Document:

Joint Patent Ownership & License Agreement

 Exhibit 10.1 
  
 JOINT PATENT OWNERSHIP AND LICENSE AGREEMENT 
  
 This written Agreement (the “Agreement”) memorializes the oral agreement entered into and made effective the 16th
day of August 2004 (the “Effective Date”) between CardioVascular BioTherapeutics, Inc. (“CARDIO”), whose principal place of business is at 1700 West Horizon Parkway, Suite 100, Henderson, Nevada 89102, and Phage Biotechnology,
Inc. (“PHAGE”), whose principal place of business is at 1700 West Horizon Parkway, Suite 100, Henderson, Nevada 89102. 
  
 WHEREAS, CARDIO plans to develop and commercialize therapeutic methods related to the induction of angiogenesis or wound healing by administration of
Fibroblast Growth Factor (“FGF”); and, 
  
 WHEREAS,
PHAGE plans to develop and commercialize recombinant DNA methods for producing peptides/proteins, and owns patents and patent applications covering angiogenic or wound healing peptides/proteins, including FGF, and methods for producing these
peptides/proteins; and 
  
 WHEREAS, CARDIO and PHAGE wish to
jointly own all patents related to FGF and the methods for producing and using FGF, whether such patents are developed jointly or individually by either party; and 
  
 WHEREAS, CARDIO and PHAGE wish to license from one another exclusive rights to practice under the jointly owned patents in
accordance with their respective plans for development and commercialization; and 
  
 WHEREAS, CARDIO and PHAGE entered into a manufacturing license agreement dated March 1, 2000 (the “Manufacturing Agreement); and 
  
 WHEREAS, CARDIO and PHAGE wish to terminate the Manufacturing Agreement and cancel all future obligations and liabilities
that may exist under the Manufacturing Agreement; 
  
 NOW
THEREFORE, in consideration of the cancellation of the Manufacturing Agreement and the patent assignments and licenses granted herein and other valuable considerations, the parties agree as follows: 
  
 1. Termination of Manufacturing Agreement. As of the Effective Date
the Manufacturing Agreement is hereby terminated. The parties agree to cancel any further liabilities or obligations set forth in the Manufacturing Agreement. 
  

2. Definitions. 
  
 2.1 “Field” shall encompass arty angiogenic or wound healing compositions, (including in particular, but without limitation, all
FOE species, fragments, derivatives, and analogs thereof, nucleic acid sequences encoding angiogenic or wound healing proteins/peptides), vectors and host cells comprising said DNA sequences, methods of making 

  

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the angiogenic or wound healing compositions, and methods of inducing angiogenesis or wound healing employing the said compositions. CARDIO-developed devices
and methods of use thereof for delivery of angiogenic or wound healing compositions are NOT included within the Field, and are NOT subject to joint ownership or any other terms of this Agreement. 
  
 2.2 “Territory” shall mean worldwide, subject to
CARDIO’s exclusive license to Korea Biotechnology Development Co., Ltd. (“KBDC License”) for the territories of Korea, China and Taiwan as detailed in Section 5. 
  
 2.3 “Patent Rights” shall mean the rights to make, use, practice, sell, offer to sell, and import
the Products and/or Processes claimed in any Issued Patents listed below and any patents that issue directly from the Pending Patent Applications listed below or from any Future Patent Applications, including any continuations, divisionals,
re-exams, reissues and continuations-in-part that claim priority to any of the Issued Patents, Pending Patent Applications and/or Future Patent Applications, and any foreign counterparts thereof: 
  
 Issued Patents. 
  
 1. U.S. 6,268,178 entitled “Phage-Dependent Super-Production of Biologically Active
Protein and Peptides;” and 
  
 2. U.S. 6,642,026 entitled “Method of
Producing Biologically Active Human Acidic Fibroblast Growth Factor and its Use in Promoting Angiogenesis.” 
  
 3. U.S. 6,774,889 entitled “Phage-Dependent Super-Production of Biologically Active Protein and Peptides”; 
  
 Pending Patent Applications: 
  
 1. U.S. 09/859,651 (Allowed) entitled “Phage-Dependent Super-Production of Biologically
Active Protein and Peptides;” 
  
 2. U.S. 10/280,864 entitled “Method of
Producing Biologically Active Human Acidic Fibroblast Growth .Factor and its Use in Promoting Angiogenesis;” 
  
 3. U.S. 10/649,480 entitled “Method of Producing Biologically Active Human Acidic Fibroblast Growth Factor and its Use in Promoting Angiogenesis;” and

  
 4. All foreign patent applications related to the above-referenced U.S.
patents and applications. 
  
 Future Patent Applications:

  
 All U.S. and foreign patent applications, developed
jointly or independently by either party, which may or may not be related to the above-listed Issued Patents and Pending Patent Applications, but which disclose subject matter encompassed within the Field. 
  

