Document:

Exhibit
10.5

 

LEASE

 

This Lease Agreement made between D’AMATO INVESTMENTS, LLC, of Milford,
Connecticut, hereinafter called “LANDLORD”, and Obagi Medical Products, Inc. of Long Beach, California hereinafter
called the “TENANT”.

 

WITNESSETH:  That the LANDLORD does hereby demise and
lease to TENANT and TENANT does hereby hire from the LANDLORD the premises
located at: 136 Research Dr., Unit F &
181 Research Dr., Units 1-3, Milford, CT (approx. 2,400 square feet) subject
to the following terms and conditions:

 

ARTICLE 1 – LEASE TERM

 

The term of this lease shall be for a period of one year, which shall commence December 1, 2005 
(Commencement Date) and terminate on November 30, 2006.

 

LANDLORD also grants TENANT a two years option @ 5%
increase per year. TENANT must give thirty days (30) advance written notice of
intention to exercise option.

 

ARTICLE 2 – RENT

 

The rent hereinafter specified shall be paid in advance in monthly
installments on the 1st day of each month commencing Dec. 1, 2005. All rental checks received
after the 10th of each month are subject to ten percent (10%) late fee. Said
rent shall be payable to D’Amato Investments, LLC. Said rent shall be payable
at 183 Quarry Road, Milford, Connecticut or such other place as the LANDLORD
may require. Rental checks are to be mailed to D’Amato Bros., P.O. Box 3063,
Milford, Connecticut 06460.

 

The rent for the term shall be $33,600.00 payable in monthly
installments as follows: $2,800.00

 

ARTICLE 3 – TENANT’S MAINTENANCE AND REPAIR OF
PREMISES

 

Except as hereinafter provided, TENANT shall maintain and keep the
interior of the premises in good repair, free of refuse and rubbish and shall
return the same at the expiration or termination of this Lease in as good
condition as received by TENANT, ordinary wear and tear, damage or destruction
by fire, flood, storm, civil commotion or other unavoidable cause excepted.
TENANT shall be responsible for all trash removal, and shall at all times keep
the premises free of accumulations of trash. TENANT shall be responsible for
paying the first $300.00 per occurrence of all non-structural repairs including
repairs to the heating or air conditioning systems. If any repair exceeds
$300.00 prior approval from LANDLORD must be obtained.

 

1

 

The TENANT shall
neither encumber nor obstruct, any sidewalk or parking area in front of, or any
entrance to the premises.

 

ARTICLE 4 – TENANT’S ALTERATIONS, ADDITIONS,
INSTALLATIONS AND REMOVAL THEREOF

 

TENANT may at its own expense, either at the commencement of, or during
the term of this Lease, make such alterations in and/or additions to the leased
premises, upon first, obtaining the written approval of LANDLORD as to the
materials to be used and the manner of making such alterations and/or
additions. LANDLORD covenants not to unreasonably withhold approval of
alterations and/or additions proposed to be made by TENANT. TENANT may also, at
its own expense, install such counters, racks, shelving, fixtures, fittings,
machinery and equipment upon or within the leased premises as TENANT may
consider necessary to the conduct of its business. At any time prior to
expiration or earlier termination of the Lease, TENANT shall, if required by
the LANDLORD, remove any or all such alterations, additions, or installments in
such a manner as will not substantially injure the leased premises. TENANT
shall restore the premises or portion/’s affected by such removal, to the same
conditions as existed prior to the making of such alteration, addition or
installation; ordinary wear and tear, damage or destruction by fire, flood,
storm, civil commotion or other unavoidable cause excepted.

 

All alterations, additions or installations not so removed by TENANT
shall become the property of LANDLORD without liability on LANDLORD’s part to
pay for the same.

 

ARTICLE 5 – LANDLORD’S MAINTENANCE AND REPAIR OF
PREMISES

 

LANDLORD shall maintain and make all necessary repairs to the
foundations, load bearing walls, gutters, downspouts, water mains, gas and
sewer lines and roof & all other structural repairs to the demised
premises. TENANT shall be responsible for the first $300.00 per occurrence of
non-structural repairs including but not limited to the heating & air
conditioning systems, once it is established that they are in working order.

 

TENANT shall permit LANDLORD and LANDLORD’s agents to enter at all
reasonable times, to view the state and condition of the premises or to make
such alterations or repairs therein as may be necessary for the safety and
preservation thereof, or for any other reasonable purpose.

 

ARTICLE 6 – FIRE AND CASUALTY

 

If the premises are damaged by fire or other casualty, LANDLORD may
cause the damage to be repaired and the rent will be abated for such period of
time as the premises may be untenantable, but if the premises are destroyed or
so damaged that LANDLORD shall decide that it is inadvisable to repair same,
this lease shall cease and

 

2

 

terminate, and
rental shall be adjusted to the date when such fire or casualty occurred.
TENANT agrees to release LANDLORD from any and all claims for loss, damage, or
inconvenience arising from such fire or casualty. In any determination to
terminate pursuant to this paragraph, the LANDLORD shall exercise good faith in
its determination regarding the repair of the premises.

 

ARTICLE 7 – SIGNS

 

No sign, advertisement or notice shall be affixed to or placed upon any
part of the demised premises by the TENANT, except in such manner, and of such
size, design and color as shall be approved in advance in writing by the
LANDLORD. Such approval shall not be unreasonably withheld.

 

ARTICLE 8 – SUBORDINATION TO MORTGAGES

 

This lease is subject and is hereby subordinated to all present and
future mortgages, deed of trust and other encumbrances affecting the demised
premises or the property of which said premises are part. The TENANT agrees to
execute, at no expense to the TENANT, any instrument which may be deemed
necessary or desirable by the LANDLORD to further effect the subordination of
this lease to any such mortgage, deed of trust or encumbrance.

 

ARTICLE 9 – CONDEMNATION

 

In the event that the leased premises shall be taken for public use by
the city, state, federal government, public authority or other corporation
having the power of eminent domain, then this lease shall terminate as of the
date on which possession thereof shall be taken for such public use, or, at the
option of TENANT, as of the date on which the premises shall become unsuitable
for TENANT’S regular business by reason of such taking. If such a taking of
only a part of the leased premises occurs, and TENANT elects not to terminate
the lease, there shall be a proportionate reduction of the rent to be paid
under this lease from and after the date such possession is taken for public
use. TENANT shall not have the right to participate, directly or indirectly in
any award for such public taking.

 

ARTICLE 10 – TAXES

 

LANDLORD shall pay all base taxes, assessments and charges which shall
be assessed and levied upon the leased premises or any part thereof during the
said term as they shall become due. Personal property taxes shall be paid by
the TENANT.

 

3

 

ARTICLE 11 –
INSURANCE

 

The TENANT further agrees that it will at all times indemnify the
LANDLORD and save it harmless from any and all claims for injury or damage
sustained upon the Leased Premises to the person or property of any person
other than the TENANT unless said damage or injury be caused by or be due to the
negligence of the LANDLORD and that it will at its own expense carry public
liability insurance in the amount of $1,000,000.00, with such companies as may
be satisfactory to the LANDLORD. Said policies shall name the LANDLORD as
additional parties. The TENANT shall provide the LANDLORD with proof of said
insurance.

 

ARTICLE 12 –
PERSONAL PROPERTY

 

All personal property placed or moved in the premises above described
shall be at the risk of the TENANT or owner thereof, and LANDLORD shall not be
liable for any damage to said personal property, or to the TENANT arising from
the bursting or leaking of water pipes or any other causes.

 

ARTICLE 13 –
COMPLIANCE WITH REGULATORY AGENCIES

 

The TENANT shall promptly execute and comply with all statutes,
ordinances, rules, orders, regulations and requirements of the Federal, State
and City Government and of any and all their Departments and Bureaus applicable
to said premises, for the correction, prevention and abatement of nuisances or
other grievances in, upon, or connected with said premises during said term
TENANT’s use of the premises shall be:

 

office/warehouse/manufacturing

 

ARTICLE 14 –
UTILITY CHARGES

 

	
   

  	
  Charges will be paid as
  follows:

  	
   

  	
   

  	
   

  
	
  a.

  	
  Gas             – Tenant

  	
   

  	
  e.

  	
    Trash Removal   – Tenant

  
	
  b.

  	
  Electric       – Tenant

  	
   

  	
  f.

  	
  *Snow Removal   – Landlord

  
	
  c.

  	
  Water          – **Landlord

  	
   

  	
  g.

  	
    Landscaping       – Landlord

  
	
  d.

  	
  Sewer Use   –
  N/A

  	
   

  	
  h.

  	
    Common Area    – Landlord

  

 

*            The
TENANT shall be responsible for the removal of snow from the sidewalks and doors
fronting the demised premises.

 

**     Unless TENANT’s
use is excessive.

 

ARTICLE 15          SECURITY
ASSIGNMENT

 

The said TENANT hereby pledges and assigns to the Leaser all furniture,
fixtures, goods and chattels of said TENANT, which shall or may be brought or put
on said premises as security for the said lien may be enforced by distress
foreclosure or otherwise at the election of the said LANDLORD.

 

4

 

ARTICLE 16 – SUBLETTING AND ASSIGNMENT

 

The TENANT shall not sublet the demised premises nor any portion
thereof, nor shall this be assigned by the TENANT without the prior consent of
the LANDLORD, which consent shall not be unreasonably withheld. The TENANT
shall not be entitled to any amounts received from sub-tenant’s rental in
excess of the rental due under this lease.

 

ARTICLE 17 – MECHANIC’S LIEN

 

In the event that any Mechanic’s Lien is filed against the premises as
a result of alterations, additions, or improvements made by the TENANT, the
LANDLORD may at his option, after sixty (60) days notice to the TENANT, and
after TENANT’s failure within such time either to satisfy the lien or provide
the LANDLORD with evidence of the invalidity of such lien, pay said lien,
without inquiry into the validity of the lien and the LANDLORD may terminate
this lease by written notice to the TENANT. The TENANT shall forthwith
reimburse the LANDLORD the total expense incurred by the LANDLORD in
discharging the said lien, as additional rent hereunder.

 

ARTICLE 18 – GLASS

 

The TENANT agrees to replace at the TENANT’S expense any and al1 glass
which may become broken in and on the demised premises.

 

ARTICLE 19 – LANDLORD’S RIGHT TO
INSPECT AND EXHIBIT

 

The LANDLORD, or its agents, shall have the right to enter the demised
premises at reasonable hours, to examine same, make necessary repairs and/or
alterations without unreasonable interference with the conduct of the TENANT’s
business. LANDLORD or its agents shall be entitled to show the premises at
reasonable times to persons wishing to purchase the same, and the TENANT
further agrees that the LANDLORD shall have the right to show the premises for
rental purposes on or after ninety (90) days prior to the expiration of this
lease and to place reasonable notices on the front of the premises or any part
thereof, offering the premises “To Let” or “For Sale”, and TENANT hereby agrees
to permit the same to remain thereon without hindrance or molestation;
provided, however, that such notices shall not interfere with TENANT’s signs or
the conduct of TENANT’s business.

 

ARTICLE 20 – NO WAIVER OF RIGHTS

 

The failure of either party to insist upon a strict performance of any
of the terms, covenants and conditions herein shall not be deemed a waiver of
any rights or remedies of either such party, and shall not be deemed a waiver
of any subsequent breach or default in any of their terms, conditions and
covenants herein contained.

