Document:

Consulting Agreement between Registrant and Robert G. Richards

 EXHIBIT 10.2 
  
 IRVINE SENSORS CORP. 
 CONSULTING AGREEMENT 
  
 This Consulting Agreement (this “Agreement”) is entered into as of May 10, 2005 by and between Irvine Sensors Corporation (the “Company”), and Robert G. Richards, (the “Consultant”). 
  
 RECITALS 
  
 1. Consultant has expertise in the area of the Company’s business and is willing to provide consulting services to the
Company. 
  
 2. The Company is willing to engage Consultant as an
independent contractor, and not as an employee, on the terms and conditions set forth herein. 
  
 AGREEMENT 
  
 In
consideration of the foregoing and of the mutual promises set forth herein, and intending to be legally bound, the parties hereto agree as follows: 
  
 1. Engagement. 
  
 (a) The Company hereby engages Consultant to render, as an independent contractor, the consulting services described in Exhibit A hereto
and such other services as may be agreed to in writing by the Company and Consultant from time to time. 
  
 (b) Consultant hereby accepts the engagement to provide consulting services to the Company on the terms and conditions set forth herein.

  
 2. Term. This Agreement Agreement will be effective
from April 4, 2005, and unless modified by the mutual written agreement of the parties, shall continue until April 4, 2006. Company may terminate this Agreement upon 10 days written notice to Consultant. 
  
 3. Compensation. 
  
 (a) In consideration of the services to be performed by
Consultant, the Company agrees to pay Consultant in the manner and at the rates set forth in Exhibit A. 
  
 (b) Out of pocket expenses incurred by Consultant that are authorized by the Company in advance in writing shall be reimbursed by Company
to Consultant. 
  
 4. Consultant’s Business
Activities. 
  
 (a) During the term of this
Agreement, Consultant will engage in no business or other activities, which are or may be, directly or indirectly, competitive with the business activities of the Company without obtaining the prior written consent of the Company. 
  
 (b) Consultant shall devote such time, attention and energy
to the business and affairs of the Company as requested by the Company. 
  
 (c) Consultant shall keep and periodically provide to the Company a log describing the work activities and hours of Consultant. 
  

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 5. Confidential Information and Assignments. Consultant is simultaneously executing a Confidential
Information and Invention Assignment Agreement for Consultants in the form of Exhibit B (the “Confidential Information and Invention Assignment Agreement”). The obligations under the Confidential Information and Invention Assignment
Agreement shall survive termination of this Agreement for any reason. 
  
 6. Interference with the Company’s Business. 
  
 (a) Notwithstanding any other provision of this Agreement, for a period of one year after termination of this Agreement, Consultant shall not, directly or indirectly, employ, solicit for employment, or advise or
recommend to any other person that such other person employ or solicit for employment, any person employed or under contract (whether as a consultant, employee or otherwise) by or to the Company during the period of such person’s association
with the Company and one year thereafter. 
  
 (b)
Notwithstanding any other provision of this Agreement, and to the fullest extent permitted by law, for a period of one year after termination of this Agreement, Consultant shall not, directly or indirectly, solicit any clients or customers of the
Company. Consultant agrees that such solicitation would necessarily involve disclosure or use of confidential information in breach of the Confidential Information and Invention Assignment Agreement. 
  
 7. Representations and Warranties. Consultant represents and warrants
(i) that Consultant has no obligations, legal or otherwise, inconsistent with the terms of this Agreement or with Consultant’s undertaking this relationship with the Company, (ii) that the performance of the services called for by this
Agreement do not and will not violate any applicable law, rule or regulation or any proprietary or other right of any third party, (iii) that Consultant will not use in the performance of his responsibilities under this Agreement any confidential
information or trade secrets of any other person or entity and (iv) that Consultant has not entered into or will enter into any agreement (whether oral or written) in conflict with this Agreement. 
  
 8. Indemnification. Consultant hereby indemnifies and agrees to defend
and hold harmless the Company from and against any and all claims, demands and actions, and any liabilities, damages or expenses resulting therefrom, including court costs and reasonable attorneys’ fees, arising out of or relating to the
services performed by Consultant under this Agreement or the representations and warranties made by Consultant pursuant to paragraph 7 hereof. Consultant’s obligations under this paragraph 8 hereof shall survive the termination, for any reason,
of this Agreement. 
  
 9. Attorney’s Fees. Should
either party hereto, or any heir, personal representative, successor or assign of either party hereto, resort to litigation to enforce this Agreement, the party or parties prevailing in such litigation shall be entitled, in addition to such other
relief as may be granted, to recover its or their reasonable attorneys’ fees and costs in such litigation from the party or parties against whom enforcement was sought. 
  
 10. Entire Agreement. This Agreement, contains the entire understanding and agreement between the parties hereto with
respect to its subject matter and supersedes any prior or contemporaneous written or oral agreements, representations or warranties between them respecting the subject matter hereof. 
  
 11. Amendment. This Agreement may be amended only by a writing signed by Consultant and by a representative of the
Company duly authorized. 
  
 12. Severability. If any term,
provision, covenant or condition of this Agreement, or the application thereof to any person, place or circumstance, shall be held by a court of competent jurisdiction to be invalid, unenforceable or void, the remainder of this Agreement and 

  

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such term, provision, covenant or condition as applied to other persons, places and circumstances shall remain in full force and effect. 
  
 13. Rights Cumulative. The rights and remedies provided by this
Agreement are cumulative, and the exercise of any right or remedy by either party hereto (or by its successors), whether pursuant to this Agreement, to any other agreement, or to law, shall not preclude or waive its right to exercise any or all
other rights and remedies. 
  
 14. Nonwaiver. No failure or
neglect of either party hereto in any instance to exercise any right, power or privilege hereunder or under law shall constitute a waiver of any other right, power or privilege or of the same right, power or privilege in any other instance. All
waivers by either party hereto must be contained in a written instrument signed by the party to be charged and, in the case of the Company, by an executive officer of the Company or other person duly authorized by the Company. 
  
 15. Remedy for Breach. The parties hereto agree that, in the event of
breach or threatened breach of this Agreement, the damage or imminent damage to the value and the goodwill of the Company’s business will be inestimable, and that therefore any remedy at law or in damages shall be inadequate. Accordingly, the
parties hereto agree that the Company shall be entitled to injunctive relief against Consultant in the event of any breach or threatened breach by Consultant, in addition to any other relief (including damages and the right of the Company to stop
payments hereunder which is hereby granted) available to the Company under this Agreement or under law. 
  
 16. Agreement to Perform Necessary Acts. Consultant agrees to perform any further acts and execute and deliver any documents that may be reasonably
necessary to carry out the provisions of this Agreement. 
  
