Document:

Exhibit 10.1

 

PORTIONS
OF THIS AGREEMENT WERE OMITTED AND HAVE BEEN FILED

SEPARATELY
WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN

APPLICATION
FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE

SECURITIES
EXCHANGE ACT OF 1934; [***] DENOTES OMISSIONS

Exclusive
Distribution Agreement

 

Party
A: HPGC Medical Co., Ltd.

Legal
representative: Zhu Weidong

Address:
No. 418 Hayao Road, Daoli District, Harbin, Heilongjiang Province, the People’s Republic of China

 

Party
B: Israel Wize Pharma Ltd.

Legal
representative:

Address:
Hanagar 5 St, Hod HaSharon, Israel.

 

Whereas
Party B has been granted a license with respect to the Products (as defined below) in the Territory (as defined below), and further,
Party A has valuable experience and good reputation in the Territory, and Party B has agreed to appoint Party A as an exclusive
distributor of the Products in the Territory, therefore, the Parties have, based on the principle of voluntary, equality, fairness,
honesty and good faith, through amicable negotiation, agreed as follows:

 

		1.	Definitions
                                         

 

		1.1	“Affiliate”
                                         means any entity that, directly or indirectly through one or more intermediaries, controls,
                                         or is controlled by, or is under common control with, as applicable, a Party. For the
                                         purpose of this definition, “control” means (a) the possession, directly
                                         or indirectly, of the power to direct the management or policies of an entity, whether
                                         through the ownership of voting securities or voting rights or by contract related to
                                         corporate governance; or (b) the ownership, directly or indirectly, of more than fifty
                                         percent (50%) of the voting shares of or other equity interests in such entity.

 

     

     

    

 

		1.2	“Agreement”
                                         means any and all written agreements entered into by and between the Parties, including
                                         this Agreement and all appendices and schedules hereto and any other documents to amend
                                         or supplement this Agreement at any time in the future.

 

		1.3	“Client”
                                         means any end user, drug wholesaler or pharmacy in the Territory.

 

		1.4	“Manufacturer”
                                         means Pharma Stulln GmbH, the manufacturer of the Products, a limited liability company
                                         incorporated in Germany with its registered address at Werksstraße 3, 92551 Stulln,
                                         Germany, or other designated address, or any other third party manufacturer agreed and
                                         appointed by both Parties (on the premise that Party A shall be provided with the due
                                         diligence report of such third party manufacturer).

 

		1.5	“Parties”
                                         mean Party A and Party B collectively.

 

		1.6	“Products”
                                         means LO2A, Lacrycon® formula (in Chinese: Lacrycon® “LO2A”),
                                         in any package or dosage, including Uni-dose and Multi-dose, which are manufactured by
                                         the Manufacturer and of which details are set forth in Clause 3.4 hereof.

 

		1.7	“Territory”
                                         means the mainland of China, excluding Hong Kong, Macau and Taiwan.

 

		1.8	“Person”
                                         means any individual, corporation, partnership, limited partnership, limited liability
                                         partnership, enterprise, limited liability company, business unit, joint stock company,
                                         trust, joint venture company or other similar person or organization.

 

		1.9	“Competitive
                                         Products” means any products of other specifications that use formulation,
                                         or are applied to indication, same to that of the Products.

 

		1.10	“CFDA”
                                         means China Food and Drug Administration

 

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		2.	Exclusive
                                         Distribution Right

 

		2.1	Party
                                         B agrees to grant Party A, and Party A agrees to accept, an exclusive distribution right
                                         with respect to the Products in the Territory during the Term of this Agreement, under
                                         which Party A has the right to, by itself or through any of its Affiliates or any dealer,
                                         distributor, medical institution or any other Person designated by Party A (collectively
                                         as “Party A’s Designated Entity”), sell, offer to sell, store,
                                         disposal, transport, bid for, market and promote and/or advertise, and provide service
                                         for, and conduct any other activities related to, the Products (collectively as “Distribution”).
                                         Party A shall be fully liable for the activities or omissions of any of Party A’s
                                         Designated Entities.

 

		2.2	During
                                         the Term of this Agreement and subject to the terms hereof, without prior written consent
                                         of Party A, Party B shall not, and shall cause the Manufacturer not to (with respect
                                         to Clauses 2.2.1-2.2.3 only) :

 

		2.2.1	directly
                                         license, distribute, sell, transfer or deliver by establishing any other economic entity
                                         or otherwise, the Products to any Person, other than Party A or Party A’s Designated
                                         Entity, in the Territory, for the purpose of distribution;

 

		2.2.2	directly
                                         sell or transfer the Products to Party A’s Designated Entity instead of through
                                         Party A;

 

		2.2.3	appoint
                                         or authorize any Person other than Party A or Party A’s Designated Entity to distribute
                                         the Products in the Territory; or

 

		2.2.4	conduct
                                         any activities in connection with any of the Distribution as set forth above with respect
                                         to the Competitive Products in the Territory.

 

		2.3	During
                                         the Term of this Agreement, Party A shall not engage in the Distribution of the Products
                                         out of the Territory, nor shall it conduct any activities in connection with any of the
                                         manufacture or Distribution as set forth herein with respect to the Competitive Products
                                         as importer or manufacturer. Nothing herein shall prevent Party A from acting as wholesaler
                                         to Competitive Products.

 

		3.	Product
                                         Information

 

		3.1	Country
                                         of origin: Place of Manufacturer as set forth in Clause ‎1.4.

 

		3.2	Manufacturer:
                                         As set forth in Clause ‎1.4.

 

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		3.3	Indication:
                                         As set forth in the CTD file which shall include Dry eye, conjunctivochalasis, sjogren’s
                                         syndrome indication.

 

		3.4	Size
                                         and Packing:

 

Packaging
may include the following:

 

		3.4.1	Uni-dose
                                         Product: 0.65ml/bottle, 30 bottles/box, and 36 packs/box.

 

		3.4.2	Multi-dose
                                         Product: 10 ml/bottle, 1 bottles/box, and 72 packs/box.

 

		4.	Other
                                         Rights and Obligations of Party A

 

		4.1	Party
                                         B shall, extend reasonable efforts to assist Party A in completing clinical trials. All
                                         necessary regulatory approvals, registration procedures, licenses, and permits and authorizations
                                         (including import approvals) required for the marketing, importation, sale and service
                                         of the, Products in the Territory, including without limitation, obtaining an approval
                                         on registration for the Products issued by CFDA, and paying fees for registration and
                                         clinical trial in accordance with the registration procedures and estimated schedule
                                         set forth in Appendix 2, shall be the responsibility of Party A, and Party A shall ensure
                                         that the same is maintained throughout the Term. Upon reasonable request by Party B,
                                         Party A shall provide Party B with information about the registration progress of the
                                         Products and copies of such regulatory approvals once received. In the event of termination
                                         for any reason of this Agreement, all such regulatory approvals shall immediately be
                                         transferred and assigned to Party B or any designee on Party B’s behalf.

 

		4.2	The
                                         Parties shall mutually agree on final decisions on, packaging design of the Products
                                         to be distributed in the Territory. Lacrycon® shall be displayed on package of the
                                         minimum selling unit (pack). For the purpose of this Clause, to the extent permitted
                                         by applicable laws, Party A and Party A’s Designated Entity shall have the right
                                         to print on any promotion or bidding materials in connection with the Products any trademark,
                                         trade name or logo of Party A, Party B, the Manufacturer, Party A’s Designated
                                         Entity or any third party.

 

		4.3	If
                                         Party A intends to engage in sub-packaging or production of the Products in the Territory,
                                         it shall enter into a separate agreement, terms and conditions to be agreed with Party
                                         B, to set forth matters, including without limitation, sub-packaging, production, license,
                                         pricing, etc.

 

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		4.4	Party
                                         A and Party A’s Designated Entity shall be liable to promote the Products in the
                                         Territory and to take part in determination of price and pricing strategies with respect
                                         to the Products under any bidding procedures. Party B shall use its best endeavor to
                                         provide Party A with all support necessary for any bidding with respect to the Products,
                                         including but not limited to provision of applicable technical documents.

 

		4.5	Party
                                         A has the right to conduct audit on Party B, each year during the Term of this Agreement
                                         subject to prior notice of at least thirty (30) days and after coordinating such audit
                                         with Party B during normal working hours. Such audit shall be limited to aspects relevant
                                         to the distribution and quality control of the Products under the terms of this Agreement
                                         only, including but not limited to, basic information of related Persons, production
                                         and, management team and governance structure, main relevant financial data and analysis,
                                         operational risks analysis and solutions. Such audit shall be at the cost of Party A.
                                         Party B shall, or shall be responsible to coordinate with the Manufacturer or their respective
                                         related Persons to, assist Party A with the audit. Party B shall have the right to inspect
                                         Party A’s facilities during regular business hours in order to inter alia check
                                         regulatory compliance.

 

		4.6	Party
                                         A shall have the obligation and responsibility to protect the image and reputation of
                                         the Products and their trademark.

 

		4.7	Upon
                                         the occurrence of any of the following circumstances in the Territory, Party A shall,
                                         within ten (10) working days, notify Party B of, and Party B shall, within ten (10) working
                                         days from receipt of notice from Party A, follow up and do its utmost to solve, the circumstance,
                                         and, Party B shall immediately designate applicable staff to solve the circumstance if
                                         it is serious:

 

		4.7.1	A
                                         Client of Party A has made negative comments on or complains about the Products, determined
                                         by Party A to be reasonably justifiable including those on the quality, conditions, package
                                         and other respects of or defects in the Products; and

 

		4.7.2	A
                                         Client has suffered adverse reaction by using the Products.

 

		4.8	In
                                         case of any recall of the Products as set forth in Clause ‎5.11 of this Agreement,
                                         Party A shall offer Party B necessary assistance by coordinating the carrying-out and
                                         facilitating of the recall of the Products.

 

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		5.	Other
                                         Rights and Obligations of Party B

 

		5.1	Party
                                         B shall extend best efforts to obtain, before[***], applicable approvals for the Uni-dose
                                         Products with respect to sjogren’s syndrome indication in Hungary, and provide
                                         Party A with applicable certificate documents with respect to dry eyes, conjunctivochalasis,
                                         sjogren’s syndrome indication. In the event that Party B is only available to provide
                                         Party A with applicable certificate documents with respect to two of the above three
                                         indications, Party B shall pay the compensation equivalent to [***]% of the ordering
                                         amount of the Products of the corresponding year to Party A.

 

		5.2	Before[***],
                                         Party B shall extend best efforts to obtain a valid patent registration for the Uni-dose
                                         Products and the Multi-dose Products with respect to, including but not limited to, dry
                                         eyes, conjunctivochalasis, sjogren’s syndrome indication in the Territory.

 

		5.3	Before[***],
                                         Party B shall use its best endeavor to obtain a marketing approval for the Uni-dose Products
                                         and Multi-dose Products in Hungary, the products of which shall cover the following indications:
                                         dry eyes, conjunctivochalasis, sjogren’s syndrome indication. Party B shall provide
                                         Party A with applicable certificate documents immediately after it has obtained registration
                                         documents.

 

		5.4	Party
                                         B shall, upon CFDA’s request, provide Party A with available documents and other
                                         assistance and supports necessary for application for registration of the Products, so
                                         that the Products will be registered in China in accordance with the registration schedule
                                         as set forth in Appendix 2.

