    	16

    	 

    

 

		21.3	A breach of any of clauses 4, 5,
9.3, 17, 18 and 20
shall be a material breach of obligations for the purposes of this clause.

 

		21.4	Termination of this Agreement shall not prejudice any of the parties' rights and remedies which
have accrued as at termination.

 

		22.	Obligations on termination

 

		22.1	Each party shall promptly:

 

		(A)	return to the other party all
                                                                  equipment, materials and property belonging to the other party that the other party had supplied to it or a member of its
                                                                  Group in connection with the supply of the Products under this Agreement;

 

		(8)	return to the other party all documents and materials (and any copies) containing the other party's
Confidential Information;

 

		(C)	erase all the other party's Confidential Information
from its computer systems (lo the extent possible); and

 

		(0)	on request, certify in writing to the other party that
it has complied with the requirements of this clause 22.

 

		23.	Survival of obligations

 

On termination
of this Agreement clauses 2.1, 16, 17, 18, 20, 22, 23, 27 and 34 shall survive and continue in full force and effect.

 

		24.	Force majeure

 

		24.1	Neither Supplier nor Customer (or any person acting on their behalf) shall have any liability or
responsibility for failure to fulfil any obligation under this Agreement so long as, and to the extent to which, the fulfilment
of such obligation is prevented, frustrated, hindered or delayed as a consequence of a Force Majeure Event, except as provided
in clause 21.

 

		24.2	The Supplier or Customer claiming the benefit of this provision shall, as soon as reasonably practicable
after the occurrence of a Force Majeure Event:

 

		(A)	notify the other party of the nature and extent of such Force Majeure Event; and

 

		(8)	use all reasonable endeavours to remove any such causes
and resume performance under this Agreement as soon as feasible.

 

		24.3	For the purposes of this clause 24, a
"Force Majeure Event" means an event beyond the control of a party (or any person acting on its behalf), which
by its nature could not have been foreseen by such party (or such person), or, if ii could have been foreseen, was unavoidable,
and includes acts of God, storms, floods, riots, fires, sabotage, civil commotion or civil unrest, interference by civil or military
authorities, acts of war (declared or undeclared) or armed hostilities or other national or international calamity or one or more
acts of terrorism or failure of energy sources.

 

    	17

    	 

    

 

		25.	Costs

 

Save as
otheiwise provided in this Agreement, each party shall pay its own costs in connection with the negotiation, preparation, execution
and performance of this Agreement, and all documents ancillary to it.

 

		26.	Severance

 

		26.1	If any provision of this Agreement (or part of a provision) is found by any court or administrative
body of competent jurisdiction to be invalid, unenforceable or illegal, the other provisions shall remain in force.

 

		26.2	If any invalid, unenforceable or illegal provision would be valid, enforceable or legal if some
part of it were deleted, the provision shall apply with the minimum modification necessary to make it legal, valid and enforceable.

 

		27.	Dispute resolution procedure

 

		27.1	If a dispute arises out of or in connection with this Agreement or the performance, validity or
enforceability of it ("Dispute") then, except as expressly provided in this Agreement, the parties shall follow
the dispute resolution procedure set out in this clause:

 

		(A)	either party shall give to the other written notice of the Dispute, setting out its nature and
full particulars ("Dispute Notice"), together with relevant supporting documentation. On service of the Dispute
Notice the Chief Executive Officer of the Supplier and Chief Executive Officer of the Customer shall attempt in good faith to resolve
the Dispute;

 

		(B)	if the Chief Executive Officer of the Supplier and Chief Executive Officer of the Customer are
for any reason unable to resolve the Dispute within thirty (30) days of it being referred to them, the parties will attempt to
settle it by mediation .in accordance with the CEDR Model Mediation Procedure. Unless otheiwise agreed between the parties, the
mediator shall be nominated by CEDR Solve. To initiate the mediation, a party must serve notice in writing ("ADR Notice")
to the other party requesting a mediation. A copy of the ADR Notice should be sent to CEDR Solve. The mediation will start not
later than thirty (30) days after the date of the ADR Notice. Unless otheiwise agreed by the parties, the place of mediation shall
be nominated by the mediator.

 

		27.2	The commencement of a mediation shall not prevent the parties commencing or continuing court proceedings.

 

		28.	Further assurance

 

Each party
shall (at its own expense) promptly execute and deliver all such documents, and do all such things, or procure the execution and
delivery of all documents and doing of all such things as are required to give full effect to this Agreement and the transactions
contemplated by it, including the registration of the licences granted to the Customer under this Agreement.

 

		29.	Variation and waiver

 

		29.1	Any variation of this Agreement shall be in writing and
signed by or on behalf of the parties.

 

    	18

    	 

    

 

		29.2	Any waiver of any right under this Agreement is only effective if it is in writing and it applies
only to the party to whom the waiver is addressed and to the circumstances for which it is given.

 

		29.3	No failure to exercise or delay in exercising any right or remedy provided under this Agreement
or by law constitutes a waiver of such right or remedy, nor shall it prevent or restrict any future exercise or enforcement of
such right or remedy.

 

		29.4	No single or partial exercise of any right or remedy under this Agreement shall prevent or restrict
the further exercise of that or any other right or remedy.

