Document:

ex101.htm

ACQUISITION AGREEMENT

 

between

HCI VIOCARE TECHNOLOGIES LIMITED

 Centrum Offices, 38 Queen Street, Glasgow, G1 3DX, Scotland UK

 

and

 

CHRISTOS KAPATOS 

66 Stewarton Drive, Cambuslang, Glasgow G72 8DG, Scotland, UK

  

  

  

                                                                                        CONTENTS

 

	 	 Clause	Page No.
	
    1.

	
Definitions

	
3

	
2.

	
Commencement and Duration

	
7

	
3.

	
The Project

	
7

	
4.

	
Good Faith

	
8

	
5.

	
Company's Representative

	
8

	
6.

	
Acquisition and Consideration

	
9

	
7.

	
Intellectual Property Rights

	
10

	
8.

	
Infringement

	
10

	
9.

	
Exploitation

	
11

	
10.

	
Warranties and Representations

	
12

	
11.

	
Indemnities and Limitation of Liability

	
13

	
12.

	
Confidentiality

	
13

	
13.

	
Statements

	
14

	
14.

	
Protection of Business Interests

	
14

	
15.

	
Termination

	
16

	
16.

	
Consequences of Termination

	
16

	
17.

	
Entire  Agreement

	
16

	
18.

	
Variation

	
16

	
19.

	
Waiver

	
16

	
20.

	
SeverabiIity

	
17

	
21.

	
Assignation

	
17

	
22.

	
Force Majeure

	
17

	
23.

	
Notices

	
17

	
24.

	
Governing Law

	
18 

	  	
SCHEDULE

	  
	  	
Part 1 - Details  of the Project

	
19  

	  	
Part 2 -Individual's Background IPR

	
       20

  

Page 2 of 20

  

ACQUISITION AGREEMENT

THIS AGREEMENT (the "Agreement") dated as of April 17, 2014 is made by and between HCI VIOCARE TECHNOLOGIES  LIMITED, a company registered in the UK under number 467480, whose registered office is at Centrum Offices, 38 Queen Street, Glasgow, G1 3DX, Scotland UK (the "Company"); and CHRISTOS KAPATOS, resident of 66 Stewarton Drive, Cambuslang, Glasgow G72 8DG, Scotland UK (the "Individual")

WHEREAS:

(A)          The  Individual  is  the  proprietor  of  the  Individual's  Background  IPR,  which  the Company wishes to acquire in order to undertake the Project;

(B)           the Individual is willing to assign the Individual's Background IPR to the Company for the purposes of the Project and to enable the Exploitation of the results of the Project; and

(C)           the  Parties  wish  to  record  in  writing  the  terms  on  which  they  have  agreed  to collaborate in the Project and in the Exploitation of the results of the Project.

NOW THEREFORE, it is hereby agreed as follows:

1.  Definitions

 

1.1. In this Agreement, unless the context requires  otherwise,  the following  words and phrases shall have the meanings set opposite them:

"Agreement"  means this Agreement together with the Schedule and recitals;

"Commencement Date" means 16 January, 2014, notwithstanding the date or dates of execution of this Agreement;

"Confidential Information"  means  any  and  all  confidential   and   proprietary information of any of the parties, including,  but not limited to, information relating to the business, finances,  transactions  and  affairs  of  any  of  the parties,  and  any  other  information  which  is designated as confidential by a Party or which, because of its character or the circumstances or manner of its disclosure is evidently confidential;

"Consideration"   means the consideration  as defined under Section 6.1 herein

 

"Documentation" means   all   papers   relating   to   the   Individual's Background IPR,    their    applications,     designs, drawings, research production, prototypes and formulation details;

  

Page 3 of 20

  

"Employment Contract" means the contract of employment referred to in clause 3. 2;

"Exploitation" means the commercial exploitation of the Individual’s Background  IPR,  the Foreground  IPR, and/or any Patent,  and "Exploit" shall be construed accordingly;

 

"Exploitation Proceeds"  means  any and all proceeds  generated  from the Exploitation of the   Individual's Background   IPR, the Foreground   IPR and/or any Patent by way of licensing to a third party other than a Spin-out Company, which are received by the Company, whether in money or money's worth,  including,  for the avoidance of doubt, cash, or shares in a company other than a Spin-out Company;

 

"Foreground IPR"  means   all   and   any   IPR   arising,    created   or developed  in  the  course  of  and  relating  to  the Project but excluding  all the Individual's Background IPR;

"Group Company"   means any undertaking which from time to time is: (a) a subsidiary of the Company; (b) apparent undertaking of the Company; or (c) a subsidiary of any such parent undertaking where "subsidiary undertaking" and "parent undertaking" have the meanings  given  to  them  in  the  Companies  Act 1985 section 258;

"Individuals IPR" Background   means any and all IPR owned or available for use by the Individual, acquisition of which the Company determines is necessary or desirable for the purposes of the Project, including but not limited to that which is set out in Part 2 of the Schedule;

"IPR"  means any and all intellectual property or industrial rights of any description anywhere in the world includingwithout    limitation    to    the    foregoing generality any patents, trademarks, domain names, registered  designs, copyright  (including  without limitation   to the foregoing generality rights in computers  software, object and source code), rights in  the  nature  of  copyright,  database  rights,  semi­conductor  topography  rights,   unregistered  design rights,   rights  in  and  to  trade   names,  business names,  product names  and logos, inventions, databases, discoveries, specifications formulae, processes, know  how,  trade  secrets,   confidential information and any analogous or similar right in any jurisdiction (whether  any  such rights referred  to in this definition are registered, unregistered, registerable or not), and any   applications or rights to apply for registration of any of them together with any registered rights resulting from  any such applications or rights to apply for registration;

"Knowhow" means   all  knowhow   relating  to   the   Individual's Background IPR and the Project;

 

"New Individual IPR" shall have the meaning given to it in Clause 6.4;

 

 "New Version" shall mean, after the development of the insole contemplated by this agreement to a commercial product, market ready (the "Market Ready Insole"), any update or improvement to the Market Ready Insole that that is developed to commercial market ready stage;

  

Page 4 of 20

  

"Parties" "Patent(s)" means the Company and the Individual and "Party" shall be construed accordingly;

"Permitted Costs" means any and all patent applications filed by the Parties  in  accordance  with  Clause  7. 3  and  any patents granted pursuant to such applications; means those incurred by the Company and arising from the following:

 

a)           the  filing,   prosecution,   procurement   and maintenance   of   any   Patent(s)  after  the commencement of Exploitation;

 

b)           proceedings  before  the  Patent  Office  or other appropriate forum, including any appeals;