 

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		5.5	In
                                         case of the Uni-dosed Products, within thirty (30) days upon the execution of this Agreement,
                                         or in case of the Multi-dosed Products and the Products for any new indication, within
                                         thirty (30) days after Party B has obtained applicable approval documents, Party B shall
                                         extend best efforts to provide Party A with all available registration documents and
                                         technical support necessary for Party A to apply to CDFA for clinical trials and obtaining
                                         import drug license; if Party A is required to conduct any additional experimental research
                                         to complete the registration of Products due to the quality, completeness or other reasons
                                         of any registration documents provided by Party B, Party B shall provide relevant research
                                         materials and bear the cost of registration (up to USD[***]) and provide the necessary
                                         Products for additional experiments. Party B shall engage professionals to support Party
                                         A throughout the registration in the Territory, so that the Products will be registered
                                         in accordance with the registration schedule set forth in Appendix 2, including but not
                                         limited to:

 

		a)	certificate
                                         documents (including patent specifications)

 

		b)	pharmaceutical
                                         research materials

 

		c)	non-clinical
                                         research materials

 

		d)	clinical
                                         trial materials

 

		e)	drug
                                         standards and drafting notes

 

		f)	source
                                         of and quality standard for bulk drug substance and excipients

 

		g)	selection
                                         basis and quality standard for packaging materials and container that directly contact
                                         drugs

 

		5.6	Party
                                         B shall ensure that the Manufacturer shall produce the Products in compliance with any
                                         applicable law, registration documents of, and quality and specification requirements
                                         of the Products.

 

		5.7	Party
                                         B shall be ready for, and cause the Manufacturer to deliver, the Products in accordance
                                         with the ordering quantity commitment of the Products agreed upon by the Parties hereunder
                                         including according to agreed lead time and other agreed terms as shall be set forth
                                         in a Purchase Order (as defined below), ensuring that the supply of the Products will
                                         not be interrupted during the Term of this Agreement.

 

		5.8	Party
                                         B shall ensure that it has in place a valid and binding agreement with the Manufacturer
                                         for the manufacture of the Products so that it may fulfill its obligations under this
                                         Agreement, and that it holds the licensed rights in connection with the Products, which
                                         are valid, enforceable and legally binding.

 

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		5.9	Party
                                         B shall undertake that the Products delivered to Party A and accepted by Party A under
                                         this Agreement are free of quality problems (including but not limited to in compliance
                                         with ex-factory standards for the Products) and take responsibility for the quality of
                                         the Products at the time of delivery to Party A. Party A shall visually check and accept
                                         the quantity of Products at Dalian Port and inform Party B within forty-eight (48) hours.
                                         Within seven (7) working days after the visually check and quantity acceptance of Products
                                         at Dalian Port, , Party A has the right to deliver the Products to designated warehouses
                                         and conduct random sampling inspections at designated warehouses. If Party A finds any
                                         damage to, defect in or shortage of the Products, Party A may, within forty-eight (48)
                                         hours after discovering such damage, defect or shortage, notify Party B in writing (including
                                         but not limited to fax, email, etc.) of the same, and such damage, defect or shortage
                                         shall be solved in accordance with applicable refund and exchange rules jointly formulated
                                         by the Parties.

 

		5.10	Party
                                         B shall be responsible for, and appoint staff to perform, after-sale services for the
                                         Products during normal working hours in Israel. In respect of product quality problems
                                         with documented evidence, Party B shall cooperate and reasonably assist Party A in solving
                                         issues in connection therewith, failing which Party B shall be liable for all consequences
                                         arising thereout.

 

		5.11	During
                                         or after any of the following conditions, Party B may, if necessary, stop selling the
                                         Products in the Territory at any time during the Term of this Agreement, and Party A
                                         shall, and cause Party A’s Designated Entity to, cooperate with Party B in recalling
                                         the Products in the Territory in accordance with a notice from Party B: (a) any applicable
                                         competent authority has required Party B stopping selling the Products in the Territory;
                                         (b) Party B has stopped selling the Products in the Territory for safety reason; or (c)
                                         the Products shall be recalled as required under applicable laws.

 

		5.12	Party
                                         B shall, cause the Manufacturer to produce, and deliver to Party A up to [***] samples
                                         in Uni-dose. Party B shall bear the cost of such samples (including goods and shipping
                                         cost).

 

		5.13	Party
                                         A shall provide a logo approved by the relevant authorities for Party B to have placed
                                         on the Products in Chinese in compliance with the Drug Administration Law of the People’s
                                         Republic of China. All liability for compliance in connection with the logo shall
                                         be borne by Party A.

 

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		5.14	Party
                                         B shall have the right to inspect Party A’s facilities during normal business hours
                                         to check compliance with regulations and other matters.

 

		5.15	For
                                         the first three (3) years, Party B shall provide Party A with support with respect to
                                         exhibition, promotion conference, academic marketing or otherwise which shall be no less
                                         than ten (10) times per year and no less than one (1) week per time, including but not
                                         limited to providing staff, materials and so on. Expert consultant fees and round-trip
                                         ticket costs shall be borne by Party B. Accommodation fees and transportation fees within
                                         the Territory shall be borne by Party A.

 

		5.16	Party
                                         B shall provide Party A a fourteen (14) days right of first refusal, subject to the same
                                         terms and conditions officially proposed by any third party to purchase the assets of
                                         Party B and/or the Manufacturer only in case that such third party is a competitor of
                                         Party A or, in case that such third party did not confirm in writing that it would abide
                                         by the terms and conditions signed between Party A and Party B herein. In the event that
                                         there is a material change of Party B or the Manufacturer, Party B shall ensure the effectiveness
                                         of this Agreement and ensure that the Products are provided to Party A in a timely manner.
                                         (see Clause 14.9)

 

		6.	Joint
                                         Review Committee

 

		6.1	Within
                                         forty-five (45) working days upon the effectiveness of this Agreement, the Parties shall
                                         set up a joint review committee (“Joint Committee”). The Joint Committee
                                         is composed of six (6) members, where each Party shall nominate three (3) members, each
                                         of whom shall be the director of either Party. Each of Party A and Party B shall appoint
                                         one person to be the joint chairman of the Joint Committee, who shall be a director of
                                         either Party.

 

		6.2	The
                                         Joint Committee shall be responsible to supervise the implementation of this Agreement,
                                         and discuss about and decide on all matters as agreed upon by the Parties.

 

		6.3	The
                                         Joint Committee shall hold its first meeting within forty-five (45) working days upon
                                         the effectiveness of this Agreement. Then, the Joint Committee shall hold a meeting before
                                         or on the fifth (5th) working days of each calendar quarter or as requested
                                         by either joint chairman. The meeting may be held by means of teleconference or video
                                         and telephone conference. Each Party shall cause a representative to attend the meeting
                                         in a reasonable way. If a representative of either Party is unable to attend the meeting,
                                         such Party may appoint a person having equivalent experience and authorization to attend
                                         the meeting.

 

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		6.4	If
                                         the Joint Committee fails to reach an agreement on a certain matter, the chairman or
                                         the chief executive officer of each Party shall meet to discuss about the same without
                                         delay. If the chairmen or the chief executive officers of the Parties fail to reach an
                                         agreement on such matter, the Parties may resolve the matter in accordance with the provisions
                                         regarding dispute resolution under this Agreement.

 

		6.5	Each
                                         Party may change any members nominated by it to the Joint Committee depending on the
                                         implementation of this Agreement.

 

		7.	Representations
                                         and Warranties

 

		7.1	Party
                                         A represents, warrants and undertakes to Party B that, as of the effective date of, and
                                         during the Term of, this Agreement:

 

		7.1.1	Party
                                         A has the full power, authority and qualification and has taken all actions necessary
                                         to enter into, deliver and perform this Agreement. This Agreement shall, upon execution,
                                         become legal, valid and duly enforceable to and binding on Party A;

 

		7.1.2	No
                                         performance by Party A of any its obligation to Party B under this Agreement will result
                                         in any violation of or conflict with any obligations or undertakes of Party A to a third
                                         party or infringe upon any rights of a third party;

 

		7.1.3	Party
                                         A will perform its obligations under this Agreement in compliance with all applicable
                                         laws and regulations;

 

		7.1.4	Party
                                         A has obtained or will obtain and maintain all regulatory approvals, registration and
                                         permits necessary to conduct the business contemplated hereby.

 

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		7.2	Party
                                         A agrees and covenants :

 

		7.2.1	to
                                         conduct the sale of the Products in an orderly and businesslike manner in order to protect
                                         the image and reputation of Party B, the Products and the trademark Lacrycon® (and
                                         such other trademarks as Party B may use from time to time in connection with the Product),
                                         and to maintain adequate stocks of the Product to meet Customers’ demands;

 

		7.2.2	to
                                         notify Party B immediately of: (i) all adverse comments or complaints by Party A’s
                                         Customers regarding the Product, including comments regarding the Product’ quality,
                                         condition, packaging, or any other attributes or defects, (ii) all adverse events and
                                         adverse reactions that may be attributable to a Customer’s use of the Product,
                                         whether or not Party A can confirm that the event is actually associated with the Product,
                                         and whether or not Party A can confirm that the event was due to improper dosing or other
                                         negligence on the part of the Customer (end-user); and (iii) all results of clinical
                                         studies and any adverse results or facts arising therefrom or in connection therewith;

 

		7.2.3	to
                                         comply in its business conduct with, and bear any and all costs associated with the compliance
                                         with, all laws and other legal and regulatory requirements applicable from time to time
                                         to the business of the marketing, sale, and service of the Product in the Territory;

 

		7.2.4	to
                                         store properly and deliver the Product, and cause the Product to be properly stored and
                                         delivered, in accordance with industry best practices and the instructions given by Party
                                         B from time to time. Party A shall sell the Product on a first in first out basis unless
                                         otherwise directed by Party B;

 

		7.2.5	not
                                         to issue any warranties, guarantees or licenses with respect to the Product that purport
                                         to obligate Party B to any person or entity other than the applicable warranties or license
                                         for Products expressly set forth herein;

 

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		7.2.6	to
                                         promptly comply with such guidance and/or instruction as may be provided to the Party
                                         A by Party B from time to time and to consult with Party B immediately in respect of
                                         any complaint, investigation, enquiry or like matter (whether by a governmental body,
                                         agency or otherwise) which might adversely affect the Product’s brand, reputation
                                         or image or the ability of the Party A to perform its obligations under this Agreement;

 

		7.2.7	in
                                         the event that Party B decides in its sole discretion or is required by the government
                                         in the Territory with solid evidence to the quality defects of the Products to recall
                                         Products sold in the Territory or to conduct a similar remedial or preventive action,
                                         for any reason (including for the purposes of effecting Product modifications for safety,
                                         regulatory, health or other purposes or to meet the requirements of any national or supra-national
                                         government or regulatory body or authority), whether before or after the termination
                                         or expiry of this Agreement, Party A , fully co-operate with Party B in organizing and
                                         carrying out such recall promptly and effectively. Costs and expenses of such recall,
                                         if any, shall be borne by Party B; and

 

		7.2.8	Party
                                         A, including its officers, directors, employees and dealers, shall use only legitimate
                                         and ethical business practices in the activities contemplated by this Agreement and will
                                         not pay, offer, or authorize payment, directly or indirectly, to any person, entity,
                                         organization, or government, in the activities hereunder. Party A shall comply fully
                                         with all laws applying to the sale and distribution of the Product, including all anti-corruption
                                         laws and laws prohibiting the payment of commercial or private bribes.