 

5

 

ARTICLE 21 –
BANKRUPTCY, INSOLVENCY, ASSIGNMENT FOR BENEFIT

 

It is further agreed that if at any time during the term of this lease
the TENANT shall make any assignment to the benefit of creditor, or be decreed
insolvent or bankrupt according to law, or if a receiver shall be appointed for the TENANT, the LANDLORD may, at
its option, terminate this lease. Exercise of such option to be evidenced by
notice to that effect served upon the assignee, receiver, trustee or other
person in charge of the liquidation of the property of the TENANT or the
TENANT’s estate, but such termination shall not release or discharge any
payment of rent payable hereunder and then accrued, or any liability then
accrued by reason of any agreement or covenant herein contained on the part of
the TENANT, or the TENANT’s legal representatives.

 

ARTICLE 22 – NOTICES

 

All notices and/or demands, legal or otherwise, incidental to this
lease, or the occupation of the demised premises, shall be in writing. If the
LANDLORD or its agents desires to give or serve upon the TENANT any notice or
demand, it shall be sufficient to send a copy thereof by first class mail,
addressed to the TENANT at the demised premises, or to leave a copy thereof
with the person of suitable age found on the premises, or to post a copy
thereof upon the door to said premises. Notices from the TENANT to the LANDLORD
shall be sent first class mail or delivered to the LANDLORD at the place
hereinbefore designated for the payment of rent, or to such party or place that
the LANDLORD may from time to time designate in writing.

 

ARTICLE 23 –
RIGHTS UPON DEFAULT

 

In the event of the nonpayment of said rent, or any installment
thereof, at the time in the manner above provided, or if the TENANT shall be
dispossessed for nonpayment of rent, or if the leased premises shall be
deserted, or vacated, the LANDLORD or its agents shall have the right to enter
the said premises as the agent of the TENANT either by force or otherwise and
may relet the premises as the agent of the TENANT, and receive the rent
thereof, upon terms that may be reasonable and satisfactory to the LANDLORD,
and all rights of the TENANT to repossess the premises under this lease shall
be forfeited. Such re-entry by the LANDLORD shall not operate to release the
TENANT from any rent to be paid or covenants to be performed hereunder during
the full term of this lease. For the purpose of re-letting the LANDLORD shall
be authorized to make such reasonable repairs or alterations in or to the
leased premises as may be necessary to restore the premises to rentable
condition. The TENANT shall be liable to the LANDLORD for the cost of such
repairs or alterations, and all reasonable expenses of such re-letting. If the
sum realized or to be realized from this letting is insufficient to satisfy the

 

6

 

monthly or term rent provided in this lease, the LANDLORD, at his option
may require the TENANT to pay such deficiency month by month, or may hold the
TENANT in advance for the entire deficiency to be realized during the term of
re-letting. The TENANT shall not be entitled to any surplus funds accruing as a
result of the re-letting. The TENANT agrees to pay, as additional rent, all
reasonable Attorneys’ fees and other expenses incurred by the LANDLORD in
enforcing any obligations under this lease.

 

ARTICLE 24 – PROVISIONS NOT EXCLUSIVE

 

The foregoing rights and remedies are not
intended to be exclusive but as additional to all rights and remedies the
LANDLORD would otherwise have by law.

 

ARTICLE 25 – SECURITY DEPOSIT

 

Upon execution of this agreement the TENANT shall
deposit with the LANDLORD the sum of $5,600.00
security for the faithful performance and observance by TENANT of the terms,
provisions and conditions of this Lease. In the event of any default by TENANT,
the LANDLORD may use, apply, retain the whole or any part of the security so
deposited to the extent required to compensate LANDLORD for damages sustained
by TENANT’S default. LANDLORD shall have the right to commingle any monies held
as security with his own monies and accounts. Said security shall not bear
interest. Said security shall increase as the rent increases so as to always
remain the equivalent of 2 month
(s) of the current rental payment.

 

ARTICLE 26 – HAZARDOUS MATERIAL/CONTAMINANTS

 

The TENANT hereby agrees that should it, at
any time during its occupancy of the subject premises, store or use any
substance considered by the United States Environmental Protection Agency
(E.P.A.) or the State of Connecticut Department of Environmental Protection
(D.E.P.) to be hazardous materials or contaminants the following procedures of
notice to the LANDLORD will be complied with:

 

The TENANT will give the LANDLORD written
notice in the manner set forth elsewhere herein, providing the following
information:

 

A)           Notice of each of said
substances and the volume of each substance used by the TENANT monthly or
annually. Also a description of the TENANT’S methods of handling these
materials.

 

7

 

B)            Notice of the approximate monthly or annual volume of
waste material resulting from the TENANT’S use of said hazardous material or
contaminants. TENANT will also describe its handling and methods of disposal of
said materials including the names of all outside firms employed in handling
and disposal.

 

It is further understood that the TENANT bears
full and absolute responsibility for any and all “spills” as defined by the
E.P.A. and D.E.P., which occur upon any property of the LANDLORD or any other
adjacent properties as a result of the TENANT’S operations or those operations
of the TENANT’S invitees and/or outside contractors. The TENANT will hold the
LANDLORD harmless from any claims whatsoever, resulting from a “spill” related
to the TENANT’S occupancy and use. TENANT will bear full financial
responsibility for any and all cost related to any spill or spills, including
immediate remediation and any long term monitoring required by the E.P.A. or
D.E.P.

 

Additionally, the TENANT covenants and agrees
that in such instance of a “spill”, the TENANT will, at a minimum, provide telephone
and/or written notice to the Connecticut Department of Environmental Protection
and to the LANDLORD within four (4) hours of each occurrence, and begin
immediate actions of clean up and remediation.

 

ARTICLE 27 – OTHER PROVISIONS-This agreement shall be subject to the
terms, conditions and provisions contained in “Addendum To Lease”, if any,
attached hereto.

 

ARTICLE 28 – LANDLORD’S RULES & REGULATIONS

 

1)                         Use of
Common Elements

 

a)                        All motor
vehicle parking will be in common with the other Tenants. There will be no
parking set aside or reserved except for handicapped access parking as required
by law. Tenants shall use reasonable efforts to insure that non-handicapped
people do not occupy the handicapped spaces.

 

b)                       Picnic
tables and other similar amenities which the Landlord or others may from time
to time establish, for the use of Tenant shall be kept reasonable clean and
orderly by those who use these amenities.

 

c)                        Tenant
further agrees that he shall not park any vehicle on the premises overnight if
the weather forecast calls for snow.

 

8

 

2)                         Unregistered
Motor Vehicles

 

No unregistered vehicles or motor vehicles of any kind may be present
upon any part of the premises. This includes, but is not limited to, any
automobiles, trailers, boats, vans, trucks, motorcycles, etc.

 

3)             Outside Storage

 

No outside storage of any kind is allowed upon the property.

 

This is an all inclusive
prohibition and includes any of the Tenant’s goods, fixtures, barrels, skids
and so forth.

 

No truck bodies, storage sheds or storage containers may be placed upon
the premises.

 

ARTICLE 29 – This lease may not be changed orally.

 

9

 

IN WITNESS WHEREOF, the
parties have caused these presents to two counterparts of this Agreement, each
of which shall be deemed an original as of the date of execution by the
Landlord.

 

 

In the presence of:

 

	
   

  	
  LANDLORD

  
	
   

  	
  D’Amato
  Investments, LLC

  
	
   

  	
  By:
  JohnLou Corp., its Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Louis J. D’Amato

  	
   

  
	
   

  	
  By:
  LOUIS J. D’AMATO, PRESIDENT

  
	
   

  	
  Duly
  Authorized

  
				

 

 

	
   

  	
  TENANT:

  
	
   

  	
   

  	
  Obagi Medical Products, Inc.

  

 

 

	
   

  	
   

  	
  By:

  	
  /s/ Steve Garcia

  	
   

  
	
   

  	
   

  	
  Steve
  Garcia

  Duly Authorized

  

 

 

	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Duly Authorized

  

 

 

	
  SIGNED
  BY LANDLORD

  	
  /    
  /

  	
   

  
	
  SIGNED
  BY TENANT

  	
  /    
  /

  	
   

  

 

10

 

ADDENDUM

 

ARTICLE 3 – TENANT’S MAINTENANCE AND REPAIR OF PREMISES

 

Said Tenant hereby agrees to obtain a service
contract with a reputable heating/air-conditioning contractor in order to
provide proper maintenance of the existing heating/air-conditioning system.

 

 

	
  LANDLORD:

  	
  D’Amato Investments, LLC 

  
	
   

  	
  By: JohnLou Corp., its
  Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   /s/ Louis J. D’Amato

  	
   

  
	
   

  	
  By:  LOUIS J. D’AMATO,
  PRESIDENT

  
	
   

  	
  Duly Authorized

  

 

 

	
  TENANT:

  	
  Obagi Medical Products,
  Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   /s/ Steve Garcia

  	
   

  
	
   

  	
  Steve Garcia

  
	
   

  	
  Duly Authorized

  

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Duly Authorized

  

 

11

 

 

ADDENDUM TO LEASE

 

Between

 

D’Amato Investments, LLC

And

 

Obagi Medical Products, Inc. of Long Beach, California, Tenant

 

Tenant does
hereby agree to exercise its option to renew its lease for the following
premises:

 

136 Research Drive Unit F &

181 Research Drive units 1-3 Milford, CT

 

The term of
said lease renewal is from December 1, 2006 to November 30, 2008. The rent for
the term shall be as follows:

 

06-07       $35,280.00
in monthly installments of $2,940.00

07-08       $37,044.00 in monthly
installments of $3,087.00

 

Tenant has deposited with the Landlord an additional sum of $280.00 to
be held as security for the faithful performance and observance of said lease.
The total amount of security now on deposit with Landlord is $5,880.00. All other
terms and conditions of the lease shall remain the same.

 

	
   

  	
  LANDLORD:

  	
  D’Amato
  Investments, LLC

  	 

	
   

  	
   

  	
  By: JohnLou
  Corp., its Manager

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  /s/ Louis J.
  D’Amato

  	 

	
   

  	
   

  	
  LOUIS J.
  D’AMATO, President

  	 

	
   

  	
   

  	
  Duly
  Authorized

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  TENANT:

  	
    Obagi
  Medical Products, Inc.

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  /s/ Steve
  Garcia

  
	
   

  	
   

  	
  Steve Garcia

  	 

	
   

  	
   

  	
  Duly
  AuthorizedExhibit 10.6

 

DISTRIBUTION AGREEMENT

 

THIS DISTRIBUTION AGREEMENT is made as of the 10th day of
November, 2005 (the “Effective Date”) by and between OMP, Inc., a company
established and existing under the laws of the State of Delaware, having its
principal place of business at 310 Golden Shore, Long Beach, California 90802,
USA (“OMP”) and Cellogique Corporation, a corporation organized and validly
existing under the laws of California, having its principal place of business
at 124 Woodland Road, Pittsburgh PA 15232 (“Distributor”). OMP and the
Distributor are sometimes referred to herein as the “Parties” and individually
as “Party.”