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 2.4 “Product” shall mean any product which: 
  
 (a) is covered in whole or in part by an issued, unexpired
claim or a pending claim contained in the Patent Rights; or 
  
 (b) is manufactured by using a process which is covered in whole or in part by an issued, unexpired claim or a pending claim contained in the Patent Rights. 
  
 2.5 “Process” shall mean any process which is
covered in whole or in part by an issued, unexpired claim or pending claim contained in the Patent Rights. 
  
 3. Patent Assignments. 
  
 3.1 PHAGE hereby agrees to assign and hereby does assign to CARDIO a 50% ownership interest in the itemized patents and patent
applications (Patent Rights). 
  
 (a) A separate
Assignment for these patents and applications for recordation with the U.S. Patent arid Trademark Office will accompany this Agreement. 
  
 (b) Future Patent Applications within the Field will be assigned by the respective inventors to PHAGE and CARDIO jointly, with each party
having a 50% ownership interest. 
  
 4. License Grants.

  
 4.1 PHAGE hereby grants to CARDIO a
non-revocable, royalty-bearing (subject to Section 7.1), exclusive license within the Territory to the Patent Rights in the Field, including the right to sublicense to third parties within the Field, provided that any third party sublicensee
shall be subject to all of CARDIO’s obligations under Sections 10, 11, 13 and 14. 
  
 4.2 CARDIO hereby grants to PHAGE a non-revocable, royalty-free, exclusive license within the Territory to the Patent Rights in all other
fields outside of the Field, including the right to sub license to third parties outside of the Field. 
  
 5. KBDC License. CARDIO’s rights and obligations under this agreement are subject to a pre-existing agreement between CARDIO and Korea
Biotechnology Development Co., Ltd. (“KBDC”) granting exclusive rights to manufacture and market certain Products within the Field in the territories of Korea, China and Taiwan. A formal license agreement between CARDIO and KBDC is in
preparation. 
  
 6. Technical Development Services/FGF
Manufacturing. PHAGE agrees to provide technical development services to CARDIO for the development and regulatory approvals of FGF, including, but not limited to, lab work, testing, and production of FGF for clinical trials, all as directed by
CARDIO. If CARDIO so requests, PHAGE will produce FGF in commercial quantities for CARDIO as well as PRODUCTS. 
  

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 7. Compensation and Royalties. 
  
 7.1 In consideration for PHAGE’S assignment of a 50% ownership interest in all existing Patent Rights
within the Field and its agreement to jointly hold all future Patent Rights within the Field, CARDIO agrees to either (at CARDIO’s sole discretion): 
  
 (a) purchase FGF from PHAGE for 10% of CARDIO’s net sales price of finished Product to end customer or distributor; or 
  
 (b) pay PHAGE a 6% royalty on the net sales price of
finished Product to end customer or distributor, when said finished Product is produced by CARDIO or a third party under the jointly held Patent Rights. 
  
 7.2 CARDIO agrees to pay PHAGE for any Technical Development Services (Section 6) performed by PHAGE at CARDIO’s direction. Payment
for such services will be limited to PHAGE’s actual cost of service including direct, indirect and overhead costs, but no profit component. Any such amounts will be billed to CARDIO on a monthly basis. Payments for Technical Development
Services are in addition to compensation/royalties set forth in Section 6.1. 
  
 8. Term. The rights and obligations set forth in this Agreement shall commence as of the effective date of this Agreement and end upon expiration of the last to expire patents in the Patent Rights, including
Future Patent Applications. 
  
 9. Patent Prosecution and
Maintenance. 
  
 9.1 During the Term of this
Agreement, CARDIO and PHAGE will be jointly responsible for the filing, payment, prosecution and maintenance of all patents and applications within the Field, whether developed jointly or individually by either party. A party can, at its sole
discretion, assign its entire right, title and interest in a particular patent or application within the Field to the other party, in which case, it shall bear no further responsibility for the filing, payment, prosecution and maintenance of such
patent or application, and it shall lose its rights in such patent or application. 
  