 

		7.3	Party
                                         B represents, warrants and undertakes to Party A that, as of the effective date of, and
                                         during the Term of, this Agreement:

 

		7.3.1	Party
                                         B has the full power, authority and qualification and has taken all actions necessary
                                         to enter into, deliver and perform this Agreement. This Agreement shall, upon execution,
                                         become legal, valid and duly enforceable to and binding on Party B;

 

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		7.3.2	All
                                         authorization, regulations, licenses, registration and performance in connection with
                                         this Agreement are valid, enforceable and legally binding;

 

		7.3.3	No
                                         performance by Party B of any its obligation to Party A under this Agreement will result
                                         in any violation of or conflict with any obligations or undertakes of Party B to a third
                                         party or infringe upon any rights of a third party;

 

		7.3.4	To
                                         the knowledge of Party B, the Product IP will not infringe upon legal rights of a third
                                         party, including but not limited to intellectual property rights;

 

		7.3.5	To
                                         the knowledge of Party B, there is no circumstance or obstacle that will prevent Party
                                         B from performing any of its obligations under this Agreement or restrict or interfere
                                         with Party B in the performance of this Agreement.

 

		8.	Product
                                         Price and Quantity 

 

		8.1	During
                                         the Distribution Period under this Agreement, unless otherwise set forth in an order
                                         confirmed by the Parties, the Parties agree that the product price shall be the cost,
                                         insurance and freight to Dalian, including product costs, insurance premium and freight,
                                         i.e. CIF Dalian (Incoterms 2010). Unit price of every Product payable by Party A to Party
                                         B is set forth in Appendix 1. For the purpose of this Agreement, “Distribution
                                         Period” means, with respect to every Product, a period that commences on the
                                         date on which all permits and approvals necessary for the Distribution of such Product
                                         in the Territory, including but not limited to an imported drug registration certificate
                                         issued by CFDA, and ends on the date on which the Term of this Agreement expires.

 

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		8.2	The
                                         Parties have agreed upon, on the whole, the annual binding ordering quantity of the Products
                                         during the Distribution Period as set forth in Appendix 1, provided that the definite
                                         ordering quantity of the Products shall be subject to any order contract and purchase
                                         order actually delivered by Party A to Party B and the unit price of the Product shall
                                         be subject to Appendix 1. Party A shall ensure to meet the binding ordering quantity
                                         of the Products for the first year and the second year as set forth in Appendix 1. The
                                         binding ordering quantity of the Products for the third year to the fifth year is the
                                         maximum ordering quantity, and Party B agrees that the actual ordering quantity of the
                                         Products may be reduced by up to [***]% on the maximum ordering quantity of that year,
                                         which reduction shall not be deemed as a breach of this Agreement. If, in a given year,
                                         the ordering quantity exceeds in aggregate the ordering quantity commitment of that year,
                                         Party B shall do its commercially reasonable efforts to perform at least [***]% of the
                                         ordering quantity in excess. If the Distribution of the Products is affected by government
                                         official change of policy related to the Product, the Parties shall discuss in good faith
                                         to determine a new estimated annual ordering quantity of the Products.

 

		8.3	Subject
                                         to registration of the Multi-dose Products in the Territory, during the first year and
                                         the second year of the Distribution Period, as long as the total annual ordering amount
                                         of the Products remains unchanged, Party A shall have the right to exchange the binding
                                         ordering quantity of the Uni-dose Products with that of the Multi-dose Products, or vice
                                         versa, provided that the percentage of the amount so exchanged shall not exceed [***]%
                                         of the ordering amount of the original size.

 

		8.4	During
                                         the Distribution Period, Party B will provide Party A with, free of charge, the Products
                                         (including the Uni-dose Products and the Multi-dose Products) in accordance with the
                                         following:

 

		8.4.1	For
                                         the first year: no free merchandize;

 

		8.4.2	For
                                         the second year and third year: if the quantity of the Products ordered by Party A exceeds
                                         the minimum ordering quantity of that year, Party B will provide free merchandise in
                                         a quantity equivalent to [**]% of the ordering amount of the Uni-dose Products in the
                                         last year;

 

		8.4.3	For
                                         the fourth year and fifth year: (a) if the quantity of the Products ordered by Party
                                         A exceeds the minimum ordering quantity of that year but is less than the maximum ordering
                                         quantity of that year, Party B will provide free of charge the Uni-dosed Products in
                                         a quantity equivalent to [***]% of the ordering amount of the Products in the last year;
                                         (b) if the quantity of the Products ordered by Party A exceeds the maximum ordering quantity
                                         of that year, Party B will provide free of charge the Uni-dosed Products in a quantity
                                         equivalent to [***]% of the ordering amount of the Products in the last year.

 

    14

     

    

 

If
Party A is entitled to the foregoing, it shall inform Party B of the definite quantity of the Products to be provided by Party
B free of charge and Party B shall prepare and deliver such Products within three (3) months after it has been informed by Party
A of the same. All of the Products that are provided free of charge will be provided in the form of Uni-dose Products, no matter
whether for the Multi-dose Products or the Uni-dose Products (based on price in US$).

 

		8.5	If
                                         the Multi-dose Products fail to be registered in the Territory due to any reason attributable
                                         to Party B, Party A may cancel any orders of the Multi-dose Products, and the binding
                                         ordering quantity of the Multi-dose Products set forth in Appendix 1-1 shall not apply,
                                         and the Parties will comply with the binding ordering quantity of the Uni-dose Products
                                         set forth in Appendix 1-2 only. Further, Party B shall provide Party A with the Uni-dose
                                         Products free of charge in an amount equivalent to [***]% of the ordering amount of the
                                         Uni-dose Products in the last year. Such Free merchandise will be applicable throughout
                                         the Distribution Period under this Agreement.

 

		9.	Order,
                                         Inspection and Acceptance, Delivery and Payment 

 

		9.1	During
                                         the Distribution Period, Party B shall produce and deliver the Products in accordance
                                         with purchase orders placed by Party A (each a “Purchase Order”).
                                         Party A shall place a non-cancellable, non-returnable purchase order for units of Products
                                         (___ Products per unit). Party B shall confirm in writing (or by email or by fax), after
                                         its receipt of an order from Party A. If Party B fails to confirm in writing with Party
                                         A within ten (10) working days after its receipt of an order from Party A, it shall be
                                         deemed that Party B has rejected such order. If Party B fails to supply the Products
                                         in accordance with any order placed by Party A, and in accordance with the terms set
                                         forth in the herein and within the Purchase Order, Party B shall take any one or more
                                         of the following remedy measures: (a) if Party B fails to supply the Products in accordance
                                         with any order placed by Party A for first one (1) month there shall be no penalty imposed
                                         on Party B; (b) if Party B fails to supply the Products in accordance with any order
                                         placed by Party A for a period of for more than one (1) month but less than two (2) months,
                                         Party B shall pay Party A [***]% of the amount of such Purchase Order as compensation;
                                         (c) if Party B fails to supply the Products in accordance with any order placed by Party
                                         A for a period of for more than two (2) months but less than three (3) months, Party
                                         B shall pay Party A [***]% of the amount of such Purchase Order as compensation; (d)
                                         if Party B fails to supply the Products in accordance with any order placed by Party
                                         A for more than three (3) consecutive months, Party A shall have the right to unilaterally
                                         terminate this Agreement (except for force majeure).

 

    15

     

    

 

		9.2	When
                                         Party A has placed an order, Party B shall deliver the Products within two hundred and
                                         ten (210) days (for completion of manufacture of initial order) after the day on which
                                         it has received the first order from Party A and thereafter for each order within one
                                         hundred and twenty (120) days to one hundred and fifty (150) days after the day on which
                                         it has received the order from Party A. For the purpose of this Clause, the number of
                                         days shall include those for shipping and count up to the day on which the Products arrive
                                         at the port of Dalian. All the Products shall be delivered in Dalian, except for expedited
                                         delivery which will be delivered in coordination with Party A (Party B shall bear the
                                         cost of such expedited delivery).

 

		9.3	Party
                                         B shall send to Party A customs clearance documents as required by Party A within five
                                         (5) to ten (10) working days after shipping of the Products. Party B shall ensure that,
                                         upon the delivery, the remaining validity period of the Products shall be no less than
                                         five-sixths of the total original validity period of the Products. Party B shall pay
                                         Party A late fees at a rate of 0.1% of the price set forth in the applicable order for
                                         every one (1) month the delivery is delayed. If Party B delays delivery for a period
                                         of more than three (3) months, the applicable order shall be terminated, and Party B
                                         shall indemnify Party A for all losses suffered under such order.

 

		9.4	Party
                                         B shall, upon the delivery of the Products to the delivery point set forth in the applicable
                                         order, issue a Confirmation of Delivery to Party A, together with information related
                                         to the Products delivered, including but not limited to size and quantity of the Products.
                                         On the delivery date, Party A’s staff shall confirm the size, quantity and quality
                                         of the Products ordered, and then sign or sealed on the Confirmation of Delivery, in
                                         which case it shall be deemed that Party A has confirmed that it has received and accepted
                                         the Products set forth in the Confirmation of Delivery, provided that any rights of Party
                                         A under Clause 5.9 shall not be affected thereby. All risks of destruction, damage or
                                         loss of the Products shall pass to Party A on the day on which the Products are delivered
                                         to Party A by Party B.

 

    16

     

    

 

		9.5	Payment
                                         for orders shall be made in accordance with the following mechanism. Partial shipment
                                         of ordered Products is allowed. Within ten (10) days after confirmation of the Purchase
                                         Order by Party B, an amount equal to [***]% of the total payment for the full order shall
                                         be paid to Party B by means of remittance of immediately available funds into the bank
                                         account designated by Party B and such amount shall be deducted from the final shipment
                                         delivery of the full order. All of the shipments and inspection in respect of Products
                                         shall be completed within seven (7) working days as of delivery to Dalian port. After
                                         Party A conducts inspection upon and accepts the Products at the designated warehouse,
                                         and no later than nine (9) working days as of delivery to Dalian port, an amount equal
                                         to [***]% of the total payment for the full order or for each shipment, as the case may
                                         be, shall be paid to Party B by irrevocable transferable letter of credit.

 

		9.6	Unless
                                         otherwise set forth herein, each Party shall bear its own legal fees and expenses and
                                         all other fees, costs and taxes incurred in connection with negotiation, preparation,
                                         execution and delivery of this Agreement.

 

		9.7	The
                                         terms and conditions of this Agreement shall apply to all Purchase Orders submitted to
                                         Party B by Party A.

 

		10.	Intellectual
                                         Property Rights 

 

		10.1	Unless
                                         otherwise set forth herein, any and all intellectual property rights in the Products
                                         (“Product IP”, including but not limited to Lacrycon® brand, name,
                                         specific trademark right, patent and trade secret, whether registered or applied for
                                         registration in the Territory) shall be owned by Dr. Shabtay Dikstein (“IP Holders”).

 

    17

     

    

 

		10.2	Subject
                                         to the terms of this Agreement, Party B hereby grants Party A and Party A’s Designated
                                         Entity an exclusive, non-transferable and royalty-free license with respect to the Product
                                         IP, solely to enable Party A and Party A’s Designated Entity to engage in the Distribution
                                         of the Products in the Territory.

 

		10.3	Party
                                         B hereby represents and warrants that, prior to the execution of this Agreement, it has
                                         been granted a license with respect to the Product IP owned by the IP Holders and that
                                         each of the IP Holders has consented that Party B may further grant a license with respect
                                         to the Product IP to Party A and Party A’s Designated Entity for the purpose of
                                         the Distribution of the Products in the Territory.

