Document:

extentionletter Ex-10.2

EXTENTION TO LETTER OF INTENT DATED JULY 9, 2003 

 

BETWEEN: 

SKINVISIBLE PHARMACEUTICALS, INC. 

a Nevada company ("SKV") 

-and- 

HEALTH FIRST DISTRIBUTORS NORTH AMERICA, INC. 

referred to as ("HFNA") 

RE:                       Acquisition of exclusive marketing rights to the antimicrobial hand sanitizer product identified as the Triclosan 1% formula manufactured by SKV, (the "Product") 

 

 

1.     Product: 

The product supplied by SKV to HFNA is an antimicrobial hand sanitizer product. This Letter of Intent deals only with this specific product and not to any other products manufactured by SKV now or in the future. 

 

2.     Rights: 

                                    The rights to be granted involve the exclusive marketing and distribution rights to this Product, for North America, Central America and South America (the "Territory"). SKV agrees that it will transfer and assign to HFNA any marketing contracts involving the Product within the Territory, if any, upon completion of a formal Licensing Agreement and payment as required and subject to certain terms and conditions, as identified herein. 

                                    SKV also agrees to provide to HFNA, the research studies on the Product and its efficacy referred to in SKV’s existing marketing CD on the Product exclusively to HFNA as they relate to the Product. Subject to completion of a formal agreement and payment as described above, within the Territory these studies will only be provided to HFNA. 

 

3.     Price/Payment: 

                                    The price for the rights granted herein shall be One Million ($1,000,000) USD payable as follows: 

 

                               a)  upon completion and signing of this Letter of Intent, HFNA agrees to pay to SKV a non-refundable deposit of 

                                    

 

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                                    $100,000 USD; this non-refundable deposit is to paid no later than the close of business on July 31, 2003, in order 

                                     for the parties to continue towards an agreement; and 

 

                               b)   a further non-refundable payment of $100,000 on or before the 30 th day of November 2003; and 

 

                               c)   the balance of $800,000.00 USD shall be payable on or before December 30, 2003. On or before November 30, 

                                     2003 the parties shall agree upon the terms of a formal License Agreement; 

 

                                In the event that payments are not made as set out or a mutual satisfactory formal agreement entered into within the 

                                time period set out, other than due to the fault of SKV, then SKV may, at its sole option terminate negotiations and 

                                retain, without claim or demand from HFNA, any deposits paid. 

 

4.      Royalty: 

                                In addition to the payments set out above HFNA agrees to pay SKV a royalty equal to five (5.0%) percent of Gross  

                                Revenues received by HFNA in relation to the Product, whether directly or indirectly, during the term of any 

                                agreement. The royalty shall be calculated and paid quarterly. HFNA shall supply SKV with such documentation, 

                                including receipt and invoices as shall be reasonably necessary to allow SKV to confirm the accuracy of the royalty 

                                payment made. SKV shall have the right to audit the royalty payments and HFNA shall pay the cost of the audit only 

                                if results indicate that payments are less than 90% of what they should have been. Quarterly payments must be 

                                made no later than 30 days after the end of each quarter during the term of the agreement. 

 

5.    Performance: 

                                In order to maintain this agreement and the exclusivity granted herein, during the term of the agreement, HFNA must 

                                make quarterly payments that amount to at least $5,000 USD during the first quarter, at least $10,000 USD during 

                                the second quarter, $15,000 USD during the third quarter, at least $20,000 USD during the fourth quarter and at 

                                least $25,000 USD each quarter thereafter, whether by royalty or otherwise (top up payment). In the event of failure 

                                to make the quarterly payments, in full, and on time, SKV shall have the option either to (1) terminate the agreement 

                                upon notice; or (2) terminate the exclusivity of the agreement in which case the 

 

 

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                                minimum quarterly royalty payment amount will also cease. Quarterly payments will not be cumulative. 

 

6.    Conditions: 

                                 HFNA acknowledges that it has used the Product for 7 months and is content with its efficacy and quality. Subject

                                 to review of same, HFNA agrees to accept an assignment of other marketing contracts relating to the Product

                                 already in existence. 

 

7.     Patents: 

                                  SKV represents and warrants that it holds a US patent for the Product, and that HFNA has reviewed the patent 

                                  and is satisfied with its review. In addition, SKV advises that it has applied for Patent protection for the Polymers to   

                                  the World International Property Organization for inclusive within the territory. 

 

8.      Warranty: 

                                  SKV agrees that it will continue to manufacture the Product for HFNA according to the quality standards presently

                                   in place and as stated in the present Certificate of Analysis relating to the Product. SKV may assign its

                                   manufacturing obligations to third parties who shall be bound by the same standards. The parties shall mutually 

                                   agree to terms as to minimum order quantities, packaging and other details in relation to order and delivery of the 

                                   Product. 