 

RECITALS

 

WHEREAS, OMP develops and manufactures certain proprietary skin care
products; WHEREAS, Distributor desires to distribute OMP’s skin care products;
and

 

WHEREAS, OMP and Distributor deem it to be in their mutual best
interests to enter into an agreement whereby Distributor shall be appointed as
an exclusive distributor of OMP’s products.

 

NOW THEREFORE, in consideration of the terms, conditions and mutual
covenants contained herein, the Parties hereto agree as follows:

 

1.         DEFINITIONS

 

For purposes of this Agreement, the following words shall have the
following meanings:

 

1.1       “Agreement”  means this Distribution Agreement and all exhibits, schedules and annexes
which are attached to this Agreement from time to time and form a part hereof.

 

1.2       “Confidential Information”  is defined in Section 13.1.

 

1.3       “Customer”  means any medical doctor,
clinic operated by a medical doctor, and retail pharmacy purchasing Products in
the Territory from Distributor.

 

1.4       “OMP Marks”  means the trademarks, trade names, service marks, domain names, and logos
of OMP, and other commercial symbols identifying OMP or its products or
services, including those set forth in Exhibit C, and similar marks, and
those developed in the future.

 

1.5       “Prices”  mean the prices payable by Distributor to OMP as consideration for the
purchase by Distributor of the Products, as set forth in Exhibit A.

 

1.6       “Products”  mean the OMP skin care products described in Exhibit A.

 

1.7       “Proprietary Information” is defined in Section 13.1.

 

1.8       “Territory” means the country(ies) set
forth in Exhibit A, including, without limitation, its territories and
possessions and any other geographic area designated by OMP for the exercise of
Distributor’s rights and obligations in this Agreement.

 

 

1.9       “Trade Secrets” is defined in Section 13.1.

 

2.         APPOINTMENT

 

2.1       Grant of Rights. OMP hereby grants to
Distributor, and Distributor hereby accepts, upon the terms and conditions set
forth in this Agreement, the exclusive right to promote, market, sell,
distribute and sub-distribute Products to Customers located within the
Territory.

 

2.2       Technical and Sales
Literature License. During the term of this Agreement, and subject to its terms and
conditions, OMP grants to Distributor a nonexclusive, nontransferable, royalty
free license, to use the OMP sales and technical literature and materials to
promote, market, sell and distribute the Products in the Territory.

 

2.3       Sales Outside the
Territory; Internet Sales. Distributor shall not distribute, sell or otherwise provide the Products
outside the Territory and shall not advertise, promote or solicit Customers for
the Products outside the Territory, unless authorized in writing by OMP.
Distributor may promote and sell Products using the Internet, provided
however, Distributor shall not accept or fill orders for Products from
Customers located outside the Territory and shall not deliver Product to or for
a Customer outside the Territory. OMP and Distributor shall monitor the
distribution and sale of Products within the Territory to insure that the
Products are not, directly or indirectly, being redistributed or resold outside
the Territory.

 

2.4       Reserved Rights. Except as otherwise set
forth in this Agreement, no express or implied right is granted to Distributor
regarding the Products, the OMP technical and sales literature and the OMP
Marks and Distributor acknowledges that all copyright, patent, trade secret and
other intellectual property rights in and to the Products, OMP technical and
sales literature and the OMP Marks are the sole property of OMP. OMP reserves
all rights not expressly granted herein.

 

2.5       Sub-Distributors. A listing of current
sub-distributors engaged in the distribution and sale of the Company’s products
under contract by the Distributor is included in Exhibit E. Distributor
shall not, without the prior written consent of OMP, which consent shall not be
unreasonably withheld, appoint any new sub-distributors to promote, market,
distribute and sell the Products within the Territory. Distributor shall submit
to OMP, for OMP’s prior approval, a copy of any written agreement, or the terms
and conditions of any oral agreement, proposed to be entered into between
Distributor and any proposed sub-distributor. Distributor shall require that
each such agreement shall, without limitation:  (i) terminate upon the expiration or
earlier termination of this Agreement; (ii) be expressly subject to this
Agreement and any restrictions regarding the Products, OMP technical and sales
literature, the OMP Marks and other Proprietary Information stated herein; (iii) provide
that the sub-distributor shall have no claims against OMP or Distributor arising
from the expiration or termination of this Agreement; (iv) require
adherence to internet policies consistent with physician ethics, as well as
OMP’s brand promotion and pricing guidelines, and (v) prohibit the
sub-distributor from appointing further sub-distributors or agents for the sale
of Products or assigning any rights or obligations under its agreement with
Distributor without OMP’s prior written consent. Distributor shall cause
sub-distributors to communicate directly with Distributor, not OMP.

 

 

3.         ADDITIONAL PRODUCTS

 

3.1       Related Products. OMP may from time to
time offer products for sale relating to skin care, which are not listed in Exhibit A
(“Related Product(s)”). Such Related Product(s), new or not, may be
incorporated into this Agreement by written amendment at any time during the
term of this Agreement. If OMP, in its sole discretion, chooses to distribute
such Related Products in the Territory during the term of this Agreement, OMP
shall offer Distributor the exclusive right to promote, market, sell and
distribute such Related Products in the Territory subject to this Agreement,
which offer shall be open for acceptance for a period no longer than thirty
(30) days. The terms and conditions
upon which OMP shall offer to Distributor the rights to distribute Related
Products in the Territory shall be at least as favorable as the terms and
conditions upon which OMP offers such distribution rights with respect to
Related Products to any third-party distributor(s) outside of the Territory,
including, but not limited to, maximum discounted prices and terms of
payment. In the event that Distributor chooses not to accept OMP’s offer to
include any such Related Products in this Agreement, OMP may use other
persons or entities to act as distributors of such Related Product(s) to
Customers in the Territory without further obligation to Distributor.

 

4.         GENERAL OBLIGATIONS
OF DISTRIBUTOR

 

4.1       Minimum Purchase
Requirement. During
the term of this Agreement, Distributor shall make the minimum purchases of the
Products from OMP set forth in Exhibit A (“Minimum Purchase Requirement”).
Purchases counted toward the Minimum Purchase Requirement for any period
provided herein shall be based on OMP’s net invoice prices for the Products
which are paid for prior to the expiration of the applicable period.
Distributor understands and agrees that achievement of Minimum Purchase
Requirement is of the essence of this Agreement and the failure of Distributor
to achieve any of the Minimum Purchase Requirement conditions in Exhibit A
in any one year shall constitute grounds for the conversion of this contract
from exclusive to a non-exclusive right to the channel and territory (all other
provisions of the contract remaining unchanged), while failure to achieve the minimums
in any two out of three years is grounds for non-renewal of the contract at the
Company’s option as of the renewal period following such failures. However,
notice of intention not to renew based on performance must be given 60 days in
advance of the new renewal period.

 

4.2       Promotion and Marketing.
Distributor shall
use commercially reasonable efforts to further the promotion, marketing, sale
and distribution of the Products in the Territory, including but not limited
to, building brand awareness and value. OMP may, in its reasonable discretion,
prepare promotional programs for the Products in the Territory and Distributor
agrees to cooperate with OMP in sales or promotional programs prepared by OMP.
Distributor shall not, and shall cause its sub-distributors to not, make any
materially misleading or untrue statements concerning the Products.

 

4.3       Competing Products. During the term of this
Agreement, Distributor shall not, and shall cause its agents and
representatives to not, sell, distribute, market, advertise or solicit 

 

 

purchase orders for any product that OMP deems to be
similar to or competitively positioned against the Products in the Territory.

 

4.4       Business Plan. By October 1 of each
calendar year during the term of this Agreement, Distributor shall submit to
OMP a marketing and business plan (“Business Plan”) for marketing, distribution
and sale of the Products in the Territory for the following calendar year. The
Business Plan shall include a description of the Distributor’s sales organization,
a competitive market analysis, methods of distribution, a marketing plan,
projected quarterly sales by Product, and other information.

 

4.5       Forecasts.  Distributor shall provide
to OMP on a quarterly basis a twelve (12) month rolling forecast of Distributor’s
projected purchase orders on the form attached hereto as Exhibit B.
Distributor shall submit forecasts to OMP on February 1 (for the twelve
(12) months commencing April 1), May 1 (for the twelve (12) months
commencing July 1), August 1 (for the twelve (12) months commencing October 1),
and November 1 (for the twelve (12) months commencing January 1) of
each calendar year. If the Effective Date falls within a quarter, the first
quarter forecast shall include only the remainder of that quarter. The
forecasts are for planning purposes only and shall not be binding on
Distributor or OMP.

 

4.6       Licensed Physician;
Sales Force. During
the term of this Agreement, Distributor shall retain the services of a
physician licensed and in good standing in the Territory and who is trained (in
accordance with Section 5.2) in the use of the Products (“Licensed
Physician). Within thirty (30) days of the Effective Date and within forty five
(45) days of a change of Licensed Physician, Distributor shall give OMP written
notice of the name of the Licensed Physician as well as physical evidence of
his or her license and good standing in the Territory. The Licensed Physician
shall advise Customers on the proper use of the Products. Distributor shall
maintain competent and trained personnel for marketing and distribution of the
Products in the Territory.

 

4.7       Governmental
Requirements. Subject
to the terms of this Agreement, Distributor shall (i) comply with all
applicable laws and regulations of the United States and the Territory,
including but not limited to, export laws and restrictions and regulations of
the United States Department of Commerce or other United States or foreign
agency or authority, and shall not export, or participate in any transaction
which may involve the export or re-export of any Product in violation of
any such restrictions, laws or regulations; (ii) assist OMP in obtaining
any required registrations, licenses and permits for the Products and the
marketing, sale and distribution of the Products in the Territory by supplying
such documentation or information as may be reasonably requested by OMP;
and (iii) obtain and maintain during the term of this Agreement all
governmental approvals and licenses necessary to import the Products into the
Territory. If any governmental registration, license or approval for the
marketing, sale and distribution of the Products is required, Distributor shall
obtain OMP written approval prior to commencing any registration or approval
process. Unless otherwise required by applicable law, all registrations,
licenses and approvals for the Products and the distribution of the Products in
the Territory shall be in the name of and shall be solely owned by OMP. OMP
will reimburse Distributor for any pre-approved and reasonable fees for such
registrations, licenses and approvals that are in OMP’s name or are transferred
to OMP upon termination of the Agreement. Distributor shall provide OMP with a
copy of all registrations, licenses and approvals obtained or 

 

 

received for the Products and distribution of the
Products in the Territory within five (5) business days of Distributor’s
receipt of each such registration, license and approval. In furtherance of, but
without limiting, the foregoing, Distributor represents that it has read, understood
and will comply with the anti-bribery provisions of the U.S. Foreign Corrupt
Practices Act.

 

4.8       Distributor Expenses.
Distributor assumes
full responsibility for all its own costs and expenses incurred in carrying out
its obligations under this Agreement, including but not limited to all rents,
salaries, commissions, advertising, translations of documents and materials,
demonstration, travel and accommodation for the employees, agents,
representatives or other personnel of Distributor.

 

4.9       Marketing Materials.  All marketing materials
created by or for Distributor relating to the Products shall be approved by OMP
prior to use by Distributor. Such marketing materials shall contain copyright,
trademark and accreditation notices as prepared by OMP.