 

		10.4	The
                                         Parties agree that Party A shall first use Lacrycon® trademark and 哈药®
                                         trademark to sell the Products in the Territory. Party A shall have the right to use
                                         literal logo and trade logo of Party B, the Manufacturer and related persons in its documents,
                                         advertisement, promotional materials and website for the purpose of promotion of the
                                         Products, provided that Party A shall indicate that it has been authorized by related
                                         persons.

 

		10.5	In
                                         the event that this Agreement expires or is early terminated, any license with respect
                                         to the Product IP granted under this Clause 10 shall terminate automatically.

 

		10.6	Any
                                         academic research and/or development or engineering or use of LO2A or the Product IP
                                         for any use other than distribution under this Agreement is not subject to the prior
                                         consent of Party B. The ownership of any improved technology in relation to, derived
                                         from or based upon LO2A shall belong to the IP Holders. No publication shall be made
                                         by Party A related to LO2A research without prior written consent of the inventor.

 

		10.7	If
                                         Party A finds that any information about the Product IP or any part thereof licensed
                                         under this Agreement is used on any fake or imitation goods and any other materials,
                                         Party A shall notify Party B as soon as it becomes aware of the same.

 

		10.8	Party
                                         A shall not initiate any trademark proceedings without Party B’s prior written
                                         consent.

 

    18

     

    

 

		11.	Confidential
                                         Information

 

		11.1	By
                                         either Party (the “Disclosing Party”) acknowledging its relationship
                                         with the other Party (the “Receiving Party”) in accordance with this
                                         Agreement, the Receiving Party will obtain information including, without limitation,
                                         specific information and materials of the Disclosing Party, including but not limited
                                         to the business plan, strategies, work plan, methodology, and/or the information and
                                         materials relating to the customers, technology or products of the Disclosing Party.
                                         Considering such materials, including but not limited to the type of the product defect
                                         detected, frequency of certain defects in the Products and consumer information, are
                                         of significant value to the Disclosing Party, the interests of the Disclosing Party will
                                         be damaged if the Receiving Party divulges such information to any third party, and all
                                         such information shall be deemed as the “Confidential Information”. Therefore,
                                         the Receiving Party shall take all reasonable precautions to protect the confidentiality
                                         of the Confidential Information. The Receiving Party agrees that, the Disclosing Party
                                         has the right to prohibit the unauthorized use or disclosure of any Confidential Information
                                         which actually or has threatened the Disclosing Party.

 

		11.2	The
                                         Receiving Party shall take every reasonable precaution to protect the confidentiality
                                         of Confidential Information and shall ensure its employees and who need to know Confidential
                                         Information are bound by appropriately strict confidentiality undertakings.

 

		11.3	The
                                         Receiving Party agrees not to obtain benefits for any third party in any way by using
                                         the Confidential Information, or to disclose the Confidential Information to any third
                                         party (except where the employees of the Receiving Party need to know such Confidential
                                         Information; provided that non-disclosure agreement shall be executed with such employees
                                         in order to ensure the confidentiality of the information).

 

		11.4	The
                                         information shall not be deemed as Confidential Information if it falls into any one
                                         or more of the following categories:

 

		11.4.1	the
                                         information which has become published or public knowledge other than due to the breach
                                         of the Receiving Party;

 

    19

     

    

 

		11.4.2	the
                                         Confidential Information used by the Receiving Party, which is independent information.

 

		11.4.3	the
                                         information which has been known to the Receiving Party prior to receipt of the Confidential
                                         Information;

 

		11.4.4	the
                                         information which is obtained by the Receiving Party lawfully without duty of confidentiality
                                         with respect thereto.

 

		11.5	The
                                         Receiving Party shall not publicly announce or publish the existence of this Agreement
                                         without prior written consent of the Disclosing Party, unless such information is required
                                         to be made public pursuant to applicable laws or the requirements of competent government
                                         authorities or the stock exchange. In such case, the Receiving Party shall notify the
                                         Disclosing Party immediately, and the Disclosing Party will use appropriate legal means
                                         to protect the confidentiality of the information if possible.

 

		11.6	Upon
                                         expiry or termination of this Agreement, the Receiving Party agrees to return the Confidential
                                         Information of the Disclosing Party or destroy the Confidential Information in the manner
                                         selected by the Disclosing Party.

 

		12.	Limitation
                                         on Liability; Insurance

 

		12.1	PARTY
                                         B’S TOTAL LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT, UNDER ANY LEGAL
                                         THEORY, WHETHER FOR BREACH OF CONTRACT, WARRANTY, PARTY B’S GROSS NEGLIGENCE, STRICT
                                         LIABILITY IN TORT OR OTHERWISE, IS LIMITED TO THE ANNUAL NET SALES OF THE PARTICULAR
                                         PRODUCT(S) SOLD TO PARTY A HEREUNDER IN THE APPLICABLE YEAR. PARTY A’S SOLE REMEDY
                                         IS TO REQUEST FROM PARTY B, AT PARTY B’S OPTION, TO EITHER REFUND THE RESPECTIVE
                                         SUPPLY PRICE OR REPAIR OR REPLACE THE PRODUCT(S) THAT IS NOT AS WARRANTED. IN NO EVENT
                                         AND UNDER NO LEGAL THEORY, INCLUDING WITHOUT LIMITATION FOR BREACH OF WARRANTY, BREACH
                                         OF CONTRACT, NEGLIGENCE OR OTHERWISE WILL PARTY B BE LIABLE FOR SPECIAL, INCIDENTAL,
                                         INDIRECT, PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS
                                         OR REVENUES, COST OF CAPITAL, COST OF SUBSTITUTE PRODUCTS, FACILITIES OR SERVICES, DAMAGE
                                         TO BUSINESS OR REPUTATION, DOWNTIME COSTS OR CLAIMS OF CUSTOMERS OR PARTY A FOR SUCH
                                         DAMAGES, WHETHER OR NOT PARTY B SHALL HAVE BEEN MADE AWARE OF THE POSSIBILITY OF SUCH
                                         LOSS TO THE FULL EXTENT SUCH MAY BE DISCLAIMED BY LAW.

 

    20

     

    

 

		12.2	If
                                         either Party breaches any provision of this Agreement, the non-breaching Party may send
                                         a written notice to the breaching Party, requiring the breaching Party to remedy the
                                         breach. The breaching Party shall remedy the breach and indemnify the non-breaching Party
                                         for the relevant losses suffered as a result thereof within thirty (30) working days
                                         after receipt of the electronic and/or written notice from the non-breaching Party, failing
                                         which the non-breaching Party has the right to terminate this Agreement.

 

		12.3	For
                                         the purpose of this Clause 12, the circumstances where Party A may claim for damages
                                         shall include but not limited to:

 

		12.3.1	If
                                         Party A distributes the Products by using the intellectual property rights in the Products
                                         in accordance with this Agreement, and thus infringes upon the legitimate rights and
                                         interests of any third party (including but not limited to the holder of the intellectual
                                         property right in the Products), which causes losses to Party A, Party A has the right
                                         to pursue the corresponding liabilities against Party B and claim damages from Party
                                         B;

 

		12.3.2	If
                                         the percent defective (result of manufacture) of the Products delivered by Party B for
                                         each purchase order is lower than [***]%, such defective Products shall be officially
                                         certified as proven to be defective and stored by Party A, and Party B shall deliver
                                         replenishment of the corresponding quantity when the next purchase order is delivered;
                                         if the percent defective of the Products delivered by Party B for each purchase order
                                         is to or higher than [***]%, Party B shall deliver replenishment of up to two times the
                                         corresponding quantity when the next purchase order is delivered.

 

    21

     

    

 

		12.4	During
                                         the term of this Agreement, Party A shall discretionally decide to obtain and maintain
                                         mandatory, adequate and sufficient insurance required by its business operations and
                                         in line with industry practices, including but not limited to product liability insurance
                                         and defective product liability insurance. Party A shall extend its best efforts to register
                                         Party B and the IP Holders as beneficiaries of such insurance, and Party A shall provide
                                         relevant certifications to Party B.

 

		13.	Force
                                         Majeure

 

		13.1	If
                                         either Party is prevented from performing this Agreement due to earthquake, typhoon,
                                         flood, fire, war or other force majeure events which are unforeseeable, unavoidable and
                                         insurmountable, such Party shall immediately notify the other Party of the conditions
                                         of the event in writing or other form which can be approved, and within thirty (30) working
                                         days thereafter, provide documentary evidence, explaining the details of the force majeure
                                         event and the reasons for its failure to perform this Agreement or its need to delay
                                         the performance of this Agreement, in whole or in part. The Parties may negotiate whether
                                         or not to terminate this Agreement, exempt part of the liabilities hereunder or delay
                                         the performance of this Agreement depending on the extent of the effect of such force
                                         majeure event upon the performance of this Agreement.

 

		14.	Term
                                         and Termination 

 

		14.1	This
                                         Agreement shall become effective upon execution and shall remain in effect for five years,
                                         unless earlier terminated pursuant to the provisions of this Clause 14 (the “Term”).
                                         If not otherwise terminated, the Term shall automatically renew for additional five year
                                         Terms provided that the parties fulfill all of their obligations under this Agreement
                                         as were in effect during the fifth year of the engagement during the applicable five
                                         year Term. If any terms and conditions change in the automatic extension agreement, the
                                         Parties shall enter into a supplementary agreement separately.

 

    22

     

    

 

		14.2	Either
                                         Party may terminate this Agreement immediately by giving a notice to the other Party
                                         if:

 

		14.2.1	The
                                         other Party assigns any of the interests or obligations under this Agreement without
                                         prior written consent of the first Party, provided however that a change of control of
                                         either Party shall not be deemed an assignment for the purposes of this Clause;

 

		14.2.2	The
                                         other Party enters into liquidation process, reaches a composition agreement with the
                                         creditors or hands over its properties to the custodian, declares or has become bankrupt,
                                         or adopts a resolution on dissolution of the company, providing that the proceedings
                                         are not dismissed or the problem resolved within 60 days; or

 

		14.2.3	The
                                         other Party is prosecuted or convicted of a crime by the court due to its violation of
                                         the law; as a result, its operation and business would have adverse effects on the reputation,
                                         good will or prestige of the first Party’s company and products.

 

		14.3	Without
                                         prejudice to the other provisions in this Agreement, Party A has the right to terminate
                                         this Agreement by giving a written notice to Party B of at least 60 days in advance,
                                         and if such matter is not remedied by Party B in such time, if:

 

		14.3.1	Party
                                         A deems the data provided by Party B cannot meet the requirements for Party A’s
                                         registration of the Products in the Territory;

 

		14.3.2	Party
                                         B fails to complete the appropriate procedures on schedule in accordance with Clauses
                                         5.1 through 5.3 herein;

 

		14.3.3	The
                                         Products fail to be registered in the Territory;

 

		14.3.4	Party
                                         B decides to cease the sales of the Products in the Territory or the regulator requires
                                         cessation of production of the Products;

 

		14.3.5	The
                                         quality problem with the Products supplied by Party B has adverse effects and serious
                                         consequences on Party A (e.g., media exposure, government notification for public information),
                                         which is detrimental to Party A’s reputation and brand image; or

 

		14.3.6	Party
                                         B’s act constitutes a material breach under this Agreement, and Party B fails to
                                         remedy the breach within thirty (30) working days after receipt of the written notice
                                         (including warning or other written request) from Party A, or Party B refuses or threatens
                                         to refuse the performance of its obligations under this Agreement.