 17.
Assignment. This Agreement may not be assigned by Consultant without the Company’s prior written consent. This Agreement may be assigned by the Company in connection with a merger or sale of all or substantially all of its assets, and in
other instances with the Consultant’s consent which consent shall not be unreasonably withheld or delayed. 
  
 18. Compliance with Law. In connection with his services rendered hereunder, Consultant agrees to abide by all federal, state, and local laws,
ordinances and regulations. 
  
 19. Independent Contractor.
The relationship between Consultant and the Company is that of independent contractor under a “work for hire” arrangement. All work product developed by Consultant shall be deemed owned and assigned to Company. This Agreement is not
authority for Consultant to act for the Company as its agent or make commitments for the Company. Consultant will not be eligible for any employee benefits, nor will the company make deductions from fees to the consultant for taxes, insurance, bonds
or the like. Consultant retains the discretion in performing the tasks assigned, within the scope of work specified. There may be an exception here if the Company pays for medical insurance as part of continuing as a member of the Board of
Directors. 
  
 20. Taxes. Consultant agrees to pay all
appropriate local, state and federal taxes. 
  
 21. Governing
Law. This Agreement shall be construed in accordance with, and all actions arising hereunder shall be governed by, the laws of the State of California. 
  

					
	 Company
	 	 	 	 Consultant

			
	 /s/ John C. Carson
	 	 	 	/s/ Robert G. Richards
	 John C. Carson
	 	 	 	Robert G. Richards
	 Irvine Sensors Corporation
	 	 	 	 

  

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 Exhibit A 
  

	1.	Description of Services to be Rendered : Negotiated services in the areas of program management/review, marketing, technical review and related and other.

  

	2.	Compensation; $100/Hour 

  

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 Exhibit B

  
 CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT
AGREEMENT FOR CONSULTANT 
  
 This CONFIDENTIAL INFORMATION AND
INVENTION ASSIGNMENT AGREEMENT (the “Agreement”) is made between Irvine Sensors Corporation (the “Company”) and the undersigned Robert G. Richards (the “Consultant”). 
  
 In consideration of my relationship with the Company (which for purposes of
this Agreement shall be deemed to include any subsidiaries or Affiliates** of the Company), the receipt of confidential information while associated with the Company, and other good and valuable consideration, I, the undersigned individual, agree
that: 
  
 1. Term of Agreement. This Agreement shall
continue in full force and effect for the duration of my relationship with the Company and shall continue thereafter until terminated through a written instrument signed by both parties. 
  
 2. Confidentiality. 
  
 (a) Definitions. “Proprietary Information” is all information and any idea whatever form, tangible or intangible,
pertaining in any manner to the business of the Company, or any of its Affiliates, or its employees, clients, consultants, or business associates, which was produced by any employee or consultant of the Company in the course of his or her employment
or consulting relationship or otherwise produced or acquired by or on behalf of the Company. All Proprietary Information not generally known outside of the Company’s organization, and all Proprietary Information so known only through improper
means, shall be deemed “Confidential Information.” By example and without limiting the foregoing definition, Proprietary and Confidential Information shall include, but not be limited to: 
  
 (1) formulas, research and development techniques, processes, trade secrets,
computer programs, software, electronic codes, mask works, inventions, innovations, patents, patent applications, discoveries, improvements, data, know-how, formats, test results, and research projects; 
  
 (2) information about costs, profits, markets, sales, contracts and lists of
customers, and distributors; 
  
 (3) business, marketing, and
strategic plans; 
  
 (4) forecasts, unpublished financial
information, budgets, projections, and customer identities, characteristics and agreements; and 
  
 (5) employee personnel files and compensation information. 
  
 Confidential Information is to be broadly defined, and includes all information that has or could have commercial value or other utility in the business
in which the Company is engaged or contemplates engaging, and all information of which the unauthorized disclosure could be detrimental to the interests of the Company, whether or not such information is identified as Confidential Information by the
Company. 

	*	For purposes of this Agreement, “Affiliate” shall mean any person or entity that shall directly or indirectly controls, is controlled by, or is under common control with
the Company. 

  

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 (b) Existence of Confidential Information. The Company owns and has developed and
compiled, and will develop and compile, certain trade secrets, proprietary techniques and other Confidential Information which have great value to its business. This Confidential Information includes not only information disclosed by the Company to
me, but also information developed or learned by me during the course of my relationship with the Company. 
  
 (c) Protection of Confidential Information. I will not, directly or indirectly, use, make available, sell, disclose or otherwise
communicate to any third party, other than in my assigned duties and for the benefit of the Company, any of the Company’s Confidential Information, either during or after my relationship with the Company. In the event I desire to publish the
results of my work for the Company through literature or speeches, I will submit such literature or speeches to the President of the Company at least 10 days before dissemination of such information for a determination of whether such disclosure may
alter trade secret status, may be prejudicial to the interests of the Company, or may constitute an invasion of its privacy. I agree not to publish, disclose or otherwise disseminate such information without prior written approval of the President
of the Company. I acknowledge that I am aware that the unauthorized disclosure of Confidential Information of the Company may be highly prejudicial to its interests, an invasion of privacy, and an improper disclosure of trade secrets.

  
 (d) Delivery of Confidential
Information. Upon request or when my relationship with the Company terminates, I will immediately deliver to the Company all copies of any and all materials and writings received from, created for, or belonging to the Company including, but not
limited to, those which relate to or contain Confidential Information. 
  
 (e) Location and Reproduction. I shall maintain at my workplace only such Confidential Information as I have a current “need to know.” I shall return to the appropriate person or location or otherwise
properly dispose of Confidential Information once that need to know no longer exists. I shall not make copies of or otherwise reproduce Confidential Information unless there is a legitimate business need of the Company for reproduction. 

 
 (f) Prior Actions and Knowledge. I represent and
warrant that from the time of my first contact with the Company I held in strict confidence all Confidential Information and have not disclosed any Confidential Information, directly or indirectly, to anyone outside the Company, or used, copied,
published, or summarized any Confidential information, except to the extent otherwise permitted in this Agreement. 
  
 (g) Third-Party Information. I acknowledge that the Company has received and in the future will receive from third parties their
confidential information subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. I agree that I will at all times hold all such confidential information in the
strictest confidence and not to disclose or use it, except as necessary to perform my obligations hereunder and as is consistent with the Company’s agreement with such third parties. 
  
 (h) Third Parties. I represent that my relationship
with the Company does not and will not breach any agreements with or duties to a former employer or any other third party. I will not disclose to the Company or use on its behalf any confidential information belonging to others and I will not bring
onto the premises of the Company any confidential information belonging to any such party unless consented to in writing by such party. 
  

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 3. Proprietary Rights, Inventions and New Ideas. 
  