 

		30.	Notices

 

		30.1	A notice served under this Agreement:

 

		(A)	shall be in writing in the English language;

 

		(8)	shall be signed by or on behalf of the party giving it;

 

		(C)	shall be sent for the attention of the person, and to
the address, fax number or email address, given in this clause 30 (or such other address, fax number, email address or person
as the relevant party may notify to the other parties in accordance with the provisions of this clause 30); and

 

		(D)	shall be delivered personally, sent by fax, sent by email,
sent by commercial courier, sent by pre-paid first-class post or recorded delivery, or (if the notice is to be served by post
outside the country from which it is sent) sent by airmail requiring signature on delivery.

 

		30.2	The addresses for service of notice are:

 

		(A)	Akers Biosciences, Inc.
	 	 	 
	 	 	Address: 201 Grove Road, Thorofare,
New Jersey 08086 USA
	 	 	 
	 	 	For the attention of: Thomas A. Nicolette
	 	 	 
	 	 	Fax number:
+1.856.848.0269
	 	 	 
	 	 	Email:tan@akersbiosciences.com

 

 

		(B)	Sono International Limited
	 	 	 
	 	 	Address:
2nd Floor, 37 lxworth Place, London, United Kingdom, SW3 3QH 
	 	 	 
	 	 	For the attention of: Darren Jenkins
	 	 	 
	 	 	Fax number: +44 (0) 20 7225
6429
	 	 	 
	 	 	Email: darren.jenkins@sonointernational
..com

 

    	19

    	 

    

 

		(C)	BreathScan International (Guernsey) Limited
	 	 	 
	 	 	Address:
18
	 	 	 
	 	 	 - 20 Le Pollet, St Peter Port, Guernsey, GY1 1WH
	 	 	 
	 	 	For the
attention of: Mark Chasey or Sharon King
	 	 	 
	 	 	Fax number: +44 (0)1481 727 561
	 	 	 
	 	 	Email: mchasey@oaktrust.co.uk
; sking@oaktrust.co.uk

 

		(D)	BreathScan International Limited
	 	 	 
	 	 	Address:
Richmond Terrace, 49 London Road, Tunbridge Wells, United Kingdom, 
	 	 	TN1 1DT
	 	 	 
	 	 	For the attention of: Kevin
Wright
	 	 	 
	 	 	Fax number: +44(0) 1892 526 488
	 	 	 
	 	 	Email: kevin.wright@breathscan.com

 

		30.3	A notice or any other communication given in connection with this Agreement is deemed to have been
received:

 

		(A)	if delivered personally, at the time of delivery; or

 

		(B)	in the case of fax, at the time of transmission; or

 

		(C)	in the case of email, at the time the email left the e-mail gateway of the server of the notice;
or

 

		(D)	if sent by commercial courier, at the time of signature of the courier's delivery receipt; or

 

		(E)	in the case of pre-paid first class post or recorded delivery, 9.00 am on the second Business Day
after posting; or

 

		(F)	in the case of airmail, 9.00 am on the fifth Business Day after
posting.

 

		30.4	For the purposes of this clause:

 

		(A)	all times are to be read as local time in the place of deemed receipt; and

 

		(B)	if deemed receipt under this clause is not within business hours (meaning 9.00 am to 5.30 pm Monday
to Friday on any Business Day), the notice shall be deemed to have been received at the opening of business on the next Business
Day in the place of receipt.

 

		30.5	To prove delivery, it is sufficient to prove that the notice was transmitted by fax to the fax
number of the party or, in the case of email, that the email containing the notice was properly addressed and left the e-mail gateway
of the server of the notice or, in the case of post, that the envelope containing the notice was properly addressed and posted.

 

		31.	Entire agreement

 

		31.1	This Agreement constitutes the whole agreement and understanding of the parties and supersedes
any previous arrangement, understanding or agreement between them relating to the subject matter of this Agreement.

 

    	20

    	 

    

 

		31.2	Each party acknowledges that, in entering into this Agreement, it has not relied on any statement,
representation, assurance or warranty (whether made negligently or innocently) other than those expressly set out in this Agreement.

 

		31.3	Each party agrees that all liability for and remedies in respect of any representations are excluded
except as expressly provided in this Agreement.

 

		31.4	Nothing in this clause shall limit or exclude any liability for fraud.

 

		32.	Rights of third parties

 

No term
of this Agreement shall be enforceable under the Contracts (Rights of Third Parties) Act 1999 by a person who is not a party to
this Agreement, but this does not affect any right or remedy of a third party which exists or is available apart from under that
Act.

 

		33.	Counterparts

 

This Agreement may be executed
in any number of counterparts, each of which when executed and delivered shall constitute an original of this Agreement, but all
the counterparts shall together constitute the same agreement.

 

		34.	Governing law and iurisdiction

 

		34.1	This Agreement and any dispute or claim arising out of or in connection with it or its subject
matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with the law
of England and Wales.

 

		34.2	The parties irrevocably agree that the courts of England and Wales shall have exclusive jurisdiction
to settle any dispute or claim that arises out of or in connection with this Agreement or its subject matter or formation (including
non-contractual disputes or claims).