 

c)           professional  advice  (including  consultant's and  advisers'  fee)  on  the  Patent(s)  and other  intellectual  property  matters  relating The Individual acknowledges and agrees that each of sub-paragraphs 14. 1.1 to Patent(s) or the Foreground IPRs;

 

d)           proceedings by or against the Company in any court or tribunal for the enforcement or defence of any Patent or for revocation of or opposite onto any such Patent or for any other cause relating to the Individual's Background IPR or the Foreground IPRs (including   any   costs   or   sums   awarded against the    Company    in    any    such proceedings);

 

e)            agents' commission;

 

f)            marketing and public relations activities in relation to the Individual's Background IPR, the Patent(s) and/or any Foreground IPRs;

 

g)           establishing  and  managing  any  Spin-out Company;

 

h)           negotiating  and  managing  any  licence  of the Individual's Background IPR, the Patent(s) and/or any Foreground IPRs;

 

i)            arranging  and maintaining any intellectual property insurance in  respect of  the Individual's Background IPR, the Patent(s) and/or any Foreground IPRs;

 

j)            any tax,  charges,   duties,  deductions  or withholdings which  the Company is required to pay or make by law; and

 

k)           any other expenditure which may be agreed from time to time by the Individual and the Company;

 

"Project" means  the  final  development of the technology entitled 'Smart Insole" for the Company to take it to the market, and the funding of any ongoing and/or further development for the purposes of the Project, as  more  generally   described   in   Part  1  of  the Schedule;

  

Page 5 of 20

  

"Schedule" means the schedule in two (2) Parts annexed to this Agreement which shall be deemed incorporated herein;

"Spin-out Company" means any separate legal entity established by the Company  as  a  vehicle  to  Exploit  the  Foreground IPRs;

 

1.2. In this Agreement:

 

1. 2.1.  the use of the singular includes the plural and vice versa;

 

1.2.2. references to gender include references to all genders;

 

1.2.3. unless  otherwise  stated,  any  reference  to  a  Clause  or  Schedule  is  to  the relevant Clause or Schedule of or to this Agreement and any reference to a sub­ clause or paragraph is to the relevant sub-clause or paragraph of the Clause or Schedule in which it appears;

 

1.2.4.  the Clause headings are for reference only and will not affect the construction or interpretation of this Agreement; and

 

1. 2.5. references  to  statutes,  any  statutory  instrument,  regulation  or  order  will  be construed as a reference to such statute, statutory instrument, regulation or order as amended or re-enacted from time to time.

 

1.3. In this Agreement, except where the context otherwise requires, any reference to:

 

1.3.1. another  agreement  or  any  deed  or  other  instrument  or  document  will  be construed as a reference to that other agreement, deed or other instrument or document as the same may have been,  or may from time to time be, amended, varied, supplemented or notated;

 

1.3.2. the  words  "include"  or "including"  are  to  be  construed  as  meaning  without limitation;

 

1.3.3. a "day" means a period of 24 hours (or such other number of hours as may be relevant in the case of changes for daylight saving) ending at 12.00 midnight;

 

1.3.4. a "week" means a period of 7 consecutive days;

  

Page 6 of 20

  

 

1. 3.5. a "month" means a calendar month; and

 

1.3.6. a "person" includes any individual, partnership, firm, company, corporation, joint venture, trust, association,  organisation or other entity,  in each case whether or not having a separate legal personality.

2.  Commencement and Duration

 

This Agreement shall commence on the Commencement Date and shall continue unless terminated in accordance with the provisions of this Agreement.

3.  The Project

 

3.1. The Project will be undertaken by the Company.

 

3.2. The Company shall engage  the Individual as an employee  on such terms and to perform such duties in relation to the Project as the Parties may agree in a contract of employment to be agreed between them. The Individual shall comply with the terms of the Employment Contract failing which he shall be deemed to be in material breach of this Agreement.

 

3.3. The  Individual  will  at all times  during  the  period  of this Agreement use  his best endeavours to promote the interests of the Company.

 

3.4. The  Individual  warrants  that  he  will not,  as  a  consequence  of entering  into  and performing his obligations under this Agreement and the Employment Contract, be in breach of any terms express or implied (whether concerning confidentiality, non­ competition or otherwise) of any contract, agreement or other arrangement with,  or any obligation to, any third party binding upon the Individual and that the Individual is under no obligation,  covenant  or restriction  which would or might  give rise to any conflict of interest between the Individual and the Company or any Group Company.

  

Page 7 of 20

  

4.  Good Faith

 

4.1. Subject to sub-clauses 4.2 and 4.3, the Individual may have a financial interest in or advise or act as a consultant to any business  provided that the Individual will not during the period of his involvement in the Project or his engagement under the Employment  Contract  (unless  with  the  prior  written  consent  of  the  Company) undertake any other activities or accept other engagements which may interfere with or detract from the Individual's obligations,  whether as specified in this Agreement or the  Employment  Contract  or  otherwise.  In  the  event  of  a  conflict  between  the Individual's foregoing obligations and the Individual's obligations to any third party, the Individual's foregoing obligations to the Company or any Group Company shall take precedence.

 

4.2. The  Individual  will  not  use  or  otherwise  turn  to  the  Individual's  advantage  the Individual's knowledge  of any connection or contact with any of the manufacturers used by customers of, or suppliers to the Company or any Group Company or any prospective manufacturers, customers or suppliers in a manner that is detrimental to the interests of the Company or any Group Company.

 

4.3. The Individual  will not receive or obtain directly  or indirectly  any discount,  rebate, commission  or  other  benefit  in  respect  of  any  goods  or  services  supplied  to  or acquired by the Company or any other business transacted by it and, if the Individual does receive any such discount,  rebate,  commission or other benefit, the Individual will account to the Company for it.

5.  Company's Representative:

 

The person within the Company who will act as the main contact point and channel of communication for the Project during the period of this Agreement is Sotirios Leontaritis. The Company will inform the Individual of any change in the identity of such person.

  

Page 8 of 20

  

6.  Acquisition and Consideration

 

6.1. In consideration for the acquisition, the Company shall cause the issuance of:

 

(i)  a total of five hundred thousand (500,000) common shares the common stock of HCi  VioCare  the  parent  corporation  of  the  Company,  to  the  Individual,  which shares shall be issued on the execution of this Agreement and shall be subject to such restrictions as may be required by the requisite regulatory authorities   (the "Consideration Shares");

 

(ii) a total of five hundred thousand (500, 000) common shares the common stock of HCi  VioCare,  the  parent  corporation  of  the  Company,  to  the  Individual,  which shares shall be issued for each and every New Version of the technology   (the "Additional Consideration Shares");

6.2. (iii)  a  cash  bonus  in  the  amount  of  ten  million  USD  ($10,000,000)  should  the technology be sold, at any stage of development for the amount equal to or greater than five hundred thousand USD ($500,000,000) cash or the equivalent thereof by way of any other consideration (the "Cash Consideration"); The Individual hereby assigns   exclusive,   perpetual,   irrevocable,   transferable,   royalty  free,   worldwide ownership of the Individual's Background IPR and Knowhow to the Company for the purposes  of using it to the extent  necessary  or desirable  to further  develop  and exploit the Individual's Background IPR, and to create, develop and exploit the Foreground IPR.