 9.2 The parties shall jointly agree on patent counsel. 
  
 9.3 The parties agree that patent counsel shall implement instructions from both parties to the extent that
such instructions are not inconsistent. 
  
 9.4
In the event that the parties cannot agree on instructions for the filing, payment, prosecution arid/or maintenance of a patent or application: 
  
 (a) for a patent or application covering an invention developed by one party, that party shall control the prosecution and/or maintenance
of such patent or application; 
  
 (b) for a
patent or application covering an invention jointly developed by both parties, Cardio shall control the prosecution and/or maintenance of such patent or application. 
  

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 10. Patent Infringement. Upon learning of any infringement of Patent Rights by third parties in
any country, CARDIO and PHAGE will promptly inform each other, as the case may be, in writing of that fact and will supply the other with any available evidence pertaining to the infringement. In the event that CARDIO and PHAGE mutually agree to
bring suit, costs and expenses shall be shared equally and any recovery in excess of expenses shall be shared equally. In such event, no settlement, consent, judgment or other voluntary final disposition of the suit may be entered into without the
consent of both parties, which shall not be unreasonably withheld. In the event that one party does not agree to take steps to stop the infringement, the other party shall have the right to bring suit at its awn expense, wherein any recovery shall
be solely owned by the party bringing suit, and that party shall have the right to enter into settlement, consent, judgment or other voluntary final disposition without the consent of the other party. 
  
 11. Indemnification. 
  
 11.1 PHAGE agrees to release, indemnify and hold harmless
CARDIO, their Directors, officers, and employees against any and all losses, expenses, claims, actions, lawsuits and judgments thereon (including attorney’s fees through the appellate levels) which may be brought against CARDIO as a result of
or arising out of any negligent act or omission of PHAGE in its manufacture and supply of FGF or other angiogenic peptides/proteins to CARDIO. CARDIO agrees to release indemnify and hold harmless PHAGE, their Directors, officers, and
employees against any and all losses, expenses, claims, actions, lawsuits and judgments thereon (including attorney’s fees through the appellate levels) which may be brought against PHAGE as a result of or arising out of any negligent act or
omission of CARDIO in its use of the FGF or other angiogenic peptides/proteins 
  
 11.2 This Agreement to reimburse and indemnify under the circumstances set forth above shall continue after the termination of this
Agreement. 
  
 12. Warranties. CARDIO and PHAGE make NO
warranties, express or implied, and hereby disclaim all such warranties, as to any matter whatsoever, including, without limitation, the condition of any Product or Process, whether tangible or intangible, assigned and/or licensed under this
Agreement; or the merchantability, or fitness for a particular purpose of the Product or Process; or that the use of the Product or Process will not infringe any patent, copyrights, trademarks, or other rights. CARDIO and PFIAGE shall not be liable
for any direct, consequential, or other damages suffered by the other party or any third parties resulting from the use, production, manufacture, sale, lease, consumption, or advertisement of the Product or Process. The provisions of this Section
shall continue beyond the termination of this Agreement. 
  
 13.
Reports and Records. 
  
 13.1 Commencing
one year after the first sale, CARDIO shall furnish to PHAGE a report in writing specifying during the preceding calendar quarter: 
  
 (a) the amount of Product sold hereunder by CARDIO; 
  
 (b) the total billings for all Products sold; 
  

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 (c) the total royalties due; and 
  
 (d) the names and addresses of all sublicensees. 

 
 Such reports shall be due within 45 days following the last day of each
calendar quarter in each year during the term of this Agreement. Each such report shall be accompanied by payment in full of the amount due PHAGE in United States dollars. 
  
 13.2 For a period of three years from the date of each report pursuant to Section 13.1, CARDIO shall
keep records adequate to verify each such report and accompanying payment made to PHAGE under this Agreement, and an independent Certified Public Accountant or Accounting Firm selected by PHAGE and acceptable to CARDIO may have access, on reasonable
notice during regular business hours, not to exceed once per year, to such records to verify such reports and payments. Such Accountant or Accounting Firm shall not disclose to PHAGE any information other than that information relating solely to the
accuracy of, or necessity for, the reports and payments made hereunder. The fees and expense of the Certified Public Accountant or Accounting Firm performing such verification shall be borne by PHAGE unless in the event that the audit reveals an
underpayment of royalty by more than ten (10%) percent, the cost of the audit shall be paid by CARDIO. 
  