 (a) Definition. The term “Subject Ideas or
Inventions” includes any and all ideas, processes, trademarks, service marks, inventions, designs, technologies, computer hardware or software, original works of authorship, formulas, discoveries, patents, copyrights, copyrightable works
products, marketing and business ideas, and all improvements, know-how, data, rights, and claims related to the foregoing that, whether or not patentable, which are conceived, developed or created which: (1) relate to the Company’s current or
contemplated business; (2) relate to the Company’s actual or demonstrably anticipated research or development; (3) result from any work performed by me for the Company; (4) involve the use of the Company’s equipment, supplies, facilities
or trade secrets; (5) result from or are suggested by any work done by the Company or at the Company’s request, or any projects specifically assigned to me; or (6) result from my access to any of the Company’s memoranda, notes, records,
drawings, sketches, models, maps, customer lists, research results, data, formulae, specifications, inventions, processes, equipment or other materials (collectively, “Company Materials”). 
  
 (b) Company Ownership. All right, title and interest
in and to all Subject Ideas and Inventions, including but not limited to all registrable and patent rights which may subsist therein, shall be held and owned solely by the Company, and where applicable, all Subject Ideas and Inventions shall be
considered works made for hire. I shall mark all Subject Ideas and Inventions with the Company’s copyright or other proprietary notice as directed by the Company and shall take all actions deemed necessary by the Company to protect the
Company’s rights therein. In the event that the Subject Ideas and Inventions shall be deemed not to constitute works made for hire, or in the event that I should otherwise, by operation of law, be deemed to retain any rights (whether moral
rights or otherwise) to any Subject Ideas and Inventions, I agree to assign to the Company, without further consideration, my entire right, title and interest in and to each and every such Subject Idea and Invention. 
  
 (c) Disclosure. I agree to disclose promptly to the
Company full details of any and all Subject Ideas and Inventions. 
  
 (d) Maintenance of Records. I agree to keep and maintain adequate and current written records of all Subject Ideas and Inventions and their development made by me (solely or jointly with others) during the term
of my relationship with the Company. These records will be in the form of notes, sketches, drawings, and any other format that may be specified by the Company. These records will be available to and remain the sole property of the Company at all
times. 
  
 (e) Determination of Subject Ideas
and Inventions. I further agree that all information and records pertaining to any idea, process, trademark, service mark, invention, technology, computer hardware or software, original work of authorship, design, formula, discovery, patent,
copyright, product, and all improvements, know-how, rights, and claims related to the foregoing (“Intellectual Property”), that I do not believe to be a Subject Idea or Invention, but that is conceived, developed, or reduced to practice by
the Company (alone by me or with others) during my relationship with the Company and for one (1) year thereafter, shall be disclosed promptly by me to the Company. The Company shall examine such information to determine if in fact the Intellectual
Property is a Subject Idea or Invention subject to this Agreement. 
  
 (f) Access. Because of the difficulty of establishing when any Subject Ideas or Inventions are first conceived by me, or whether it results from my access to Confidential Information or Company Materials, I
agree that any Subject Idea and Invention shall, among other circumstances, be deemed to have resulted from my access to Company Materials if: (1) it grew out of or resulted from my work with the Company or is related to the business of the Company,
and (2) it is made, used, sold, exploited or reduced to 

  

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practice, or an application for patent, trademark, copyright or other proprietary protection is filed thereon, by me or with my significant aid, within one
year after termination of my relationship with the Company. 
  
 (g) Assistance. I further agree to assist the Company in every proper way (but at the Company’s expense) to obtain and from time to time enforce patents, copyrights or other rights or registrations on said
Subject Ideas and Inventions in any and all countries, and to that end will execute all documents necessary: 
  
 (1) to apply for, obtain and vest in the name of the Company alone (unless the Company otherwise directs) letters patent, copyrights or other analogous
protection in any country throughout the world and when so obtained or vested to renew and restore the same; and 
  
 (2) to defend any opposition proceedings in respect of such applications and any opposition proceedings or petitions or applications for revocation of
such letters patent, copyright or other analogous protection; and 
  
 (3) to cooperate with the Company (but at the Company’s expense) in any enforcement or infringement proceeding on such letters patent, copyright or other analogous protection. 
  
 (h) Authorization to Company. In the event the
Company is unable, after reasonable effort, to secure my signature on any patent, copyright or other analogous protection relating to a Subject Idea and Invention, whether because of my physical or mental incapacity or for any other reason
whatsoever, I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney-in-fact, to act for and on my behalf and stead to execute and file any such application, applications or other
documents and to do all other lawfully permitted acts to further the prosecution, issuance, and enforcement of letters patent, copyright or other analogous rights or protections thereon with the same legal force and effect as if executed by me. My
obligation to assist the Company in obtaining and enforcing patents and copyrights for Subject Ideas and Inventions in any and all countries shall continue beyond the termination of my relationship with the Company, but the Company shall compensate
me at a reasonable rate after such termination for time actually spent by me at the Company’s request on such assistance. 
  
 (i) Acknowledgement. I acknowledge that there are no currently existing ideas, processes, inventions, discoveries, marketing or
business ideas or improvements which I desire to exclude from the operation of this Agreement. To the best of my knowledge, there is no other contract to assign inventions, trademarks, copyrights, ideas, processes, discoveries or other intellectual
property that is now in existence between me and any other person (including any business or governmental entity). 
  
 (j) No Use of Name. I shall not at any time use the Company’s name or any the Company trademark(s) or trade name(s) in any
advertising or publicity without the prior written consent of the Company. 
  
 4. Competitive Activity. 
  
 (a) Acknowledgment. I acknowledge that the pursuit of the activities forbidden by Section 4(b) below would necessarily involve the use, disclosure or misappropriation of Confidential Information. 
  
 (b) Prohibited Activity. To prevent the
above-described disclosure, misappropriation and breach, I agree that during my relationship and for a period of one (1) year thereafter, without the Company’s express written consent, I shall not, directly or 

  

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indirectly, (i) employ, solicit for employment, or recommend for employment any person employed by the Company (or any Affiliate); and (ii) engage in any
present or contemplated business activity that is or may be competitive with the Company (or any Affiliate) in any state where the Company conducts its business, unless I can prove that any action taken in contravention of this subsection (ii) was
done without the use in any way of Confidential Information. 
  
 5. Representations and Warranties. I represent and warrant (i) that I have no obligations, legal or otherwise, inconsistent with the terms of this Agreement or with my undertaking a relationship with the Company; (ii) that the
performance of the services called for by this Agreement do not and will not violate any applicable law, rule or regulation or any proprietary or other right of any third party; (iii) that I will not use in the performance of my responsibilities for
the Company any confidential information or trade secrets of any other person or entity; and (iv) that I have not entered into or will enter into any agreement (whether oral or written) in conflict with this Agreement. 
  