 

9.      Arbitration: 

                                  Any disagreements shall be referred to arbitration under the rules of the American Arbitration Association. If

                                  required the arbitration shall be dealt with by a sole arbitrator at Las Vegas, Nevada. 

 

10.    Non-competition: 

                                  During the term of the agreement, HFNA agrees not to sell, market or be involved with any other product 

                                  competitive to the Product, without the prior written consent of SKV. 

 

11.     Assignment: 

                                  HFNA shall not be entitled to sell, transfer or assign its rights hereunder without the consent of SKV. 

 

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12.     Investigation: 

                                   Any information and documentation delivered by either party to the other shall will be treated as confidential except 

                                   to the extent that (i) it was already known to that party or its representatives or available to that party on a non-

                                   confidential basis when received, (ii) it hereafter becomes lawfully obtainable from other sources; or (iii) it is 

                                   disclosed by a party or its Principals in any document filed with any government agency or authority and available for 

                                   public inspection. 

 

13.     No Brokers: 

                                  The parties acknowledge and agree that they will each be responsible for any fees or expenses of any broker 

                                  retained by them or on their behalf. 

 

14.      Expenses: 

                                  Each party shall bear its own costs and expenses (including all legal, accounting, investment banking and other 

                                  costs) with respect to this transaction, whether the transaction is consummated or not, and the Agreement shall so 

                                  provide. 

 

15.      Exclusivity: 

                                  Unless negotiations between HFNA and SKV are terminated (it being understood that SKV will not unilaterally 

                                  terminate negotiations prior to November 30, 2003 as long as HFNA is proceeding expeditiously and in good faith), 

                                  SKV agrees not to solicit, negotiate, act upon or entertain in any way an offer from any other person or entity to 

                                  acquire any rights in or to the Product for the Territory without notice to HFNA of such inquiry or interest. 

 

16.      Confidentiality: 

                                   Except as required by law including a SKV Press Release the parties agree in connection with ongoing due 

                                   diligence, this Letter will be kept strictly confidential, and neither party, nor its affiliates, shall disclose HFNA’s 

                                   interest in the potential acquisition, or any of the terms and conditions thereof. To the extent that disclosure 

                                   becomes legally required, HFNA or SKV, as the case may be, shall be notified promptly before the required 

                                   disclosure is made. 

 

17.       Non-Enforceability Termination: 

 

                                   Except for the obligations of HFNA for the payments set out herein, neither this Letter of Intent nor any past or future 

 

 

	 
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                                    conduct of the parties hereto, their affiliates, agents or representatives (other than the execution and delivery of the definitive exclusive License Agreement) shall be deemed to constitute a binding or enforceable agreement. Without limiting the generality of the foregoing, HFNA and SKV each agree on behalf of themselves and their affiliates not to institute or maintain any claims or proceedings which seek to establish, or which are otherwise based upon an assertion, that any such contractual relationship exists, except pursuant to the definitive Licensing Agreement if finalized, negotiated, executed and delivered by the parties. 

If the terms and conditions set forth above are acceptable to you, please so indicate by signing one copy of this letter below and returning it to the undersigned. 

Yours truly, 

SKINVISIBLE PHARMACEUTICALS, INC. 

/s/ Terry Howlett

_______________________________

Agreed and Accepted: 

Date: ________Oct 29 / 03_________________

HEALTH FIRST DISTRIBUTORS NORTH AMERICA, INC. 

/s/ L. Vallon

______________________________

 

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Addendum 

	
US Patent 

	
PCT Patent Application 

	
Product Price List 

	
Certificate of Analysis 

	
US Monograph – email 

	
Canada Monograph –email 

	
Canada DIN 

	
Distribution Agreement – Crosbie Kennedy Nasmark 

	
Approved Canada LabelAGREEMENT AND PLAN FOR CORPORATE SEPARATION

1    Date of Agreement.  The date of this Agreement is the 30th

day of September, 2003.

2    Parties.

     2.1   GAVELLA CORP., a Delaware corporation, with  address

at  215  West  Main  Street,  Maple Shade,  New  Jersey,  08052

("Gavella");

     2.2    SPRING   VILLAGE  HOLDINGS,  INC.,  a  New   Jersey

corporation, with address at 215 West Main Street, Maple Shade,

New Jersey, 08052 ("Spring Village"); and

     2.3  BARTRAM HOLDINGS, INC.., a Delaware corporation, with

address at 215 West Main Street, Maple Shade, New Jersey, 08052

("Bartram").

3    Background.

     3.1   100%  of the outstanding shares of common  stock  of

Spring Village are owned by Gavella;

     3.2   Gavella is engaged in the separate businesses of (i)

owning  and  operating income producing properties through  its

ownership  of  Spring  Village,  and  (ii)  an  investment  and

consulting business.