 

This Agreement has been entered
into on the date stated at the beginning of it.

 

SIGNED by
Thomas A Nicolette

 

duly authorised

for and on behalf of

AKERS BIOSCIENCES, INC.

 

	/s/ Thomas A. Nicolette 19 June 2012	
	Signature 
	 
	Name
	 
	SIGNED by Darren Jenkins
	duly authorised
	for and on behalf of
	SONO INTERNATIONAL LIMITED

 

Signature

 

Name

 

    	21

    	 

    

 

SIGNED by a Director

duly authorised

for and on behalf of

BREATHSCAN 

INTERNATIONAL 

(GUERNSEY) LIMITED

 

Signature

 

Name

 

SIGNED by Kevin Wright

duly authorised

for and on behalf of

BREATHSCAN 

INTERNATIONAL 

LIMITED

 

Signature

 

Name

 

    	22

    	 

    

 

SCHEDULE 1: PRODUCTS

 

Akers Biosciences, Inc. owns, manufactures
and distributes hand-held disposable breath alcohol detection devices ("Devices") which are class 1 medical devices regulated
and cleared for marketing by the United States Food and Drug Administration (FDA) 510(k) process. "Devices" shall mean
those products used for mobile testing of human breath for the presence of alcohol.

 

Breathscan tube 0.02% cut off

 

Breathscan tube 0.04% cut off

 

Breathscan tube 0.05% cut off

 

Breathscan tube 0.08% cut off

 

1 litre blow bag

 

BreathScan Pro System

 

    	23

    	 

    

 

SCHEDULE 2:COMPONENTS

 

The BreathScan®
Detectors are based on indicator chemistry that changes colour in the presence of breath that contains alcohol. The Detector contains
chemicals that change colour in the presence of alcohol vapours utilizing patented technology. The Detectors consist of two parts.
One part is a glass ampoule containing an indicator reagent of light yellow crystals. The other part is a plugged, plastic tube
with an opening to blow into while running the test. If alcohol is present, the crystals will change from yellow to light green/blue.
The amount of alcohol in the breath determines the strength of the chemical reaction; hence the degree of colour change.

 

Part  I- Filter Plugs

 

These filters are
used to protect the indicator ampoule in the tube, permitting breath flow into the indicator during use. The filters are moulded
from porous polyethylene, and have critical specifications in airflow, length and width at the widest end.

 

Part II- Indicator Reagents

 

The BreathScan® Detector contains indicator
chemistry that will undergo a colour change in the presence of alcohol contained in the breath of the subject. Indicator chemistry
is based on the reactivity of alcohol vapour with a coating on the surface of crystals which provide a porous surface area to breath
flow. The hue and intensity of the colour change depends upon the amount of alcohol present in the breath being tested. A change
in colour from yellow to blue green signifies that alcohol is present breath sample.

 

Part Ill -Ampoules

 

The indicator crystals are layered with
inert gas and hermetically sealed in an onionskin glass ampoule until use. The glass is of a borosilicate, onionskin type. Ampoule
specifications control the diameter, length, and wall thickness of the glass as well as the quantity of crystals filled into each
ampoule.

 

    	24

    	 

    

 

SCHEDULE 3: SPECIFICATIONS

 

Part I- Products

 

Akers Biosciences, Inc. owns, manufactures
and distributes hand-held disposable breath alcohol detection devices {"Devices") which are class 1 medical devices regulated
and cleared for marketing by the united states food and drug administration {fda) 51O{k) process. "Devices" shall mean
those products used for mobile testing of human breath for the presence of alcohol.

 

The hand-held, disposable device detects
the presence of alcohol in the breath condensate sample {"breath") of one individual. The device is comprised of a cylindrical
housing ("housing") with a first porous filter positioned within said housing. A hermetically sealed glass ampoule contains
indicator reagent and is positioned after the first porous filter. A second porous filter is inserted from the end of the housing
that does not contain the first porous filter; the second porous filter, positioned after the ampoule, is longitudinally spaced
in relation to the first porous filter (EXHIBIT A).

 

Ptg28

 

The housing forms a test chamber for the
interaction of the indicator reagent with the individual's breath. The presence of a specific level of alcohol in the breath causes
the indicator reagent to undergo a visually ascertainable change. A label is often adhered to the housing with a cut-out forming
a "window" that enables the user to observe the colour of the indicator reagent after the test procedure is completed.

 

BreathScan Tube Configuration

 

	Indicator Reagent	Chromatographic Media Grade 20150 Silica coated with potassium dichromate and sulfuric acid
	 	 
	Fill Requirements	0.20g with accuracy of ± .02g  Filled in Borosilicate Glass ampoules.
	 	 