 6. Termination Obligations. 
  
 (a) Upon the termination of my relationship with the
Company or promptly upon the Company’s request, I shall surrender to the Company all equipment, tangible Proprietary Information, documents, books, notebooks, records, reports, notes, memoranda, drawings, sketches, models, maps, contracts,
lists, computer disks (and other computer-generated files and data), any other data and records of any kind, and copies thereof (collectively, “Company Records”), created on any medium and furnished to, obtained by, or prepared by myself
in the course of or incident to my relationship with the Company, that are in my possession or under my control. 
  
 (b) My representations, warranties, and obligations contained in this Agreement shall survive the termination of my relationship with
the Company. 
  
 (c) Following any
termination of my relationship with the Company, I will fully cooperate with the Company in all matters relating to my continuing obligations under this Agreement. 
  
 (d) I hereby grant consent to notification by the Company to any of my future employers or companies I
consult with about my rights and obligations under this Agreement. 
  
 (e) Upon termination of my relationship with the Company, I will execute a Certificate acknowledging compliance with this Agreement in the form reasonably requested by the Company. 
  
 7. Injunctive Relief. I acknowledge that my failure to carry out any
obligation under this Agreement, or a breach by me of any provision herein, will constitute immediate and irreparable damage to the Company, which cannot be fully and adequately compensated in money damages and which will warrant preliminary and
other injunctive relief, an order for specific performance, and other equitable relief. I further agree that no bond or other security shall be required in obtaining such equitable relief and I hereby consent to the issuance of such injunction and
to the ordering of specific performance. I also understand that other action may be taken and remedies enforced against me. 
  
 8. Modification. No modification of this Agreement shall be valid unless made in writing and signed by both parties. 
  

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 9. Binding Effect. This Agreement shall be binding upon me, my heirs, executors, assigns and
administrators and is for the benefit of the Company and its successors and assigns. 
  
 10. Governing Law. This Agreement shall be construed in accordance with, and all actions arising under or in connection therewith shall be governed by, the internal laws of the State of California (without
reference to conflict of law principles). 
  
 11.
Integration. This Agreement sets forth the parties’ mutual rights and obligations with respect to proprietary information, prohibited competition, and intellectual property. It is intended to be the final, complete, and exclusive
statement of the terms of the parties’ agreements regarding these subjects. This Agreement supersedes all other prior and contemporaneous agreements and statements on these subjects, and it may not be contradicted by evidence of any prior or
contemporaneous statements or agreements. To the extent that the practices, policies, or procedures of the Company, now or in the future, apply to myself and are inconsistent with the terms of this Agreement, the provisions of this Agreement shall
control unless changed in writing by the Company. 
  
 12. Not
Employment. This Agreement is not an employment agreement as I am an independent consultant. I understand that the Company may terminate my association with it at any time, with or without cause, subject to the terms of any separate written
consulting agreement executed by a duly authorized officer of the Company. 
  
 13. Construction. This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any party. By way of example and not limitation, this Agreement shall not be
construed against the party responsible for any language in this Agreement. The headings of the paragraphs hereof are inserted for convenience only, and do not constitute part of and shall not be used to interpret this Agreement. 
  
 14. Attorneys’ Fees. Should either I or the Company, or any heir,
personal representative, successor or permitted assign of either party, resort to legal proceedings to enforce this Agreement, the prevailing party (as defined in California statutory law) in such legal proceeding shall be awarded, in addition to
such other relief as may be granted, attorneys’ fees and costs incurred in connection with such proceeding. 
  
 15. Severability. If any term, provision, covenant or condition of this Agreement, or the application thereof to any person, place or circumstance,
shall be held to be invalid, unenforceable or void, the remainder of this Agreement and such term, provision, covenant or condition as applied to other persons, places and circumstances shall remain in full force and effect. 
  
 16. Rights Cumulative. The rights and remedies provided by this
Agreement are cumulative, and the exercise of any right or remedy by either the Company or me (or by that party’s successor), whether pursuant hereto, to any other agreement, or to law, shall not preclude or waive that party’s right to
exercise any or all other rights and remedies. This Agreement will inure to the benefit of the Company and its successors and assigns. 
  
 17. Nonwaiver. The failure of either the Company or me, whether purposeful or otherwise, to exercise in any instance any right, power or privilege
under this Agreement or under law shall not constitute a waiver of any other right, power or privilege, nor of the same right, power or privilege in any other instance. Any waiver by the Company or by me must be in writing and signed by either
myself, if I am seeking to waive any of my rights under this Agreement, or by an officer of the Company (other than me) or some other person duly authorized by the Company. 
  
 18. Notices. Any notice, request, consent or approval required or permitted to be given under this Agreement or
pursuant to law shall be sufficient if it is in writing, and if and 

  

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when it is hand delivered or sent by regular mail, with postage prepaid, to my residence (as noted in the Company’s records), or to the Company’s
principal office, as the case may be. 
  
 19. Agreement to
Perform Necessary Acts. I agree to perform any further acts and execute and deliver any documents that may be reasonably necessary to carry out the provisions of this Agreement. 
  
 20. Assignment. This Agreement may not be assigned without the Company’s prior written consent. 
  
 21. Compliance with Law. I agree to abide by all federal, state, and
local laws, ordinances and regulations. 
  
 22.
Acknowledgment. I acknowledge that I have had the opportunity to consult legal counsel in regard to this Agreement, that I have read and understand this Agreement, that I am fully aware of its legal effect, and that I have entered into it
freely and voluntarily and based on my own judgment and not on any representations or promises other than those contained in this Agreement. 
  
 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the dates set forth below. 
  
 CAUTION: THIS AGREEMENT CREATES IMPORTANT OBLIGATIONS OF TRUST AND AFFECTS THE
CONSULTANT’S RIGHTS TO INVENTIONS AND OTHER INTELLECTUAL PROPERTY THE CONSULTANT MAY DEVELOP. 
  

	
	Consultant :
	
	 /s/ Robert G. Richards

  

 11distribagrmt Ex 10-1

DISTRIBUTION
AGREEMENT 

THIS
AGREEMENT made as of the 4th day of May, 2005. ("Effective Date")

BETWEEN:

	
      
	
      SKINVISIBLE
      PHARMACEUTICALS, INC., a
      company incorporated under the laws of the State of Nevada having its
      principal place of business located at Unit #10 - 6320 South Sandhill
      Road, Las Vegas, Nevada, 89120 (“Skinvisible”);

AND:

SAFE4HOURS,
INC., a
company incorporated under the laws of the State of Nevada having its principal
place of business located at ---202 N. Carson Street, Carson City, Nevada 89701
(the “Distributor”).