 

    23

     

    

 

Under
any of the circumstances set forth in Clauses 14.3.1 through 14.3.3 above, Party A shall not assume any liability to Party B for
its termination of this Agreement, and Party A agrees not to pursue liabilities under such circumstances against Party B.

 

In
any event that Party B cannot fulfill its obligations under this Agreement, the IP Holders and the Manufacturer shall be entitled
to replace Party B as a party to this agreement, by entering into a separate agreement directly with Party A.

 

		14.4	Without
                                         prejudice to the other provisions in this Agreement, Party B has the right to terminate
                                         this Agreement by giving a written notice to Party A of at least sixty (60) days in advance,
                                         and if such matter is not remedied by Party A in such time, if:

 

		14.4.1	Party
                                         A contests the validity of any patents or intellectual property rights of the Product;

 

		14.4.2	Party
                                         A fails to make timely payment;

 

		14.4.3	Party
                                         A fails to register the Products in the Territory for Market Approval after having been
                                         provided with the required documents for registration;

 

		14.4.4	Party
                                         A decides to cease the sales of the Products in the Territory or the regulator requires
                                         cessation of production of the Products;

 

		14.4.5	Party
                                         A’s act constitutes a material breach under this Agreement, and Party A fails to
                                         remedy the breach within thirty (30) working days after receipt of the written notice
                                         (including warning or other written request) from Party B, or Party A refuses or threatens
                                         to refuse the performance of its obligations under this Agreement;

 

		14.4.6	Party
                                         A does not meet any milestones, or minimum purchase quantities under this Agreement;

 

		14.4.7	Due
                                         to adverse effects and serious consequences resulting from the Products.

 

    24

     

    

 

Under
any of the circumstances set forth in Clauses 14.4.1 through 14.4.4 above, Party B shall not assume any liability to Party A for
its termination of this Agreement, and Party A agrees not to pursue liabilities under such circumstances against Party B.

 

		14.5	Party
                                         B will repurchase the Products which are still in stock of Party A upon termination or
                                         expiry of this Agreement at the purchase price of Party A, and complete such repurchase
                                         within thirty (30) days after termination or expiry of this Agreement, failing which
                                         Party A has the right to sell any non-expired Products in good condition.

 

		14.6	Upon
                                         expiry or termination of this Agreement, Market Approval shall automatically be transferred
                                         and assigned to Party B and the license to Party A granted hereunder shall immediately
                                         expire. Party B has no right to retain the advance payment for the Products which have
                                         not been delivered (for any reason whatsoever), and, within ten (10) working days, it
                                         shall remit such advance payment to the bank account designated by Party A.

 

		14.7	Party
                                         B shall return all of the remaining documents, materials and other relevant data of Party
                                         A within thirty (30) working days after expiry or termination of this Agreement. Party
                                         B shall not directly and / or knowingly sell the Products in any way in the name of Party
                                         A in the Territory. If Party B violates the provisions, Party A has the right to require
                                         Party B to indemnify it for 5 times the sales amount, and pursue legal liabilities against
                                         Party B.

 

		14.8	Party
                                         A shall return the remaining documents, materials and other relevant data in relation
                                         to the registration of the Products which are provided by Party B within thirty (30)
                                         working days after expiry or termination of this Agreement. Party A shall not make any
                                         commercial use (directly or indirectly) of the Products or the formula upon which the
                                         Product is based after expiration of termination of this Agreement, unless with the express
                                         written consent of Party B.

 

    25

     

    

 

		14.9	Upon
                                         the occurrence of any one of the following circumstances of Party B: (a) sale, transfer
                                         or otherwise disposal of drug production technology in connection with the Products,
                                         including but not limited to transferring technology directly, granting drug marketing
                                         authorization to a third party, or exclusively licensing production technology in connection
                                         with the Products to a third party; (b) sale, transfer or otherwise disposal of key assets
                                         (both movable property and real estate) necessary for production of the Products; or
                                         (c) sale, transfer or otherwise disposal of more than 50% equity interest in Party B
                                         or the Manufacturer that results in a surviving entity which is a competitor of Party
                                         A and/or does not agree to fulfill the obligations of this Agreement, Party A shall retain
                                         the right to terminate this Agreement.

 

		15.	Notice

 

		15.1	The
                                         notice shall be deemed to have been duly given if the notice regarding the satisfaction
                                         of any requirement in this Agreement is delivered in writing (or in electronic document,
                                         email or other form) to each other to the address provided by the Parties below, or either
                                         Party sends the notice in writing (or in electronic document, email or other form) in
                                         other predetermined manner to the address of the other Party set forth in this Agreement.
                                         Either Party shall notify the other Party of any change of its mailing address, and the
                                         date of notice shall be the date when the notice is sent by email, fax or personal delivery.

 

Party
B’s Mailing Address: 24 Hanagar st. PO Box 6653, Hod Hasharon, Israel

 

Email:
or@wizepharma.com / noam@wizepharma.com

 

Other
Contact Information: +972-(0)72-2600536

 

Party
A’s Mailing Address: No. 418 Hayao Road, Daoli District, Harbin, Heilongjiang Province, the People’s Republic of China

 

Email:
hyjtyyyxgs_2018@163.com

 

Other
Contact Information: FAX: +86 0451-84619388

 

		16.	Governing
                                         Law and Dispute Resolution

 

		16.1	This
                                         Agreement is entered into and interpreted in accordance with, and governed by, the laws
                                         of China. Any dispute between the Parties arising from the performance of this Agreement
                                         shall be first settled through friendly consultation. If such consultation fails, either
                                         Party may submit such dispute to the China International Economic and Trade Arbitration
                                         Commission for arbitration in accordance with its arbitration rules then-effective at
                                         the time of applying for arbitration. The seat of arbitration shall be Beijing and the
                                         arbitration proceedings shall be conducted in Chinese. The arbitral award shall be final
                                         and binding upon the Parties.

 

    26

     

    

 

		17.	Miscellaneous

 

		17.1	This
                                         Agreement constitutes the entire agreement between the Parties with respect to the subject
                                         matter hereof. In the event of any conflict between the previous agreements, consultations
                                         or undertakings and the provisions of this Agreement, this Agreement shall prevail; in
                                         the event of no conflict between them, they shall be effective separately. The amendment
                                         and modification to this Agreement shall be made in writing and signed by the authorized
                                         representatives or legal representatives of the Parties.

 

		17.2	At
                                         any time or during any period, the failure of either Party to enforce any provision of
                                         this Agreement or to exercise any right or remedy shall not constitute a waiver of such
                                         provision, right or remedy, or preclude such Party from enforcing any or all provisions
                                         of this Agreement or exercising any right or remedy. Any waiver may not be effective
                                         unless made in writing.

 

		17.3	This
                                         Agreement is made in Chinese and English. In the event of any discrepancy between the
                                         two language versions, the Chinese version shall prevail.

 

		17.4	All
                                         exhibits hereto, as an integral part of this Agreement, shall have equal legal effect
                                         with this Agreement.

 

		17.5	The
                                         headings in this Agreement are used only as a reminder and shall not be deemed as the
                                         restriction on or interpretation of the meaning of the clauses herein.

 

		17.6	This
                                         Agreement is executed in two counterparts, each in Chinese and English, with each Party
                                         holding one counterpart, each in Chinese and English. This Agreement shall be concluded
                                         and become effective on the date when it is signed by the legal representatives or authorized
                                         representatives of the Parties on behalf of the Parties.

 

    27

     

    

 

IN
WITNESS WHEREOF, this Agreement is executed by the Parties on May 31, 2018.

 

Party
A: HPGC Medical Co., Ltd.

Legal
Representative: /s/ Zhu Weidong

Date
of signing: May 31, 2018

 

Party
B: Israel Wize Pharma Ltd.

Legal
Representative: /s/ Or Eisenberg

Date
of signing: May 31, 2018

 

    28

     

    

 

	Appendix
1:	Ordering
amount and ordering quantity of the Products ordered by Party A and amount of the Products provided by Party B free of charge

 

	Appendix
1-1:	Ordering
amount and ordering quantity of the Multi-dose Products ordered by Party A and amount of the Products provided by Party B free
of charge.

 

		 	 	Multi-dose
    Products (10ml/bottle)	 	Minimum	 	Maximum
	Year	 	 	Minimum
    Ordering Quantity 

(dose)	 	Maximum
    Ordering Quantity

(dose)	 	Minimum
    Ordering Amount (US$)	 	Maximum
    Ordering Amount (US$)	 	Unit
    Price 

(CIF, US$)	 	Amount
    of Free merchandise (US$)	 	Amount
    of Free merchandise (US$)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1	 	 	[***]	 		 	[***]	 		 	[***] US$/bottle 	 	[***]	 	 
	2	 	 	[***]	 		 	[***]	 		 	[***]
US$/bottle	 	[***]	 	 
	3	 	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
    US$/bottle	 	[***]	 	 
	4	 	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
    US$/bottle	 	[***]	 	[***]
	5	 	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
    US$/bottle	 	[***]	 	[***]

 

	Note:	1) Appendix 1-1 shows the estimated ordering quantity of the Multi-dose Products and the definite sales quantity will be discussed and determined in subsequent orders.  Provisions regarding the Free merchandise shall be applicable during the period of cooperation between the Parties.  Party A shall inform Party B of the definite quantity of the Products to be provided free of charge 3 months in advance;

                                                                                 

                                                                                2) For the second year and the third year of the period of cooperation, the amount of the Products to be provided free of charge shall be [***]% of the ordering amount of the Products in the last year.  For the fourth year and the fifth year of the period of cooperation, if the ordering quantity in the last year exceeds the minimum quantity but is less than the maximum quantity of that year, the amount of the Products to be provided free of charge shall be [***]% of the ordering amount of the Products in the last year; or if the ordering quantity in the last year exceeds the maximum quantity of that year, the amount of the Products to be provided free of charge shall be [***]% of the ordering amount of the Products in the last year. 

 

    29

     

    

 

	Appendix
1-2:	Ordering
amount and ordering quantity of the Uni-dose Products ordered by Party A and amount of the Products provided by Party B free of
charge

 

		 	 	Uni-dose Products (0.65ml/bottle)	 		 	
	Year	 	 	Minimum Ordering Quantity (pack)	 	Maximum Ordering Quantity (pack)	 	Minimum Ordering Quantity (one million bottles)	 	Maximum Ordering Quantity (one million bottles)	 	Minimum Ordering Amount (US$)	 	Maximum Ordering Amount (US$)	 	Unit Price (CIF, US$)	 	Minimum

Amount of Free merchandise (US$)	 	Maximum

Amount of Free merchandise (US$)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1	 	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	([***] US$/box)	 	[***]	 	[***]
	2	 	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	([***] US$/box)	 	[***]	 	[***]
	3	 	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	([***] US$/box)	 	[***]	 	[***]
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4	 	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	([***] US$/box)	 	[***]	 	[***]
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5	 	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	([***] US$/box)	 	[***]	 	[***]

 

	Note:	1) Appendix 1-2 shows ordering commitment for minimum ordering quantity of the Uni-dose Products and the definite sales quantity will be discussed and determined in subsequent orders.  Provisions regarding the free merchandise shall be applicable during the period of cooperation between the Parties.  Party A shall inform Party B of the definite quantity of the Products to be provided free of charge 3 months in advance;

                                                                                 

                                                                                2) For the second year and the third year of the period of cooperation, the amount of the Products to be provided free of charge shall be [***]% of the ordering amount of the Products in the last year.  For the fourth year and the fifth year of the period of cooperation, if the ordering quantity in the last year exceeds the minimum quantity but is less than the maximum quantity of that year, the amount of the Products to be provided free of charge shall be [***]% of the ordering amount of the Products in the last year; or if the ordering quantity in the last year exceeds the maximum quantity of that year, the amount of the Products to be provided free of charge shall be [***]% of the ordering amount of the Products in the last year.  

