Document:

EXHIBIT 10.2

 

Exhibit 10.2

 

EXHIBIT
A

 

The
undersigned Daniel Wiesel, hereby certifies that:

 

1. He
is the Chairman of the Board of Directors and the Chief Executive Officer of The PAWS Pet Company, Inc., an Illinois
corporation (the “Corporation”).

 

2. The
Corporation is authorized to issue 10,000,000 shares of preferred stock, none of which are issued or outstanding.

 

3. That
on October 29, 2013 the following resolutions were duly adopted by the Board of Directors:

 

WHEREAS,
the Amended and Restated Articles of Incorporation, as amended to date, of the Corporation provide for a class of its authorized
stock known as preferred stock, comprised of 10,000,000 shares, no par value per share (the “Preferred Stock”), issuable
from time to time in one or more series;

 

WHEREAS,
the Board of Directors of the Corporation is authorized to fix the dividend rights, dividend rates, voting rights, conversion rights,
rights and terms of redemption and liquidation preferences of any wholly unissued series of Preferred Stock and the number of shares
constituting any series and designation thereof, of any of them;

 

NOW,
THEREFORE, BE IT RESOLVED, that the Board of Directors of the Corporation does hereby authorize this Certificate of
Designation OF SERIES D CONVERTIBLE PREFERRED STOCK to provide for the issuance of a series of Preferred Stock for cash or exchange
of other securities, rights or property and does hereby fix and determine the rights, preferences, restrictions and other matters
relating to such series of Preferred Stock as follows:

 

TERMS
OF PREFERRED STOCK

 

ARTICLE
 I. Designation, Amount and Par Value.

 

Section
1.01 The series of Preferred Stock shall be designated as the Corporation’s SERIES D CONVERTIBLE PREFERRED STOCK (the
“Series D Stock”) and the number of shares so designated shall be five hundred thousand (500,000), which shall not
be subject to increase without the affirmative vote or written consent of the holders (each a “Holder” and collectively,
the “Holders”) of at least sixty-seven percent (67%) of the Series D Stock issued and outstanding at the time of any
such vote or written consent. Each share of Series D Stock shall have no par value per share.

 

ARTICLE II. Ranking.

 

Section
2.01 The Series D Stock shall be, with respect to dividend rights and rights upon liquidation,winding-up or
dissolution, rank:

 

		(a)	Senior to the Corporation’s
Common A Stock, no par value per share (“Common Stock”); and

 

	 	(b)	Junior to the Corporation’s Series B and E Convertible Preferred Stock, no par value per share (“Common Stock”); and

 

	 	(c)	Senior to any and all other classes or series of Preferred Stock of the Corporation, whether authorized now, or at any time in the future, unless any such subordination to any other class or series of Preferred Stock, is expressly agreed to, pursuant to an affirmative vote or written consent of Holders of at least sixty-seven percent (67%) of the Series D Stock issued and outstanding at the time of any such vote or written consent. 

 

ARTICLE
III. Liquidation Rights.

 

Section
3.01 With respect to rights on Liquidation (as defined in Section 3.02 of this Article III), the Series D Stock
shall rank senior and prior to the any and all classes of series of the Corporation’s common stock and to any and all
other classes or series of preferred stock of the Corporation, except as otherwise approved by the affirmative vote or
written consent of the Holders of at least a sixty-seven percent (67%) of the Series D Stock issued and out standing at the
time of any such vote or written consent. Furthermore, the Corporation may not designate any other class or series of common
stock or preferred stock without first obtaining the affirmative vote or consent of the Holders of at least sixty-seven
percent (67%) of the Series D Stock issued and outstanding at the time of any such vote or written consent.