 

4.10                                    Quarterly
Reports and Reviews. Distributor shall provide OMP with reports of its activities,
competitor activities, and other information regarding the Products and the markets for the
Products in the Territory in such detail and with such frequency as OMP and
Distributor shall mutually agree. Distributor agrees to participate with OMP in
quarterly reviews to discuss Distributor’s sales, marketing, and business plan
for distribution of the Products, and sales achievements and objectives.

 

5.         GENERAL OBLIGATIONS
OF OMP

 

5.1       General. OMP shall use commercially
reasonable efforts to maintain and enhance the reputation, usefulness, and
acceptance of its Products and to assist Distributor in all reasonable ways to
promote the sale of the Products in the Territory.

 

5.2       Distributor Training.
OMP shall provide
initial training on the Products for Distributor’s licensed physician and sales
force and subsequent training upon the release of new Products or Related
Products subject to this Agreement. The date, duration, content and location of
the initial training and training relating to any new Products or Related
Products subject to this Agreement, shall be mutually agreed upon by the
Parties. Notwithstanding the foregoing, Distributor shall bear all costs of travel
and living expenses for Distributor’s personnel to attend any training whether
during the initial period or subsequent thereto. If training is provided at
Distributor’s location, Distributor shall provide reasonable training
facilities without expense to OMP. For training in addition to that identified
above, OMP and Distributor shall mutually agree in writing on the charges for
such training, in advance of the training, including but not limited to OMP
travel and other related expenses.

 

5.3       Marketing Support. OMP shall provide
Distributor with an electronic and one hard copy of OMP technical and sales
literature and materials. Distributor’s shall provide language translations of
such materials at Distributor’s expense.

 

5.4       Quarterly Review. OMP agrees to participate
with Distributor in quarterly reviews to discuss Distributor’s sales,
marketing, and business plan for the distribution of the Products, and sales
achievement and objectives.

 

 

6.         PURCHASE OF PRODUCTS
AND SERVICES

 

6.1       Purchase Orders and
Delivery. Products
ordered by Distributor from OMP will be delivered by OMP directly to the
Distributor. OMP shall use its best efforts to deliver ordered Products within
thirty (30) days of the date of receipt of a purchase order from Distributor.
Distributor shall acquire the Products only from OMP and from no other source.

 

6.2       Modification of Orders.
Except as otherwise agreed to in writing or as
otherwise set forth herein, all order(s) are non-cancelable, non-refundable and
non-exchangeable. All order(s) placed with OMP by Distributor for Products
shall be made on through the submission of a Purchase Order. Notwithstanding
the content of Distributor’s purchase order, this Agreement shall take
precedence over Distributor’s purchase order, and, subject to applicable law,
in the event of any conflicting, inconsistent or additional terms of
Distributor’s purchase order, the terms of this Section 6 shall prevail.

 

6.3       Delivery Terms. All deliveries of the
Products shall be FOB OMP’s manufacturing or warehouse facility, Incoterms
2000. OMP shall consign each shipment to the freight forwarding agent and
customs broker specified by Distributor.

 

6.4       Title. Title to each of the
Products shall transfer upon consignment and delivery by OMP to the freight
forwarding agent specified in Distributor’s purchase orders.

 

6.5       Acceptance of Products.
In the event of any
shortage, damage or discrepancy in or to a shipment of Products, Distributor
shall promptly report the same to OMP and furnish such written evidence or other
documentation as Distributor may deem appropriate. OMP shall not be liable
for any such shortage, damage or discrepancy unless OMP has received notice and
evidence thereof from Distributor within thirty (30) days after delivery of the
Products at the FOB point. If such evidence demonstrates to OMP’s satisfaction
that OMP is responsible for such shortage, damage or discrepancy, OMP shall
promptly deliver additional or substitute Products to Distributor.

 

6.6       Return of Defective
Products. OMP
shall use reasonable commercial efforts to supply Distributor with Products
manufactured in accordance with good manufacturing practices. In the event a
Product is defective, OMP shall either, in its sole discretion, replace the
Product or credit Distributor for the purchase price of the Product as
reflected on Distributor’s paid invoice therefore, provided Distributor (a) has
obtained OMP’s prior written consent to return the Product and (b) Distributor
completes and returns with the Product the Product Complaint Form attached
hereto as Exhibit D.
OMP will pay transportation costs for return of such Product provided the
Product was shipped to Distributor by OMP within ninety (90) days of the date
Distributor obtains OMP’s approval to return the Product. The provisions of
this Section 6.6 shall constitute Distributor’s sole and exclusive remedy
with respect to defective Products.

 

6.7       Price Changes;
Notification. Prices
offered to Distributor are and shall remain based on distributor discount from
standard pricing to US physicians. Standard US Pricing from which distributor
discount is taken shall in no case be increased by a greater amount than
pricing changes implemented in the US. OMP shall give written notice to
Distributor of any amendment 

 

 

to the Prices listed in Exhibit A hereof. In
the event of a Price increase, OMP shall notify Distributor in 60 days in
advance of any such amendments.

 

6.8       Price Increase
Protection. In
the event OMP increases the Price on any Product, any orders for such Product
which are received by OMP before the effective date of the Price increase shall
be invoiced at the previous, or lower Price. Price protection will be extended
to Distributor by OMP for the purpose of satisfying Customer purchase
agreements and binding quotations which Distributor has in force on the
effective date of the Price increase, which Distributor cannot satisfy from its
inventories, for the period remaining on such purchase agreements and binding
quotations. In order to obtain price protection, within thirty (30) days of
notification of the Price increase, Distributor shall provide documentation to
OMP on such purchase agreements and binding quotations, acceptable to OMP.

 

6.9       Price Decrease
Protection. In
the event OMP decreases the Price of any Product, Distributor may apply
for a credit equal to the difference between the net Price paid by Distributor,
less any prior credits granted by OMP, and the new decreased Price for the
Product multiplied by the quantity of such Products in Distributor’s inventory
(including those delivered by OMP to the Distributor’s specified freight
forwarding agent) on the effective date of the Price reduction. Price
protection applies only to Products in Distributor’s inventory the three (3) months
preceding the effective date of the Price reduction, including Products in
transit to Distributor on the effective date of the Price decrease. Issuance of
the Price protection credit by OMP is contingent upon Distributor’s submission
to OMP, not later than thirty (30) days after the effective date of such Price
decrease, of an inventory report which indicates the quantity of such Product
in stock or in transit on the effective date of the Price decrease. Upon
verification of the inventory report by OMP, said credit will be applied to
Distributor’s account.

 

6.10                                    Product
Changes. OMP may do
any of the following upon reasonable notice and without liability to
Distributor:

 

(a)                              Alter
the specifications for any Product or any new Product or Related Product;

 

(b)                             Discontinue
the development of any new Product, whether or not such new Product has been
announced publicly and discontinue the sale of any Product; and

 

(c)                              Commence
the development and distribution of new Products and Related Products which may make
any Product obsolete.

 

 

7.         PRICES AND PAYMENT
TERMS

 

7.1       Products Prices. Distributor shall pay OMP
the Prices for Products in accordance with the Prices set forth in Exhibit A.
Distributor, in its sole discretion, shall set resale prices for sale of the
Products to Customers in the Territory. Subject to Section 6 hereof, OMP may change
the Prices in Exhibit A at any time, in its sole discretion.

 

7.2       Payment Terms  OMP shall extend credit,
and full payment shall be due ninety (90) days from the date of the OMP
invoice. The amount of credit extended shall be set by
OMP in its sole discretion. Distributor shall pay OMP
by international bank wire transfer, to an account specified by OMP in OMP’s
invoice to Distributor, or by a confirmed letter of credit.

 

7.3       Delinquent Accounts.
All amounts due and
owing to OMP hereunder, but not paid by Distributor within 5 days of the due
date thereof, shall bear interest in U.S. dollars at the rate of the lesser of:  (i) one per cent (1%) per
annum above the then applicable prime interest rate announced by the Wall
Street Journal for 90-day U.S. dollar loans to prime commercial customers in
the United States; or (ii) the maximum lawful interest rate permitted
under applicable law. Such interest shall accrue on the balance of unpaid
amounts from time to time outstanding from the date on which portions of such
amounts become due and owing until payment thereof in full.

 

7.4       Taxes. Prices do not include, and
Distributor shall be responsible for, all excise, sales, use, value added and
other taxes, including any goods and services tax payable in the Territory and
excluding any tax on the income of OMP. Notwithstanding the foregoing, the
Parties understand that payments made by Distributor to OMP may be subject
to withholding taxes in the Territory, which, if applicable, shall be withheld
and promptly paid by Distributor, on behalf of OMP, to the applicable tax
authorities and promptly evidenced by appropriate certificate of receipt or
other evidence issued by such authorities; provided however, should the tax
authorities in the Territory determine that any payments due OMP from
Distributor are subject to such taxes, Distributor shall use reasonable
commercial efforts to provide OMP such documentation as may be necessary
for the Parties to receive the reduced rate of withholding tax under any
applicable treaty. OMP may, in its sole discretion, file an application with
the applicable authorities for such reduced rate of withholding tax. Any other
applicable charge, tax or duty shall be borne by Distributor in addition to the
Prices invoiced.

 

 

8.         TERMS AND TERMINATION

 

8.1       Term. This Agreement shall
commence on the Effective Date and shall continue in effect for a period of
twelve (12) years beginning January 1, 2006, comprised of four (4) consecutive
three (3) year terms ending December 31, 2008; December 31,
2011; December 31 2014; and December 31, 2017, subject to the
provisions under section 4.1, unless otherwise terminated pursuant to the
provisions hereof.

 

(a)                              Notwithstanding
any other provision of this Agreement, either Party shall have the right to
immediately terminate this Agreement for cause by giving written notice of such
termination to the other Party, if the other Party fails to comply with any
material term hereof and fails to correct such lack of compliance within thirty
(30) days after receipt of written notice of such failure. Without limiting the
foregoing, any failure by Distributor to pay amounts when due shall be deemed a
failure to comply with a material term of this Agreement and OMP shall be entitled
to immediately terminate this Agreement without further notice to Distributor
and opportunity to cure,
unless Distributor cures such failure within the foregoing thirty (30) day
period.

 

(b)                             Either
Party may immediately terminate this Agreement for cause by giving written
notice of such termination to the other Party upon the occurrence of any of the
following events:

 

(i)                    if the other Party makes a
voluntary petition in bankruptcy, insolvency or similar petition;

 

(ii)                 an involuntary petition in bankruptcy,
insolvency or similar petition is made against the other Party;

 

(iii)              if the other Party becomes insolvent or
makes a general assignment for the benefit of creditors, suffers or permits an
appointment of a receiver for its business or assets or is liquidated; or

 

(iv)             the enactment or adoption of any change in
laws, rules, regulations or governmental policies or other change in
circumstances that makes it illegal, impossible or impracticable to export,
import, market, sell and distribute the Products to or in the Territory as
contemplated in this Agreement.