	Tube:  (Polyester)	Length:  2.75" ± 0.031"
	 	 
	 	Wall Thickness:  0.016" ±  0.002"
	 	 
	 	Inner Diameter:  0.337" ±  0.003"
	 	 
	 	Outer Diameter:  0.369" ±  0.007"
	 	 
	Filter Plugs	Length:  between  0.355" and 0.405" 
	 	 
	 	Width: between 0.345" and 0.360"
	 	 
	 	Located on each end of the tube.  Bottom Plug insertion depth is 0.059" ± 0.20"
	 	 
	Packaging	Each individual tube labelled with Lot # and Expiration date: Tubes

 

    	25

    	 

    

 

	with 1 ampoule are packaged in containers of 100
	 

 

Part II - Components

 

(See table in Part I of schedule 3)

 

    	26

    	 

    

 

SCHEDULE 4: LICENSED PATENTS
AND LICENSED TRADE MARKS

 

Part I- Licensed Patents

 

		1.	US PATENT 7,285,246 81 - Issued October 23, 2007 - "Hand-Held Fluid Analyzer"

 

		2.	US PATENT 7,837,936 - Issued November 23, 2010 - "Hand-Held Fluid Analyzer"

 

		3.	US PATENT PENDING Application No. 12951345; Application File Date - December 3, 2010 - "Hand
Held Fluid Analyzer"

 

and in each case, any conversion,
continuation, division, or substitution thereof, and any patents issuing thereon, any reissues, reexaminations or extensions of
such patents and any foreign counterparts of such patent applications and patents in any country of the Territory.

 

Part II- Licensed
Trade Marks

 

BREATHSCAN

 

Territory: USA

 

Serial Number: 78700748

 

Registration Number: 3200905

 

Registration Date: 23 January
2007

 

Goods and Services: Alcohol
breath testing tubes containing a disposable chemical.

 

 

    	27

    	 

    

 

SCHEDULE 5: EXISTING AGREEMENTS

 

		1.	An Authorized Distributor Agreement dated 21 December 2010 between the Supplier and BSI Guernsey
relating to the exclusive worldwide (excluding the United Kingdom, United States of America, Canada and Mexico) distribution of
certain products.

 

		2.	An Addendum 1 Supply Agreement dated 21 December 2010 between the Supplier and BSI Guernsey relating
to the exclusive worldwide (excluding the United Kingdom, United States of America, Canada and Mexico) distribution of certain
products.

 

		3.	An Authorized Distributor Agreement dated 15 March 2010 between the Supplier and BSIL relating
to the exclusive distribution of certain products in the United Kingdom and Ireland.

 

		4.	An International Distributor Shipping Agreement for Export Products dated 20 March 2012 between
the Supplier and BSIL relating to the shipping of certain products.

 

    	28

    	 

    

 

SCHEDULE 6: PRODUCT LIMITED
WARRANTY

 

THIS PRODUCT SHOULD BE USED
ONLY AS A SCREENING DEVICE AND IS ONLY AN INDICATION OF THE POSSIBLE PRESENCE OF ALCOHOL IN THE BLOOD OF THE TEST SUBJECT. CORRELATION
BETWEEN BREATH ALCOHOL CONTENT AND BLOOD ALCOHOL CONTENT DEPENDS ON MANY VARIABLES, INCLUDING ALTITUDE. THE EXACT CONCENTRATI ON
OF ALCOHOL IN THE BLOOD OF THE TEST SUBJECT CANNOT BE ACCURATELY DETERMINED USING THIS DEVICE.

 

THIS DEVICE
IS NOT INTENDED TO LEGALLY DETERMINE BLOOD ALCOHOL PRESENCE OR LEVEL NO INFERENCE OF INTOXICATION IS TO BE MADE FROM A POSITIVE
INDICATION. BREATHSCAN® DEVICES AND SIMILAR PRODUCTS PRODUCED BY AKERS BIOSCIENCES INC AND SOLD UNDER DIFFERENT TRADE NAMES
ARE GUARANTEED TO BE FREE FROM MANUFACTURE DEFECTS. THIS WARRANTY IS EXPRESSLY MADE IN LIEU OF ANY AND ALL OTHER WARRANTI ES, EXPRESSED
OR IMPLIED, INCLUDING THE WARRANTIES OF MERCHANTABI LITY AND FITNESS FOR A PARTICULAR PURPOSE OR USE. THERE ARE NO WARRANTI ES
EXPRESSED OR IMPLIED WHICH EXTEND BEYOND THE DESCRIPTION OF THE PRODUCT CONTAINED ON THE PRODUCT PACKAGE. THE WARRANTY EXPRESSLY
DISCLAIMS LIABILITY FOR INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES OF ANY NATURE.

 

THE SINGLE-USE, BREATH ALCOHOL
DETECTORS MUST BE USED IMMEDIATELY AFTER BREAKING THE GLASS VESSEL THE PRODUCT SHOULD NOT BE USED IF GLASS VESSEL CONTAINING CRYSTALS
IS RUPTURED PREMATURELY OR IF CRYSTALS ARE NOT YELLOW.

 

    	29

    	 

    

 

		31.2	Each party acknowledges that, in entering into this Agreement, it has not relied on any statement,
representation, assurance or warranty (whether made negligently or innocently) other than those expressly set out in this Agreement.

 

		31.3	Each party agrees that all liability for and remedies in respect of any representations are excluded
except as expressly provided in this Agreement.

 

		31.4	Nothing in this clause shall limit or exclude any liability for fraud.

 

		32.	Rights of third parties

 

No term of this Agreement shall
be enforceable under the Contracts (Rights of Third Parties) Act 1999 by a person who is not a party to this Agreement, but this
does not affect any right or remedy of a third party which exists or is available apart from under that Act.