 

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EXHIBIT
A

 

Section
3.02 In the event of any liquidation, dissolution or winding-up of the affairs of the Corporation (collectively, a “Liquidation”),
the sole participation to which the Holders of shares of Series D Stock then issued and outstanding (the “Series D Stockholders”)
shall be entitled, out of the assets of the Corporation legally available for distribution to its stockholders, whether from capital,
surplus or earnings, to receive, before any payment shall be made to the holders of the Common Stock or any other class or series
of preferred stock ranking on Liquidation junior to such Series D Stock, an amount per share equal to the Face Value (as hereinafter
defined). If upon any such Liquidation, the remaining assets of the Corporation available for distribution to its shareholders
shall be insufficient to pay the Holders of shares of Series D Stock the full amount to which they shall be entitled, the Holders
of shares of Series D Stock, and of any class or series of stock ranking upon liquidation on a parity with the Series D Stock,
shall share pari passu in any distribution of the remaining assets and funds of the Corporation in proportion to the respective
liquidation amounts that would otherwise be payable to the Holders of preferred stock with respect to the shares held by them upon
such distribution if all amounts payable on or with respect to such shares were paid in full.

 

ARTICLE
IV. Restrictive Legend.

 

Section
4.01 Any Series D Stock certificate issued in reference to this designation shall bear on its face the following restrictive
legend:

 

THE
SHARES REPRESENTED BY THE CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND APPLICABLE STATE SECURITIES
LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED UNLESS, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER, THE
TRANSFER QUALIFIES FOR AN EXEMPTION FROM OR EXEMPTION TO THE REGISTRATION PROVISIONS THEREOF.

 

Section
4.02 For purposes of this CERTIFICATE OF DESIGNATION OF SERIES D CONVERTIBLE PREFERRED STOCK, the term “Valid
Exemption From or To Registration” shall mean, an exemption from or to registration, under the Securities Act of 1933 and
applicable state securities laws and then, only after receipt, by the Corporation, its Transfer Agent and the Holder, of an opinion
of counsel which clearly states that such an exemption is available to the Holder.

 

ARTICLE
V. Conversion and Face Value.

 

Section
5.01 Any Holder of Series D Stock shall have the right to convert any or all of the Holder’s Series D Stock into
a number of fully paid and non-assessable shares of Common Stock for each share of Series D Stock so converted, as set forth in
this Article V.

 

		(a)	Any Series D Stockholder
may exercise the right to convert such shares into Common Stock pursuant to this Article V by delivering to the Corporation during
regular business hours, at the office of the Corporation or any transfer agent of the Corporation or at such other place as may
be designated by the Corporation, the certificate or certificates for the shares to be converted (the “Series D Preferred
Certificate”), duly endorsed or assigned in blank to the Corporation (if required by it).
	 	 	 
		(b)	Each Series D Preferred
Certificate shall be accompanied by written notice (the “Conversion Demand”) stating that such Holder elects to convert
such shares and stating the name or names (with address) in which the certificate or certificates for the shares of Common Stock
(the “Common Certificate”) are to be issued. Such conversion shall be deemed be effected on the date when such delivery
is made, and such date is referred to herein as the “Conversion Date.”

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EXHIBIT
A

 

		(c)	As promptly as practicable
thereafter, the Corporation shall issue and deliver to or upon the written order of such Holder, at the place designated by such
Holder, a certificate or certificates for the number of shares of Common Stock calculated pursuant to this Article V, to which
such Holder is entitled.
	 	 	 
		(d)	The person in whose
name the certificate or certificates for Common Stock are to be issued shall be deemed to have become a Holder of record of Common
Stock on the applicable Conversion Date, unless the transfer books of the Corporation are closed on such Conversion Date, in which
event the Holder shall be deemed to have become the stockholder of record on the next succeeding date on which the transfer books
are open, provided that the Conversion Ratio (as hereinafter defined) shall be the Conversion Ratio in effect on the Conversion
Date.
	 	 	 
		(e)	Upon conversion of only
a portion of the number of shares covered by a Series D Preferred Certificate, the Corporation shall issue and deliver to, or upon
the written order of, the Holder of such Series D Preferred Certificate, at the expense of the Corporation, a new certificate covering
the number of shares of the Series D Stock representing the unconverted portion of the Series D Preferred Certificate, which new
certificate shall entitle the Holder thereof to all the rights, powers and privileges of a Holder of such shares.
	 	 	 