     3.3   The directors of Gavella have agreed upon a division

of  the  business  of  Gavella so that the business  of  Spring

Village  will be owned in a separate corporate form by Bartram,

and  the  consulting  business will continue  to  be  owned  by

Gavella.

4     Plan  of  Corporate Separation.   The following  Plan  of

Corporate Separation, hereinafter referred to as the "Plan", is

hereby approved, adopted and agreed upon:

     4.1   Organization of BARTRAM HOLDINGS, INC..  Gavella shall

cause to be organized, under the laws of the State of Delaware, a

new corporation known as BARTRAM HOLDINGS, INC.., with powers and

capitalization  as set forth in the certificate of  incorporation

attached  hereto as Schedule 4.1.    Of the 15,000,000 authorized

shares of Bartram, 6,500,000 shares shall be issued and delivered

to Gavella in fully paid, non-assessable certificates.

     4.2   Transfer  of Assets to Bartram.  In exchange  for  the

6,500,000  shares  of  Bartram, Gavella shall  assign,  transfer,

convey  and deliver to Bartram a promissory note dated  September

30,  2003  in  the amount of $350,000 from SVG Properties,  Inc.,

plus  500,000  shares  of  the common stock  of  Spring  Village,

representing  100%  of the outstanding stock of  Spring  Village,

subject to all of the liabilities of Spring Village, and  all  of

the  obligations of Gavella related to Spring Village,  including

the  terms  and conditions of the Stock Pledge Agreement  between

ARCA  Corp.  and Resource Properties XXIII, Inc., as  amended,  a

copy of which is attached hereto as Exhibit 4.2.

     4.3   Indemnification by Bartram.  Bartram hereby guarantees

payment  of  all liabilities, obligations, debts and  demands  of

Gavella  related  to  the current and past activities  of  Spring

Village.

     4.4   Closing.  Closing shall take place on October 30, 2003

at  2:00 p.m., and the transactions contemplated by the Plan  and

this  Agreement  shall be consummated at the office  of  Gavella.

Each  of  the  parties  shall execute and  deliver  such  further

instruments  as may be reasonably requested by the other  parties

in order to carry out the purpose and intent of the Plan and this

Agreement.

     4.5   Authorization.  This agreement is  being  executed  by

Gavella  pursuant to a resolution adopted this day at  a  special

meeting  of its directors.  This Agreement is also being executed

by Bartram pursuant to a resolution adopted this day at a special

meeting of its directors.

5     Notices.   All notices, requests, and demands given  to  or

made upon the parties hereto shall, except as otherwise specified

herein,  be in writing and be delivered by fax, express delivery,

in  person,  or mailed to any such party at the address  of  such

party  set forth in Section 2 Parties above.  Any party  may,  by

notice  hereunder to the other party, designate a changed address

for  such  party.  Any notice, if faxed, shall be deemed received

upon  confirmation  of the receipt thereof; if  sent  by  express

delivery, shall be deemed received upon delivery as set forth  on

the  express delivery receipt; if personally delivered, shall  be

deemed  received upon delivery; and if mailed properly addressed,

postage  prepaid, certified mail, shall be deemed  dispatched  on

the  date  stamped on the certified mail receipt,  and  shall  be

deemed received the fifth business day thereafter, or when it  is

actually  received, whichever is sooner.  Attempted delivery,  in

person  or by express delivery at the correct address,  shall  be

deemed  received  on  the date of such attempted  delivery.   All

references  to hours of the day shall mean the official  time  in

effect on the date in question in the State of New Jersey.

6     Binding Effect.  This Agreement shall be binding  upon  and

inure  to  the benefit of the parties hereto and their respective

successors, assigns, and legal representatives.

7    Assignability.  Neither party hereto shall have the right to

assign  or  otherwise transfer (by operation of law or otherwise)

its  rights or obligations under this Agreement except  with  the

prior written consent of the other party.

8     Captions.   Captions of the sections of this Agreement  are

for convenience and reference only, and the words contained shall

not  be held to modify, amplify, or aid in the interpretation  of

the provisions of this Agreement.

9     Counterparts and/or Facsimile Signature.     This Agreement

may   be  executed  in  any  number  of  counterparts,  including

counterparts transmitted by telecopier or FAX, any one  of  which

shall   constitute   an   original  of  this   Agreement.    When

counterparts  of  facsimile  copies have  been  executed  by  all

parties, they shall have the same effect as if the signatures  to

each  counterpart or copy were upon the same document and  copies

of  such  documents  shall  be deemed valid  as  originals.   The

parties  agree that all such signatures may be transferred  to  a

single document upon the request of any party.