                                                                                 

                                                                                3) If Party A cancels any orders for the Multi-dose Products due to Party B’s failure to provide sufficient documents, the amount of the Products to be provided free of charge in the next year shall be [***]% the total ordering amount of the Uni-dose Products ordered by Party A in the last year (in the form of the Products).  Provisions regarding the Free merchandise shall be applicable to each year of the period of cooperation between the Parties.

 

    30

     

    

 

	Appendix
2:	Schedule
and Milestones for Registration of Multi-dose and Uni-dose Products in China

 

	Size	Content	Duration
    (in month, counting from the day on which Party A obtains a full set of CTD materials in compliance with the submission requirement
    of CFDA)	Milestone
	Registration
    of Uni-dose Products	Translation
    of registration materials for the Uni-dose Products and application for clinical trial	3-5
    months	milestone
    1
	Approval
    on clinical trial	6-8
    months	milestone
    2
	Clinical
    trial	15-30
    months	milestone
    3
	Approval
    on new drug registration of Uni-dose Products	12-17
    months	milestone
    4
	Maximum
    extended period	3
    months	/
	Registration
    of Multi-dose Products	Translation
    of registration materials for the Multi-dose Products and submission a supplementary application	1-2
    months	milestone
    5
	Approval
    on supplementary application regarding the Multi-dose Products 	8-12
    months	milestone
    6
	Maximum
    extended period	3
    months	/
	Total
    Duration	51-80
    months	/

 

Note:

 

1.
The date on which Party A applies for clinical trial regarding the Uni-dose Products will be counted from 3-5 months after Party
A has obtained a full set of CTD materials for three indications, which shall include certificate documents that Party B has obtained
for sjogren’s syndrome in Hungary, and which, as assessed by Party A, are in compliance with the submission requirement
of CFDA.

 

2.
The duration of this appendix is on an estimated basis as the definite duration is difficult to determine. In particular, the
duration for “approval on clinical trial”, “approval on new drug registration of Uni-dose Products” and
“approval on supplementary application regarding the Multi-dose Products” is subject to the decision of CDFA.

 

3.
Party B agrees that Party A will be granted a “maximum extended period” for the purpose of registration of the Multi-dose
and Uni-dose Products in China.

 

 

31IP & IT ASSET PURCHASE AGREEMENT

 

 

This document (“Agreement”)
reflects the agreement of iHealthcare, Inc., a Delaware Corporation with an address of 3901 NW 28th Street, 2nd
Floor, Miami, Florida 33142, (“iHealthcare”) and Empower Holdings Group, LLC, a Florida Limited Liability Company with
an address of 8724 SW 72 Street, Suite 459, Miami, Florida 33173, (“Empower”) (hereinafter, collectively iHealthcare
and Empower are also known as the “Parties,” or individually as a “Party”) to engage in business on the
terms set forth below, as well as such other terms and conditions as the Parties may agree. The Parties may reduce the terms listed
below to a more complete written agreement, but they are not required to do so.

 

This Asset Purchase Agreement applies
only to the IP and IT business lines of the Empower Holdings Group, and is binding, and without the execution of a more formal
contract or other writing, any and all substantive terms contained herein shall be deemed binding and conclusive as to the terms
associated with business/contract. Any contractual terms not specifically set forth herein, shall first be determined vis-à-vis
the course of dealing between the Parties and thereafter, what would otherwise be commercially reasonable in the respective field.

 

WHEREAS,
iHealthcare possesses, has created, invented and/or owns valuable, confidential and proprietary information, relationships and/or
methodology directed to providing solutions to today’s Healthcare challenges by employing innovative ideas, products, and
services and all related issues, marketing models, financial models and business models (iHealthcare’s “Confidential
Information” as more particularly defined below), which iHealthcare may reveal to Empower in confidence, for the purposes
of permitting Empower to evaluate iHealthcare’s Confidential Information and further the potential business relationship
between iHealthcare and Empower;

WHEREAS,
Empower possesses, has created, invented and/or owns valuable, confidential and proprietary information, relationships and/or methodology
directed to Healthcare products, services and technologies and all related issues, marketing models, financial models and business
models (Empower’s “Confidential Information” as more particularly defined below), which Empower has revealed
and will reveal to iHealthcare in confidence, or the purposes of permitting iHealthcare to evaluate Empower’s Confidential
Information and further the potential business relationship between iHealthcare and Empower;

WHEREAS,
the Parties desire to use their respective assets for the common goal of assisting the rural healthcare landscape, driving healthcare
insurance costs down, providing innovative products and tools, and growing a small footprint of Hospitals and Service Offerings
into a major sustainable business that will serve communities throughout the United States;

WHEREAS,
the Parties consider their ongoing relationship and potential business relationship to be independently valuable;

NOW, THEREFORE,
for and in consideration of the ongoing and potential relationship between iHealthcare and Empower, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, iHealthcare and Empower, intending to be legally bound,
do hereby agree as follows and acknowledge the above recitals as true and incorporated herein, and:

 

		1)	TERMS. The Parties herby agree as follows:

 

iHealthcare agrees to acquire under this Asset
Purchase Agreement, the IT and IP Platforms from Empower Holding Group , including all USA and India business operations of Empower
HIS of India and Nagata Technologies, LTD., and all Intellectual Property (IP) from Jorge Perez and Ricardo Perez. The Parties
upon execution of this Agreement shall proceed to finalize the transfer of the IT Department Infrastructure and Services, as listed
in Exhibit A of this Asset Purchase Agreement, and shall further entail:

 

 

		1.	All IT Departments including the existing workforce in the USA and
India

		2.	IT infrastructure and license[s] transfer – Data Networks/Storage

		3.	Vendor and Partner contracts

		4.	Telehealth, Telemedicine, Telemetry Projects and Mobile APPS

		5.	Hardware and Business Software

		6.	Hospital and Physician EMR

		7.	Intellectual Property, including any Copyrights, Brands and/or Trademarks

		8.	Related Business Documents

 

		b)	Empower Liabilities. The Parties shall proceed to address
“Empower Liabilities” that may arise under this Asset Purchase Agreement, and may entail:

 

		1.	Compliance matters, if any. 

		2.	Reconcile defense obligations, legal costs and settlement proceeds,
if any

 

		c)	iHealthcare IT and IP Business Development. The Parties shall
proceed to generate all new Business Development under this Asset Purchase Agreement exclusively under “iHealthcare”
which shall entail:

 

		1.	Sourcing of new “Business Development Deals” directly
to iHealthcare.

		2.	Intercompany Service Agreements to support new ventures.

		3.	Acquisitions of all types.

 

 

 

 

		d)	iHealthcare and Empower shall provide appropriate insurance
and indemnifications as need be;

 

		e)	iHealthcare and Empower shall execute such additional documentation
as may be necessary; and, 

 

		2)	CONSIDERATION. The parties acknowledge that under this Asset
Purchase Agreement of Empower’s IT and IP assets and “book of business”, the Parties agree to mutually work together
to grow the business model and create new revenue lines that are currently not operational. With this in mind, the valuation for
this Asset Purchase Agreement is structured as follows: 

		a)	Purchase Price: $2,500,000.00

		1.	Intellectual Property, IT, Software/Source Code and Management Knowhow:
$2,500,000

		b)	Board Appointment: The Perez family may designate an individual
to serve on the iHealthcare Board of Directors.

		c)	Once the Perez Book of Business generates $250,000.00 net revenue
for two consecutive months, then appropriate salaries will be provided pursuant to additional negotiations.

		d)	Terms in General: 

		1.	iHealthcare shall issue a Promissory Note for 100% of the agreed
value under this Asset Purchase Agreement. 

		2.	Promissory Note will have a 10 year term and 4% simple annual interest
on the unpaid balance. 

		3.	Promissory Note may be prepaid without penalty, in full or in part,
in cash or common stock at the option of iHealthcare.

		4.	Offsets: Promissory Note shall contain provisions for offsets relating
to potential or known liability events that occurred prior to closing. Standard provisions are: iHealthcare, Inc. may offset the
amounts due on the promissory notes during the payout period in the event of: 

		a)	Litigation Relating to IT / IP Products: 

		b)	India Business Unit: Undisclosed liabilities.

		c)	Seller Participation: Any claims sought under this provision shall
be vigorously contested with the full involvement and participation of the Seller, including access to documents, participation
in meetings and conference calls and final settlement discussions. Seller will pay their own expenses, if any, incurred by the
Seller in this process. 

 

		e)	Terms of iHealthcare Preferred C Stock: 

		1.	Preferred Series C Shares: A total of 500,000 Preferred Series C Shares par value $0.0001
per share will be allocated to the Perez Family, as part of this Asset Purchase Agreement. Terms will be listed and Certificate
of Designation for Preferred C Shares filed with the State of Delaware along with Board Resolution. The Perez Family shall provide
a list of names that they desire to provide Shares, with the total amount desired per name listed, prior to allocation.

		2.	Convertible Note: The 500,000 Preferred Shares C will be issued as a Convertible Note
to each shareholder.

		3.	Conversion: The Conversion value is one share of Preferred Stock to one share of Common
Stock

		4.	Value Assurance Guarantee: When converted from Preferred Shares to Common Stock, iHealthcare
guarantees a minimum value, only on the date of conversion, of $1.00 per share converted. If the value of the Common Stock trading
on that day is below $1.00 per share, the company will issue sufficient additional Common Stock share’s so that the total
value of the redeemed converted Preferred Stock redeemed to Common Stock equals a minimum of $1.00 per share based on the conversion
date’s closing per share value of Common Stock. If the value is in excess of $1.00 per share on the date of conversion, the
share conversion remains 1:1 and the Holder shall retain the upside value, if any. Common stock must be trading on a public exchange
to qualify.

		5.	Restricted Share Tranches and Vesting: When each restricted share tranche reaches maturity
in the Convertible Note on the following schedule of performance, the note will covert to Preferred Shares as listed, at the option
of the Holder. 

		a)	500,000 shares vested upon closing. 

		6.	Restricted Share Conversion Schedule: Vested Preferred shares may convert and then shall
be exercisable for conversion to Common Stock, all or in part or none, at the option of the Holder only after the closing of the
management contracts, billing contracts and IT transfer and the final tranche is earned according the following schedule: 

		a)	500,000 – 12 months from date of closing.

		7.	COC: Accelerated Conversion and call back on then existing terms at Change of Control.

		8.	Call Option: iHealthcare may call or force conversion all or part of the stock in the
event of a recapitalization or liquidation event or public offering. 

		9.	Voting: Preferred C Shares are non-voting until converted to Common Stock. 

		10.	Reserves: iHealthcare Inc. shall reserve sufficient shares of Preferred C and Common stock
to meet the obligations of this agreement.

		11.	Interest: No interest is paid or due on equity offers.

		12.	Offsets: Preferred C Shares are subject to offsets prior to maturity or vesting [same
as Promissory Notes]

 

		3)	NONDISCLOSURE AND NONUSE OF CONFIDENTIAL INFORMATION.