 14. Marking and Standards. 
  
 14.1 Prior to the issuance of any patents within the Patent Rights, CARDIO agrees to mark Products (or their containers or labels) made,
sold, or otherwise disposed of by it under the license granted in this Agreement with a proper patent notice as specified under the patent laws of the United States. 
  
 14.2 If CARDIO elects to make FGF or have FGF made for its use under the terms of this Agreement, CARDIO
further agrees to maintain satisfactory standards in respect to the nature of the Product manufactured and/or sold by CARDIO. CARDIO agrees that all Products manufactured and/or sold by it shall be of a quality which is appropriate to products of
the type here involved. CARDIO agrees that similar provisions shall be included by sublicenses of all tiers. 
  
 15. Assignability. Neither party shall assign its ownership interest in the Patent Rights to a third party without the written consent of the other
party. If either party desires to transfer its ownership interest in the Patent Rights, the non-transferring party shall have first right of refusal of such ownership interest. Notwithstanding the foregoing, this Agreement is not assignable by
either party or by operation of law, including by acquisition of all assets of either party, without the prior written consent of the other party at its sole discretion. 
  
 16. Assignability. This Agreement is not assignable by either party or by operation of law, including by acquisition
of all assets of either party, without the prior written consent of the other party at its sole discretion. 
  
 17. Binding. This Agreement shall extend to and be binding upon the successors and legal representatives and permitted assigns of CARDIO and PHAGE.

  

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 18. Counterparts. This Agreement may be executed in counterparts, each of which shall constitute
an original copy of the Agreement. 
  
 19. Governing Law.
This Agreement shall be construed without regard to any conflict of laws principles, and interpreted in accordance with the laws of the State of California. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective date. 

 

			
	CARDIOVASCULARBIOTHERAPEUTICS, INC.
		
	By	 	/S/    MICKAEL A.
FLAA        
	 Name
	 	Mickael A. Flaa
	 Title
	 	CFO

  

			
	 PHAGE BIOTECHNOLOGY, INC.

		
	By	 	/S/    JOHN W.
JACOBS        
	 Name
	 	John W. Jacobs
	 Title
	 	COO

  

 - 8 -Distributorship Agreement

 Exhibit 10.2 
  
 DISTRIBUTORSHIP AGREEMENT 
  
 CardioVascular BioTherapeutics, Inc., a corporation organized and existing under the laws of the State of Delaware, United States of America, with its
principal place of business at 1700 West Horizon Ridge Parkway, Suite 100, Henderson, NV 89102 , U.S.A. (“Cardio”) and Phage Biotechnology Corporation, a corporation organized and existing under the laws of the State of California, United
States of America, with the principal place of business at 1700 West Horizon Ridge Parkway, Suite 100, Henderson, NV 89102 , U.S.A. (“Phage”) (sometimes collectively referred to as “Manufacturer”), and agrees with Cardio Phage
International Inc., organized and existing under the laws of the Commonwealth of the Bahamas with its principal place of business at P.O. Box CB-12751 Nassau, New Providence, Bahamas (hereinafter called “Distributor”), as follows:

  
 1. Appointment. For the terms and subject to the
provisions of this Agreement, Manufacturer appoints Distributor as its exclusive distributor for the distribution in the Territory of certain Products (as hereinafter defined) manufactured and sold by Cardio and Phage and Distributor hereby accepts
such appointment. 
  
 2. Territory. The
“Territory” in which the Distributor shall sell the Products is the world except the following territories: (i) the United States and Canada; (ii) Europe, defined as the Ural Mountains west including Iceland, excluding Turkey and
Cyprus; (iii) Japan ; (iv) the Republic of Korea; and (v) with respect only to Cardio Products, The Republic of China and Taiwan. No authorization is granted hereby for the sale of the Products by Distributor either outside the
Territory or for ultimate use outside the Territory. 
  
 3.
Products. The Products as used herein are fully described in Schedule A appended hereto and made a part hereof. Manufacturer shall have the right to withdraw any of the Products from Schedule A in the event that it discontinues or ceases to
manufacture or distribute any of the Products, or if it believes that the manufacture, sale or use of any of the Products sold hereunder may infringe any U.S.A. or foreign patents. Manufacturer reserves the right at any time to discontinue any of
the Products, to make changes in designs and to add improvements to any Products without incurring any obligation to furnish the same on Products previously manufactured. Manufacturer reserves the right at any time to exclude from this Agreement
Products which cannot be, or have not been, adequately promoted by Distributor. 
  