		(f)	The number of shares
to be issued in conversion of each share of Series D Stock upon receipt of a Conversion Demand shall be six hundred and fifty (650)
Common shares for each Series D Stock share converted (the “Conversion Ratio”). The number of shares to be issued upon
conversion may not be increased at any time without the consent of at least sixty-seven percent (67%) of all of the other series
of preferred stock issued and outstanding at the time of any such vote or written consent.

Section
5.02 The Corporation shall pay all documentary, stamp or other transactional taxes (excluding income taxes) attributable
to the issuance or delivery of shares of capital stock of the Corporation upon conversion of any shares of Series D Stock; provided,
however, that the Corporation shall not be required to pay any taxes which may be payable in respect of any transfer involved in
the issuance or delivery of any certificate for such shares in a name other than that of the Holder of the Series D Stock in respect
of which such shares of Common Stock are being issued.

 

Section
5.03 The Corporation shall reserve out of its authorized, but unissued, shares of Common Stock, solely for the purpose
of effecting the conversion of the Series D Stock, sufficient shares of Common Stock to provide for the conversion of all outstanding
shares of Series D Stock.

 

Section
5.04 All shares of Common Stock which may be issued in connection with the conversion provisions set forth herein will,
upon issuance by the Corporation, be validly issued, fully paid and non-assessable, not subject to any preemptive or similar rights
and free from all taxes, liens or charges with respect thereto created or imposed by the Corporation.

 

Section
5.05 In no event, shall a Holder of any Series D Stock be allowed to convert such shares of Series D Stock into Common
Stock which, upon giving effect to such conversion, would cause the aggregate number of shares of Common Stock beneficially owned
by the Holder, and/or its affiliates, to exceed four and nine tenths percent (4.9%) of the currently issued and outstanding shares
of the Corporation. In reference to the written notice of election to convert required by Article V Section 5.01 (b) above, the
Holder shall affirm in that notice, under penalty of perjury, the exact number of shares held by the Holder on the date of the
notice and the Corporation shall have the right to reduce any demand for conversion by a number such that the total number of shares
of Common Stock held by the Holder after conversion will not exceed four and nine tenths percent (4.9%) of the currently issued
and outstanding shares of Common Stock of the Corporation.

 

Section
5.06 Notwithstanding the limitations on conversion contained within Section 5.05 above, the limitations on conversion
contained therein may be waived, in the sole discretion of the Holder upon, and at the election of the Holder, not less than sixty-one
(61) days’ prior notice to the Company, and the provisions of the conversion limitation shall continue to apply until such
sixty-first (61st) day (or such later date, as determined by the Holder, as may be specified in such notice of waiver).

 

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EXHIBIT
A

 

Section
5.07 Effect of Subdivisions, Combinations and Dividends.

 

		(a)	In the event that the
Company shall at any time subdivide the outstanding shares of Common Stock, or shall issue a stock dividend on the outstanding
Common Stock, the Conversion Ratio in effect immediately prior to such subdivision or the issuance of such dividend shall be proportionately
increased and shall continue to be proportionately increased through any subsequent subdivision, subdivisions, issuance or issuances.

 

		(b)	In the event that the
Company shall at any time combine the outstanding shares of Common Stock, the Conversion Ratio in effect immediately prior to such
combination shall be proportionately decreased and shall continue to be proportionately decreased through any subsequent combination
or combinations.

Section
5.08 In no event may the Corporation combine or divide the number of shares of Series D Stock outstanding, nor change
the authorized number of shares of Series D Stock, except as otherwise approved by the affirmative vote or written consent of the
Holders of at least a sixty-seven percent (67%) of the Series D Stock issued and outstanding at the time of any such vote or written
consent.

 

Section
5.09 As used herein, the term “Face Value” shall mean Forty United States Dollars (US$40.00) per share of
Series D Stock. Notwithstanding the foregoing, if any agreement under which Series D Stock is subscribed specifies a different
Face Value, the Face Value so specified shall supersede and replace the Face Value specified herein.

 

ARTICLE
VI. Voting Rights.