 

6.3. The Individual shall, to the extent he has not already done so, disclose all of the Individual's background IPR to the Company and deliver all Documentation to the Company.

 

6.4. 1f,  following the Commencement  Date,  the Individual undertakes any research and development work based on or relating to the Individual's Background IPR and IPR is created or arises as a result of such research and development work ("New Individual IPR") then from the date of its creation, such New Individual IPR shall (unless it otherwise belongs  to the Company by  virtue of the Employment Contract)  form part of  Individual's  Background  IPR  and  shall  be  the  Company's  exclusive  property pursuant to Clause 6.1. The Individual shall disclose all such New Individual IPR to the Company promptly after its creation or arising.

 

6. 5. The Individual shall, at the request and expense of the Company, promptly execute any  further  document  and  perform  any  further  action  which  may  be  reasonably required by the Company to provide the full benefit of this Clause 6 to the Company and to give full effect to the intention of the Parties to this Agreement.

 

Page 9 of 20

  

7. Intellectual Property Rights

 

7.1. Subject to Clause 7. 4, the Parties hereby acknowledge and agree that any and all Foreground IPR arising or created out of the Project shall be the exclusive property of the Company, and the Individual hereby agrees that he shall not acquire any right to any Foreground IPR.

 

7.2. The  Parties  hereby  acknowledge  and  agree  that  the  Company  shall  be  solely responsible for all decisions relating to the preparation, filing, and maintenance of any Patent comprised with the Individual's Background IPR and/or the Foreground IPR.

 

7. 3. The  Company  shall  procure  that  any  Patent  comprised  within  the  Individual's Background IPR and/or the Foreground IPR shall be filed in the joint names of the Company and the Individual, and that the Individual shall be named as inventor in any such Patent.

 

7.4. The  Individual  hereby  assigns  to  the  Company  exclusive,  perpetual,  irrevocable, transferable,  royalty free,  worldwide  ownership of the Individual's  rights in,  to, and under any Patent.

 

7. 5. All costs,  fees  and expenses  relating  to the prosecution and maintenance  of any Patent application (or application for other intellectual property) shall be borne by the Company.

 

8.  Infringement

 

8.1. Each party shall promptly and fully notify the other of:

 

8.1.1.  any actual,  threatened or suspected infringement which comes to its notice of any of the individual's Background IPR or of any Foreground IPR or of any of the Company's Patents irrespective of when such infringement occurred; and

 

8.1.2. any proceedings threatened or commenced against it in which the validity of any  Individual's  Background  IPR  or  of  any  Foreground  IPR  or  any  of  the Company's Patents is challenged irrespective of when such challenge arose.

 

8.2. As soon as practicable after any such notification has been given pursuant to Clause 8.1, the Company shall notify the Individual whether or not it has decided that the proceedings  shall be  defended  in the  circumstances  referred  to  in Clause  8.1. 2 limited to any of the Individual's Background IPR.

 

8.3. In the event that the Company notifies the Individual that it has decided not to defend any proceedings pursuant to Clause 8.2., the Individual shall be entitled to take such action as it sees fit subject to informing the Company  of its proposed action and advising the Company of the outcome.

 

8.4. Any action taken pursuant to Clause 8.2 will be at the Company's sole expense and any action taken pursuant to Clause 8.3 will be at the Individual's sole expense.

 

8.5. As exclusive owner the Company shall be free to take such actions as contemplated by Clause 8.2 above (and irrespective of when the challenge  occurred) in its own name provided that it consults reasonably with the Individual in this regard prior to such action being taken.

 

  

Page 10 of 20

  

8.6. Where the Company takes action as provided for in 8.2 above, any award, damages or settlement monies awarded shall accrue to the benefit of the Company,  provided that any reasonable and properly validated costs incurred by the Individual in a court action shall be fully reimbursed by the Company.

 

8.7. 1f for any reason (other than lack of funds) the Company cannot take such action as is contemplated  by  Clause   8.2  above   but  does  wish  to  defend  or  commence proceedings or if the Company, as  exclusive owner, is  unable to  pursue  any proceedings unless the Individual is joined as a pursuer or defender,  the Company can require the Individual to take such action in the Individual's own name, subject to the following:

 

8.7.1. the costs reasonably and necessarily incurred by the Individual shall  be met by the Company as they fall due (and the Individual shall keep the Company fully advised of the extent and nature of all such costs as soon as the Individual becomes aware of the same);and

 

8.7.2. any  award,  damages  or  settlement  monies  awarded  to  the Individual  shall accrue to the benefit of the Company and,  if received by the Individual,  shall be held by the Individual as agent for the Company. For the avoidance of doubt, if the Individual takes such action pursuant to Clause 8.3., any award, damages, or settlement monies awarded to the Individual as a result of such action shall accrue to the benefit of the Individual.

 

8.8. The  Individual  shall  do  all  such  things  and  execute all  such  documents  as  may reasonably  be  required  of  it  by  the  Company  for  the  purpose  of  assisting  the Company in bringing or defending any proceedings as contemplated by Clause 8.2, and the Company shall bear the cost of the provision of such assistance.

 

8.9. For the avoidance  of doubt,  in no circumstances can the Individual  agree  to the settlement of any such action as contemplated by Clause 8.2 above, without the prior written consent of the Company.

 

9.  Exploitation

 

9.1. The  Parties  hereby  acknowledge  and  agree  that  the  Company  shall  be  solely responsible for all decisions relating to the Exploitation of the Individual's Background IPR, the Foreground IPR and/or any Patent.

 

9.2. In the event that the Individual's Background IPR,  the Foreground IPR and/or any Patent is exploited by way of the Company establishing a Spin-out Company:

 

9.2.1. the Company shall procure that the Spin-out Company is granted a licence or sub-licence  of the Individual's  Background  IPR,  the Foreground IPR  and any Patent on such terms as may be negotiated with the Spin-out Company;

 

9.2.2. if required by the Spin-out Company or its prospective investors, the Company shall assign the Individual 's Background IPR to the Spin-out Company;

  

Page 11 of 20

  

10. Warranties and Representations

 

10.1.  The Individual represents and warrants to the Company that:

 

10.1.1. to the best of his knowledge and belief, the Individual is the true and sole owner of the Individual's Background IPR and there are and will be no liens, charges,  encumbrances  or  restrictions  which  affect  the  Company's  ability  to acquire the Individual's Background IPR in accordance with this Agreement;

 

10.1.2.  the Individual has not assigned property or granted any licence of the Individual's Background IPR to any other person, company or undertaking;

 

10.1.3.  the Individual  is not aware that any third party owns or claims that it owns any rights which would be infringed by the acquisition of the Individual's Background IPR by the Company in accordance with the provisions of this Agreement;

 

10.1.4.  to the best of the Individual's knowledge and belief, no third party has infringed or threatened to infringe or is infringing or threatening to infringe the Individual's Background IPR; and

 

10.1.5. the Individual has full power and authority to enter into and perform his obligations under this Agreement without being in breach of any obligation or undertaking to any third party.