 

8.2       Rights Upon Termination. Upon termination or
expiration of this Agreement:  (a) all of Distributor’s rights granted
hereunder shall immediately cease; (b) Distributor shall return to OMP or
destroy at OMP direction any and all language translations of OMP’s sales and
technical literature and materials in Distributor’s possession or control; (c) Distributor
shall return to OMP any Products in its possession purchased within ninety (90)
days of the date of termination or expiration of the Agreement at the price
paid by Distributor, including any Products delivered to the freight forwarding
agent ninety (90) days prior or the date of termination or expiration of this
Agreement, except those Products required to meet Customer purchase agreements
and binding quotations for a period no longer than forty-five (45) days from
the date of termination or expiration and which Distributor has in force on the
date of termination or expiration of this Agreement, provided Distributor
furnishes OMP documentation of such 

 

 

purchase agreements and binding quotations
acceptable to OMP; (d) Distributor shall immediately return to OMP all
other OMP property, including, but not limited to, all original documents and
copies which contain OMP Proprietary Information; (e) Distributor shall
deliver to OMP such documents and instruments as OMP may reasonably
request in connection with the termination or expiration of this Agreement; and
(f) Distributor shall remove from its facilities and other premises all
signs, billboards and other similar items bearing any of the OMP Marks or
identifying Distributor as an authorized distributor of OMP or the Products
and, within a reasonable period of time following such termination, withdraw or
cancel any registrations or filings with governmental authorities relating to
Distributor’s use of any of the OMP Marks, and shall refund to Distributor in
cash any unutilized credit under Section 6.9. Under no circumstances shall
OMP be liable with respect to orders received by OMP after the termination or
expiration of this Agreement. In the event of a termination of this Agreement
under Section 8.1,
subject to the applicable provisions of this Section 8.2,
neither Party shall owe any compensation to the other Party for lost profits,
lost opportunities, goodwill, or any other loss or damages as a result of or
arising from such termination. Except as required for Distributor’s performance
of obligations under this Section 8.2 or Section 8.3,
upon expiration or earlier termination of this Agreement, Distributor shall
immediately cease and desist from any further use of Proprietary Information of
OMP. Without waiving any rights OMP may have at law or in equity, in the
event Distributor fails to comply with any of its obligations under this Section 8.2,
OMP shall be entitled to receive from Distributor and Distributor shall be
obligated to pay to OMP as liquidated damages, not penalty, an amount equal to
eight percent (8%) of Distributor’s gross revenue from the sale of the Products
during the preceding twelve (12) months or, in the event this Agreement has
been in effect less than twelve (12) months, twelve (12) annualized months from
the Effective Date.

 

8.3       Surviving Terms. The provisions of Sections 2.4,
7, 8.2, 9, 10, 11, 12, 13, 14, and 15 shall survive the expiration or the
termination of this Agreement by either Party for any reason.

 

8.4       Renewal Term. Six (6) months prior to the expiration of the initial twelve (12)
year term set forth in Section 8.1 hereof, OMP and Distributor shall enter into good faith
negotiations on an exclusive basis with respect to the renewal of this
Agreement (“Renewal Negotiations”), including the length of such renewal term, the prices
and discounts for Products and other material terms
and conditions relating to the subject matter hereof; provided, however, that
OMP agrees that the prices for Products and the length of the proposed renewal
term that it offers Distributor at the time of such Renewal Negotiations shall
be at least as favorable as the maximum discounted
prices and maximum term of any agreement then in effect between OMP and any
third party distributor of OMP’s Products.

 

9.         OMP WARRANTY AND
INDEMNITY.

 

9.1       Limited Warranties. Subject to Section 9.2,
OMP represents and warrants to Distributor that (a) OMP has full authority
to execute and perform this Agreement; (b) this Agreement has been
duly executed and delivered by OMP and constitutes OMP’s legal, enforceable and
binding obligation; (c) OMP’s execution and performance of this Agreement 

 

 

will not conflict with the terms or conditions of
any other agreement or contract to which it is a party or is otherwise bound;
and (d) no approval, action or authorization by any governmental authority
or agency is required for OMP’s execution and performance hereof (except for
governmental certifications, registrations, licenses and approvals for the
export of the Products to the Territory) which has not already been obtained.

 

9.2       Disclaimer of Warranties.
OMP GRANTS NO
WARRANTIES, EITHER EXPRESS OR IMPLIED, WITH REGARD TO THE PRODUCTS OR THE OMP
MARKS, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE AND NON-INFRINGEMENT.

 

9.3       OMP Indemnification.

 

(a)                              OMP
shall defend, indemnify and hold harmless Distributor from and against any
claim of a third party to the extent arising from the negligence or willful
misconduct of OMP, its employees, agents, or contractors (other than
Distributor) in the performance of its obligations under this Agreement. OMP
will pay resulting court costs, damages and legal fees finally awarded,
provided Distributor promptly notifies OMP in writing of any such claim, OMP
has sole control of the defense and all related settlement negotiations, and
Distributor provides OMP with such assistance and all related information for
such defense as OMP may reasonably request.

 

(b)                             OMP
shall defend, indemnify and hold Distributor harmless from and against any
claim that the Products, OMP technical and sales literature or the OMP Marks
infringe, in the Territory, a patent, trademark or copyright of a third party
(a “Claim”), and pay resulting court costs, damages and legal fees incurred in
connection with such Claim, provided (i) Distributor notified OMP promptly
in writing of any such Claim and (ii) gives OMP sole control of the
defense of the same and all negotiations for its settlement or compromise.
Should any Products become, or in OMP’s opinion be likely to become, the
subject of a claim of infringement, Distributor shall permit OMP, at OMP’s
option and expense, to (x) procure for Distributor the right to continue using
the Products, (y) replace or modify the Products to become non-infringing, or
(z) if neither procurement or replacement are commercially reasonable, terminate
this Agreement by giving written notice thereof to the Distributor, with no
further obligation or liability to Distributor. Notwithstanding the foregoing,
OMP shall have no liability for any claim of infringement to the extent based
upon any modification of the Products, OMP technical and sales literature and
the OMP Marks not made by OMP or its authorized representatives. THE FOREGOING
STATES THE ENTIRE LIABILITY OF OMP WITH RESPECT TO INFRINGEMENT IN THE
TERRITORY OF ANY PROPERTY RIGHT OF A THIRD PARTY BY THE PRODUCTS, OMP TECHNICAL
AND SALES LITERATURE AND THE OMP MARKS.

 

10.       DISTRIBUTOR WARRANTY
AND INDEMNITY

 

10.1                                    Limited
Warranties. Distributor
represents and warrants to OMP that (a) Distributor has full authority to
execute and perform this Agreement; (b) this Agreement has been duly
executed and delivered by Distributor and constitutes Distributor’s legal,
enforceable 

 

 

 

and binding obligations; (c) Distributor’s
execution and performance of this Agreement will not conflict with the terms or
conditions of any other agreement or contract to which Distributor is a party
or is otherwise bound; and (d) no approval, action or authorization by any
governmental authority or agency is required for Distributor’s execution and
performance hereof (except for governmental certifications, registrations,
licenses and approvals for the marketing, sale and distribution of the Products
in the Territory) which has not already been obtained.

 

10.2                                    Distributor’s
Indemnification. Distributor
shall defend, indemnify and hold harmless OMP from and against any claim of a
third party that
is either reduced to final, non-appealable judgment or settled with Distributor’s consent, not to be unreasonably
withheld, to the extent arising out of or resulting
from:

 

(a)                              Distributor’s
and sub-distributor’s negligent acts or omissions or willful misconduct in the
use, import, marketing, promotion, advertising, distribution and sale of the
Products, including but not limited to Distributor’s and sub-distributor’s
promotional or advertising materials for the Products;

 

(b)                             Any
statements, claims, representations or warranties made by Distributor or
sub-distributors relating to the Products, other than as authorized or made by
OMP in writing, including but not limited to those made in the OMP technical
and sales literature and materials;

 

(c)                              Any
breach by Distributor and sub-distributors of their obligations under this
Agreement; and

 

(d)                             Any
infringement or claim thereof of any patent, copyright, trademark, service
mark, trade name, trade secret or any other property right of a third party
arising from the use by Distributor or any sub-distributors of (i) any
symbol, insignia, name or identifying characteristic other than the OMP’s
Marks, (ii) any combination of any OMP Mark with any materials not
provided or approved by OMP, (iii) any modification to the Products not
made by OMP, or (iv) any use of the Products not authorized or certified
by OMP or by the OMP technical and sales literature and materials.

 

11.       LIMITATION OF
LIABILITY.

 

11.1                                    DISTRIBUTOR AGREES THAT
OMP’ S TOTAL AGGREGATE LIABILITY UNDER THIS AGREEMENT SHALL NOT EXCEED THE
AGGREGATE FEES OR OTHER AMOUNTS PAID BY DISTRIBUTOR TO OMP FOR PRODUCTS UNDER
THIS AGREEMENT.

 

11.2                                    IN NO EVENT WILL EITHER
PARTY BE LIABLE TO THE OTHER PARTY FOR CONSEQUENTIAL, EXEMPLARY, INCIDENTAL OR
INDIRECT OR PUNITIVE DAMAGES OR LOSS OF GOODWILL, BUSINESS OPPORTUNITY OR
PROFIT, IN CONNECTION WITH THE SUPPLY, USE OR PERFORMANCE OF THE PRODUCTS
PROVIDED HEREUNDER, OR IN CONNECTION WITH ANY CLAIM ARISING FROM OR RELATED TO
THIS AGREEMENT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES OR IF THE EXCLUSIVE REMEDIES STATED HEREIN FAIL OF THEIR ESSENTIAL
PURPOSE.

 

 

11.3                                    Notwithstanding the
provisions of this Section 11, this Agreement shall not limit the
liability of either Party for personal injury, including death, arising from
the negligence or willful misconduct of such Party or its employees acting
within the scope of their employment.

 

12.       PROPRIETARY RIGHTS.

 

Except as otherwise provided herein, OMP expressly retains title and
ownership to all worldwide intellectual property rights, including without
limitation, design, know-how, patent rights, trademarks, and copyrights in and
to the Products, OMP trademarks, service marks and logos, and any
modifications, adaptations, derivative works, and enhancements made thereto.

 

13.       CONFIDENTIALITY.

 

13.1                                    Definitions. For purposes of this
Agreement, “Trade Secrets” means information which:  (a) derives economic value,
actual or potential, from not being generally known to, and not being readily
ascertainable by proper means by, other persons who can obtain economic value
from its disclosure or use; and (b) is the subject of efforts that are
reasonable under the circumstances to maintain its secrecy. “Confidential
Information” means information, other than Trade Secrets, that is of value to
its owner and is treated as confidential. “Proprietary Information” means
Trade Secrets and
Confidential Information.

 

13.2                                    Nondisclosure
Requirements. Each Party agrees to hold
Proprietary Information of the
other Party in strictest confidence and not to
copy, reproduce, distribute, manufacture, duplicate, reveal, report, publish,
disclose, cause to be disclosed, or otherwise transfer the Proprietary Information
of the other Party
to any third party, or utilize such Proprietary Information
for any purpose whatsoever other than as expressly contemplated by this
Agreement or as otherwise agreed to in writing by the Parties. Each Party
may only disclose the other Party’s Proprietary
Information to employees, representatives and consultants of such Party
who are under a written obligation to comply with the nondisclosure obligations
set forth herein.
Each Party agrees to notify the other Party
in writing of any suspected or known breach of the obligations or restrictions
set forth in this Section 13. The obligations of this Section 13.2
shall continue for so long as such information constitutes a Trade Secret under
applicable law and for Confidential Information, for the term of this Agreement
and for a period of three (3) years following termination or expiration of
this Agreement. Notwithstanding the foregoing, any previously executed
nondisclosure agreement between the Parties shall continue in full force and
effect, provided that to the extent of any inconsistency or ambiguity between
such non-disclosure agreement and this Agreement, this Agreement shall take
precedence and control and govern in all respects.

