Document:

exhibit102.htm

    Exhibit
      10.2

     

    CONTRACT
      MANUFACTURING AGREEMENT

    
The
      undersigned,

    

    Medtech
      Products Inc., a
      company organized and existing under the laws of the State of Delaware, USA,
      having its principal place of business at 90 North Broadway, Irvington, New
      York
      10533, together with any affiliate thereof, hereinafter called “Medtech”;

     

    And

     

    PHARMASPRAY
      B.V., a
      company organised and existing under the laws of the Netherlands, having its
      domicile at Demeterlaan 30 (9641 ML) Veendam, hereinafter called “Pharmaspray”.

     

    Sometimes
      hereinafter
      jointly referred to as the “Parties”
      or separately as the “Party”.

     

    WHEREAS:

    

    
      	
              A.  

            	
              Medtech
                is the owner
                of all Intellectual Property Rights relating to the Product (as defined
                in
                Clause 1) for the USA, Canada and
                certain other countries and
                is to be considered the Specification Holder of the
                Product;

            

    

    

    
      	
              B.  

            	
              Pharmaspray
                is an
                aerosol manufacturer filling aerosol cans with cosmetic and medical
                products;

            

    

    

    
      	
              C.  

            	
              The
                Products sold by
                Medtech are subject to ISO-13485 Standard and GMP 820
                standard;

            

    

    

    
      	
              D.  

            	
              Pharmaspray
                operates
                in accordance with ISO-9001:2000
                Standard;

            

    

    

    
      	
              E.  

            	
              The
                Parties wish to
                (co)operate in accordance with ISO-13485 Standard, ISO-9001:2000
                Standard,
                the Quality Manual (as defined in Clause 1) and the instructions
                of
                Medtech as specified in the Schedule(s) which form part of this Agreement;
                and

            

    

    

    
      	
              F.  

            	
              The
                Parties now wish
                to formalize this Agreement as a “Turn-Key Agreement” in which they will
                include all their agreements with respect to the Procurement Services,
                Production Services, Packaging Services, Logistic Services and other
                services provided by Pharmaspray to
                Medtech.

            

    

    

    NOW
      THEREFORE THE PARTIES AGREE AS FOLLOWS:

    

    
      	
              1.  

            	
              Definitions

            

    

    

    
      	
              1.1.  

            	
              The
                term “Acceptance
                of the Materials” shall mean the point in time at which the Materials (as
                defined hereafter) are physically handed over to or become under
                the
                control and care of Pharmaspray in order to manufacture and package
                the
                Products.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              1.2.  

            	
              The
                term “Agreement”
                shall mean this document including the Quality Manual and all (further)
                Schedules and annexes hereto and thereto, each as amended from time
                to
                time by the Parties upon mutual written
                agreement.

            

    

    

    
      	
              1.3.  

            	
              The
                term
                “Commencement Date” shall mean October 5,
                2007.

            

    

    

    
      	
              1.4.  

            	
              The
                term "Delivery
                of the Products" shall mean the point in time at which the Products
                (as
                defined hereafter) are delivered to Medtech or the designated agent
                or
                distributor of Medtech. Unless otherwise specified in writing, Delivery
                of
                Products shall occur ex works (EXW, incoterms 2000) in
                Veendam.

            

    

    

    
      	
              1.5.  

            	
              The
                Term “Force
                Majeure” shall mean those circumstances which are unforeseeable and beyond
                the reasonable control of each of the Parties and which prevent the
                total
                or partial carrying out of any obligation by a party under this Agreement,
                such as acts or regulations or decrees of any government (de facto
                or de
                jure), natural phenomena, such as earthquakes and floods, fires,
                riots,
                shipwrecks, freight embargoes or other circumstances whether similar
                or
                dissimilar to those enumerated
                above.

            

    

    

    
      	
              1.6.  

            	
              The
                term
                “Intellectual Property Rights” shall mean any and all intellectual
                property rights, good will, know-how and other intangibles relating
                to the
                Product and its packaging including (but not limited to) national
                and
                international patents, trade name(s) and
                trademark(s).