 

		33.	Counterparts

 

This Agreement may be executed
in any number of counterparts, each of which when executed and delivered shall constitute an original of this Agreement, but all
the counterparts shall together constitute the same agreement.

 

		34.	Governing law and iurisdiction

 

		34.1	This Agreement and any dispute or claim arising out of or in connection with it or its subject
matter or formation (including non-contractual disputes or claims) shall be governed by and
construed in accordance with the law of England and Wales.

 

		34.2	The parties irrevocably agree that the courts of England and Wales shall have exclusive jurisdiction
to settle any dispute or claim that arises out of or in connection with this Agreement or its subject matter or formation (including
non-contractual disputes or claims).

 

This Agreement has been entered
into on the date stated at the beginning of it.

     

SIGNED by Thomas A. Nicollette

 

duly authorised

for and on behalf of

AKERS BIOSCIENCES, INC.

 

Signature

 

Name

 

SIGNED by Darren Jenkins

 duly authorised

for and on behalf of

SONO INTERNATIONAL LIMITED

 

Signature 

 

Name

 

    	30

    	 

    

  

SIGNED by a Director

duly authorised

for and on behalf

BREATHSCAN

INTERNATIONAL

(GUERNSEY LIMITED)

 

SIGNED by Kevin Wright

duly authorised

for and on behalf of

BREATHSCAN

INTERNATIONAL

(GUERNSEY) LIMITED

 

Signature

 

Name

 

    	31

    	 

    

 

SIGNED by a Director

duly authorised

for and on behalf

BREATHSCAN

IINTERNATIONAL

(GUERNSEY) LIMITED

 

Signature

 

Name

 

SIGNED by Kevin Wright

duty authorised

for and on behalf of

BREATHSCAN

INTERNATIONAL

LIMITED

 

    	32

    	 

    

 

sono

INTERNATIONAL

 

Akers
Biosciences, Inc.

201 Grove
Road

Thorofare,
New Jersey

08086
USA

 

	Attention:	Thomas A. Nicolette, President and CEO

 

	Cc:	Mark Chasey, BreathScan International (Guernsey) Limited Kevin Wright, BreathSan International
Limited

 

19 JUNE 2012

 

Dear Thomas

 

Licence
and Supply Agreement between Akers Biosciences, Inc. ("ABI"), Sono International Limited ("SIL"), BreathScan
International (Guernsey) Limited and BreathScan International Limited, dated 19 June 2012 ("Agreement")

 

I refer to the amount of USO$
1,000,000 (one million United States Dollars) which shall become payable by SIL to ABI pursuant to clause 13.1 of the Agreement
within two (2) Business Days after the Conditions Precedent Notice Date ("Upfront Fee").

 

In accordance
with clause 3 of the Agreement, the Conditions Precedent Notice Date shall occur only once SIL has notified AB! in writing that
all Conditions Precedent have been satisfied or waived by SIL.

 

Notwithstanding
that all Conditions Precedent have not been satisfied or waived, and the Conditions Precedent Notice Date has not occurred, ABI
has requested SIL to pay an amount of USD$100,000 (one hundred thousand United States Dollars) on or before 21 JUNE 2012 ("Advance
Payment"), and SIL agrees to make such Advance Payment, on the understanding that the Advance Payment shall be deducted from
the Upfront Fee, such that USO$ 900,000 (nine hundred thousand United States Dollars) only shall become payable pursuant to clause
13.1 of the Agreement within two (2) Business Days after the Conditions Precedent Notice Date. For the avoidance of doubt, no satisfaction
or waiver of the Conditions Precedent, or occurrence of the Conditions Precedent Notice Date, shall be inferred from the Advance
Payment.

 

Capitalized terms used in this
letter shall have. the meaning given to them in the Agreement unless defined in this letter. This letter shall be governed by and
construed in accordance with the laws of England and Wales.

 

Please
indicate your agreement to these terms by signing and returning the enclosed copy of this letter.

  

Yours Sincerely

 

/s/ Darren Jenkins

Darren Jenkins

For and on behalf
of Sona International Limited 

 

	Accepted and agreed:	
	 
	Thomas A. Nicolette, President and CEO
	For and on behalf of Akers Biosciences, Inc.
	 
	 

  

 

37 lxworlb Place, London SWJ 3QH

Registered ill England & Wales
No 7121719

Registered office: 37 Ixworth Place, London
SW3 3QH

VAT No: 08991 392093

 

    	 

    	 

    

 

 

CHUBEWORKX

 

12
June 2013

 

Akers Biosciences, Inc.