 4. Acceptance of Orders. Manufacturer may accept orders from Distributor or not, at its sole discretion and option. No order shall be considered binding on Manufacturer until accepted and acknowledged in
writing by Manufacturer on its standard acknowledgment of order form. All sales hereunder shall be governed by Manufacturer’s terms and conditions of sale, a copy of which is appended hereto as Schedule B, notwithstanding any additional or
different terms in any purchase or order form of Distributor. In the event of any conflict between this Agreement and the terms and conditions in Schedule B, this Agreement shall govern. 
  

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 5. Prices. Manufacturer will from time to time furnish Distributor with its schedule of suggested
retail prices. Manufacturer reserves the right to change the suggested retail price of any of the Products on at least thirty days’ written notice to Distributor. Distributor shall not charge less than the suggested retail price for Products
without the prior written approval from Manufacturer. 
  
 6.
Payment. 
  
 (a) Distributor shall pay directly to Phage an
amount equal to ten percent of the gross sales price received by Distributor for any Cardio Products. If any Cardio Product is manufactured by a third party company (“Secondary Cardio Products”), Distributor shall pay Phage an amount equal
to six percent of the gross sales price received by Distributor for such Secondary Cardio Products and pay to the third party manufacturer an amount equal to the fee paid by Cardio to the third party manufacturer. 
  
 (b) In addition, Distributor shall pay directly to Cardio 50% of CPI’s
Contribution Margin for sale of Cardio Products. For purposes hereof Contribution Margin shall be defined as gross revenue received from sale of Cardio Products minus direct costs minus indirect cost (excluding selling, general and administrative
costs). 
  
 (c) Distributor shall pay directly to Phage an amount
equal to ten percent of the gross sales price received by Distributor for any Phage Products. If any Phage Product is manufactured by a third party company (“Secondary Phage Products”), Distributor shall pay Phage an amount equal to six
percent of the gross sales price received by Distributor for such Secondary Phage Products and pay to the third party manufacturer an amount equal to the fee paid by Phage to the third party manufacturer. 
  
 (d) In addition, Distributor shall pay directly to Phage 50% of CPI’s
Contribution Margin for sale of Phage Products. For purposes hereof Contribution Margin shall be defined as gross revenue received from sale of Phage Products minus direct costs minus indirect cost (excluding selling, general and administrative
costs). 
  
 (e) Payment terms shall be net thirty (30) days,
unless otherwise mutually agreed to by the parties. If Distributor fails to make payment for any shipment hereunder in accordance with the terms of this Agreement, or fails to comply with any provision hereof, Manufacturer may, at its option (and in
addition to other remedies), cancel any unshipped portion of any order, Distributor to remain liable for all unpaid purchases. 
  
 7. Shipment. Manufacturer reserves the right in all cases to ship by the route and in the manner deemed by it to be the most practical under the
circumstances. All shipments will be F.O.B. shipping point. Distributor shall pay all freight, customs, duties, charges and any other fees, duties or charges incurred in connection therewith. Distributor shall reimburse Manufacturer for any such
fees or charges it pays. Any claim by Distributor against Manufacturer for shortage or damage occurring prior to delivery must be made within seven (7) days after receipt of shipment and accompanied by 

  

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original transportation bill signed by carrier noting that carrier received material from Manufacturer in the condition claimed. 
  
 8. Warranties. All Products sold by Manufacturer hereunder are
warranted to be free from defects in material and workmanship, WHICH WARRANTY IS IN LIEU OF AND EXCLUDES ALL OTHER WARRANTIES NOT EXPRESSLY SET FORTH HEREIN, WHETHER EXPRESSED OR IMPLIED BY OPERATION OF LAW OR OTHERWISE, INCLUDING, BUT NOT LIMITED
TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Manufacturer shall not be liable for incidental or consequential loss, damage, or expense, directly or indirectly arising from the sale, handling or use of the
Products, or from any other causes relating thereto. Manufacturer’s liability hereunder in any case being expressly limited to the replacement (in the form originally shipped) of Products not complying with this Agreement, or at
Manufacturer’s election, to the repayment of any amount equal to the purchase price of such Products, whether such claims are for breach of warranty or negligence. 
  