WHEREAS:

A.    Skinvisible
is in the business of developing polymer-based delivery systems and related
technologies for combining hydrophilic and hydrophobic polymer emulsions and
licensing its technologies and/or selling its polymer delivery systems to
established brand manufacturers and providers of topical prescription and
over-the-counter cosmetic and skin-care Product.

B.    The
Distributor is engaging in the business of marketing and distributing skin-care
Product.

C.    Skinvisible
and the Distributor have agreed to enter into this Agreement, whereby the
Distributor will have the exclusive right to distribute, market, sell and
promote the Product throughout the Territory.

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants
herein set forth and other good and valuable consideration, the parties agree as
follows:

I.     DEFINITIONS

In this
Agreement, the following terms have the following meanings:

1.1    “Customers” means,
at any time and from time to time, the customers of the Distributor in respect
of the Product.

1.2    “Confidential
Information” means any
and all technical or business information, data, designs, concepts, ideas,
Product, processes, methods, techniques, specifications, formulas, compositions,
samples, know-how, trade secrets, and improvements of a confidential or
proprietary nature, whether in tangible form or not, which relate to the
Product, or the development, manufacture, end-use, or commercialization thereof,
and were disclosed by one 

 

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party to
the other party under this Agreement. As used herein, “Confidential Information”
shall not include information a party can demonstrate through its
records:

(a)           
is, at
the time of disclosure, available to the general public;

	 	
      (b)
	
      becomes
      at a later date available to the general public through no fault of the
      receiving party, and then only after said later
date;

	 	
      (c)
      
	
      was
      already in the possession of the receiving party without restriction prior
      to the date of disclosure;

	 	
      (d)
	
      is
      disclosed to the party without secrecy obligations by a third party who
      had a lawful right to disclose it; or

	 	
      (e)
	
      is
      independently developed by personnel of the receiving party who had no
      direct or indirect access to the Confidential Information of the
      disclosing party.

1.3    "Formula" shall
mean the specific ingredients, composition, and process for preparing the
Product (as defined below). 

1.4    "Patents"
shall
mean U.S. Patent No. 6,582,683 issued on June 24, 2003 for "Dermal Barrier
Composition"; U.S.S.N. 09/933,275 filed on August 20, 2001 and U.S.S.N.
10/154,723 filed on May 23, 2002, both for "Topical Composition, Topical
Composition Precursor, and Methods for Manufacturing and Using the Same"; PCT
Application No. US02/26301 filed on August 16, 2002 for purposes of the
countries designated therein that are within the Territory namely Asia,
Australia, Europe, India, Japan and S. Korea; and all divisions, continuations,
continuation-in-parts, reissues, reexamination applications, extensions, foreign
equivalents within the Territory, and patents issuing there-from which are owned
or controlled by Skinvisible pertaining to the Product, Confidential
Information, and Improvement Inventions.

1.5    "Product"
means
Skinvisible's proprietary antimicrobial hand sanitizer product incorporating 1%
Triclosan as an active ingredient, and further identified in Appendix
A.

1.6   "Product
Specifications" shall
mean the specifications for the Product that will likely be needed to meet
customer and regulatory requirements. These Product Specifications shall not be
modified without the express, written agreement of the parties. 

	
      1.7
	
      "Territory"
      means all the countries of the world except Canada, USA and
      Mexico.

 

II.     APPOINTMENT,
TERRITORY AND PRODUCT

2.1    Subject
to the terms hereof, Skinvisible hereby appoints the Distributor and grants to
the Distributor the exclusive right to distribute, sell, market and promote the
Product within the Territory. For greater certainty, while this Agreement shall
remain in effect, except for sub-distributors appointed by the Distributor and
consented to in writing by Skinvisible, no person, 

 

Page 2 of
18

 

firm or
corporation will be granted the right to distribute, sell, market or promote the
Product within the Territory other than the Distributor.

2.2    The
Distributor shall not be entitled to appoint sub-distributors to distribute,
market, sell, or promote the Product within the Territory without the prior
express written consent of Skinvisible, pursuant to Article VIII, which shall
not be unreasonably withheld.

 2.3    The
Distributor shall be restricted from integrating the Product into the
manufacture and production of finished Product to be distributed, sold, marketed
and promoted by or on behalf of the Distributor or its permitted agents,
associates, affiliates, or sub-distributors. However, the Product may be sold
under a "private" label by the Distributors or its permitted agents, associates,
affiliates, or sub-distributors, provided that all packaging costs are paid in
advance to Skinvisible. 

2.4    Distributor
recognizes that Skinvisible is in the business of developing, marketing,
selling, and distributing its polymer-based delivery systems and related
technologies (including Product), and developing end-use applications therefore,
on worldwide bases. For so long as Distributor retains its exclusive
distribution rights for the Product granted under Section 2.1 of this Agreement,
Skinvisible shall refrain from selling the Product to customers within the
Territory, or engaging any third party as a distributor of the Product within
the Territory.

 

III.     DISTRIBUTOR
NOT MADE AGENT OR LEGAL REPRESENTATIVE

This
Agreement does not render Distributor an agent or legal representative of
Skinvisible for any purpose whatsoever. The Distributor is not granted any right
or authority to assume or to create any obligation or responsibility, express or
implied, on behalf of or in the name of Skinvisible or to bind Skinvisible in
any manner or thing whatsoever.

IV.     PRICING
AND PAYMENT

4.1         
*

4.2         
*

4.3          *

4.4    The
Distributor shall pay Skinvisible an up-front license fee in the amount of
$1,000,000 USD for the exclusive right to distribute, sell, market and promote
the Product within the 

 

*
The
confidential portion has been omitted and filed separately with the
Commission

 

Page 3 of
18

 

Territory.
Skinvisible acknowledges receipt of a $25,000 nonrefundable deposit applicable
toward this up-front license fee. *

	
      4.5
	
      The
      Distributor shall pay quarterly to Skinvisible a running royalty fee in
      order to maintain the exclusivity granted herein no later than thirty (30)
      days after the end of each quarter. The amount of the royalty shall be
      calculated as follows:

	
       
      Quarter Ended
	
       
      Amount of Payment

       

	
      September
      30, 2005 and subsequent first Year Quarters
	
      $5,000
      or 5% of gross revenues generated by Distributor from sales of the Product
      in the Territory in the quarter, whichever is greater

	
      September
      30, 2006 and subsequent second Year Quarters 
	
      $10,000
      or 5% of gross revenues generated by Distributor from sales of the Product
      in the Territory in the quarter, whichever is greater

	
      September
      30, 2007 and subsequent Quarters Thereafter
	
      $20,000
      or 5% of gross revenues generated by Distributor from sales of the Product
      in the Territory in the quarter, whichever is
greater

 

*

4.6    All
payments by the Distributor to Skinvisible to be made hereunder shall be in
United States dollars.

 