            

    

    

    
      	
              1.7.  

            	
              The
                term “Logistic
                Services” shall mean all services provided by Pharmaspray as from the
                beginning of the manufacture of the Product until the physical delivery
                of
                the Product to Medtech, Medtech's distributors, agents or other
                destinations, including the storage and the arranging of
                transport.

            

    

    

    
      	
              1.8.  

            	
              The
                term “Materials”
                shall mean all semi fabrics, ingredients, spare parts, and packaging
                material necessary to assemble the
                Product.

            

    

    

    
      	
              1.9.  

            	
              The
                term "Mold"
                shall mean the mold purchased by Pharmaspray from NPK Products B.V.
                on or
                about May 1, 2007 for use by Pharmaspray in the manufacture of the
                Product.

            

    

    

    
      	
              1.10.  

            	
              The
                term “Packaging
                Services” shall mean the packaging of the Product(s) (as defined
                hereafter) by Pharmaspray according
                to the
                Quality Manual (as defined hereafter) and other specific
                instructions of Medtech.

            

    

    

    
      	
              1.11.  

            	
               The
                term
                “Procurement Services” shall mean the various acts of identifying,
                qualifying, ordering and obtaining via Purchase Orders or other means
                those Materials necessary or appropriate to the production of Products
                until such Materials are physically delivered to Pharmaspray. In
                performing Procurement Services, Pharmaspray shall act for its own
                account
                and not as agent for Medtech.

            

    

    

    
      	
              1.12.  

            	
              The
                term “Product”
                shall mean a consumer product composed and/or manufactured on behalf
                of
                Medtech bearing the Compound W Freeze Off® or other trademarks owned by
                Medtech and used for the cryogenic treatment of warts, skin tags
                or other
                lesions in humans, according to Medtech’s specifications as described in
                Schedule

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	1.
	 	 
	
              1.13.  

            	
              The
                term “Production
                Services” shall mean the manufacture of the Product, including production,
                assembly, filling and labelling of the aerosol cans by Pharmaspray
                as
                instructed by Medtech in accordance with the terms of this Agreement
                and
                the Quality Manual.

            

    

    

    
      	
              1.14.  

            	
              The
                term “Purchase
                Order” shall mean a written instruction to provide the Procurement
                Services, Production Services, Packaging Services and Logistics Services,
                which instruction is prepared by Medtech and directed to Pharmaspray
                and
                includes specific instruction as to the delivery of the
                Product.

            

    

    

    
      	
              1.15.  

            	
              The
                term “Quality
                Manual” shall mean the Quality Agreement attached hereto as Schedule 4, as
                it may be subsequently amended, revised or replaced upon mutual written
                agreement.

            

    

    

    
      	
              1.16.  

            	
              The
                term “Schedule”
                shall mean any schedule to this Agreement, including any amendment
                thereto. 

            

    

    

    
      	
              1.17.  

            	
              The
                term “Storage
                Location” shall mean the warehouse located at Demeterlaan 30 and Cereslaan
                9 (9641 ML) Veendam unless otherwise agreed by the Parties in writing.
                

            

    

    

    
      	
              1.18.  

            	
              The
                term “Supplier”
                shall mean suppliers designated or appointed by Pharmaspray, subject
                to
                approval by Medtech, as described – non limitative – in Schedule
                2.

            

    

    

    
      	
              1.19.  

            	
              The
                term “Turn-Key
                Agreement” shall mean an understanding between the Parties acknowledging
                the assumption of all responsibility by Pharmaspray for
                all  Procurement Services, Production Services, Packaging
                Services, Logistics Services and other services necessary or appropriate
                to the fulfilment of Purchase Orders for the Product except as otherwise
                provided in this Agreement.

            

    

    

    
      	
               

            	
              In
                as far as
                applicable in the context of the Agreement, terms defined in the
                singular
                shall include the plural and vice versa.

            

    

    

    
      	
              2.  

            	
              Procurement,
                Production, Packaging and Logistic
                Services

            

    

    

    
      	
              2.1.  