 

10. 2. The Company represents and warrants to the Individual that:

 

10. 2.1. the Company  is a corporation  duly organized,  validly existing,  and in good standing under the laws of Scotland, with full corporate power, authority and capacity to conduct its business as presently conducted, to own or use the properties  and  assets  that  it  purports  to  own  or  use,  and  to  perform  all  its obligations under any applicable contracts;

 

10.2.2. the Company has all requisite corporate power and authority to execute and deliver the Agreement to be signed by the Company and to perform its obligations hereunder and to consummate the Acquisition. The execution and delivery  of  the  Agreement  by  the  Company  and  the  consummation  of  the Acquisition   have   been  duly   authorized   by  the   board  of  directors   of  the Company. Other than as set out in this Agreement, no other corporate or shareholder proceedings on the part of the Company are necessary to authorize the Agreement or to consummate the Acquisition. This Agreement has been, and the Consideration when issued and delivered by the Company as contemplated by this Agreement will be, duly executed and delivered by the Company and this Agreement is a valid and binding obligation of the Company enforceable in accordance with its respective terms; and

 

  

Page 12 of 20

  

10.2.3.          the Consideration Shares and the Additional Consideration Shares to be issued  to the Individual pursuant  to this Agreement  will,  upon issuance,  have been  duly  and  validly  authorized  and,  the  Consideration  Shares  and  the Additional Consideration Shares when so issued in accordance with the terms of this Agreement, will be duly and validly issued, fully paid and non-assessable shares in the capital of HCi VioCare.

11.1ndemnities and Limitation  of Liability

 

11.1. The Company  shall indemnify the Individual on demand in respect of all loss, damages, costs, claims, demands and expenses (including all legal and other professional fees and expenses on a full indemnity basis but always excluding all indirect losses) suffered or incurred by the Individual as a result of any breach by the Company of this Agreement or as a result of any negligent act or omission of the Company in connection with this Agreement.

 

11.2. The Individual shall indemnify the Company on demand in respect of all loss, damages, costs, claims, demands and expenses (including all legal and other professional fees and expenses on a full indemnity basis but always excluding all indirect losses) suffered or incurred by the Company or any Group Company as a result of any breach by the Individual of this Agreement or as a result of any negligent act or omission of the Individual in connection with this Agreement.

 

11. 3. Subject  to  Clause  11.4,  the  aggregate  liability  of  each  Party  to  the  other, whether  in  contract,   delict  (including  negligence  or  breach  of  statutory  duty)  or otherwise arising in connection with this Agreement shall not exceed five (5) years.

 

11.4.  Nothing in Clause 11. 3 shall exclude or limit the liability of a Party for death or personal injury caused by that Party's negligence,  nor for any matter, in respect of which it would be illegal for that Party to exclude or limit, or attempt to exclude or limit, its liability.

 

12. Confidentiality

 

12.1.  The Parties agree and undertake that during the term of this Agreement and thereafter they will keep confidential and will not use for their own purposes except for the performance of this Agreement nor, without the prior written consent of the Party who discloses the relevant Confidential Information, disclose to any third party any Confidential Information provided to them, unless:

 

12.1.1. the receiving  Party can show such information is public knowledge  or already known to the receiving Party at the time of disclosure,  or subsequently becomes public knowledge other than by breach of this Agreement; or 

 

12.1.2  the receiving Party can show that such information subsequently comes lawfully into the possession of the receiving Party from a third party without an obligation of confidentiality; or

 

12.1.3. Clause 12.3 applies to such information, to the extent only as permitted by these Clauses.

 

12. 2. Any Confidential Information disclosed by any Party to any other Party prior to the execution of this Agreement and/or the Commencement Date shall be considered as having been disclosed under this Agreement.

 

12.3. Any party may disclose Confidential Information to the extent it is required to do so by a statutory,  legal,  regulatory or parliamentary obligation placed upon the Party making the disclosure (including in the case of the Company, its obligations to Audit Scotland  and  any  successor  body  to  Audit  Scotland),   provided,  to  the  extent practicable,  that the Party obliged to make the disclosure will provide the Party to whom the Confidential Information belongs with a reasonable opportunity to make representations to the body compelling such disclosure as to the nature and extent of the disclosure required and the procedures for maintaining confidentiality of the Confidential Information to be disclosed.

  

Page 13 of 20

  

 

13. Statements

 

The Individual, will not at any time whether during the term of this Agreement or at any time thereafter make any public statement in relation to the Company or its businesses,   affairs, customers or clients or officers and employees except when both the making of and terms of any such statement have been approved by the Company.

14. Protection  of Business Interests

 

14.1. Since the Individual is likely, in the course of the Project, to have access to Confidential Information and dealings with the customers,  clients and suppliers and other contacts of the Company or any Group Company, he hereby agrees, in order to safeguard such Confidential Information and the good will of the Company and any such Group Company that, in the event of the termination of this Agreement he shall not for a period of five (5) years (except where expressly stated otherwise in this Clause 14.1) from the date of such termination:

 

14.1.1.  in  competition  with  the  Company,  entice  or  solicit,  or  endeavour  to entice or solicit, away from the Company or any  Group Company, the custom or business of any person,  company or other undertaking,  who or which is or has been a customer or client of the Company or such Group Company, and with whom or which the Individual has regularly dealt at any time during the five (5) years immediately  prior to the date  of such termination  in the course  of the Project or by reason of services rendered to or offices held by him in or his employment by the Company or any Group Company; or

 

14.1.2.  in competition with the Company, accept any business from any person, company, or other undertaking, who or which is or has been a customer or client of the Company or any Group Company and with whom or which the Individual has regularly dealt at any time during the five (5) years immediately prior to the date of such termination in the course of the Project or by reason of services rendered to or offices held by him in or his employment by the Company or any such  Group  Company,   provided  that  this  restriction  shall  not  prohibit  the Individual from having business dealings with or accepting business from any such person,  company or other undertaking in respect of any business which is not in competition with the Company or any such Group Company as at the date of such termination  and in which  the Individual  was concerned  to a material or