 

		a)	The Parties acknowledge that they each have, may obtain or may develop
certain Confidential Information (as defined below) in the ordinary course of their business and that the Parties may learn of,
or have access to, each other’s Confidential Information during the course of their business relationship with each other.

 

		b)	For the purposes of this Agreement, the term “Confidential
Information” shall mean any and all confidential and/or proprietary knowledge, data, information or trade secrets used, obtained,
or developed by or for a Party that is treated as confidential by that Party, or is of a nature that should reasonably be understood
by the receiving Party to be confidential, and is not and otherwise would not be regularly and routinely available to the general
public. The term “Confidential Information,” includes, without limitation, information and data, whether in written,
oral, graphic or machine-readable form, but shall not include that which is (i) publicly available by other than unauthorized means,
(ii) disclosed to others by the disclosing Party or other proper Party without restriction, (iii) rightfully received from a third
party without restriction, (iv) discoverable by common observation, through publicly or commercially available sources, or by inspection
or analysis of products in the market place, or (v) general skill and knowledge.

 

		c)	The receiving Party hereby agrees to comply with any and all of the
disclosing Party’s commercially reasonable policies and procedures for the protection of Confidential Information and, except
as required by law or by the nature of receiving Party’s duties for the disclosing Party or with the prior written approval
of an authorized officer of the disclosing Party, receiving Party will not, during its business relationship with disclosing Party
or at any time thereafter, use or disclose, directly or indirectly in any manner, any Confidential Information of the disclosing
Party, including the fact that Confidential Information has been made available to the receiving Party for any purpose other than
in furtherance of the business relationship with disclosing Party. The provisions of this Agreement regarding disclosure and use
of Confidential Information shall survive the termination or expiration of this Agreement and shall be effective forever. 

 

		d)	The receiving Party hereby agrees that any Confidential Information
is and shall remain the sole and exclusive property of the disclosing Party for use in the disclosing Party’s business and
shall be used solely in connection with furtherance of the business relationship with disclosing Party and shall not be used by
receiving Party, directly or indirectly, in any other manner whatsoever. Under no circumstances whatsoever shall receiving Party
have any proprietary or other legal right to the disclosing Party’s Confidential Information during, or subsequent to the
termination or cessation of, the business relationship of the Parties.

 

		e)	The receiving Party hereby agrees not to disclose, copy, or remove
from the premises of the disclosing Party any documents, records, tapes or other media or format that contain or may contain Confidential
Information, except as required by the nature of receiving Party’s duties for the disclosing Party or as otherwise approved
in writing by an authorized officer of the disclosing Party. Upon termination or cessation of the business relationship of the
Parties, regardless of the reason for such termination or cessation, receiving Party hereby agrees to return immediately to the
disclosing Party, or destroy at the disclosing Party’s discretion, all originals and copies of documents, records, tapes,
or any other media or format that contain or may contain Confidential Information. Furthermore, all Confidential Information belonging
to disclosing Party will be and remain solely the property of disclosing Party. Any such return or destruction, as applicable,
of Confidential Information shall be certified in writing by receiving Party to disclosing Party within three (3) days of the return
or destruction. Any Confidential Information that is not returned or destroyed, including any oral Confidential Information, will
continue to be kept confidential and subject of the terms of this Agreement. 

		f)	In the event receiving Party is legally compelled to disclose Confidential
Information belonging to disclosing Party, the receiving Party shall promptly notify disclosing Party of each such requirement
so that disclosing Party may seek a protective order or other appropriate remedy and/or waive compliance with the provisions of
this Agreement. In any such event, receiving Party will only disclose such Confidential Information that s/he/it is advised by
counsel to disclose and legally required to be disclosed and shall exercise reasonable efforts to obtain assurance that confidential
treatment will be accorded to such Confidential Information.

 

		g)	The receiving Party’s access to Confidential Information shall
automatically terminate at the termination or expiration of the relationship between the Parties with respect to the subject matter
of this Agreement. Notwithstanding the foregoing, disclosing Party may immediately terminate access to its Confidential Information
at any time.

 

		h)	Neither of the Parties to this Agreement shall make any announcement
of the proposed transaction contemplated by this Agreement, without the prior written approval of the other, which approval will
not be unreasonably withheld or delayed. The foregoing shall not restrict in any respect the Party’s ability to communicate
information concerning this Agreement, and the transactions contemplated hereby, to their respective affiliates’, officers,
directors, employees and professional advisers; and, (to the extent relevant), to third parties whose consent is required in connection
with the transaction contemplated by this Agreement.

 

 

		4)	NON-CIRCUMVENTION. 

 

		a)	The Parties understand that in the performance of this Agreement
they may each reveal to each other, contacts and relationships which are not otherwise known to the general public or to whom the
general public may otherwise not have access.

 

		b)	The Parties will not in any manner solicit, nor do business in any
manner with individuals, entities, related parties or their affiliates (“Source(es)”), which were made available to
them through this Agreement by the other Party, without the express permission of the party who made available the Source;

 

		c)	Source shall include, without limitation, any contact, contract or
transaction with all persons, companies (e.g., limited liability companies, etc.), firms, partnerships (e.g., general partnerships,
limited liability partnerships, etc.), corporations (e.g., domestic, foreign, international), co-ventures, joint ventures, trusts
or any other entity with which they or any associate, agent, employee, or representative are or may be in any way associated or
concerned, no matter the country of origin or origination of the association.

 

		d)	A Party will not attempt either directly or indirectly, for the purposes
of circumventing the other Party, to make any contact with any individual or entity, including without limitation relationships,
customers or clients, whose identity is made known to one Party solely in connection with their relationship with the other Party,
as contemplated by this Agreement, without the prior written approval of such other Party. The identity of such individuals and
entities shall be deemed proprietary and valuable to the Party in whose knowledge, such identity currently resides.

 

		e)	The Parties will maintain complete confidentiality regarding each
other’s Sources and will disclose such Sources only to third parties only pursuant to the express written permission of the
Party who made available the Source;

 

		f)	The Parties will not disclose names, addresses, e-mail address, telephone
and tele-fax or telex numbers to any Sources, to third parties and the Parties each recognize such Sources as the exclusive property
of the providing Party and they will not enter into any direct negotiations or transactions with such Sources revealed by the other
Party;

 

		g)	The Parties further undertake not to enter into business transaction
with banks, iHealthcare’s sources of funds or other bodies, the names of which have been provided by one of the Parties to
this agreement, unless written permission has been obtained from the other Party to do so. 

 

		h)	The Parties also undertake not to make use of a third party to circumvent
this clause.

 

 

		5)	INVENTIONS AND CREATIONS. 

 

		a)	Ownership and Assignment of Creations via Acquisition. Any and all inventions, discoveries,
improvements, creations, software, source codes, updates, upgrades, derivative works, hardware, data base rights, processes, licenses,
concepts, techniques, trade secrets, know how, discoveries, works or ideas (collectively “Creations”) whether or not
patentable or copyrightable which Empower has conceived or made or may conceive or make during the relationship with the each other,
and/or in any way, directly or indirectly, connected with this Agreement, shall be Assigned and Transferred under each Acquisition
and be made the sole and exclusive property of iHealthcare in this Asset Purchase Agreement. The Parties agree that (i) all works
created by Empower in connection with this Agreement, whether or not patentable or copyrightable are part of and ownership is hereby
Assigned and Transferred under this Asset Purchase Agreement to iHealthcare and shall be the sole and complete property of iHealthcare;
(ii) any and all copyrights or patents to such works shall belong to iHealthcare; and (iii) Empower shall execute all documents
that may be necessary to convey or assign any rights they may have in such Creations to iHealthcare. Empower hereby assigns all
proprietary rights to improvements, modifications, adjustments, prototypes, or other developments made by them regarding the subject
matter, including copyright, in these works to iHealthcare under this Asset Purchase Agreement. Empower further irrevocably waives
and assigns any claims for royalties, compensation, commission, revenue or other benefits from the creations that may inure to
Empower to iHealthcare Inc.

 

		b)	If any of these improvements, modifications, adjustments, prototypes, or other developments made
to the Inventions becomes the subject of one or more patent application disclosures, the invention rights and any associated patent
rights shall be assigned from Empower to iHealthcare and both Parties agrees to cooperate in the preparation and execution of any
documents necessary to assign these invention rights and related patent rights, and to participate in the prosecution of any related
United States, Chinese and other patent applications in other international jurisdictions.

 

		c)	Empower further warrants that the Creations were developed as “work for hire” are free
and clear of any third party claims to ownership, royalty, rights, license or other encumbrances or compensation and are conveyed
free and clear of restrictions.

 

		d)	Disclosure of Creations. Empower further agrees to (i) disclose promptly to
iHealthcare all such Creations which Empower has made or may make solely, jointly, or commonly with others, (ii) assign all such
Creations to iHealthcare, and (iii) execute and deliver any and all applications, assignments, or other instruments which Empower
may deem necessary in order to enable it, at its expense, to apply for, prosecute, and obtain copyrights, patents or other proprietary
rights in the United States and foreign countries or in order to transfer to iHealthcare all right, title, and interest in such
Creations.

 

		6)	COVENANT NOT TO COMPETE

 

		a)	In accordance with this Agreement, and the ultimate goal of consolidating
the assets of Empower into iHealthcare (the future iHealthcare being referred to as the “Ongoing Entity”) the Parties
will gain knowledge of certain proprietary information belonging to the other Party and valuable confidential business or professional
information. The Parties may also acquire substantial relationships with specific prospective or existing customers or clients
and gain customer or client goodwill associated with the Parties’ ongoing business or professional practice. The Parties
may additionally be provided with extraordinary or specialized training, specific to the Parties’ field of business and specific
business. In light of the above, the Parties acknowledges and agrees that the they each are entitled to a Covenant Not To Compete
and such restraint is reasonably necessary to protect the legitimate business interest or interests of the Parties, to the extent
that there is an Ongoing Entity.

 

		b)	Accordingly, during the Parties’ relationship with each other
and for a period of 5 years from the date of this Agreement, for any reason, the Parties shall not, directly or indirectly, through
another person or entity, compete with the each other anywhere where the Ongoing Entity does business or owns an interest in or,
as principal, agent, contractor, consultant, or employee or otherwise, engages in activities for or renders services to any firm
or business that competes with the Ongoing Entity, “Compete” being defined as conducting business in the marketplace,
and all related marketing models and business models. The territory shall be deemed to initially be the United States of America
and such other locations as the Ongoing Entity may be doing business at any time and also those States in which Ongoing Entity
has reasonably advanced toward doing business. 

 

		c)	“Compete” shall additionally include without limitation,
soliciting, providing services to, or otherwise engaging in a business transaction with customers or clients of the Ongoing Entity
or any affiliate of the Ongoing Entity, or directly or indirectly soliciting for employment any of the Ongoing Entity’s employees,
or the employees of any of the Ongoing Entity’s affiliates.

 

 

		7)	INDEMNIFICATION AND MUTUAL HOLD HARMLESS

 

(a) Empower shall indemnify, defend and hold
harmless iHealthcare and its affiliates, their respective shareholders, officers, directors, employees, and agents, against and
in respect of any and all losses, claims, damages, causes of action, actions, obligations, liabilities, deficiencies, suits, proceedings,
actual out-of-pocket obligations and expenses (including cost of investigation, interest, penalties and reasonable attorneys' fees)
(collectively, "Losses") arising out of or due to the operation of the Business or relating to events prior to closing
by iHealthcare, its affiliates, agents, servants and/or employees after Closing under the provisions of this Agreement. The obligations
set forth in this Section 7(a) shall survive for a period of one (1) year following the Expiration Date.