            	
              On
                the terms and
                conditions of the Agreement, Medtech hereby appoints Pharmaspray
                and
                Pharmaspray hereby accepts such appointment to provide the Procurement
                Services, Production Services, Packaging Services and the Logistic
                Services during the term of the Agreement in a manner befitting a
                careful
                contractor, excepting only as provided
                herein.

            

    

    

    
      	
              2.2.  

            	
              Without
                limiting the
                (general) obligations of the contracting Parties under this Agreement,
                the
                Parties shall provide mutual assistance and shall co-operate with
                each
                other and with third parties in order to ensure that the quality
                of the
                Procurement, Production, Packaging and Logistics Services are maintained
                and that the Parties' expectations in entering into this Agreement
                are
                fulfilled; in particular, Pharmaspray represents that it has such
                resources necessary to fulfil its obligations and that it shall be
                pro-active in resolving any problems. Medtech shall
                

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
    

    
      	 	
              promptly
                inform Pharmaspray of all changes in its Compound W Freeze
                Off® business which may impact on the performance of  the Production
                Services under this
                Agreement.

            

    

    
      	 	 
	
              2.3.  

            	
              Pharmaspray
                shall
                provide the Procurement services, Production Services, Packaging
                Services
                and Logistics Services in accordance with the applicable ISO standards,
                the Quality Manual and Schedules, any (other) specific instructions
                of
                Medtech and any further mandatory national and international
                specifications, as applicable from time to
                time.

            

    

    

    
      	
              2.4.  

            	
              Medtech
                will provide
                Pharmaspray every month with a twelve month rolling sales forecast
                for the
                Products. The forecast for the three month period immediately following
                the issuance of the forecast shall be converted into Purchase Orders
                from
                Medtech to Pharmaspray, which Purchase Orders shall be deemed
                binding.

            

    

    

    
      	
              2.5.  

            	
              If
                Pharmaspray
                incurs costs directly based upon Medtech’s forecast for the next three
                months, and Medtech does not issue a Purchase Order related to those
                costs
                within six months after the applicable month, Pharmaspray may charge
                such
                costs to Medtech.

            

    

    

    
      	
              2.6.  

            	
              Pharmaspray
                will
                source the Materials mentioned in Schedule 2 from Suppliers approved
                by
                Medtech. Pharmaspray will manage a minimum amount of safety stock,
                with
                the minimum amount to be determined by the Parties.  To the
                extent any safety stock agreed by the Parties and maintained by
                Pharmaspray becomes obsolete due solely to the actions of Medtech,
                Medtech
                shall be obligated to reimburse Pharmaspray for its actual cost to
                purchase such safety stock.

            

    

    

    
      	
              2.7.  

            	
              Pharmaspray
                is
                responsible for the delivery of the Materials required for the manufacture
                or production of the Product to Pharmaspray’s
                premises.

            

    

    

    
      	
              2.8.  

            	
              Subject
                to clause
                7.3 and 7.5 and the provisions of Section 9, Pharmaspray is responsible
                for the compliance of the Materials with the applicable ISO standards
                and
                any further national and international specifications applicable
                from time
                to time at the moment of Acceptance of the Materials. Pharmaspray
                shall
                check such compliance, in as far as visually observable, at the Acceptance
                of the Materials.

            

    

    

    
      	
              2.9.  

            	
              Pharmaspray
                shall
                deliver the Products related to a specific written order of Medtech
                to the
                distributors or agents of Medtech within four (4) weeks upon such
                order,
                provided that Pharmaspray has received the sales forecast the specific
                order is based upon, in due time.

            

    

    

    
      	
              2.10.  

            	
              Medtech
                is allowed
                to conduct regularly scheduled quality audits of both the production
                process and the Product at Pharmaspray’s premises at any reasonable time
                after receipt of written notice from Medtech of its intent in advance.
                Pharmaspray may require its representative to be present and that
                such
                visit is under the condition that the internal rules of Pharmaspray
                or the
                Storage Location are being complied with. Medtech will be responsible
                for
                all associated costs of such quality audits. Medtech shall have the
                right
                to reject Products that do not meet the Product Specifications set
                forth
                in Schedule 1, the Quality Manual or other specific instructions
                of
                Medtech. Reasonable efforts will be made to salvage usable portions
                of any
                batch should a sampling of Products not be in compliance with the
                Product
                

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	Specifications
              set
              forth in Schedule 1, the Quality Manual or other specific instructions
              of
              Medtech.
	 	 