 

13.3                                    Exceptions. The foregoing
obligations of this Section 13 shall not apply if and to the extent that:  (i) the information
communicated was already known to a Party without obligation to
keep such information confidential at the time of a Party’s
receipt from the
other Party; (ii) the information communicated
was received by a
Party in good faith from a third party lawfully in
possession thereof and having no obligation to keep such information
confidential, or (iii) a
Party establishes that the information communicated
was publicly known at the time of such Party’s receipt from the other Party
or has become publicly known other than by a breach of this Agreement. If either Party
is required to disclose all or part of the Proprietary Information of 

 

 

the other Party pursuant to any legal
requirement of any country which may have jurisdiction over that Party, such Party
shall immediately upon becoming aware that such disclosure is required, give the other Party
notice of the circumstances in which the disclosure is required and, subject to applicable law, agree with the other Party
on the extent and timing of such disclosure.

 

14.       TRADEMARKS

 

14.1                                    Use
of the OMP Marks. OMP hereby grants to Distributor, and Distributor hereby accepts from
OMP, a nonexclusive, nontransferable, royalty-free license to use the OMP Marks
set forth on Exhibit C hereto, solely in connection with the marketing,
distribution, promotion, advertising and sale of the Products in the Territory
and in accordance with any OMP’ standards and instructions, and for no other
purpose. OMP may inspect and monitor Distributor’s use of the OMP Marks.
Distributor shall not adopt, use or register any words, phrases or symbols
which are identical to or confusingly similar to any of the OMP Marks or oppose
any such registration by OMP. Distributor is not granted any right, title or
interest in the OMP Marks other than the foregoing limited license, and
Distributor shall not use the OMP Marks as part of Distributor’s business
entity or trade name or permit any third party to do so.

 

14.2                                    Markings.
Distributor shall
not remove or alter any OMP trade names, trademarks, copyright notices, serial
numbers, labels, tags or other identifying marks, symbols or legends affixed to
any Products, documentation or containers or packages.

 

14.3                                    Infringements.
Distributor shall
provide prompt notice to OMP of any infringement or potential infringement of
the OMP Marks by a third party and of any challenge to its use of the OMP Marks
by a third party. OMP reserves the right in its sole discretion to institute
any proceedings against third party infringers of the OMP Marks, and
Distributor shall refrain from doing so. Distributor shall cooperate fully with
OMP in any legal action taken by OMP against such third parties, provided that
OMP shall pay all expenses of such action and all damages which may be
awarded or agreed upon in settlement of such action shall accrue to OMP.

 

14.4                                    Termination
of Use. Except
as otherwise provided in Section 8.2(c) hereof,
upon termination of this Agreement, Distributor shall immediately cease any use
of the OMP Marks in any manner. In addition, Distributor hereby appoints OMP
its attorney infact,
which appointment is coupled with an interest, to allow OMP to cancel, revoke
or withdraw any governmental registration or authorization permitting
Distributor to use the OMP Marks in the Territory. To effectuate the purposes
of this provision, Distributor shall sign and deliver any documents and perform all
further acts as may be reasonably requested by OMP.

 

14.5                                    Distributor
Web Sites. Distributor
shall not operate an Internet site that references any of the Products or the
OMP Marks (“Distributor Web Site”) without the prior written consent of OMP, not to be unreasonably withheld.
In consideration of OMP allowing Distributor to reference the Products or use
the OMP Marks in the Distributor Web Site, OMP may provide and Distributor
shall post on the Distributor Web Site, mandatory content, including but not
limited to privacy policies, terms of use, copyright and trademark notices, and
graphics and trademark policies. Subject to OMP’s prior written consent,
Distributor shall prominently 

 

 

provide on the home page of the Distributor Web
Site a link to OMP’s Internet site in location, style, size and manner
specified by OMP.

 

14.6                                    Internet
Search Strategies. Distributor may not use any OMP Mark of any of the Products in
connection with any domain name, directory, address, locator, linking,
co-branding, metatag, or with any other Internet search strategy.

 

15.       MISCELLANEOUS.

 

15.1                                    Independent
Contractors. Notwithstanding
anything set forth herein to the contrary, the relationship of the Parties is
that of independent contractors, and nothing herein shall be construed to
create a partnership, joint venture, franchise, employment or agency
relationship between the Parties. Neither party shall have authority to enter
into agreements of any kind on behalf of the other Party and
shall not have the power or authority to bind or obligate the other Party in
any manner to any third party.

 

15.2                                    Assignment.
Neither Party shall
assign or otherwise transfer its rights or obligations under this Agreement
except with the prior written consent of the other Party, provided, however,
either Party may assign or transfer all its rights and obligations under
this Agreement to a successor in interest to all or substantially all of its
assets or business by reason of sale, merger or operation of law, without the
prior written consent of the other Party, if such successor affirms in writing
that it will remain bound by all the terms and conditions of this Agreement.

 

15.3                                    Notices.
Notices permitted or
required to be given hereunder shall be deemed sufficient if given by (a) registered
or certified mail, postage prepaid, return receipt requested, (b) private
courier service, or (c) facsimile sent to the respective addresses or
facsimile numbers and to the attention of the representatives of the Parties
set forth below or at such other addresses or facsimile numbers or
representative as the respective Parties may designate by like notice from
time to time. Notices so given shall be effective upon receipt by the Party to
which notice is given.

 

To
Obagi Medical Products Inc.:

 

Obagi Medical Products 

Attn: Curtis Cluff, Executive VP

310 Golden Shore, First Floor 

Long Beach, CA 90802

Fax: (562) 437-2725

 

To
Distributor:

 

Cellogique Corporation

Attn: Mazen Youssef, President

124 Woodland Road, 

Pittsburgh PA 15232 

Fax: (412) 422-8650

 

 

With a copy to:

 

Michael R.
Morris, Esq.

Valensi, Rose, Magaram, Morris & Murphy PLC

2029 Century Park East, Suite 2050

Los Angeles, CA 90067 

Fax: (310) 277-1706

 

15.4                                    Arbitration.
If any dispute
arises between Distributor and OMP relating to the subject matter of this
Agreement, Distributor and OMP shall each make good faith efforts to negotiate
an amicable settlement of such matter. The Parties agree that, except as
otherwise provided below, any dispute, claim or controversy relating in any way
to this Agreement shall be settled by arbitration in accordance with the
Commercial Arbitration Rules of the American Arbitration Association (“AAA”)
in the state of California,
with judgment upon the award rendered by the arbitrator to be entered in any
court of competent jurisdiction. Notwithstanding the foregoing or the
then-current specified Commercial Arbitration Rules, the following shall apply
with respect to the arbitration proceeding:  (i) the existence, subject, evidence,
proceedings, and ruling resulting from the arbitration proceedings shall be
deemed confidential information, and shall not be disclosed by either Party,
their representatives, or the arbitrator (except:  (a) to the professional advisers of OMP
and Distributor; (b) in connection with a public offering of securities by
OMP or Distributor; (c) as ordered by any court of competent jurisdiction;
or (d) as required to comply with any applicable governmental statute or
regulation) and (ii) the arbitrator shall be required to prepare written
findings of fact. Notwithstanding the foregoing, either Party may apply to
a court of competent jurisdiction for a temporary restraining order,
preliminary injunction or other equitable relief, as necessary, without breach
of this arbitration agreement and without abridgement of the powers of the
arbitrator.

 

15.5                                    Governing
Law. This
Agreement has been made, executed and delivered in California, in which state
the offices of OMP are located. Accordingly, the Parties invoke the laws of
California regarding the protection of their rights and enforcement of their
obligations hereunder and they mutually stipulate and agree that this Agreement
is in all respects (including, but not limited to, all matters of
interpretation, validity, performance and the consequences of breach) to be
exclusively construed, governed and enforced in accordance with the internal laws
(excluding all conflict of laws rules) of California and any applicable federal
laws of the United States of America, as from time to time amended and in
effect. The Parties agree that the United Nations Convention on Contracts for
the International Sale of Goods shall not apply in any respect to this
Agreement or the Parties.

 

15.6                                    Force
Majeure. Except
Distributor’s obligation to pay under Section 7, neither Party shall be
liable for any failure to perform or delay in performance of its
obligations hereunder caused by circumstances beyond its reasonable control,
including, but not limited to, fire, storm, flood, earthquake, explosion,
accident, acts of a public enemy or rebellion, insurrection, riot, civil
commotion, strikes or other labor disputes, sabotage, epidemic, quarantine or
any agency thereof, judicial action and any other such external circumstances (a “Force Majeure”). As
to Distributors obligation to pay under section 7, the Distributor shall
be allowed a 90 day grace period in the event
of Force Majeure, in order to comply with such obligations to pay.

 

 

15.7                                    No
Solicitation of Related Personnel. During the term of this Agreement, and for a period
of twenty four (24) months after termination of this Agreement, neither OMP,
nor Distributor, nor any subsidiary or parent thereof, shall, directly or
indirectly, (i) solicit for employment or consulting engagement, (ii) offer
employment to, or (iii) engage the related business services of any person
who is or was an officer, employee or consultant of the other Party.

 

15.8                                    Entire
Agreement. This
Agreement constitutes the entire agreement between the Parties concerning the
subject matter hereof, and supersedes and replaces all prior or contemporaneous
understandings or agreements, written or oral, regarding such subject matter.
No amendment to or modification of this Agreement, or any waiver of any term or
condition of this Agreement will be binding unless in writing and signed by a
duly authorized representative of both Parties. The section and subsection headings
in this Agreement are inserted solely as a matter of convenience and for
reference, and shall not be considered in the construction or interpretation of
any provision hereof. If any provision hereof is declared invalid by a court or
arbitral tribunal of competent jurisdiction, such provision shall be
ineffective only to the extent of such invalidity, so that the remainder of
that provision and all remaining provisions of this Agreement will
continue in full force and effect.

 

15.9                                    Language.
The official
language of this Agreement is English. All contract interpretations, notices,
and dispute resolutions shall be in English. Any amendments to this Agreement
shall be in English. Translations of any of these documents shall not be
construed as official or original versions of the documents, or otherwise
referred to in the interpretation or construction of the intentions of the
Parties hereto.

 

15.10                              Execution.
This Agreement may be
executed in any number of counterparts, each of which shall be deemed an
original hereunder. Each Party agrees to be bound by its own facsimile or
telecopy signature, and accepts the facsimile or telecopy signature of the
other Party hereto.

 

Accepted and
agreed on behalf of:

 

	
  OMP, INC.

  	
   

  	
   

  	
  CELLOGIQUE CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Curtis Cluff 

  	
   

  	
  /s/ Mazen Youssef 

  	
   

  
	
  Signature

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Curtis Cluff 

  	
   

  	
  Mazen Youssef 

  	
   

  
	
  Name

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  E.V.P. Corp. Dev. & Operations

  	
     11/14/05 

  	
   

  	
  President

  	
  11/14/05 

  	
   

  
	
  Title

  	
  Date

  	
   

  	
  Title

  	
  Date

  	
   

  
								

 

 

EXHIBIT A

 

TO
THE DISTRIBUTION AGREEMENT

BETWEEN OBAGI MEDICAL PRODUCTS, INC.