 

Section
6.01 A Holder of Series D Stock shall be entitled to vote on any matter presented to the Common stockholders of the
Company for their action or consideration. Each shareholder of record of Series D Stock shall have six hundred (600) votes for
each Class D Stock share outstanding in his or her name on the books of the Corporation.

 

Section
6.02 Series D Stockholders are entitled to vote on matters relating to modifications, adjustments, waivers or other
changes or matters relating to Series D Stock. Each Series D Stock share shall have one (1) vote on matters relating to Series
D Stock.

 

ARTICLE
VII. Certain Covenants.

 

Section
7.01 Any Holder of Series D Stock may proceed to protect and enforce its rights and the rights of such Holders by any
available remedy by proceeding at law or in equity, whether for the specific enforcement of any provision in this Certificate of
Designation or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.

 

ARTICLE
VIII. Dividends.

 

Section
8.01 The Series D Stock shall not be entitled to dividends.

 

ARTICLE
IX. Notice to the Corporation.

 

Section
9.01 All notices and other communications required or permitted to be given to the Corporation hereunder shall be made
by first-class mail, postage prepaid, to the Corporation at its principal executive offices as may be fixed from time to time by
the Board of Directors. Any notice to a Holder shall me made to their address as set forth on the books and records of the Corporation.

 

{The
balance of this page left intentionally blank}

 

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EXHIBIT
A

 

	 	PAWS
    PET COMPANY, INC.
	 	 
	 	By:	 
		 	Daniel Wiesel, Chairman & CEO
	 	 	 
	Dated: October 29, 2013	 	 

 

    	Page 5 of 5Exhibit 10.3

 

Exhibit
10.3

 

EXHIBIT
C

 

ROYALTY
AGREEMENT

 

This
ROYALTY AGREEMENT (this “Royalty Agreement”), is made effective as of this 28th day of October
2013 (the “Effective Date”), by and among MESA PHARMACY, INC., a California corporation (“MESA”)
and PHARMACY DEVELOPMENT CORP., a California corporation (“PDC”), both having as their
principal place of business, 18013 Sky Park Circle, Suite D, Irvine, CA 92614 (collectively referred to hereinafter as
the “Parties”).

 

RECITALS

 

WHEREAS,
MESA is and has been a wholly owned subsidiary of PDC; and

 

WHEREAS,
PDC has entered into a Securities Exchange Agreement (the “SEA”) with THE PAWS PET COMPANY,
INC. (“PAWS”), whereby all of the ownership interests of MESA will be sold to PAWS; and

 

WHEREAS,
as PDC owes interest and principal on certain debentures and/or notes (the “PDC Notes”), the Parties
have decided to create a royalty interest in the sales of pharmacy products manufactured and sold by MESA.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the mutual covenants contained in this Royalty Agreement, and for other
good and valuable consideration including the cancellation of all outstanding intercompany loans due PDC by MESA,
if any, the receipt and adequacy are hereby acknowledged, the Parties agree as follows:

 

ARTICLE
I

DEFINITIONS

 

1.1Definitions.
Definitions of capitalized terms used in this Royalty Agreement shall have the
meanings given in Appendix A or elsewhere in the Royalty Agreement.

 

ARTICLE
II 

ROYALTY PAYMENTS

 

2.1
Royalties. MESA shall pay PDC five percent (5%) (the “Royalty”) of the amount actually collected by MESA
as royalties on each Prescription billed by Mesa during the Royalty Term, due and payable at the time each Prescription
is collected. Uncollectable Prescriptions will not be paid any royalty.

 

2.2
Termination of Royalty Obligations. This royalty payment obligation shall not terminate unless agreed to in
writing by PDC or the expiration of the Royalty Term as that term is defined herein below.

 

2.3
Notwithstanding the foregoing, PAWS shall have the option to reduce the Royalty or terminate this Royalty Agreement by;

 

	(a)		Cash payment to the holder of any of the PDC Notes, under the terms of the PDC Notes; and/or

 

	(b)		Issuance of its Series E Convertible Preferred
Stock (“Series E Stock”), subject to the subscription of the holder of any PDC Notes so settled.