 

(b) iHealthcare shall indemnify, defend and
hold harmless Empower and its affiliates, their respective shareholders, officers, directors, employees, and agents, against and
in respect of any and all Losses arising out of or due to gross negligence of the Manager, its affiliates, agents, servants and/or
employees prior to and during the commencement of the term of this Agreement. The obligations set forth in this Section 7(b) shall
survive for a period of one (1) year following the Expiration Date.

 

(c) If a party entitled to indemnification
(the "Indemnitee") receives notice of any claim or the commencement of any action or proceeding with respect to which
a party is obligated to provide indemnification (the "Indemnifying Party") pursuant to subsections (a) and (b) of this
Section, the Indemnitee shall promptly give the Indemnifying Party notice thereof (Indemnification Notice"). Such Indemnification
Notice shall be a condition precedent to any liability of the Indemnifying Party under the provisions for indemnification contained
in this Agreement. Except as provided below, the Indemnifying Party may compromise, settle or defend, at such Indemnifying Party's
own expense and by such Indemnifying Party's own counsel, any such matter involving the asserted liability of the Indemnitee. In
any event, the Indemnitee, the Indemnifying Party and the Indemnifying Party's counsel shall cooperate in the compromise of, or
defense against, any such asserted liability. If the Indemnifying Party provides the Indemnitee a defense to a third party claim
at the Indemnifying Party's cost with a qualified attorney, Indemnitee may participate and/or monitor the defense with an attorney
of the Indemnitee's selection (at the Indemnitee's own expense). Provided that the Indemnifying Party pays for the full cost of
the settlement of any claim, the Indemnifying Party may settle any claim without the consent of the Indemnitee. If the Indemnifying
Party chooses to defend any claim, the Indemnitee shall make available to the Indemnifying Party any books, records or other documents
within its control that are necessary or appropriate for such defense.

 

8. LIMITATION OF LIABILITY

 

NEITHER PARTY SHALL BE LIABLE TO THE OTHER
FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE, OR INDIRECT DAMAGES ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT,
REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS PARAGRAPH IS INTENDED
TO LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF ANY PARTY UNDER SECTION 7, OR DAMAGES AVAILABLE FOR BREACHES
OF THE OBLIGATIONS SET FORTH IN SECTION 7.

 

		a)	Upon request of any Party to this Agreement, the requested Party(ies)
shall take such further actions, and shall cause its (their) personnel, agents, and employees to take such further actions, including
execution and delivery of documents, that may reasonably be deemed necessary or desirable to accomplish or evidence more further
the objectives and intent of this Agreement. 

 

		b)	This Agreement contains the complete understanding between the Parties
and shall as of the date hereof, supersede all other agreements, whether they are written or oral, between the Parties concerning
the particular subject matter. Paragraphs 2 through 11 constitute a binding contract and will continue in full force and effect
surviving the termination of this Agreement. Paragraph 1 is a statement of interest and intent to do business, but as set forth
above, Paragraph 1 shall become binding to the extent that the Parties complete Due Diligence (as defined below) and iHealthcare
elects to proceed, or where iHealthcare provides any capital to Empower, without a more formal writing, the substantive terms herein
shall be conclusive as to the agreement of the Parties. Further, to the extent that additional substantive terms are in issue,
the course of conduct of the Parties shall be controlling as to such terms.

 

		c)	No waiver or modification of this Agreement or any covenant, condition
or limitation herein contained shall be valid and no evidence of waiver or modification shall be offered or received in evidence
in any proceeding, arbitration or litigation between the Parties hereto arising out of or affecting this Agreement or the rights
or obligations of the Parties hereunder, unless such waiver or modification is in writing duly signed by all Parties, or in an
email exchange where both Parties have commented.

 

		d)	All agreements and covenants contained herein are severable, and
in the event that any of them shall be held to be invalid by any competent court, this Agreement shall be interpreted as if such
invalid agreement or covenant is not contained herein.

 

		e)	The failure of any Party to insist in any one or more instances upon
performance of any terms or conditions of this Agreement shall not be construed as a waiver of future performance of any such term,
covenant, or condition, but the obligations of any Party with respect thereto shall continue in full force and effect.

 

		f)	Neither this Agreement nor any interest herein may be assigned in
whole or in part by any Party hereto without the prior written consent of all other Parties.

 

		g)	The terms and existence of this Agreement are confidential, and neither
the contents nor its details of the Agreement may be shown or disclosed by either Party, except to those individuals with who have
a need to know as a result of being involved in or related to this Agreement.

 

		h)	In addition to any remedies under the applicable law, the Parties
recognize that any breach or violation of any provision of this Agreement may cause irreparable harm to the other Party, which
money damages may not necessarily remedy. Therefore, upon any actual or impending violation of any provision of this Agreement,
either Party may obtain from any court of competent jurisdiction a preliminary, temporary or permanent injunction, restraining
or enjoining such violation by the other Party or any entity or person acting in concert with that Party.

 

		i)	This Agreement shall be governed by and interpreted in accordance
with the laws of the State of Florida. IF A DISPUTE ARISES, THE PARTIES WILL: (a) RESOLVE ALL DISPUTES BY BINDING ARBITRATION HELD
IN MIAMI-DADE COUNTY, FLORIDA BEFORE A SINGLE ARBITRATOR FROM JUDICIAL ARBITRATION AND MEDIATION SERVICES, INC. (“JAMS”);
AND (b) WAIVE ANY RIGHT TO CIVIL TRIAL BY JUDGE OR JURY. Notwithstanding the foregoing, all claims alleging violation of restrictive
covenants, mishandling of Confidential Information, or transgression of intellectual property rights, shall be subject to the exclusive
jurisdiction, in Miami, Florida, of either the Florida state courts or the US District Court. Before accepting appointment, the
arbitrator shall agree: (a) that the arbitrator’s award shall be made within nine (9) months of the filing of a notice of
intention (or demand) to arbitrate (but it may be extended by written agreement of the parties); (b) to base any decision or award
on governing law; (c) to not award punitive or other damages that are not measured by the prevailing party’s actual damages,
except as may be required by statute; and (d) to issue an award in writing within ten (10) days of concluding the presentation
of evidence and briefs. Judgment may be entered in any court having jurisdiction thereof. The prevailing party shall be entitled
to recover from the other party its costs and expenses, including reasonable attorney’s fees.

 

		j)	Electronic Document Transmissions.

 

		a.	The Parties further agree:

 

		1.	To the extent that they are not in conflict with this document, that
the use of electronic messages shall create valid and enforceable rights and obligations between them; and

 

		2.	That to the extent permitted under the applicable law, electronic
messages shall be admissible as evidence, provided that such electronic messages are sent to addresses and in formats, if any,
designated either expressly or implicitly by the addresses; and 

 

		3.	Not to challenge the validity of any communication or agreement between
them solely on the ground of the use of electronic means, whether or not such use was reviewed by any natural person.

 

		2.	This Agreement may be executed in separate counterparts all of which
shall be deemed to be one (1) agreement.

 

 

 

SIGNATURE PAGE TO FOLLOW

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT A

 

Empower IT - IP Platform
Inventory

 

 

 

EXHIBIT B

 

VB.net Software IP
and IT Platform 

 

 

 

 

 

 

 

 

 

EXHIBIT
B

 

SOFTWARE SUITE-INTELLECTUAL
PROPERTY

 

		a.	Proprietary Hospital and Lab Billing Systems.

		b.	Proprietary Lab Management
and Lab Information systems integrated with recently acquired Medical Applied Solutions source code.

		c.	Empower Rural Hospital EMR now being
deployed to Empower Hospitals.

		d.	Telemedicine Robots.

		e.	Telehealth infrastructure under construction in Kanas
City

		f.	CadiraMD APP with exclusive rights in the United
States market.

 

 

VB.net Platform

 

		1.	Empower
EMR: Single or Multi physician
or multi-specialty or hospital EMR\EHR ONC certified EMR. Includes:
charge capture; basic claims requirements;
mobile interfaces; "Lite" version for Homecare, hospital rounds and paperless patient charting.

 

		2.	Empower
PMS: Ambulatory/Physician/Medicare
Part B billing system, with scheduling, eligibility, collection, interf
ace with EHR. Reimbursement Module and
Collections Module - Promise to Pay Que.

 

		3.	Empower
HIS: Complete hospital system,
includes ADT, billing system for both Part A and Part B [including UB 92, DRG and Medicare 1500], Collections, Reports, Census,
Bed management, etc.
Patient registration and pre-registration,
hospital wide patient scheduling, patient recall, patient reminder {text, email, and voice), insurance eligibility verification,
patient accounting, cost center reporting, document imaging, claims scrubbing, ICD 9 to ICD 10 crossover, ECT and ERA modules.
Patient Kiosk for check in.

 

		4.	Empower Rehab Management
-ARMS Addiction Rehab Management System: Complete
Rehab center management system, document imaging, forms filler, billing, financial tracking, etc.

 

		5.	Empower Lab Management:
Laboratory Back office management system,
including billing for client and insurance plans, etc - interfaced to LIS.

 

		6.	Empower PACS
{Requires partial Licensing from Leadtools): Radiology
system, includes RIS, and report writer. Archiving images, interface with all modalities.

 

		7.	Empower HL7 Connect
{using MIRTH as the engine): HL7 bi-directional
engine to interface with all third party systems, including to Empower products.

		8.	Empower Financials:
Complete hospital and\or physician practice
accounting system, including AR, AP, Inventory, Payroll, HR, Credentialing, PTO hours, time clock.

 

    	 

    	 

    

 

 

		9.	Empower
Docs (Some licensing with Leadtools):
Document imaging syst em.
Complete paperless system with auto cataloger.

 

		10.	Empower Credentialing:
Hospital or large practice clinical staff credentialing
system, with contracting module. Tracks recertification's with alerts and can accept insurance fee schedule per provider.

		11.	Empower Talks: Physician
practice report writer.

 

		12.	Empower Radiology Report
Writer: Radiologist report writer (with macros
and dragon interface).

 

		13.	Patient Kiosk Module: Registration
and check in.

 

		14.	Operating
Room Module: OR Room scheduling
system, patient pre-registration, physician practice portal for scheduling requests and patient pre-registration, OR staffing,
inventory, disposal supplies inventory and billing, OR billing, and OR EM R.

 

		15.	Managed Care HCC Coding System for MRA Score: Missing
HEDIS reports. [Incomplete]

 

		16.	Empower Wellness: Medicare
AWV M odule.
[Incomplete]

 

		17.	Patient
Health Portal: Customized patient
health portal with practice messaging and scheduling requests. Includes pre-registration and patient quest
ionnaire.
Customized patient reminder via letter, text messaging, emai l,
or digital voice call with keypad response. System reports reminder status. Interfaces
via an ASCII file. [Incomplete]

 

		18.	Radiology Information
System (RIS): Includes integration to PACS
and Order Entry and Results. [Incomplete]

		19.	Patient Information
Exchange Server: Interface with patient portal,
and physician practice, and hospital systems. [Incomplete] Interface List:

		20.	Empower LIS: Assignment of Empower rights to sell
LIS to IHCC customers; Interface to LIS Technologies .
LIS is a third party licensed product.

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