*
The
confidential portion has been omitted and filed separately with the
Commission

 

Page 4 of
18

 

V. TERMS
AND CONDITIONS OF PRODUCT ORDERS 

5.1    *

5.2    *

5.3    *

5.4    *

5.5    *

5.6    *

 

*
The
confidential portion has been omitted and filed separately with the
Commission

Page 5 of
18

 

 

Page
6 of 18

(a)    *

	 	
      (b)
	
      *

	 	
      (c)
      
	
      *

 

*
The
confidential portion has been omitted and filed separately with the
Commission

Page 7 of
18

5.7    *

 

VI.     OBLIGATIONS
OF SKINVISIBLE

6.1    *

6.2    *

VII.     RIGHT
TO MANUFACTURE

7.1           Distributor
shall have the right to manufacture the Product covered by this Agreement,
instead of sourcing it from Skinvisible, provided that: (a) Distributor makes
the Product strictly in accordance with the Formula, and that it achieves the
Product Specifications; (b) Distributor 

 

*
The
confidential portion has been omitted and filed separately with the
Commission

Page 8 of
18

sources
the "M1 Polymer" ingredient for the Product from Skinvisible; (c) Distributor
applies Skinvisible's INVISICARE Trademark in a prominent fashion to all
packaging, labels, tags, advertising, and promotional materials associated with
the Products; and (d) Distributor pays Skinvisible the license fees and
royalties due pursuant to Sections 4.4 and 4.5. Distributor shall notify
Skinvisible ninety (90) days prior to its commencement of the manufacture of
Product under this Section 7.1.

7.2    Should
Distributor decide to manufacture Product under this Agreement, Skinvisible
shall disclose to Distributor as soon reasonably practicable the Formula,
Product Specification, and manufacturing know-how in sufficient detail (using
reasonable commercial efforts) to enable Distributor to make the Products. This
information shall be treated as Skinvisible's Confidential Information pursuant
to Article X. Notwithstanding the foregoing, Skinvisible shall not be required
to disclose any specific information to Distributor in the event that any
agreement with a third party would preclude Skinvisible from doing
so.

7.3    Distributor
shall bear all costs associated with the: (a) disclosure of the Formula, Product
Specifications, manufacturing know-how; (b) adapting such information or
technology for its use by Distributor; (c) any necessary training; and (d) any
documentation done for Distributor's internal purposes.

7.4    Distributor
and Skinvisible shall negotiate in good faith a separate agreement for supplying
the M1 Polymer to Distributor for incorporation into the Product to be
manufactured by Distributor, including the purchase price for such M1
Polymer.

7.5    Distributor
shall permit duly authorized representatives of Skinvisible, at reasonable
times, upon reasonable nature, and in the company of Distributor's employees to
enter any facility where the Product is being manufactured for the purpose of:
(a) inspecting those portions of the facility used in the manufacture, handling,
or storage of the Product; (b) inspecting the manufacture, handling, and storage
of the Product; and (c) ensuring that the provisions of this Agreement are being
complied with by Distributor. Such representatives shall comply with all of
Distributor's plant safety and other rules and regulations while at the
facility. 

VIII.     SUB-DISTRIBUTORS

8.1    In the
event that Distributor determines that commercial exploitation of the Product
within the Territory requires the appointment of sub-distributors through which
the Product may be sold, then Distributor shall identify such sub-distributors
to Skinvisible, and seek Skinvisible’s prior written approval of them, which
shall not be unreasonably withheld, before appointing any such sub-distributors
under this Agreement.

 

8.2          Any
sub-distributor approved in writing by Skinvisible shall have the right during
the continuance
of this Agreement to use Skinvisible’s Trademark, Patents, and other
intellectual property rights licensed under this Agreement for the sole purpose
of promoting the sales of the Product throughout the Territory under the same
terms and conditions imposed upon Distributor under this Agreement.

Page
9 of 18

 

IX.     IMPROVEMENT
INVENTIONS

9.1    Distributor
shall have no right to make any modifications or improvements to the Product
without Skinvisible's prior, written permission. In the event that Distributor
does conceive, develop, or reduce to practice any invention or other information
arising from or based upon the use of Skinvisible's Confidential Information or
Product (hereinafter "Improvement Invention"), then Skinvisible shall be the
sole owner of such Improvement Invention, which shall be subject to the
exclusive distributorship grant of Article II. Should Distributor desire
modification or improvement to be made to the Product, and then it shall
contract with Skinvisible under a separate agreement to develop such
modifications or improvements.

9.2    Only
Skinvisible shall have the right, in its sole discretion, to patent the Product
and Improvement Inventions.

X.     CONFIDENTIALITY

10.1    Each
party recognizes the importance to the other party that of that other party’s
Confidential Information, and such information is critical to the business of
the disclosing party. Each party recognizes that neither party would enter into
this Agreement without assurance that its Confidential Information and the value
thereof will be protected as provided in this Section 10 and elsewhere in this
Agreement.

10.2    All
Confidential Information shall remain the property of the disclosing party. The
receiving party shall hold in strict confidence the disclosing party’s
Confidential Information and with no less than the same degree of care that it
holds its own confidential and proprietary information, and it will take all
reasonable precautions to protect such Confidential Information. The receiving
party shall make the Confidential Information received under this Agreement
available only to those of its employees who have a need to know the same in
connection with their work assignments to further the objections contemplated
under this Agreement. No disclosures to third parties shall be made by the
receiving party of such Confidential Information without the prior written
approval of the disclosing party. The receiving party will use the disclosing
party’s Confidential Information only for the purposes and under the
circumstances provided in this Agreement.

10.3    Upon any
termination of this Agreement, or earlier at a party's request, each party will
return the other party’s Confidential Information and all documents or media
containing any such Confidential Information to the other party, except that the
receiving party has the right to keep one copy of such information for legal
purposes (which shall remain subject to the confidentiality provisions set forth
herein), including, but not limited to, copies of all documentation required by
the FDA.

10.4    Each
party acknowledges and agrees that the other party shall be entitled to
appropriate equitable relief in addition to whatever remedies it may have at law
in the event of a breach by the other party of its covenants contained in this
Section 10. The foregoing provision is in 

 

Page
10 of 18

 

addition
to, and not in limitation of, any and all remedies at law, in equity or
otherwise, that the non-breaching party may have upon the other party’s breach
of this Agreement.

10.5    Except as
otherwise provided in this Agreement, either party shall immediately notify the
other party of any private or governmental request for Confidential Information
or any other information or documents relating to the Product or this Agreement.
Each party shall have the right to participate in the other party’s response to
any such request. If a party receives any legal instrument requiring the
production of data, work papers, reports, or other materials relating to this
Agreement, that party shall: (a) give the other party, if possible, the
opportunity to participate in quashing, modifying or otherwise responding to any
compulsory process in an appropriate and timely manner; and (b) cooperate fully
with the other party’s efforts to narrow the scope of any such compulsory
process, to obtain a protective order limiting the use or disclosure of the
information sought, or in any other lawful way to obtain continued protection of
the Confidential Information.