 9. Force Majeure. Manufacturer shall not be liable for delay or default in delivery for any cause beyond
Manufacturer’s reasonable control, including, but not limited to, government action, shortage of labor, raw material, production or transportation facilities, labor difficulty involving Manufacturer or others, terrorism, war, fire, flood or
other casualty. In the event of any delay in Manufacturer’s performance due in whole or in part to any cause beyond Manufacturer’s reasonable control, Manufacturer shall have such additional time for performance as may be reasonably
necessary under the circumstances. Acceptance by Distributor of any Products shall constitute a waiver by Distributor of any claim for damages on account of any delay in delivery of such Products. 
  
 10. Cancellation and Change Orders. All cancellations and change
orders must be in writing and received by Manufacturer at least ten days prior to scheduled shipping date. No cancellation or change order is effective without Manufacturer’s consent. Every time a change, addition, subtraction or other
variation is requested on an order, and is consented to, such order shall be subject to re-scheduling. Any cancellation or change order consented to, which results in added costs to Manufacturer, will be charged to Distributor as incurred and
Distributor agrees to promptly pay billings for such added costs. 
  
 11. Distributor’s Obligations. Distributor will exert its best efforts and use all due diligence in promoting the sale and distribution of the Products in the Territory, and to this end will establish adequate distribution
throughout the Territory. Distributor will keep Manufacturer advised monthly of its activities in connection with any sales or solicitation of sales. Distributor will actively pursue all inquiries and sales leads referred to it by Manufacturer.
Distributor will keep Manufacturer advised of consumer demand for and reaction to the Products, of the activities of Manufacturer’s competitors and their distributors, and of other matters relating to the marketing of the Products in the
Territory, and the proper application and use of the Products. Distributor will not 

  

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distribute, sell or in any other way deal in products competitive with the Products. Distributor agrees to obtain all required government approvals and to
attend to any required filings with the authorities concerning the Products and this Agreement, at its sole cost and expense. Manufacturer agrees to cooperate with Distributor in its efforts to secure any necessary government approvals in the
Territory. 
  
 12. Corporate Governance. During the Term,
Cardio and Phage will each have the right to appoint 45% of the members of Distributor’s board of directors. If Distributor breaches the rights of Cardio and/or Phage under this paragraph, Manufacturer shall have the right, but not the
obligation, to terminate this Agreement immediately. 
  
 13.
Literature and Sales Data. Manufacturer will supply to Distributor the basic materials used to generate such literature and other sales data which it may from time to time issue, if any. It shall be the Distributor’s sole responsibility
to adapt any such literature and other sales data for the local market and into the local language and to meet to the requirements established by local legislation in effect form time to time. Distributor hereby agrees not to distribute any
literature or sales data prepared by or for the Distributor without the prior written consent of Manufacturer. Distributor shall indemnify Manufacturer and hold it harmless from any claims, demands, liabilities, suits, damages, losses or expenses of
any kind arising out of Distributor’s failure to fully comply with the provisions of this Section 13. This provision shall survive the termination of this Agreement and shall be liberally construed in favor of Manufacturer. All
undistributed literature and sales data shall, on termination or expiration of this Agreement, be returned by Distributor to Manufacturer. 
  
 14. Protection of Information. During the term of this Agreement, Manufacturer may divulge to Distributor technical and commercial information
regarding the distribution, use and sale of the Products. Distributor shall not, at any time, in any way or manner whatsoever, make known, divulge or communicate such information or any part thereof to any person, firm or company, including
affiliated companies and companies in which any shareholder or quotaholder of Distributor has an interest, and Distributor shall take the necessary and proper precautions to prevent any information concerning the same from being acquired by any
unauthorized person, firm or company. 
  
 15. Trademarks and
Patents. 
  
 (a) Distributor is granted no rights in the name
and/or trademarks of Manufacturer, including without limitation the registered and unregistered trademarks of Phage, Cardio, the Products, Secondary Phage Products, Secondary Cardio Products, any associated or affiliated companies marks’ and
any newly developed Manufacturer Products (the “Marks”). Whatever use Distributor makes of the Marks is and shall be for the exclusive benefit of Manufacturer. Upon termination of this Agreement, Distributor will immediately cease the use
of the Marks, or any other name and/or trademark which, in the opinion of Manufacturer, would infringe upon or detract from the Marks, or which in the opinion of Manufacturer bears such near resemblance to any of the Marks that 

  

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might deceive purchasers or prospective purchasers. The words “Cardio” and/or “Phage” as used in this paragraph include corporate or
private names, trademarks, trade names, symbols, grade marks, designations, indicia, slogans, and/or other means of identifying Products, Phage or Cardio itself. Distributor agrees not to use the Marks or any combination thereof either alone or with
any other word or words as part of its corporate name or as a trade name for the purpose of advertising its trade or business without the prior written consent of Manufacturer and agrees upon the termination of this Agreement or upon request of
Manufacturer to discontinue completely any such use of the Marks. 
  