20 1 Grove Road

Thorofare, New Jersey

08086 USA

 

Attention: Thomas A. Nicolette, President and CEO

 

		Cc:	Mark Chasey, (EN)
                                                                                10 (Guernsey) Limited

Darren Jenkins, (EN) 10 Limited

 

By Email and Post

 

Dear Thomas

 

Licence and Supply Agreement between
Akers Biosciences , Inc. ("ABI"), Chubeworkx Guernsey Limited (as successor to Sono International Limited), (EN)10 (Guernsey)
Limited (formerly BreathScan International (Guernsey) Limited) and (EN)10 Limited (formerly BreathScan International Limited)
dated 19 June 2012 (the "Agreement")

 

We refer to our recent discussions regarding
the expansion of the scope of t he Agreement to wor ldwide coverage subj ect to ongoing supply agreements which ABI has entered
into with third party customers. Accordingly, the Agreemen t sha ll be amended as follows :

 

		1.	The definition of
                                                                              " Territory" shall be deleted and
                                                                              replaced with the following:

 

			“" Territory"
                                                                            means worldwide ."

 

		2.	The definition of
                                                                              "Field" shall be deleted and replaced
                                                                              with the following:

 

			“"Field
                                                                            " means any use, including relating to the
                                                                            operation of vehicles, employer screening programmes
                                                                            and the armed forces."

 

		3.	The definition of
                                                                              " US Military" shall be deleted.

 

		4.	.A new definition
                                                                              of "Existing Customers" shall be
                                                                              inserted into clause 1.1 as follows:

 

			" Existing Customers
                                                                            " means those parties listed in Schedule 7."

 

		5.	A new definition
                                                                              of "Amendment Date" shall be inserted
                                                                              into clause 1.1 as follows :

 

			"Amendment Date"
                                                                            shall have the meaning accorded to it in the Letter
                                                                            of Amendment between the Parties which amends this
                                                                            Agreement and is dated 12 June 2013."

 

		6.	A new clause 4 .5
                                                                              shall be inserted into the Agreement and read as
                                                                              follows :

 

    	1

    	 

    

 

CHUBEWORKX

 

"
The exclusivity of the rights granted to the Customer by the Supplier under clauses 4. 1, 4.2 and 4.3 of this Agreement shall
be subject only to the supply rights of the Existing Customers in the United States of America , Canada and/or Mexico as at the
Amendment Date."

 

		7.	A new clause 4.6
                                                                              shall be inserted into the Agreement and read as
                                                                              follows:

 

"4.6 The Supplier
agrees that on and from the Amendment Date it shall not:

 

		(A)	enter into any
                                                                                  new arrangements or new agreements (whether
                                                                                  formal or informal) with any third party regarding
                                                                                  the supply of any of the Products in the Territory
                                                                                  without the Customer's prior written consent;

 

		(8)	amend or extend
                                                                                  any existing agreements with any of its Existing
                                                                                  Customers who resell any of the Products supplied
                                                                                  to them by the Supplier, in any manner which
                                                                                  increases the sale or supply to each such Existing
                                                                                  Customer to more than 500,000 units of Products
                                                                                  per year, without the Customer 's prior written
                                                                                  consent; and

 

		(C)	supply the Existing
                                                                                  Customers or any other party with any Products
                                                                                  bearing: (i) the trade mark CHUBE or any trade
                                                                                  mark confusingly similar thereto; or (ii) any
                                                                                  get-up used in connection with CHUBE branded
                                                                                  Products or any get-up confusingly similar thereto,
                                                                                  whether for the recipients own use or for resale.

 

		8.	The Supplier hereby
                                                                              restates the warranties set out in clause 17 of
                                                                              the Agreeme nt as at the Amendment Date.

 

		9.	New clauses 17.1
                                                                              (F) - (G) shall be inserted into the Agreeme nt
                                                                              and read as follows:

 

		"(F)	the list
                                                                                       of Existing Customers in Schedule 7
                                                                                       of this Agreement is a
                                                                                       full and complete list of all other
                                                                                       parties with any rights in, or rights to
                                                                                       the supply of, any of the Products in the
                                                                                       Territory as at the Amendment Date;

 

		(G)	no Products are
                                                                                 supplied to, used by and/or resold by, the Existing
                                                                                 Customers or otherwise bearing : (i) the trade
                                                                                 mark CHUBE or any trade mark confusingly similar
                                                                                 thereto; or (ii) any get-up used in connection
                                                                                 with CHUBE branded Products or any get-up confusingly
                                                                                 similar thereto. "

 

		10.	The
                                                                                                                           Annex
                                                                                                                           to
                                                                                                                           this
                                                                                                                           letter
                                                                                                                           shall
                                                                                                                           be
                                                                                                                           inserted
                                                                                                                           into
                                                                                                                           the
                                                                                                                           Agreemen
                                                                                                                           t as
                                                                                                                           Schedule
                                                                                                                           7.

 

These amendments shall take effect on
and from 12 June 20 13 (the "Amendment Date").

 

Completion of the subsc ription of shares
and share sale described in the Memorandum of Understanding between Akers Biosciences, Inc., Chubeworkx Guernsey Limited and (EN)10
(Guernsey) Limited dated 29 April 2013, shall be subject to the prior execution of this letter by all parties.

 

Capita lised terms used in this letter
shall have the meaning given to them in the Agreement unless defined in this letter. Save as express ly agreed herein, or the
Letter dated 19 June 2012 from Sono International Limited to ABI, the Ag reement remains in full force and effect. This letter
shall be governed by and construed in accordance with the laws of England.

 

    	2

    	 

    

 

CHUBEWORKX

 

Please confirm your acceptance of these amendments by signing
and returning the enclosed copy of this letter.