10.6    If either
party becomes aware of the loss, theft or misappropriation of Confidential
Information, which is in its possession or control, it shall notify the other
party in writing within seven (7) days of its discovery of such loss, theft or
misappropriation.

10.7    The
rights and duties of this Article 10 shall survive the termination of this
Agreement, whether upon expiration or termination by either party.

XI.     TERM
AND TERMINATION

11.1    This
Agreement shall continue in full force and effect for twenty (20) years from the
Effective Date or the last to expire of the Patents, whichever occurs first,
unless otherwise terminated as provided in Section 11.2 below, or by mutual
written consent of the parties hereto.

11.2    Either
party may terminate this Agreement at any time as follows:

	 	
      (a)
      
	
      By
      either party, effective immediately, in the event that the other party
      should fail to materially perform any of its material obligations under
      this Agreement and should fail to remedy such failure within thirty (30)
      calendar days after receiving written demand to remedy such failure, or in
      the event such other party, despite remedying a particular failure within
      thirty (30) days as aforesaid, is guilty of chronic or persistent breaches
      of such material obligation in question, in the end result having a
      material adverse effect upon the other party;
or

	 	
      (b)
	
      By
      either party, upon thirty (30) days’ written notice if a force majeure
      event described in Section 16.1 shall have occurred and continue for sixty
      (60) days.

11.3    Skinvisible
may terminate this agreement at any time if the Distributor should become the
subject of any voluntary or involuntary bankruptcy, receivership or other
insolvency proceedings or make an assignment or other arrangement for the
benefit of its creditors, or if such other party should be nationalized or have
any of its material assets expropriated.

 

Page
11 of 18

 

	
      11.4
	
      This
      Agreement may also be terminated by mutual agreement of the
      parties.

11.5         
The
Distributor may not manufacture, market, distribute, or sell any Competing
Product while this Agreement is in full force and effect.

XII.     EFFECT
OF TERMINATION

12.1    The
rights, duties and obligations of the parties upon and following the expiration
or termination of this Agreement however occurring shall be governed by the
following provisions:

	 	
      (a)
      
	
      The
      termination of this Agreement shall not release or affect, and this
      Agreement shall remain fully operative as to, any obligations or
      liabilities incurred by either party prior to the effective date of such
      termination;

	 	
      (b)
	
      Skinvisible,
      subject to its production capabilities, shall fill all orders submitted by
      the Distributor during the term of this Agreement regardless of whether
      any of the Product in such orders are to be delivered after the expiration
      or termination of this Agreement. During such period of time that
      Skinvisible is filling such orders, all terms of this Agreement shall
      apply between the parties with respect to such production;
    and

	 	
      (c)
	
      Notwithstanding
      the provisions of section 10 hereof, Skinvisible shall, by reason only of
      the expiration or termination of this Agreement in accordance with the
      terms of this Agreement, be liable in any manner whatsoever to the
      Distributor for any damage of any kind whether direct, indirect or
      conse-quential, or for any profits on anticipated sales, or for any
      expenditures or investments;

	 	
      (d)
	
      Upon
      the effective date of termination of this Agreement, the parties hereto
      acknowledge that the exclusivity provisions set forth in Paragraph 2
      herein will no longer be in effect and that any limitations on the parties
      pertaining to sales and marketing and potential customers are dissolved
      and the parties are free to contract with any third party for future
      business; and

	 	
      (e)
	
      Termination
      or expiration of this Agreement for any reason shall not relieve the
      parties of their obligations under Articles IX, X, XI, XII, XIII, XIV, and
      XV of this Agreement.

XIII.     WARRANTY
AND REPRESENTATIONS

13.1    As an
essential term of this Agreement, each party hereby warrants and represents to
the other party that it is entitled to disclose to and license the other party
to sue its Confidential Information, Improvement Inventions, and Patents under
the terms of this Agreement without violating the trade secret or contractual
rights of any third party.

13.2    EXCEPT AS
SET FORTH IN SECTION 13.1, OR AS OTHERWISE SPECIFICALLY STATED HEREIN, THE
PARTIES EXPRESSLY DISCLAIM ALL WARRANTIES, 

 

Page
12 of 18

 

EXPRESS
OR IMPLIED, INCLUDING WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY, FITNESS
OR A PARTICULAR PURPOSE, PATENT VALIDITY, OR NON-INFRINGEMENT OF A THIRD-PARTY
PATENT OF OTHER INTELLECTUAL PROPERTY RIGHTS REGARDING THE USE OR
COMMERCIALIZATION OF PRODUCT, CONFIDENTIAL INFORMATION, IMPROVEMENT INVENTIONS,
OR PATENTS.

XIV.     INDEMNIFICATION

14.1    Each
party shall indemnify, defend and hold harmless the other party from any and all
claims, costs, liabilities, or damages (including reasonable attorney's fees)
arising from its:

(a)    uncured
material breach of this Agreement;

(b)    breach of
any Warranty or Representation provided pursuant to Article XII;

	 	
      (c)
	
      negligent,
      grossly negligent, reckless, or wilful acts or omissions. Each party shall
      be responsible for any and all damages that it is subjected to by means of
      its own negligent, grossly negligent, reckless or wilful acts or
      omissions.

14.2    In the
event a third-party lawsuit is filed against a party (the "Indemnitee") due to
the negligent, grossly negligent, reckless or wilful actions or omissions of the
other party (the "Indemnitor"), then the Indemnitee shall promptly provide
notice of such suit to the Indemnitor, and permit the Indemnitor to control its
defence, including the terms under which any such suit is settled. The
Indemnitee shall provide all reasonable cooperation to the Indemnitor at the
Indemnitor's expense in the defence of that suit.

XV.     PATENT
MARKING

Distributor
shall cause each unit of Product that it manufactures, markets, sells, or
otherwise introduces into commerce under this Agreement to have affixed thereto
a label bearing the following legend: "U.S. Patent No. 6,582,683 under license
from Skinvisible Pharmaceuticals, Inc." Skinvisible shall update this legend for
Distributor as additional Patents are issued.

       
XVI.    MISCELLANEOUS
PROVISIONS

16.1    Neither
party shall be in default hereunder by reason of any failure or delay in the
performance of any obligation under this Agreement where such failure or delay
arises out of any cause beyond the reasonable control and without the fault or
negligence of such party. Such causes shall include, without limitation, storms,
floods, other acts of nature, fires, explosions, riots, war or civil
disturbance, strikes or other labor unrests, embargoes and other governmental
actions or regulations which would prohibit either party from ordering or
furnishing the Product or from performing any other aspects of the obligations
hereunder, delays in transportation, and liability to obtain necessary labor,
supplies or manufacturing facilities.