 

Any
of the PDC Notes paid off by PAWS, whether through the issuance of Series E Stock or cash, shall reduce
the Royalty on a pro rata basis1. The PDC Notes are detailed as Exhibit B to the SEA and attached to and incorporated
herein as Exhibit A to this Royalty Agreement.

 

 

1 For
example: if the PDC Notes total $5,000,000 on the date of execution of this Royalty Agreement, then if PAWS issues payment
or issues Series E Stock that cancels $1,000,000 in the outstanding liability under the PDC Notes, the Royalty shall be reduced
from 5% to 4%.

 

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ARTICLE
III

REPORTS
AND PAYMENTS

 

3.1
Recordkeeping. MESA shall, and shall obligate its Affiliates to, keep full and accurate records (prepared in accordance with
United States Generally Accepted Accounting Principles consistently applied) of MESA’s or its Affiliates’ sales of
Prescriptions and such other matters as may affect the determination of any amount payable to PDC
hereunder, in sufficient detail to reasonably enable PDC or PDC’s representatives to determine any amounts payable
to PDC under this Royalty Agreement. Such records shall be kept at MESA’s or its Affiliates’ principal place
of business and, with all necessary supporting data, books and ledgers, shall, during all reasonable times for the 2
years following the end of the Accounting Period to which each shall pertain, be open for inspection at reasonable times
during normal business hours (and upon at least 30 days prior written notice) no more than one time per calendar
year by an independent audit firm selected by PDC (reasonably acceptable to MESA) for the purpose of verifying
the accuracy of any payment report required under this Royalty Agreement or any amount payable hereunder. The results of each inspection
shall be binding on both PDC and MESA absent mathematical error. PDC shall bear all costs associated with such inspections.

 

3.2
Reports. Within thirty (30) days after the end of each Accounting Period, MESA shall deliver to PDC a true
and accurate report, giving such particulars of the business conducted by MESA or its Affiliates during the preceding
4 Accounting Periods under this Royalty Agreement as are reasonably pertinent to an accounting for any royalty
or other payments hereunder, along with the amount of royalties payable for such Accounting Period. If no payments are due,
it shall be so reported.

 

3.3
Accounting. With each quarterly payment, MESA shall deliver to PDC the report described in Section 3.2, which shall
include, but not be limited to, the following information:

 

	(a)		Quantity of each Prescription sold by MESA or
its Affiliates during the applicable Accounting Period;

 

	(b)		The monetary amount, in the national currency
of such country, of such sales;

 

	(c)		Actual gross sales and Net Sales for each Prescription
(by country);

 

	(d)		The currency conversion rate used and U.S. dollar-equivalent
of such sales; and

 

	(e)		Total royalties payable to PDC including a calculation
thereof. All reports under this Section 3.3 shall be confidential information of MESA

 

ARTICLE
IV 

TERMINATION

 

4.1
Generally. This Royalty Agreement shall become effective on the Effective Date and shall expire on the expiration of
the Royalty Term.

 

4.2
Post-Expiration Obligations. Upon the expiration of this Royalty Agreement, MESA shall submit all reports
required by Section 3 and pay PDC all royalties due or accrued on the sale of Prescriptions up to and including the date
of expiration.

 

4.3
Survival. Upon the expiration of this Royalty Agreement, nothing herein shall be construed to release either
party from any obligation that matured prior to the date of such expiration and Section 5 shall survive any such expiration.

 

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ARTICLE
V

INDEMNIFICATION

 

5.1
Survival. All of the provisions of this Royalty Agreement shall survive the Closing indefinitely, except that the representations
and warranties of PDC, on the one hand, and the representations and warranties of MESA on the other hand, shall survive
until the first anniversary of the Closing Date.

 

5.2 Indemnity by
PDC. PDC shall indemnify and hold MESA and MESA’s directors, officers and employees
harmless against and in respect of any and all damages, losses, claims, penalties, liabilities, costs and expenses
(including, without limitation, all fines, interest, reasonable and actual legal fees and expenses and amounts paid
in settlement), that arise from or relate or are attributable to (and without giving effect to any tax benefit to the indemnified
party) (a) any misrepresentation or breach of any warranty by PDC in the Royalty Agreement or (b) any
breach of any covenant or Royalty Agreement on the part of PDC pursuant to its obligations under the Royalty Agreement.