 

Yours sincerely

 

 

Mark Chasey

for
and on behalf of Chubeworkx Guernsey Limited

 

Accepted and agreed:

 

	/s/ Thomas A. Nicolette	 	 
	Thomas A. Nicolette	APPROVED	 
	for and on behalf of Akers Biosciences, Inc	 	 
	 	Akers Biosciences, Inc.	 
	 	Thomas A. Nicolette	 
	Accepted and agreed:	Chief Executive Officer	 

 

 

Mark Chasey

for and on behalf of (EN)10 (Guernsey) Limited

 

Accepted and agreed:

 

 

Darren Jenkins

for and on behalf of (EN)10 Limited

 

    	3

    	 

    

 

Simmons & Simmons

 

ANNEX

 

SCHEDULE 7: EXISTING CUSTOMERS

 

	Brand
    Name of Products supplied

    to Existing Customers	 	Name
    of Existing

    Customers	 	Address
    of Existing

    Customers
	A lcohol "Check"	 	Akers Biosciences, Inc.	 	Thorofare, New Jersey USA
	BreathScan	 	Akers Biosciences, Inc.	 	Thorofare, New Jersey USA
	BreathScan PRO	 	Akers Biosciences , Inc.	 	Thorofare , New Jersey USA
	Breath A lcohol "Check"	 	Akers Biosciences, Inc.	 	Thorofare, New Jersey USA
	Breath Alcohol "Check"
    .02 Detection System	 	Akers Biosciences, Inc.	 	Thorofare, New Jersey USA
	Breath Pulmo Health Check - Asthma	 	Akers Biosciences, Inc.	 	Thorofare, New Jersey USA
	Breath Pulmo Health Check - COPD	 	Akers Biosciences, Inc.	 	Thorofare, New Jersey USA
	Breath Pulmo Health Check - Lung
    Cancer	 	Akers Biosciences , Inc.	 	Thorofare , New Jersey USA
	BreathScan Legal Limit	 	Akers Biosciences, Inc.	 	Thorofare, New Jersey USA
	Breath Ketone "Check"	 	Akers Biosciences, Inc.	 	Thorofare, New Jersey USA
	Metron	 	Akers Biosciences, Inc.	 	Thorofare , New Jersey USA
	VIVO	 	Akers Biosciences, Inc.	 	Thorofare , New Jersey USA
	BreathScan	 	One Stop / Diinsel, SA de
    CV	 	Monterrey, NL Mexico Hidalgo, TX
    USA
	BreathScan	 	Lifeloc	 	Wheat Ridge, CO USA
	BreathScan	 	Micro Distributing II, Ltd	 	Belton, TX USA
	BreathScan	 	Alere Toxicoloay	 	Norfolk, VA USA
	BreathScan	 	Quest Diagnostics	 	Collegeville, PA USA
	BreathScan	 	NPACT America	 	Jacksonville , FL USA
	BreathScan	 	GE Oil &
    Gas	 	Oklahoma City, OK USA
	BreathScan	 	Test Medical Symptoms at Home	 	Maria Stein, OH USA
	BreathScan	 	VShips	 	Miami, FL USA
	BreathScan	 	CUA-Waived Inc.	 	San Dieao, CA USA
	BreathScan	 	Everglades Direct	 	Sunrise, FL USA
	BreathScan	 	American Bio Medica Corporation	 	Kinderhook , NY USA
	BreathScan	 	Bob Barker Company	 	Fuquay-Varina, NC USA
	BreathScan	 	Capital Medical &
    Suraical	 	Tallahassee, FL USA
	BreathScan	 	Cardinal Health	 	Waukega n, IL USA
	BreathScan	 	Fisher Healthcare	 	Houston , TX USA
	BreathScan	 	Conney Safety Products	 	Madison, WI USA
	BreathScan	 	Farahi Medical Inc.	 	Toronto , Canada
	BreathScan	 	Corporate Wellness, Inc.	 	Stamford, CT USA
	BreathScan	 	JJ Keller &
    Associates , Inc	 	Neenah, WI USA
	BreathScan Legal Limit US Navy -	 	US Government GSA	 	Washington, DC USA
	"Shipmates Take Care of Shipmates"	 	Contract	 	 

 

    	4

    	 

    

 

Simmons & Simmons

 