 (b) Manufacturer does not assume any responsibility or liability with respect to any of the Products covered hereby for infringement or other claims arising out of trademarks, patents or other legal rights or obligations of others, or for
infringement of any trademarks, patents or other legal rights owned by third persons. Distributor accepts such responsibility as solely its own and assumes the responsibility of protecting Manufacturer, from and against any and all such claims and
defending all such claims or actions for infringement or otherwise. 
  
 For the purposes of this paragraph 15 the term “Distributor” shall include the officers, directors, agents and employees of Distributor or any of its subsidiaries, divisions, or affiliates. 
  
 Distributor agrees to assist Manufacturer to the extent necessary in the
procurement of any protection or to protect any of Manufacturer’s rights to the Marks, and Manufacturer, if it so desires, may commence or prosecute any claims or suits in its own name or in the name of Distributor or join Distributor as a
party thereto. Distributor shall notify Manufacturer in writing immediately of any infringements or imitations, or threats thereof, by others of the Marks which come to Distributor’s attention, and Manufacturer shall have the sole right to
determine whether or not any action shall be taken on account of any such infringements or imitations or threats thereof. Distributor shall not institute any suit or take any action on account of any such infringements or imitations or threats
thereof without the express written consent of Manufacturer. 
  
 16. Duration. This Agreement is entered into for a period of 99 years from its date of execution as set forth at the end hereof, and shall terminate without notice on such date. It shall not be automatically renewed except as
required by law. An extension of the relationship shall require a new agreement signed by the parties hereto. 
  
 (a) Either party may immediately terminate this Agreement prior to its expiration date by giving written notice to the other, if any one of the following
events occurs: 
  
 (i) if the other party enters
into voluntary or involuntary bankruptcy, or ceases to make payments to its creditors or for any reason ceases to do business; or 
  
 (ii) if the other party liquidates its business or makes or causes to be made an assignment of its assets or business, whether in whole or
in part, for the benefit of its creditors; or 
  

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 (iii) if a receiver or trustee is appointed to take over or administer or conduct all or
a substantial part of the business or property of the other party. 
  
 (b) In the event either party fails to comply with the terms of this Agreement, written notice may be given to the defaulting party by the non-defaulting party. This Agreement shall terminate 60 days after such notice is given unless the
defaulting party rectifies its failure to comply with this Agreement within 30 days after said notice is given. 
  
 (c) Manufacturer may terminate this Agreement prior to its expiration date in accordance with Section 16(c) hereof, if Distributor is unable to
obtain or renew any permit, license or other governmental approval necessary to carry on the business contemplated hereunder. 
  
 17. Repurchases. Upon termination of this Agreement, Manufacturer shall have the option of buying back from Distributor any new unsold Products
purchased from Manufacturer, at the prices charged Distributor, it being understood that “new” Products means Products which have not been used or damaged, and which have been properly stored and have not been in stock more than three
months. In such event, Distributor shall obtain the necessary governmental approvals. 
  
 18. Authority. The relationship established by this Agreement between Distributor and Manufacturer is that of buyer and seller, and not of principal and agent and Distributor is an independent contractor.
Neither Distributor nor any of its subdistributors, dealers, agents or employees, shall be deemed to be the representatives (legal or otherwise), employees or agents of Manufacturer for any purpose whatsoever, and they or any of them shall have no
rights or authority to assume or create any obligation of any kind, expressed or implied, on behalf of Manufacturer, or to accept service of any legal process of any kind addressed to or intended for Manufacturer, or to bind Manufacturer in any
respect whatsoever. Distributor agrees to hold Manufacturer harmless from and against any and all claims, suits, expenses, losses and liabilities arising out of and from the acts or omissions of Distributor or its subdistributors, dealers, agents or
employees. 
  
 19. Taxes/Duties. All customs duties,
tariffs, taxes, fees, charges and assessments levied within the Territory and/or any territorial subdivision thereof, imposed in connection with this Agreement, or by reason of any rights or obligations conferred hereunder, shall be borne by the
Distributor. 
  