 

5.3 Indemnity by
MESA. MESA shall indemnify and hold PDC and PDC’s directors, officers and employees
harmless against and in respect of any and all damages, losses, claims, penalties, liabilities, costs and expenses
(including, without limitation, all fines, interest, reasonable and actual legal fees and expenses and amounts paid
in settlement), that arise from or relate or are attributable to (and without giving effect to any tax benefit to the indemnified
party) (a) any misrepresentation or breach of any warranty by MESA in the Agreements or (b) any breach
of any covenant or agreement on the part of MESA pursuant to its obligations under the Royalty Agreement.

 

5.4
Notice to Indemnitor; Right of Parties to Defend. Promptly after the assertion of any claim by a third party or occurrence
of any event which may give rise to a claim for indemnification from an indemnifying party (“Indemnitor”)
under this Article IV, an indemnified party (“Indemnitee”) shall notify the Indemnitor in writing of such
claim. The Indemnitor shall have the right to assume the control and defense of any such action (including, but without
limitation, tax audits), provided that the Indemnitee may participate in the defense of such action subject to the Indemnitor’s
reasonable direction and at Indemnitee’s sole cost and expense. The party contesting any such claim
shall be furnished all reasonable assistance in connection therewith by the other party and be given full access to
all information relevant thereto. In no event shall any such claim be settled without the Indemnitor’s consent.

 

ARTICLE
VI

MISCELLANEOUS

 

6.1
Fees and Expenses. Each party to this Royalty Agreement shall pay the fees and expenses of its or its advisers,
counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiations,
preparation, execution, delivery and performance of this Royalty Agreement.

 

6.2
Entire Agreement; Amendments. This Royalty Agreement, together with the exhibits and schedules hereto,
contains the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such
documents, exhibits and schedules.

 

6.3
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder
shall be in writing and shall be delivered (a) by hand; (b) by recognized overnight courier; or (c) by certified
mail, return receipt requested, postage-prepaid. All of the foregoing shall be deemed given and effective on (x)
receipt, if delivered by hand; (y) the next business day after deposit, if sent by nationally recognized overnight courier;
or (c) the third (3rd) business day after deposit, if mailed. The address for such notices and communications shall be as
follows:

 

	If to MESA:	 	18013 Sky Park Circle, Suite D
	 	 	Irvine, California 92614
	 	 	Attn: CEO

 

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	If to PDC:	 	18013 Sky Park Circle, Suite D
	 	 	Irvine, California 92614
	 	 	Attn: COO

 

or such other address as maybe
designated by party in writing hereafter, by notice (given in the same manner).

 

6.4
Amendments; Waivers. No provision of this Royalty Agreement may be waived or amended except in a written
instrument signed, in the case of an amendment, by all the parties; or, in the case of a waiver, by the party against
whom enforcement of any such waiver is sought. No waiver of any default with respect to any provision, condition
or requirement of this Royalty Agreement shall be deemed to be a continuing waiver in the future or a waiver
of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise
any right hereunder in any manner impair the exercise of any such right accruing to it thereafter.

 

6.5
Headings. The headings herein are for convenience only, do not constitute a part of this Royalty Agreement and shall
not be deemed to limit or affect ay of the provisions hereof.

 

6.6
Successors and Assigns. This Royalty Agreement shall be binding upon and inure to the benefit of the parties and their successors
and permitted assigns. Neither party may assign this Royalty Agreement or any of the rights
or obligations hereunder without the written consent of the other party, which consent shall not unreasonably be withheld.

 

6.7
No Third-Party Beneficiaries. This Royalty Agreement is intended for the benefit of the parties hereto and
their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other person.