	Brand
    Name of Products supplied

    to Existing Customers	 	Name
    of Existing

    Customers	 	Address
    of Existing

    Customers
	BreathScan Legal Limit US Air Force	 	US Government GSA	 	Washington, DC USA
	- "Protect Your Winoman"	 	Contract	 	 
	BreathScan Legal Limit USMC -	 	US Government GSA	 	Washington, DC USA
	"Marines Save Lives"	 	Contract	 	 
	BreathScan Legal Limit US Army -	 	US Government GSA	 	Washington , DC USA
	"Soldiers Savino Lives"	 	Contract	 	 
	BreathScan Legal Limit US SOCOM	 	US Government GSA	 	Washington , DC USA
	Quiet Professionals - "Safety Begins	 	Contract	 	 
	With Me"	 	 	 	 
	BreathScan Legal Limit USCG	 	US Government GSA	 	Washington, DC USA
	Semper Paratus - "Are You Ready to	 	Contract	 	 
	Save a Life?"	 	 	 	 
	Breath Scan Legal Limit US Army	 	US Government GSA	 	Washington , DC USA
	Medical Command - Don't drive &	 	Contract	 	 
	drive!	 	 	 	 
	BreathScan Legal Limit Fort Benning	 	US Government GSA	 	Washington , DC USA
	ASAP "Power of Choice" - Fort	 	Contract	 	 
	Benninq Soldiers Don't Drink & Drive	 	 	 	 
	BreathScan Legal Limit US Army	 	US Government GSA	 	Washington, DC USA
	Combat Readiness Center -	 	Contract	 	 
	"Soldiers Savinqs Lives"	 	 	 	 
	BreathScan Legal Limit US Armed Forces Command Safety Program
    -	 	US Government GSA 

    Contract	 	Washington, DC USA
	"Protecting Freedom's Guardians	 	 	 	 
	BreathScan Legal Limit US Army	 	US Government GSA	 	Washington, DC USA
	Corps of Engineers - "Be Safe Share	 	Contract	 	 
	The Ways"	 	 	 	 
	BreathScan Legal Limit Marine Corps	 	US Government GSA	 	Washington, DC USA
	Logistics Base Albany - "Marines	 	Contract	 	 
	Take Care of Marines" Semper	 	 	 	 
	Fidelis	 	 	 	 
	BreathScan Legal Limit US Army -	 	US Government GSA	 	Washington, DC USA
	Arm yourself aoainst drunk drivinq	 	Contract	 	 
	BreathScan Legal Limit US Army	 	US Government GSA	 	Washington, DC USA
	Safety Center - "Make It Home... Be	 	Contract	 	 
	Safe!"	 	 	 	 
	BreathScan POV Safety Program	 	US Government GSA	 	Washington, DC USA
	 	 	Contract	 	 
	Alcolimit - Private Label BAC	 	Silmarc Pharma S.r.I.	 	Lucca, Italy
	BacTrack - Private Label BAG	 	KHN Solutions	 	San Francisco, CA USA
	DUI Alert - Private Label BAC	 	Martini Promotions	 	Saint-Laurent , Quebec 

    CANADA
	El-Screen - Private Label BAC	 	MEDTOX Scientific Inc.	 	St. Paul, MN USA
	FamilySafe - Private Label BAC	 	Comvate, LLC	 	Eagle Pass, TX USA
	PartySafe - Private Label BAC	 	 	 	 
	GM Safe Driving Program - "Friends	 	General Motors Co.	 	New York, NY USA
	Don't Let Friends Drive Drunk"	 	 	 	 
	RediTest - - Private Label BAG	 	Redwood Biotech	 	Santa Rosa, CA USA
	TESTorARREST - Private Label	 	CTAS, Inc.	 	Liberty Twp., OH USA
	BAG	 	 	 	 

 

    	5

    	 

    

 

Simmons & Simmons

 

	Brand
    Name of Products supplied

    to Existing Customers	 	Name
    of Existing

    Customers	 	Address
    of Existing

    Customers
	V IVO	 	LifeVantage	 	Sandy, UT USA
	VIVO	 	lsagenix	 	Chandler, AZ USA
	VIVO	 	Summa Health	 	Portland, OR USA
	Metron	 	Summa Health	 	Portland, OR USA
	Metron	 	lsagenix	 	Chandler, AZ USA

 

    	6

    	 

    

 

 

Akers Bioscience,Inc.

201 Grove Road

Thorofare, New Jersey

08086 USA

 

	Attention:	Thomas A. Nicolette, President and CEO 
	 	 
	Cc	Mark Chasey, (EN)10 (Guernsey)  Limited
	 	kevin Wright, (EN)10 International Limited

 

5th December 2012

 

Dear Thomas

 

Licence and Supply Agreement between Akers Bioscience, Inc.
("ABI"), Sono International Limited ("SIL"), (EN)10 (Guernsey) Limited
and (EN)10 International Limited, dated 19th June
2012 ("Agreement").

 

In accordance with clause 19 (Assignment and subcontracting)
of the Agreement, SIL wish to assign the rights, benefits and obligations under the Agreement to Chubeworkx Guernsey Limited, and
hereby requests consent of Akers Bioscience, Inc.

 

Chubeworkx Guernsey Limited has been established as a special
purposed vehicle (SPV) in order to hold the beneficial interest and manage the operations of the Agreement . This SPV is the entity
that was envisaged to be set up when we signed the Agreement .

 

Please find attached a copy of the proposed Assignment Agreement.

 

Please evidence the consent of Akers Bioscience, Inc. by
signing and returning a copy of this letter.

 

Yours sincerely,

 

/s/ Darren Jenkins

Darren Jenkins

Director, Sono International Limited

 

Accepted and agreed :

 

/s/ Thomas A Nicolette

Thomas A Nicolette, President and CEO

For and on behalf of Akers
Bioscience, Inc.

 

37 Ixworth Place, London SW3 3QH

Registered in England & Wales No 7121719

Registered Office: 5 North End Rd, London
NW 11 7RJ

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