Page
13 of 18

 

16.2     Each and
every right and remedy hereunder is cumulative with each and every other right
and remedy herein or in any other agreement between the parties or under
applicable law.

16.3    Each
party hereby acknowledges receipt of a signed copy of this
Agreement.

16.4    Nothing
contained in this Agreement shall create or shall be construed as creating a
partnership, a joint venture, agency or employment relationship between the
parties. The parties agree to perform their obligations in accordance with this
Agreement at arms’ length and only as independent contractors. Neither party has
the right or authority to assume nor create any obligations or responsibilities,
express or implied, on behalf of the other party, and neither party may bind the
other party in any manner or thing whatsoever. Neither party shall be liable,
except as expressly provided otherwise in this Agreement, for any expenses,
liabilities or other obligations incurred by the other.

16.5    Skinvisible
and the Distributor each represent and warrant to the other that it is duly
organized, validly existing and in good standing under the laws of the State or
Commonwealth (as applicable) in which incorporated, and that it has full
corporate power and authority to carry on the business presently being conducted
by it and to enter into and to perform its obligations under this Agreement.

16.6    Skinvisible
and the Distributor each represent and warrant to the other that it has taken
all action necessary to authorize the execution and delivery of this Agreement
and the performance of each party’s respective obligations hereunder. Each
party’s officer executing this Agreement on its behalf has the legal power,
right and authority to bind the party to the terms and conditions of this
Agreement, and when he or she executes and delivers this Agreement and any
instruments contemplated herein, he or she will have the power, right and
authority to bind the party thereto.

16.7    All
notices, requests, demands and other communications hereunder shall be given in
writing and shall be: (a) personally delivered; (b) sent by telecopy, facsimile
transmission or other electronic means of transmitting written documents with
confirmation of receipt; or (c) sent to the parties at their respective
addresses indicated herein by registered or certified mail, return receipt
requested and postage prepaid, or by private overnight mail courier services
with confirmation of receipt. The respective addresses to be used for all such
notices, demands or requests shall be as set forth on page 1 hereof or to such
other person or address as either party shall furnish to the other in writing
from time to time. If personally delivered, such communication shall be deemed
delivered upon actual receipt by the “attention” addressee or a person
authorized to accept for such addressee; if electronically transmitted pursuant
to this paragraph, such communication shall be deemed delivered the next
business day after transmission (and sender shall bear the burden of proof of
delivery); if sent by overnight courier pursuant to this paragraph, such
communication shall be deemed delivered upon receipt by the “attention”
addressee or a person authorized to accept for such address; and if sent by mail
pursuant to this paragraph, such communication shall be deemed delivered as of
the date of delivery indicated on the receipt issued by the relevant postal
service, or, if the addressee fails or refuses to accept delivery, as of the
date of such failure or refusal. Any party to this Agreement may change its
address for the purposes of this Agreement by giving notice thereof in
accordance with this section 16.7.

Page
14 of 18

 

16.8    This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives. 

16.9    This
Agreement is not intended, nor shall it be construed, to confer upon any person
except the parties hereto and its successors and permitted assigns any rights or
remedies under or by reason of this Agreement, except as contemplated
herein.

16.10    This
Agreement and all matters arising under or growing out of or in connection with
or in respect of this Agreement shall be governed by and construed in accordance
with the laws of the State of Nevada. 

16.11    The
headings in this Agreement are inserted for convenience only and shall not
constitute a part hereof.

16.12    Each
provision contained in this Agreement is declared to constitute a separate and
distinct covenant and provision and to be severable from all other separate,
distinct covenants and provisions. In any provision of this Agreement is or
becomes invalid, illegal, or unenforceable in any jurisdiction, such provision
shall be deemed amended to conform to applicable laws as to be valid and
enforceable or, if it cannot be so amended without materially altering the
intention of the parties, it shall be stricken and the remainder of this
Agreement shall remain in full force and effect.

16.13    No waiver
of a breach of any provision of this Agreement shall be deemed to be, or shall
constitute, a waiver of a breach of any other provision of this Agreement,
whether or not similar, nor shall such waiver constitute a continuing waiver of
such breach unless otherwise expressly provided in such waiver.

16.14    This
Agreement may not be assigned by the Distributor without the prior written
consent of Skinvisible. Skinvisible may assign, transfer, or convey its
manufacturing obligations to third parties who shall be bound by the same
standards as Skinvisible. 

16.15    All
prices quoted in this Agreement are exclusive of all applicable sales, use or
other excise taxes (including sales tax and goods and services tax). The
Distributor is responsible for all taxes and similar charges customary for a
buyer of Product and services as herein contemplated.

16.16    All
disputes, claims or controversies arising out of or relating to this Agreement,
or the breach, termination or invalidity hereof, shall be
finally settled in United States under the Rules of Arbitration of the
International Chamber of Commerce by one or more arbitrators appointed in
accordance with the said Rules. The arbitration shall take place in Las Vegas,
Nevada.

16.17    The
parties agree to execute such documents, make such filings and take such actions
as may be reasonably necessary at the request of the other party to give full
force and effect to the provisions hereof.

Page
15 of 18

 

16.18    This
Agreement may be executed in one or more counterparts, each of which when taken
together shall constitute one and the same instrument. This Agreement may be
delivered by personal delivery of facsimile transmission.

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date and
year first written above.

 

SKINVISIBLE
PHARMACEUTICALS, INC.

By:         
/s/ Terry
Howlett             

               
Name:   Terry
Howlett
               Title:     
President

 

SAFE4HOURS,
INC.

By:         
/s/ James
Graves           

               
Name:   James Graves

              
Title:    
its President

 

 

 

Page 16
of 18

SCHEDULE
A

Product
List

 

Skinvisible's
Antimicrobial Hand Sanitizer:
Triclosan 1%, Purified Water, PVM/MA Copolymer - VP/Hexadecene Copolymer -
VP/Eicosene Copolymer, Glycerin, Aloe - 10% Solution, Triethanolamine,
Nonoxynol-9, Vegetable Oil, Carbomer, Propylene Glycol, Diazolidinyl Urea,
Iodopropynyl, Butylcarbarnate. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page 17
of 18

SCHEDULE
B

Price
List

Product
                                                                               
Packaged
Wholesale Pricing

                                                         2 oz.    4
oz.     8 oz.    16
oz.    1
gal.    1
liter                   

Sanitizer
Lotion                                     
*      *      *      *                    
*                  
*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*
The
confidential portion has been omitted and filed separately with the
Commission

 

 

 

 

 

 

 

Page
18 of 18

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