10   Situs.  This Agreement shall be governed by and construed in

accordance  with  the  laws of the State of New  Jersey,  without

giving effect to conflict of laws.

1.    Arbitration.   Except for obtaining  injunctive  relief  by

either  party  against actual or threatened  conduct  that  would

cause   irreparable   harm  to  that  party,   and   except   for

controversies, disputes or claims under this Agreement related to

the  enforceability  of restrictive covenants  relating  to  non-

competition,   any dispute arising between the parties  shall  be

submitted  for arbitration to be administered by the Philadelphia

office  of  the  American Arbitration association  on  demand  of

either  party.  All such claims shall be heard by one arbitrator.

Such  arbitration proceedings shall be conducted in  Philadelphia

or  its  adjacent suburbs, and, except as otherwise  provided  in

this  agreement,  shall  be  conducted  in  accordance  with  the

then-current   Commercial  Arbitration  Rules  of  the   American

Arbitration Association.  The arbitrator shall have the right  to

award  or  include in its award any relief which he or she  deems

proper in the circumstances, including without limitation,  money

damages (with interest on unpaid amounts from date due), specific

performance,  injunctive relief, reasonable attorneys'  fees  and

costs.   The  award  and  decision of  the  arbitrator  shall  be

conclusive and binding upon all parties hereto and judgment  upon

the  award may be entered in any court of competent jurisdiction,

and   each   waives  any  right  to  contest  the   validity   or

enforceability  of such award.  The arbitrator  shall  apply  the

provisions of any applicable limitation on the period of time  in

which claims must be brought.  The parties further agree that, in

connection  with  any  such arbitration  proceeding,  each  shall

submit  or  file  any  claim that would constitute  a  compulsory

counterclaim (as defined by rule 13 of the federal rules of civil

procedure)  within the same proceeding as the claim to  which  it

relates.  Any such claim which is not submitted or filed in  such

proceeding  shall  be barred.  This provision shall  continue  in

full   force   and   effect  subsequent  to  and  notwithstanding

expiration  or termination of this agreement.  The parties  agree

that  arbitration  shall be conducted on  an  individual,  not  a

class-wide,  basis and that none of the parties hereto  shall  be

entitled  to  consolidation of arbitration proceedings  involving

such  parties  with  those  of any third  party,  nor  shall  the

arbitrator or any court be empowered to order such consolidation.

2.   Venue. With respect to any claim which will be determined by

a  court of competent jurisdiction (excluding the arbitration set

forth   above,  but  not  any  appeal  or  enforcement  of   such

arbitration),  any action, suit, or proceeding  arising  out  of,

based  on,  or in connection with this Agreement may  be  brought

only  in the Superior Court of New Jersey, Burlington County,  or

the  United States District Court for the District of New Jersey,

and  each  party covenants and agrees not to assert,  by  way  of

motion,  as a defense, or otherwise in any such action, suit,  or

proceeding, any claim that it or he is not subject personally  to

the  jurisdiction  of such court, that its  or  his  property  is

exempt  or immune from attachment or execution, that the  action,

suit, or proceeding is brought in an inconvenient forum, that the

venue  of  the action, suit, or proceeding is improper,  or  that

this  Agreement or the subject matter hereof may not be  enforced

in or by such court.

3.    Non-Waiver.  No delay or failure by a party to exercise any

right under this Agreement, and no partial or single exercise  of

that right, shall constitute a waiver of that or any other right,

unless otherwise expressly provided herein.

4.    Severability.   Whenever possible, each provision  of  this

Agreement  shall be interpreted in such manner as to be effective

and  valid  under  applicable law, but if any provision  of  this

Agreement shall be prohibited by or invalid under applicable law,

such  provision shall be ineffective only to the extent  of  such

prohibition or invalidity, without invalidating the remainder  of

such provision or the remaining provisions of this Agreement.

5.    Modification.  This Agreement may not be and shall  not  be

deemed  or  construed to have been modified, amended,  rescinded,

canceled,  or  waived in whole or in part, except  by  a  written

instrument signed by the parties hereto.

6.    Entire Agreement.  This Agreement constitutes and expresses

the entire agreement and understanding between the parties hereto

in  reference  to  all the matters referred to  herein,  and  any

previous    discussions,    promises,    representations,     and

understanding relative thereto are merged into the terms of  this

Agreement and shall have no further force and effect.

     Executed  by  each party as of the day and year first  above

written.

GAVELLA CORP.                 	    BARTRAM HOLDINGS, INC..

_____________________________       ________________________________
By:  Harry  J. Santoro, President   By:  Harry J.  Santoro, President

_____________________________      ________________________________
Attest:   Stephen  M.  Robinson,   Attest:   Stephen  M. Robinson,
          Secretary                          Secretary

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