 

14.1.3. without  the   prior  written   consent  of  the  Company,   be  engaged, interested or concerned in any business carried on, or about to be carried on, by any person, company or other undertaking which is in competition with any business carried on by the Company or any Group Company as at the date of such termination in any territory in which such business was carried on, provided that this restriction shall not prohibit (i) the Individual from being engaged, interested or concerned in any such business, company or other undertaking so far as his/her involvement therein or duties in connection therewith shall relate exclusively  to  work  of  a  kind  or  nature  with  which  the  Individual  was  not concerned to a material extent during the five (5) years immediately prior to the date of such termination; or (ii) the Individual from being beneficially interested in any class of securities in any company, if such class of securities is listed or dealt in a recognized  stock exchange where the Individual (together with his spouse and children) neither holds nor is interested in more than five percent (5%) of any single class of securities in that company; or

 

14.1.4. entice  or  solicit,   or  endeavour  to  entice  or  solicit,   away  from  the employment  of  the  Company  or  any  Group  Company  any  person  who  was senior employer or consultant at anytime in the five (5) year period prior to the date of the termination of the Agreement and with whom the Individual regularly dealt  or  had  contact  in  the  course  of  the  Project  or  by  reason  of  services rendered to or offices held by him in or his employment by the Company or any such Group Company; or

 

  

Page 14 of 20

  

14.1.5. employ  or  engage  any  person  who  was  a  senior  employee  of  or consultant  to  the  Company  or  any  Group  Company  or  any  employee  or consultant who has Confidential Information about a customer or client of the Company or any Group Company for a period of five (5) years from the date on which this Agreement terminates; or

 

14.1.6. at any time after the date of termination of this Agreement carry  on business or trade under a name which is identical or similar to any name used by the Company or any Group Company; or

 

14.1.7. at any time after the termination of the Agreement do or say anything which might reasonably be expected to be harmful to the reputation of the Company or any Group Company or which may lead any person to cease to do business with the Company or any Group Company on substantially the same terms to those previously offered or at all.

 

The  restrictions  set  out  in  this Clause  14.1  shall  apply  to  any  action  taken  by  the Individual in any capacity (whether as principal,  agent,  representative,  partner,  director, employee, party to a joint venture, consultant or otherwise).

 

14.2.   On the termination of this Agreement (how so ever caused), the Individual shall not, at any time thereafter,  represent himself still to be connected with the Company or any Group  Company,  except  with the  prior  consent,  or  at the request,  of the Company or to the extent that he shall be so connected as a result of being a shareholder or director of the Company or any Group Company.

 

14.3 The Individual acknowledges and agrees that each of sub-paragraphs 14. 1.1 to 14. 1.7 (inclusive) of Clause 14.1 constitutes an entirely separate and independent restriction on him and that the duration, extent and application of each of such restrictions  are  no  greater  than  is  necessary  for  the  protection  of  the  legitimate interests  of  the  Company  and  any  Group  Company  for  which  he is  required  to perform duties.

 

14.4. While the restrictions set out in sub-paragraphs 14.1.1 to 14.1.7 (inclusive) of Clause 14.1 are considered by the Parties to be reasonable in all the circumstances, it is acknowledged that restrictions of such a nature may fail or become invalid for technicalreasons   unforeseen   or   because   of   changing   circumstances   and, accordingly,  the Parties agree that,  if any of such restrictions shall adjudged to be void or ineffective as going beyond what is reasonable in all the circumstances for the protection of the interests of the Company or for any other reason but would be valid and effective if part of the wording thereof was deleted and/or any period or are a referred to therein reduced in time or scope, such restrictions shall apply with such deletions or modifications as may be necessary to make them valid and effective.

  

Page 15 of 20

  

15. Termination

 

15.1.       This Agreement may be terminated by written notice with immediate effect in any of the following events:

 

    15.1.1.   by the Individual in the event of the liquidation (except for the purposes of a solvent reconstruction or amalgamation) or receivership of the Company or the appointment of an administrator of the Company or its ceasing or threatening to cease trading; or

 

15.1.2.    by the Individual or the Company in the event of the material breach by the other(s) of any of its or their obligations hereunder which is irremediable or if it can be remedied,  remains without remedy on the expiry of thirty (30) days after receipt by the Party in breach of written notice from the Party serving notice specifying the breach and the action required to remedy same; or

 

15.1. 3.   by the Company if the Individual is in material breach of the Employment Contract or the Individual is in breach of any of the warranties set out in Clause 10; or

 

15.1.4.    by the Company if it decides at any point to terminate the Project for any reason.

 

15.2.      Termination of this Agreement shall not affect any rights or obligations of the Parties in respect of the period up to the date of termination nor shall it affect any rights or obligations of the Parties which, due to the nature thereof, are due to be performed or observed following such termination, including but not limited to Clauses 4. 2, 4.3, 6.1, 6.2, 6.4, 6. 5, 7, 8.8, 8. 9, 9.1, 10, 11, 12, 13, 15, 16 and 24.

16. Consequences of Termination

 

In the event of termination of this Agreement by the Individual under Clause 15.1.1 or by the Company under Clause 15. 1.4, the Company shall in good faith negotiate with the Individual a renunciation of the ownership of IPR assigned to the Company under this Agreement and an assignation of the Company's interest in the Foreground IPR and any Patent(s).

 

17. Entire Agreement

 

This Agreement constitutes the entire agreement and understanding between the Parties with respect to the subject matter hereof and cancels,  terminates and supersedes any prior agreement or understanding entered into between the Parties,  provided that nothing in this Clause 17 shall have effect to exclude liability of any Party for fraud or fraudulent misrepresentation.

18. Variation

 

None of  the provisions  of this Agreement may be  varied,  waived,  extended or modified except expressly in writing and signed by both Parties.

19.Waiver

 

Any omission by either Party to exercise any right or remedy available to that Party under the terms of this Agreement shall not be taken to signify acceptance of the event giving rise to the right to exercise such right or remedy and shall be without prejudice to the future exercise of any such right or remedy and/or to the rights or remedies of either Party which may arise in the future.

  

Page 16 of 20

  

20. Severability

 

If any provision of this Agreement is declared to be void or unenforceable by any judicial or administrative  authority  in  any  jurisdiction  in  which  this  Agreement  is  effective,  such provision will be deemed to be severable and the validity and force of the remainder of the provisions of this Agreement shall not be affected thereby. The Parties shall each use their reasonable endeavours in good faith to modify this Agreement so that the intent of the void and/or unenforceable provision of this Agreement can be carried out legally.

 

Any void or unenforceable provision shall be construed as per the Governing law defined hereinafter.