AND

CELLOGIQUE CORPORATION

 

A.                       PRODUCTS.

 

OMP
skin care products subject to this Distribution Agreement include:

 

Nu-Derm

Blue Peel 

Obagi C 

Obagi-C Rx

 

B.                       TERRITORY.

 

The
Territory of Distributor shall be the country(ies) of Syria, Egypt, Lebanon,
Jordan, Saudi Arabia, United Arab Emirates, Bahrain, Kuwait, Iraq, Oman, Yemen,
Libya, Tunisia, Morocco, Turkey, Cypress, Iran, Sudan, Algeria, Qatar, and
Israel, including, without limitation, any territories and possessions of any
of the foregoing countries, and any other geographic area designated by OMP and
agreed to by Distributor for the exercise of Distributor’s rights and
obligations in the Distribution Agreement.

 

C.                       PRICES AND
DISCOUNTS.

 

Distributor
shall receive a base discount from OMP’s standard prices to US physicians on
all purchases of the Products and additional discounts (“Additional Discounts”)
based on performance, promotional activities and volume targets as set forth
below. Distributor’s, right to Additional Discounts shall be determined on January 1
calendar year basis as described in below. All prices in the following table(s)
are in US Dollars.

 

 

	
   

  	
   

  	
   

  	
   

  	
  Base

  Price

  	
   

  	
  Distributor

  Discounts

  	
   

  	
  Additional Discounts

  	
   

  
	
  Obagi

  Nu-Derm Products

  	
   

  	
  Standard

  US Price

  to

  Physicians

  	
   

  	
  Suggested

  End User

  Price

  	
   

  	
  Basic

  Discount

  30%

  	
   

  	
  Investment

  Discount

  12.5%

  	
   

  	
  Volume

  Discount

  10.0%

  >1.5M

  	
   

  	
  or

  	
   

  	
  Volume

  Discount

  15.0%

  >1.8M

  	
   

  
	
  Gentle Cleanser

  	
   

  	
  16.00

  	
   

  	
  32.00

  	
   

  	
  11.20

  	
   

  	
  9.20

  	
   

  	
  7.60

  	
   

  	
   

  	
   

  	
  6.80

  	
   

  
	
  Foaming Gel

  	
   

  	
  16.00

  	
   

  	
  32.00

  	
   

  	
  11.20

  	
   

  	
  9.20

  	
   

  	
  7.60

  	
   

  	
   

  	
   

  	
  6.80

  	
   

  
	
  Toner

  	
   

  	
  16.00

  	
   

  	
  32.00

  	
   

  	
  11.20

  	
   

  	
  9.20

  	
   

  	
  7.60

  	
   

  	
   

  	
   

  	
  6.80

  	
   

  
	
  Clear

  	
   

  	
  39.50

  	
   

  	
  74.00

  	
   

  	
  27.65

  	
   

  	
  22.71

  	
   

  	
  18.76

  	
   

  	
   

  	
   

  	
  16.79

  	
   

  
	
  Exfoderm

  	
   

  	
  27.00

  	
   

  	
  54.00

  	
   

  	
  18.90

  	
   

  	
  15.53

  	
   

  	
  12.83

  	
   

  	
   

  	
   

  	
  11.48

  	
   

  
	
  Exfoderm Forte

  	
   

  	
  27.00

  	
   

  	
  54.00

  	
   

  	
  18.90

  	
   

  	
  15.53

  	
   

  	
  12.83

  	
   

  	
   

  	
   

  	
  11.48

  	
   

  
	
  Blender

  	
   

  	
  37.50

  	
   

  	
  69.00

  	
   

  	
  26.25

  	
   

  	
  21.56

  	
   

  	
  17.81

  	
   

  	
   

  	
   

  	
  15.94

  	
   

  
	
  Sunfadar

  	
   

  	
  29.50

  	
   

  	
  55.00

  	
   

  	
  20.65

  	
   

  	
  16.96

  	
   

  	
  14.01

  	
   

  	
   

  	
   

  	
  12.54

  	
   

  
	
  Healthy Skin Protection

  	
   

  	
  19.00

  	
   

  	
  38.00

  	
   

  	
  13.30

  	
   

  	
  10.93

  	
   

  	
  9.03

  	
   

  	
   

  	
   

  	
  8.08

  	
   

  
	
  Sunblock

  	
   

  	
  19.00

  	
   

  	
  38.00

  	
   

  	
  13.30

  	
   

  	
  10.93

  	
   

  	
  9.03

  	
   

  	
   

  	
   

  	
  8.08

  	
   

  
	
  Tolereen

  	
   

  	
  22.00

  	
   

  	
  44.00

  	
   

  	
  15.40

  	
   

  	
  12.65

  	
   

  	
  10.45

  	
   

  	
   

  	
   

  	
  9.35

  	
   

  
	
  Action

  	
   

  	
  17.50

  	
   

  	
  35.00

  	
   

  	
  12.25

  	
   

  	
  10.06

  	
   

  	
  8.31

  	
   

  	
   

  	
   

  	
  7.44

  	
   

  
	
  Eye Cream

  	
   

  	
  20.00

  	
   

  	
  40.00

  	
   

  	
  14.00

  	
   

  	
  11.50

  	
   

  	
  9.50

  	
   

  	
   

  	
   

  	
  8.50

  	
   

  
	
  Travel Set (Normal to Oily)

  	
   

  	
  89.50

  	
   

  	
  170.00

  	
   

  	
  62.65

  	
   

  	
  51.46

  	
   

  	
  42.51

  	
   

  	
   

  	
   

  	
  38.04

  	
   

  
	
  Travel Set (Normal to Dry)

  	
   

  	
  89.50

  	
   

  	
  170.00

  	
   

  	
  62.65

  	
   

  	
  51.46

  	
   

  	
  42.51

  	
   

  	
   

  	
   

  	
  38.04

  	
   

  
	
  Starter Set (Normal to Oily)

  	
   

  	
  175.00

  	
   

  	
  390.00

  	
   

  	
  122.50

  	
   

  	
  100.63

  	
   

  	
  83.13

  	
   

  	
   

  	
   

  	
  74.38

  	
   

  
	
  Starter Set (Normal to Dry)

  	
   

  	
  175.00

  	
   

  	
  390.00

  	
   

  	
  122.50

  	
   

  	
  100.63

  	
   

  	
  83.13

  	
   

  	
   

  	
   

  	
  74.38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Obagi GRx

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cleansing Gel

  	
   

  	
  14.50

  	
   

  	
  29.00

  	
   

  	
  10.15

  	
   

  	
  8.34

  	
   

  	
  6.89

  	
   

  	
   

  	
   

  	
  6.16

  	
   

  
	
  Clarifying Serum

  	
   

  	
  44.50

  	
   

  	
  89.00

  	
   

  	
  31.15

  	
   

  	
  25.59

  	
   

  	
  21.14

  	
   

  	
   

  	
   

  	
  18.91

  	
   

  
	
  Exfoliating Day Lotion SPF 12

  	
   

  	
  24.50

  	
   

  	
  49.00

  	
   

  	
  17.15

  	
   

  	
  14.09

  	
   

  	
  11.64

  	
   

  	
   

  	
   

  	
  10.41

  	
   

  
	
  Exfoliating Day Lotion

  	
   

  	
  24.50

  	
   

  	
  49.00

  	
   

  	
  17.15

  	
   

  	
  14.09

  	
   

  	
  11.64

  	
   

  	
   

  	
   

  	
  10.41

  	
   

  
	
  Therapy Night Cream

  	
   

  	
  39.50

  	
   

  	
  79.00

  	
   

  	
  27.65

  	
   

  	
  22.71

  	
   

  	
  18.76

  	
   

  	
   

  	
   

  	
  16.79

  	
   

  
	
  Sun Guard SPF 30

  	
   

  	
  18.50

  	
   

  	
  37.00

  	
   

  	
  12.95

  	
   

  	
  10.64

  	
   

  	
  8.79

  	
   

  	
   

  	
   

  	
  7.86

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Obagi C

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Obagi C 5%

  	
   

  	
  24.00

  	
   

  	
  48.00

  	
   

  	
  16.80

  	
   

  	
  13.80

  	
   

  	
  11.40

  	
   

  	
   

  	
   

  	
  10.20

  	
   

  
	
  Obagi C 10%

  	
   

  	
  40.00

  	
   

  	
  80.00

  	
   

  	
  28.00

  	
   

  	
  23.00

  	
   

  	
  19.00

  	
   

  	
   

  	
   

  	
  17.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Blue Peel

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Blue Peel Kit,

  	
   

  	
  525.00

  	
   

  	
  525.00

  	
   

  	
  367.50

  	
   

  	
  301.88

  	
   

  	
  249.38

  	
   

  	
   

  	
   

  	
  223.13

  	
   

  
	
  Cleanser

  	
   

  	
  19.00

  	
   

  	
  19.00

  	
   

  	
  13.30

  	
   

  	
  10.93

  	
   

  	
  9.03

  	
   

  	
   

  	
   

  	
  8.08

  	
   

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  Base

  Price

  	
   

  	
  Distributor Discounts

  	
   

  	
  Additional Discounts

  	
   

  
	
  Obagi

  Proderm

  	
   

  	
  Standard

  US Price to

  Physicians

  	
   

  	
  Suggested

  End User

  Price

  	
   

  	
  Basic

  Discount

  30%

  	
   

  	
  Investment

  Discount

  12.5%

  	
   

  	
  Volume

  Discount

  10.0%

  >1.5M

  	
   

  	
  or

  	
   

  	
  Volume

  Discount

  15.0%

  >1.8M

  	
   

  
	
  Foaming Cleanser

  	
   

  	
  16.00

  	
   

  	
  32.00

  	
   

  	
  11.20

  	
   

  	
  9.20

  	
   

  	
  7.60

  	
   

  	
   

  	
   

  	
  6.80

  	
   

  
	
  Toner

  	
   

  	
  16.00

  	
   

  	
  32.00

  	
   

  	
  11.20

  	
   

  	
  9.20

  	
   

  	
  7.60

  	
   

  	
   

  	
   

  	
  6.80

  	
   

  
	
  Stimulator

  	
   

  	
  30.00

  	
   

  	
  32.00

  	
   

  	
  21.00

  	
   

  	
  17.25

  	
   

  	
  14.25

  	
   

  	
   

  	
   

  	
  12.75

  	
   

  
	
  Corrector

  	
   

  	
  25.00

  	
   

  	
  74.00

  	
   

  	
  17.50

  	
   

  	
  14.38

  	
   

  	
  11.88

  	
   

  	
   

  	
   

  	
  10.63

  	
   

  
	
  Refining Mask

  	
   

  	
  22.00

  	
   

  	
  54.00

  	
   

  	
  15.40

  	
   

  	
  12.65

  	
   

  	
  10.45

  	
   

  	
   

  	
   

  	
  9.35

  	
   

  
	
  Eye Support

  	
   

  	
  21.00

  	
   

  	
  54.00

  	
   

  	
  14.70

  	
   

  	
  12.08

  	
   

  	
  9.98

  	
   

  	
   

  	
   

  	
  8.93

  	
   

  
	
  Clarifier

  	
   

  	
  34.00

  	
   

  	
  69.00

  	
   

  	
  23.80

  	
   

  	
  19.55

  	
   

  	
  16.15

  	
   

  	
   

  	
   

  	
  14.45

  	
   

  

 

Investment Discount

 

Distributor
shall receive an investment of twelve and a half percent (12.5%) off
Distributor’s Base Price as consideration for investments already made high end
medical centers and/or retail shop (“Medical Center”) servicing each countries
in which the Distributor has operations. The twelve and a half percent (12.5%)
discount shall be applicable to all Distributor orders for Products so long as
the distributor continues to operate or cause to have operated Medical Centers
as a material part of the distributors operations, include the prominent
display and sale of Obagi products and periodic physician training on the same.