 

6.8
Governing Law. This Royalty Agreement shall be governed by and construed and enforced in accordance with
the internal laws of California without regard to the principles of conflicts of law thereof. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in Washoe County, Nevada, for
the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein (including with respect to the interpretation or enforcement of this Agreement), and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is improper. Each party hereby
irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
by mailing a copy thereof to such party at the address in effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner permitted by law.

 

6.9
Attorneys’ Fees. In any suit, action or proceeding brought with respect to interpretation or enforcement of this
Agreement, the prevailing party shall be entitled to recover attorneys’ fees and costs from the non-prevailing party
at both the trial and appellate levels.

 

6.10
Construction. In the construction of this Royalty Agreement, the rule of construction that a document is to
be construed most strictly against a party who prepared the same shall not be applied, it being agreed that all parties have participated
in the preparation of the final form of this Royalty Agreement.

 

6.11
Execution. This Agreement may be executed in two or more counterparts, all of which when taken together
shall be considered one and the same agreement and shall become effective when counterparts have been signed
by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the
event that any signature is delivered by facsimile or .pdf transmission, such signature shall create a valid and binding obligation
of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such
facsimile signature page were an original thereof.

 

6.12
Severability. In case any one or more of the provisions of this Agreement shall be invalid or unenforceable in
any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any
way be affecting or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that
shall be a reasonable substitute therefore, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

 

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IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

	 	MESA PHARMACY, INC.
	 	 	 
	 	By:	 
	 	Name:	Andrew Do
	 	Title:	Chief Executive Officer
	 	 	 
	 	PHARMACY DEVELOPMENT CORP.
	 	 	 
	 	By:	 
	 	Name:	Edward Kurtz
	 	Title:	Chief Operating Officer

 

    	Page 5 of 5

    	 

    

APPENDIX
A

DEFINITIONS

 

	Accounting Period	 	The end of each month commencing on the date that is the end of the first month after the Effective Date of this Royalty Agreement.
	 	 	 
	Affiliate	 	(a) in
    the case of corporate entities, direct or indirect ownership of at least 50% of the stock or
    participating shares entitled to vote for the election of directors or the power to control
    such entity; and
	 	 	(b)
    in the case of non-corporate entities, direct or indirect ownership of at least 50% of the equity interest or the power to control such entity.
	 	 	 
	Net Sales	 	Without
    duplication, all Prescription-based gross revenues invoiced by MESA or any of its Affiliates
    of Prescriptions in the jurisdiction in which such sales occurs, to the extent attributable,
    less all reasonably related expenses or other accruals relating thereto including but not limited to:
	 	 	 
	 	 	(1) the cost to MESA of manufacturing and
    distribution of Prescriptions;
	 	 	 
	 	 	(2) royalties or the like paid to third parties on Prescriptions;
	 	 	 
	 	 	(3) discounts, rebates and deductions, or any other consideration accrued to customers (including   group   purchasing   organizations) based on volumes and/or
    revenues commercialized,     or any other deductions or the like allowed (whether in cash or trade) to wholesalers or
    distributors or to other customers for quantity purchases, prompt payments or other special conditions;
	 	 	 
	 	 	(4) credits,
    write-offs, collection fees, allowances or refunds, not exceeding the original invoice
    amount, for claims, returns, collections or bad debts, and any other allowances made for returned or deficient goods
    or services;
	 	 	 
	 	 	(5) transportation
    expenses, including any and all carriage or insurance charges, packaging, freight, and costs of delivery;
    and
	 	 	 
	 	 	(6) sales
    and use taxes and other fees or taxes imposed by any government or governmental agency,
    including, but not limited to any import, export or customs duties.
	 	 	 
	 	 	Net Sales shall be determined from books and records maintained in accordance with United States Generally Accepted Accounting Principles,
    consistently applied     throughout the organization and across all sales of Prescription are giving
    rise to Net Sales.
	 	 	 
	Prescription(s)	 	Any  compounded  pain  management  cream  produced  by  MESA  under  this  Royalty Agreement,
	 	 	 
	Royalty Term	 	The date that is twenty (20) years from the Effective Date.
	 	 	 
	Territory	 	The entire world.

 

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