21. Assignation

 

21.1.   Subject to Clauses 6.1, 7.3, and 21.2, neither Party shall be entitled to assign the benefit or burden of this Agreement without the prior written consent of the other (such consent not to be unreasonably withheld or delayed).

 

21.2.   The  Company  shall  be  entitled  to  assign  or  transfer  any  of  its  rights  or obligations under this Agreement to any Spin-out Company or Group Company.

 

22. Force Majeure

 

Neither of  the Parties  shall  be  liable  to  the  other nor  be  held  to  be  in  breach  of this Agreement to the extent that they are prevented, hindered or delayed in the performance or observance of their obligations hereunder by any cause or contingency whatsoever beyond their reasonable control.

23. Notices

 

Any notices required to be given pursuant to this Agreement shall be in writing and shall be hand delivered or sent by certified e-mail (return receipt requested) and by confirming letter sent by first class registered mail (or its equivalent) posted within twenty four (24) hours of the said e-mail to the address (and e-mail address) and for the attention of the relevant Party, as set out below (or otherwise notified). Any such notice shall be deemed to have been received twenty-four (24) hours after the time of dispatch to the e-mail in question.

The Company:                For the attention of: Sotirios Leontaritis Centrum Offices,

                                          38 Queen Street, Glasgow, G1 3DX, Scotland UK

                                          E-mail: leosot@viocare.eu

The Individual:              For the attention of: Christos Kapatos

                                         66 Stewarton Drive, Cambuslang, Glasgow G72 8DG, Scotland UK

                                         E-mail: c.kapatos@healthcare-innovations.com

  

Page 17 of 20

  

24. Governing Law

 

This Agreement shall be governed by, and is to be construed in accordance with, the law of Scotland,  and the Scottish Courts will have exclusive jurisdiction to deal with any dispute which has arisen or may arise out of or in connection with this Agreement.

IN WITNESS whereof the Parties have caused this Agreement to be signed as follows:

 

	 HCI VIOCARE TECHNOLOGIES LIMITED	 	 	 	 
	 a UK corporation	 	 	 	 
	
 

 

 

 

	 	 	 	 
	 Name: Sotirios Leontaritis	 	 CHRISTO KAPATOS	 	 
	 Title: Director	 	 	 	 

 

Page 18 of 20

 

 

SCHEDULE 

 

PART 1

 

Details of the Project

 

Project Development - Smart Insole

The Project  relates to the development  of an affordable,  durable  and reliable  Smart Insole; a wearable, wireless, accurate and non-invasive monitoring, prevention and e­ diagnosis system for people with diabetes and sensory lose (diabetic foot condition) at the area of the foot.

Diabetes is a serious  disease  that can develop  from lack of insulin  production  in the body  or  due  to  the  inability  of  the  body's  insulin  to  perform  its  normal  everyday functions. Insulin is a substance produced by the pancreas gland that helps process the food we eat and turn it into energy.

Many complications can be associated with diabetes. Diabetes disrupts the vascular system,  affecting many areas of the body such as the eyes,  kidneys,  legs, and feet. People with diabetes should pay special attention to their feet; about one in five people with  diabetes  enters  the  hospital  for  foot  problems.  Specific  Foot  Problems  include Calluses, Ulcers, Loss of feeling (Neuropathy), Poor Circulation, and Amputation. People with diabetes are more prone to infection. They can also develop neuropathy (damaged nerves) or peripheral vascular disease (blocked arteries) of the legs. This can cause diminished feeling in the feet leading to unnoticed cuts, scratches, and tissue breakdown. This may result in ulceration and infection. Infection and foot ulceration, alone or in combination, often lead to amputation. Neuropathy and peripheral vascular disease can also cause distressing pain in the lower limbs. It is very important for diabetics to take the necessary precautions to prevent all foot related injuries. Due to the consequences of neuropathy, daily observation of the feet is critical. When a diabetic patient takes the necessary preventative foot-care measures, he or she reduces the risks of serious foot conditions. If the above problems are not cared for, amputation of the foot or leg may result. Theoretically, if diabetes is well controlled and monitored it should be possible to avoid these foot problems. However, with the technologies currently available it is not always possible to achieve good diabetic monitoring and control and as severe neuropathy and peripheral vascular disease cannot be easily reversed, many people with diabetes will develop foot problems. The main problem with diabetic peripheral neuropathy is that, when someone is affected with it, he is unaware when pressure thresholds are being abused. The result is tissue damage, leading to ulceration, and often, amputation.

 

Foot complaints are the leading cause of hospitalisation  of people with diabetes (346 million  diabetic  people  worldwide  according  to WHO).  It is estimated  that 30% of all diabetics (104 million people world-wide) will develop a serious foot complaint at some time (http://www.who.int/topics/diabetes  mellitus/en/). In all cases serious problems can be prevented  by monitoring  the area of the patient's  feet and providing  the collected information to the patient in real-time, as well as to his podiatrist and/or physiotherapist. This can improve the time response in addressing any potential problems with the feet's health  and  hence  improve  the  general  well-being  of  the  patient  and  even  prevent amputation.. In the USA alone the value of the diabetic foot ulcers therapeutics market in 2011 was $1.53 billion, showing continuous growth (http://www.companiesandmarkets.com/News/Healthcare-and-Medicai/Diabetic-foot­ ulcers-therapeutics-market-expected-to-maintain-a-moderate-growth/NI3941).

The intent with the project is to further the development  of the Background IPR and to develop a patentable product which will be market ready.

  

Page 19 of 20

  

PART 2

Individual's Background IPR

 

The Background IPR

 

Kapatos have conceived and has been working on a Smart Insole System which is a state-of-the-art, pressure and shear (friction)-sensing insole with an incorporated real­ time global display application and an fully featured support web-space that tells the user and his podiatrist/physiotherapist when inappropriate or dangerous conditions are developing on the feet, in order to prevent damage and correct the problems that can cause it. The product is designed to mitigate diabetic foot complications, such as ulceration, infection and amputation, as well as improve the total health of a person with diabetes, by incorporating the readings from the insole system to a specialised web­ space that will help the user monitor not just the health of his feet but also his diabetes by looking after his diet, exercise, and live a healthy life-style.

To Kapatos knowledge  there is no similar system currently in the market. The insoles that are commercially  available can only monitor vertical pressure on the foot and not shear (friction). Also, none of these devices produce real-time data that can be of assistance to the user. The web-space "total diabetes care" concept is also unique.

  

Page 20 of 20ex102.htm

CONSULTING AGREEMENT

THIS CONSULTING AGREEMENT (the “Agreement”) is made to be effective on and as of April 16, 2014 (the "Effective Date") by and between HCi VioCare (the “Company”), a Nevada corporation, with offices at Centrum Offices, 38 Queen Street, Glasgow, UK G1 3DX, and Dr. Christos Kapatos, resident of 66 Stewarton Drive, Cambuslang, Glasgow G72 8DG, Scotland, UK (the “Consultant”).