 20. Applicable Law. This Agreement shall
be deemed to have been executed and entered into in the State of Nevada, U.S.A., and the same shall be construed, performed, and enforced in accordance with the internal laws of the State of Nevada. 
  
 21. Arbitration. Any claim or controversy which arises out of the
performance of either party’s duties under this Agreement or the breach of any of the 

  

 6 

 
terms or conditions set forth herein or in any way relating to or arising out of this Agreement shall be resolved exclusively by arbitration initiated in
accordance with the procedures hereinafter set forth in this Section. All arbitration pursuant to this Section shall be in accordance with the rules then obtaining of the American Arbitration Association by a single arbitrator, if the parties shall
agree upon one, or by three arbitrators consisting of one arbitrator appointed by each party and a third arbitrator (who shall be an attorney licensed to practice law in the State of Nevada) designated by the other arbitrators. In case of any
failure of a party to make an appointment of an arbitrator, or for the two arbitrators to agree upon a third arbitrator, in either such case within twelve weeks of commencing arbitration, such appointment shall be made by the American Arbitration
Association. 
  
 Unless otherwise agreed by the parties hereto,
all arbitration proceedings shall be held in Clark County, Nevada, U.S.A. The arbitration shall be conducted in the English language. The decision of the arbitration shall be binding and conclusive on each party and each party agrees to comply with
any award made in any such proceeding and to entry of a judgment in any jurisdiction upon any award rendered within sixty (60) days of final submissions of the parties in writing or in a hearing before the arbitrator(s) and shall include their
individual notes. Any such arbitration award shall be conclusive and binding upon the parties hereto and shall not be appealable. Attorneys’ fees, costs and other out-of-pocket expenses may be awarded to the party which prevails in any such
arbitration. Each party shall pay its own expenses pending the awarding thereof to the party which prevails in any such arbitration. 
  
 22. No Assignability. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns, but may not be assigned by either party without the prior written consent of the other party hereto. 
  
 23. No Waiver. The waiver of any breach of the terms of this Agreement shall not constitute the waiver of any other or further breach hereunder,
whether or not of a like kind or nature. 
  
 24.
Separability. Should there be a final determination by a competent authority to the effect that one or several of the provisions, or any part thereof, of this Agreement are invalid, the remainder of the Agreement shall continue in full force
and effect. In this event the parties shall agree on new provisions, the economic effect of which will approximate as closely as possible that of the invalid provisions. 
  
 25. Notices. Any notice required or permitted hereunder shall be in writing and may be given by personal delivery, or
by certified or registered mail, return receipt requested or by confirmed receipt facsimile transmission, addressed to the party at the address set forth above, or to such other address as may be designated by notice by either party to the other.
All notices shall be deemed given on the date of delivery, mailing or transmittal. 
  

 7 

 26. Copies. This agreement shall be executed in duplicate originals, but shall not be binding on
Manufacturer until a copy signed by Distributor is executed by Manufacturer. 
  
 27. Entire Agreement. This Agreement represents the entire and integrated Agreement between the parties hereto and supersedes all prior negotiations, representations, or Agreements, either written or oral. This
Agreement may be amended or modified only by a written instruction signed by Distributor and a duly authorized representative of Manufacturer. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Distributorship Agreement to be executed as of this 16th day of August 2004. 
  

			
	CARDIOVASCULAR BIOTHERAPEUTICS, INC.
		
	 By
	 	/s/    DANIEL C. MONTANO        
	 Name
	 	Daniel C. Montano
	 Title
	 	 
	
	CARDIOVASCULAR BIOTHERAPEUTICS, INC.
		
	 By
	 	/s/    MICKAEL A. FLAA         
	 Name
	 	Mickael A. Flaa
	 Title
	 	CFO
	
	PHAGE BIOTECHNOLOGY CORPORATION
		
	 By
	 	/s/    DANIEL C. MONTANO        
	 Name
	 	Daniel C. Montano
	 Title
	 	 
	
	CARDIO PHAGE INTERNATIONAL, INC.
		
	 By
	 	/s/    GRANT GORDON        
	 Name
	 	Grant Gordon
	 Title
	 	 

  

 8 

 SCHEDULE A 
  
 PRODUCTS 
  
 1 – Cardio Products 
  
 “Cardio Vascu-Grow” 
  
 2 – Phage Products 
  

 9 

 SCHEDULE B 
  
 TERMS AND CONDITIONS OF SALE 
  

 10 

 SCHEDULE C 
  
 MINIMUM SALES QUOTAS 
  

 11

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