 

Volume Discount

 

Distributor
shall receive an additional volume discount based on Distributor’s purchase of
Products based on volume achieved over $1.5 million or $1.8 million as noted in
the table above. Discount shall be awarded against purchase orders based on the
distributors reasonable forecast of calendar year purchase volume. After the
close of first 12 months of this agreement, the Distributor will be
debited/credited the difference between the actual volume discounts applied to
purchases, and the volume discount actually earned per schedule C above,
if any.

 

Sample Product

 

In
addition to the discounts noted above, the Distributor shall also be entitled
to receive sample product equal to 5% of the net purchase price for any given
order placed. The expressed purpose of this product solely for providing free
product sampling to physicians to promote new account trial and ongoing
personal use by physicians and their staff to the extent applicable. The
distributor agrees that such product will be separately tracked and will not be
re-sold to the distributors profit.

 

D.                       DISTRIBUTOR’S
MINIMUM PURCHASE REQUIREMENT.

 

Distributor’s Minimum Purchase Requirements shall be
$1.5 million in the first full calendar year, and shall increase 10% each year
thereafter ($1.65 Million in 2007, $1,815 in 2008, etc.).

 

 

EXHIBIT B

 

PURCHASE ORDER AND
ROLLING FORECAST FORM

 

Rolling 4-Q Forecast by
Units and Actual P.O 

Rolling 3-Q Forecast by Units

 

Distributor’s Name:                                                                       

 

Distributor’s Signature:                                    
Date:                         

 

	
   

  	
   

  	
  QUARTER 1

  	
   

  	
  QUARTER 2

  	
   

  	
  QUARTER 3

  	
   

  	
  QUARTER 4

  
	
  * This Quarter represents a Purchase Order

  	
   

  	
  UNIT

  	
   

  	
  This Quarter is a Forecast Q2

  	
   

  	
  UNIT

  	
   

  	
  This Quarter is a Forecast Q3

  	
   

  	
  UNIT

  	
   

  	
  This Quarter is a Forecast Q4

  	
   

  	
  UNIT

  
	
  Products

  	
   

  	
  Oct. 02

  	
   

  	
  Nov. 02

  	
   

  	
  Dec. 02

  	
   

  	
  Qtr. Total

  	
   

  	
  Jan. 03

  	
   

  	
  Feb. 03

  	
   

  	
  Mar. 03

  	
   

  	
  Qtr. Total

  	
   

  	
  Apr. 03

  	
   

  	
  May. 03

  	
   

  	
  Jun. 03

  	
   

  	
  Qtr. Total

  	
   

  	
  Jul. 03

  	
   

  	
  Aug. 03

  	
   

  	
  Sept. 03

  	
   

  	
  Qtr.Total

  
	
  Foaming Gel

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gentle Cleanser

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Toner

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Clear

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exfoderm

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exfoderm Forte

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Blender

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Healthy Skin Protection

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sunblock

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Action

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tolereen

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eye Cream

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Blue Peel Kit (6)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Control Kit

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Therapeutic Kit

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Obagi-C 5%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Obagi-C 10%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(Note: This is
just a sample spreadsheet in the format in which to layout your spreadsheet.
Not all products are available in all countries. Please use only those products
that are appropriate for your market.)

 

*The Quarter not
shaded, signifies an actual Purchase Order and constitutes a binding order. The
following three shaded quarters are viewed as forecasts.

 

Your signature above
approves a shipment of product noted in Quarter one. Unit orders must be placed
in master shipper quantities.

 

This order is
subject to all the terms and conditions contained in your International Product
Distribution Agreement.

 

This Form (Purchase
order and Rolling 3-Q Forecast by units) must be provided to OMP by February 1,
by May l, by August 1, and by November 1 of each year.

 

 

 

	
  Obagi System Graphic Standards

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Logos

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shown at right are the logos used for Obagi System
  and its products. These logos should appear as the 2-color version shown. The
  2 colors of the logos are PMS
  2748 and PMS 319.

  	
   

  	
  [GRAPHIC]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  As an alternative, the 1-color or black logo may be
  used. When the logo is to be placed on a dark background, the reversed
  version should be used. See demonstrations with the Obagi logo at right.

  	
   

  	
  [GRAPHIC]

  	
   

  	
  [GRAPHIC]

  	
   

  	
  [GRAPHIC]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Area
  of Isolation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  It is important to keep the logo clear of any
  distracting elements. The minimum amount of clear space around the mark
  should be at least 1/2”.

  	
   

  	
  [GRAPHIC]

  

  L-Color

  	
   

  	
  [GRAPHIC]

  

  black

  	
   

  	
  [GRAPHIC]

  

  reversed

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Color

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Obagi System color palette is as follow.* To
  keep the image consistent, it is important to always use the designated
  PANTONE colors.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Obagi
  System

  	
   

  	
  [GRAPHIC]

  	
   

  	
  [GRAPHIC]

  	
   

  	
   

  
	
  Obagi Nu-Derm System

  	
   

  	
  Obagi System, Nu-Derm, Blue Peel

  	
   

  	
   

  
	
  Obagi Blue Peel

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PMS 2748 blue and PMS 319 teal

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [GRAPHIC]

  	
   

  	
  [GRAPHIC]

  	
   

  	
   

  
	
  Obagi-C
  Rx System

  PMS 2748 blue and PMS 132
  gold

  	
   

  	
  Obagi-C Rx System

  	
   

  	
   

  

 

	
   

  	
   

  	
  *The colors shown onthis page and throughout this
  document have not been evaluated by Pantone, Inc. for accuracy and may not
  match the PANTONE® Color Standards. For accurate color standards,
  refer to the current edition of the PANTONE Color Formula Guide. PANTONE is a
  registered trademark of Pantone, Inc.

  

 

 

 

EXHIBIT D

 

Defective Product
Complaint

(Quality Defect vs.
Medical Defect)

 

Below is the
written procedure for reporting, processing and handling complaints regarding
drug (and cosmetic) products manufactured by or for OMP, Inc. (“OMP”) as
required by United States Food and Drug Administration (FDA) regulations.

 

This procedure
applies to all OMP and Distributor personnel involved in reporting and
processing the complaints.

 

Upon receipt of a
complaint, the attached Product Complaint Form must be completed and fully
identify the complaint and product(s) involved. The complaint must be submitted
to OMP’s International Sales and Marketing Department, which receives all drug
complaints.

 

The nature of the
complaint must be classified as either a Quality Defect or Medical Defect, as
described below.

 

Quality Defect:

A product
complaint expressing dissatisfaction with the quality of a product, e.g. a
complaint expressing dissatisfaction with the attributes of the product, such
as missing lot numbers or expiration dates, discoloration of product, leaking
caps, etc.

 

Medical Defect (Adverse Drug Experience):

A product
complaint reporting an Adverse Drug Experience associated with the use of the
product with humans, whether or not considered drug related. An Adverse
Drug Experience is an event associated with the product, e.g. use of the
product, any significant performance failure or unexpected pharmacological
activity; drug abuse and drug withdrawal, such as rashes, hypo-pigmentation,
acne, headaches, etc.

 

The attached form must
be completed for either or both a Quality Defect or Medical Defect and
submitted to OMP’s International Sales and Marketing Department. Whenever
possible send the product associated with the complaint with the “Product
Complaint Form.”

 

 

 

[GRAPHIC]

 

DRUG & COSMETIC

 

PRODUCT
COMPLAINT FORM

 

	
  Distributor
  Name:

  	
   

  	
   

  	
  Date:

  	
   

  

 

	
   

  	
   

  	
   

  
	
  Type
  of Complaint: Quality o
  Medical o 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Return
  Authorization Number (if applicable):

  	
   

  

 

	
  Name
  of Account Reporting Complaint:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name
  of Medical Office / Institution:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Address:

  	
   

  	
   

  	
  Phone:

  	
  (     )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Fax:

  	
  (     )

  	
   

  	
   

  
								

 

	
  Name
  of Product Receiving Complaint:

  	
   

  	
   

  	
  Product
  Size:

  	
   

  
	
   

  	
  (For
  example: 60 gram)

  

 

	
   

  	
   

  
	
  Lot
  No:

  	
   

  	
   

  	
  Exp
  Date (If available):

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Description
  of Complaint:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

	
  Sample
  Available: Yes o
  No o

  
	
  (If
  yes, please obtain sample and forward to International Sales &
  Marketing Department)

  

 

	
  Distributor Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Distributor’s Signature

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  
	
  OMP Representative who received complaint:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  September 23, 2002

  
					

 

 

AMENDMENT TO DISTRIBUTION
AGREEMENT

 

            This amendment (the
“Amendment”) to the Distribution Agreement dated November 10, 2005 (the
“Agreement”) by and between OMP, Inc., a company established and existing under
the laws of the State of Delaware, having its principal place of business at
310 Golden Shore, Long Beach, California 90802, USA (“OMP”) and Cellogique
Corporation, a corporation organized and validly existing under the laws of California,
having its principal place of business at 124 Woodland Road, Pittsburgh PA
15232 (“Distributor”), is made and entered into as of October 23, 2006 by and
between OMP and the Distributor.

 

            THE PARTIES AGREE AS
FOLLOWS:

 

            1.         Amendment to Exhibit A.  Exhibit A to the Agreement shall be amended to
include the following second sentence in Section B, which shall be read
directly after the first sentence of Section B.

 

            “Notwithstanding
the foregoing, if at any time any of the countries (or the territories or
possessions of the countries) identified in this Section B are identified as
state sponsors of terrorism by the government of the United States, the
Territory of the Distributor shall be deemed not to include such countries (or
territories or possessions of those countries), for the period of the Term such
portion of the Territory is so classified.”

 

            2.         Binding Effect.  This Amendment shall be binding upon the
heirs, legal representatives and successors of OMP and the Distributor.

 

            3.         Entire Agreement; Other Provisions.  This Amendment constitutes the entire
agreement of the parties pertaining to provisions of the Agreement described
herein.  All other provisions of the
Agreement remain in full force and effect.

 

            5.         Counterparts.  This Amendment may be executed in one or more
counterparts, each of which will be deemed an original but all of which
together will constitute one and the same instrument.

 

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the date first written above.

 

	
   

  	
  OMP, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Curtis A. Cluff

  
	
   

  	
  Name:

  	
  Curtis A. Cluff

  
	
   

  	
  Title:

  	
  EVP Corp. Development & Operations

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CELLOGIQUE CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mazen F. Youssef

  
	
   

  	
  Name:

  	
  Mazen F. Youssef

  
	
   

  	
  Title:

  	
  President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]