RECITALS

	
1.

	
The Company wishes to assure itself of the services of the Consultant for the period provided in this Agreement.

	
2.

	
The Consultant is willing to provide services to the Company in accordance with the terms and conditions set forth in this Agreement.

OPERATIVE PROVISIONS

In consideration of the above recitals, which are incorporated into and are a material part of the operative provisions of this Agreement, and of the promises, covenants and conditions stated herein, the Company and the Consultant hereby agree as follows:

1.           POSITION AND RESPONSIBILITIES.

1.1           During the period of this Agreement, the Consultant agrees to provide the services as Chief Technical Officer for the Company and the Company’s wholly-owned subsidiaries as required (collectively referred to as the “Companies”). The Consultant shall render services to the Companies, and shall have such responsibilities, duties and authority, as may from time to time be assigned to the Consultant by the Companies’ Boards of Directors (the “Boards”), and will devote all such time and activity as will be required diligently to satisfy such responsibilities, which shall be conducted at the offices of the Company and such other places as deemed effective by the respective Boards. The Consultant may engage in other activities and endeavors as he may elect, so long as such activities do not directly compete with the Companies. It is expressly understood and agreed between the parties hereto that any involvement with another company which shall be in the business of prosthetics, orthotics, diabetics and rehabilitation clinics and technology shall be deemed to be in direct competition with the Companies.

2.           TERM

2.1           The period of the Consultant's services under this Agreement shall be deemed to have commenced on the Effective Date and shall continue for a period of one (1) year thereafter (the “Term”), and may be extended for such term as may be mutually agreed between the parties.

  

1

 

3.           COMPENSATION BENEFITS AND REIMBURSEMENT.

3.1           The Consultant shall earn as compensation the amount of forty thousand Euros (€40,000) per year ("Consultant’s Fee"), with subsequent adjustments as mutually agreed between the parties to reflect the growth and success of the Company. The Consultant’s Fee shall be paid in equal monthly installments to Consultant in cash, commencing on the 1st of May, 2014.

3.2           The Company shall pay or reimburse Consultant for all reasonable travel, and other reasonable expenses incurred by Consultant in performance of Consultant's obligations under this Agreement, provided that all long distance travel and other extraordinary expenses are approved by the Company prior to incurrence of the same. The Consultant agrees to obtain approval from the Company in writing for any individual expense of one thousand USD ($1,000) or greater or any aggregate expense in excess of two thousand USD ($2,000) incurred in any given month by the Consultant in connection with the carrying out his duties under this Agreement.

3.3           In case that a research and development project is initiated during the term of this Agreement, the Consultant shall be entitled of two hundred thousand (200,000) shares of the Company’s common stock for every research project completed during the term of this Agreement with a valuation less than twenty million US dollars (20,000,000.00 USD), and five hundred thousand (500,000) shares of the Company’s common stock for every research project completed during the term of this Agreement with a valuation equal or greater than twenty million US dollars (20,000,000.00 USD).

3.4. The Consultant shall also be entitled to participate in any health, medical and/or dental plans which the Company may implement during the Term or the extension hereof.

4.           TERMINATION.

	
  

	
4.1

	
This Agreement may be terminated only under the following circumstances:

(a) Notice.  The Company may terminate this Agreement upon thirty (30) days prior written notice delivered to Consultant.

(b) Death.  The Consultant’s services hereunder shall terminate upon his death.

(c) Cause.  Either party shall have the right to terminate this Agreement for cause. A “Termination for Cause" for the Company shall mean termination because of Consultant's material failure or willful neglect to perform Consultant’s stated duties, or failure to cure such material failure or willful neglect within ten (10) days after delivery of written notice specifying the alleged material failure or willful neglect, conviction of a felony, or any other willful or material breach of this Agreement. For purposes of this Article, no act, or the failure to act, on Consultant's part shall be "willful" unless done, or omitted to be done, in good faith and with reasonable belief that the action or omission was in the best interest of the Company or its affiliates. A “Termination for Cause" for Consultant shall mean termination because of the Company's material failure to perform the terms of this Agreement.

  

2

  

 

(d) Termination by the Consultant.  The Consultant may terminate his employment hereunder for Good Reason.  For purposes of this Agreement, a “Good Reason” shall mean (A) the breach by the Company in any material respect of any material provision of this Agreement (including, but not limited to, the provisions of Section 3) which breach has not been cured within ten (10) days after delivery of notice of such noncompliance that has been given by Consultant to the Company, or (B) any purported termination of Consultant’s employment which is not effected pursuant to a Notice of Termination satisfying the requirements of Section 5.1 hereof (and for purposes of this Agreement no such purported termination shall be effective).

(e) Disability.  If, as a result of Consultant's inability to perform substantially all of his duties hereunder by reason of a physical or mental disability or infirmity (i) for a continuous period of two (2) full months or (ii) at such earlier time as Consultant submits satisfactory medical evidence that he has a physical or mental disability or infirmity which will likely prevent him from performing his work duties for two (2) months or longer (a "Disability"), the Company may terminate this Agreement. The date of such Disability shall be the last day of such two-month period, or the day on which Consultant submits such satisfactory medical evidence, as the case may be.

4.2           Any payments due upon termination, pursuant to Section 4.1 above, shall be borne by the Company, and any payments due after such termination occurs shall no longer be paid.

5.           NOTICE.

5.1           Notice of Termination.  Any purported termination of this Agreement by the Company or by Consultant (other than termination pursuant to subsection (b) of Section 4.1) shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 12.  For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon, and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of this Agreement under the provision so indicated.

5.2           Date of Termination.  “Date of Termination” shall mean (i) if this Agreement is terminated by the death of Consultant, the date of his death, (ii) if this Agreement is terminated pursuant to subsection (e) of Section 4.1 above, the date of disability referred to in said subsection, and (iii) if this Agreement is terminated pursuant to subsections (a), (c) or (d) of Section 4.1 above, the date specified in the Notice of Termination; provided, however, that if within thirty (30) days after any Notice of Termination is given, the party receiving such Notice of Termination notifies the other party that a dispute exists concerning the termination, the Date of Termination shall be the date on which the dispute is finally determined, either by mutual written agreement of the parties, by a binding and final arbitration award, or by a final judgment, order or decree of a court of competent jurisdiction (the time for appeal therefrom having expired and no appeal having been perfected).

  

3

  

6.           CONFIDENTIALITY.

 

As the Company’s business is specialized and competitive, the Consultant is likely to have access to, and an intimate knowledge of, the Company’s trade secrets and confidential information during the course of this Agreement. Disclosure of such trade secrets and confidential information would place the Company at a serious competitive disadvantage and do serious damage (financial and/or otherwise) to its business and would cause immeasurable harm.

 

Therefore, both during this Agreement and after its termination the Consultant is prohibited from communicating or disclosing to any third party any trade secrets or confidential information of the Company and from using such information for its own purposes, unless prior written authorization from the Company has been obtained. For this purpose trade secrets and confidential information shall include but not be limited to:

 

	
  

	
·

	
The Company’s proposed strategies and plans;

 

	
  

	
·

	
The Company’s IP technologies;

 

	
  

	
·

	
The Company’s current business strategies and plans including (without limitation) know how and internal working practices;

 

	
  

	
·

	
All information as to the requirements of the Company’s customers;

 

	
  

	
·

	
All information relating to patient profiles, histories or similar information; and

 

	
  

	
·

	
All information relating to Section 1 “Position and Responsibilities” of this Agreement that the Consultant will obtain in the course of this Agreement with the Company.

7.           EFFECT ON PRIOR AGREEMENTS.

This Agreement contains the entire understanding between the parties hereto and supersedes any prior agreement between Company and Consultant.

8.           MODIFICATION AND WAIVER.

                8.1     This Agreement shall not be modified or amended except by an instrument in writing signed by the parties hereto.

 

8.2    No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each written waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future as to any act other than that specifically waived.

  

4

  

9.             SEVERABILITY.

If, for any reason, any provision of this Agreement, or any part of any provision, is held invalid, such invalidity shall not affect any other provision of this Agreement or any part of such provision not held so invalid, and each such other provision and part thereof shall to the full extent (consistent with law) continue in full force and effect.

10.           HEADINGS FOR REFERENCE ONLY.

The headings of articles and paragraphs herein are included solely for convenience of reference and shall not control the meaning or interpretation of any of the provisions of this Agreement.

11.           GOVERNING LAW

This Agreement shall be governed by and be construed under the laws of the State of Nevada without regard to the choice of law principles of that state. In the event of any dispute between the parties with respect to this Agreement or the performance of the parties' obligations thereunder, such dispute shall be instituted and prosecuted in the courts of Nevada and the parties hereby consent to the jurisdiction of such courts, and waive any disputes they may have to a change of venue.

12.           NOTICES.

Any notice or other communication required or which may be given hereunder shall be in writing and shall be delivered personally, telegraphed, telexed, or transmitted by facsimile, or sent by certified, registered or express mail, or postage prepaid, and shall be deemed given when so hand delivered, telegraphed, telexed or transmitted by facsimile, or if mailed, two (2) days after the date of mailing, addressed as follows:

If to Company:                      HCi VioCare

Contact – Sotirios Leontaritis

(+44) 0808 178 4373

Centrum Offices,

38 Queen Street, Glasgow,

G1 3DX, Scotland, UK

If to Consultant:                  Christos Kapatos

66 Stewarton Drive, Cambuslang,

                                               Glasgow G72 8DG, Scotland, UK

  

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13.   ARBITRATION OF DISPUTES.

a.           Arbitration. All Arbitration Claims (defined below) between the parties shall be resolved by submission to final and binding arbitration at the Las Vegas, Nevada offices of the American Arbitration Association (“AAA”).  The parties may agree on a retired judge from the AAA panel. In case of failure of agreement, an arbitrator shall be selected in accordance with the rules and procedures of the AAA. The parties agree that arbitration must be initiated within sixty (60) days after a party delivers a notice of intention to arbitrate pursuant to Subsection 13(b) below.

b.           Initiation of Arbitration: Submission Agreement. Any party to this Agreement may initiate arbitration of a dispute subject to this Paragraph, by sending written notice of an intention to arbitrate by registered or certified mail to all other parties and to the AAA. The notice shall contain a description of the Arbitration Claim(s) asserted by the party, the amount involved and the remedy sought. In the event a demand for arbitration is made by any party to this Agreement, the parties agree to execute a Submission Agreement provided by the AAA, in a form customarily used by the AAA, setting forth (i) the rights of the parties if the matter is arbitrated and (ii) the rules and procedures to be followed at the arbitration hearing. Notwithstanding anything to the contrary contained in this Agreement, each party shall bear its own legal, consulting and expert witness fees incurred during any arbitration proceeding under this Paragraph.

c.           One-Year To Initiate Arbitration Claim.  The parties agree that arbitration must be initiated within one (1) year after the occurrence of the events on which any Arbitration Claim is based, and a party's failure to initiate arbitration within such one-year period constitutes an absolute bar to the institution of any new proceedings.

d.           “Arbitration Claim” Defined. For purposes of this Agreement, "Arbitration Claim" shall mean any contract, tort, statutory or other claim, demand, cause of action, or dispute asserted by any party to this Agreement against any other party to this Agreement, arising out of or related to (i) this Agreement or any modification, amendment or supplement thereof, or (ii) the relationship between the parties as created hereunder.

 

 

c.           Intent of the Parties - Adequate Consideration.  By this provision, it is the intent of the parties to establish procedures to accomplish the informal and inexpensive resolution of any Arbitration Claim between them without resort to litigation. The parties agree that their mutual, binding promises to arbitrate any Arbitration Claim between them represents valuable and adequate consideration for the enforceability of this provision.

NOTICE:  BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION DECIDED BY NEUTRAL ARBITRATION, AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE WAIVING YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED OR PROVIDED FOR IN THE "ARBITRATION OF DISPUTES" PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER NEVADA LAW. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY.

WE HAVE READ AND UNDERSTOOD THE FOREGOING AND AGREE TO SUBMIT ANY DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THIS "ARBITRATION OF DISPUTES" PROVISION TO NEUTRAL ARBITRATION.

 

	 	 	 	 	 
	 	Consultant's Initials 	 	 Company’s Initials	 

 

  

6

  

 

15.   ASSIGNMENT.

This Agreement shall be binding upon, and shall inure to the benefit of, the parties, and their respective successors, assigns, heirs and representatives.  Notwithstanding the foregoing, however, Consultant may not assign any of Consultant’s, or delegate any of Consultant’s duties hereunder. The Company may assign this Agreement upon notice to Consultant without securing Consultant's prior written consent in connection with any sale of all of the Company's assets or if the Company merges into or consolidates with another business entity.

IN WITNESS WHEREOF, the Company and the Consultant have executed this Agreement to be effective on and as of the Effective Date stated herein above.

 

	 	 “CONSULTANT'”	 	THE “COMPANY”	 
	 	 	 	 	 
	 	Dr. Christos Kapatos 	 	HCi VioCare, a Nevada corporation	 
	 	 	 	By: Sotirios Leontaritis 

Title: CEO, President and Director

	 

                               

  

7

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