	
              2.11.  

            	
              Pharmaspray
                shall
                provide Medtech with updates on its business operations as specified
                in
                the Quality Manual.

            

    

    

    
      	
              2.12.  

            	
              Pharmaspray
                shall
                keep an adequate administration of deliveries to Medtech’s distributors or
                agents. Pharmaspray shall provide copies of all shipping documents
                to
                Medtech in case of re-calls, whatever the cause for such re-calls
                may
                be.

            

    

    

    
      	
              2.13.  

            	
              Each
                Party shall,
                upon execution of this Agreement, appoint one of its employees to
                be a
                relationship manager responsible for liaison between the
                Parties.  The relationship managers shall conference not less
                than quarterly and meet in person not less than annually to coordinate
                the
                production activities, handle purchase orders, track assembly progress
                and
                any packaging work, movement of Product, deliveries, sales status
                and the
                current status of the business relationship and manage issues that
                have
                arisen.

            

    

     

    
      	
              2.14.  

            	
              Conveyance
                and
                delivery of the Products shall occur ex works (EXW) in Veendam, unless
                otherwise agreed between the Parties in
                writing.

            

    

     

    
      	
              2.15.  

            	
              Medtech
                is and shall
                at all times remain the owner of the Intellectual Property Rights
                to the
                Product in the United States, Canada and certain other countries
                where it
                owns Intellectual Property Rights. No license of whatever nature
                in
                relation to any Intellectual Property Rights is granted by Medtech
                to
                Pharmaspray.  Pharmaspray shall have the obligation to obtain
                and maintain all governmental licenses, permits or approvals necessary
                to
                manufacture the Product at its facility in
                Veendam.

            

    

     

    
      	
              3.  

            	
              Packaging

            

    

    

    
      	
              3.1.  

            	
              Pharmaspray
                will
                package the Product according to the Quality Manual and other specific
                instructions of Medtech.

            

    

    

    
      	
              3.2.  

            	
              Pharmaspray
                has
                acquired the Mold as described in clause 1.9 above. The acquirement
                costs
                were and will be borne by
                Pharmaspray.

            

    

     

    
      	
              4.  

            	
              Transport

            

    

    

    
      	
              4.1.  

            	
              Medtech
                is
                responsible for transport of delivered Products from the premises
                of
                Pharmaspray at Veendam to her distributors, agents or (other) final
                destinations. The Parties agree that Pharmaspray shall organize this
                transport under the authority of and on expense of Medtech, thus
                acting as
                representative of Medtech.

            

    

    

    
      	
              4.2.  

            	
              Medtech
                shall
                designate the carrier(s)/transporter(s) to be involved in transportation
                of delivered Products. Pharmaspray, as representative of Medtech,
                will
                contract these carriers/transporters; Medtech being the contractant
                of the
                carrier/transporter.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              4.3.  

            	
              All
                costs of
                transport taking place after delivery, charged to Pharmaspray, will
                be
                charged on to Medtech. Pharmaspray will provide Medtech with copies
                of the
                transport invoices the on-charging is based
                upon.

            

    

    

    
      	
              4.4.  

            	
              After
                delivery (ex
                works) of the Products has taken place, Pharmaspray is neither responsible
                nor liable for the acts and omissions of carriers/transporters that
                are
                contracted by Pharmaspray on behalf of Medtech.

            
	 	 
	 	Loading,
              stowage and
              discharging

    

     

    
      	
              4.5.  

            	
              The
                obligation of
                (un)loading, stowage and discharging the Materials and/or the Products
                and
                the liability for any damage to and/or loss of the Materials and/or
                Products caused by (un)loading, stowage and/or discharging the Materials
                and/or the Products rests with Pharmaspray, until delivery of the
                Products
                to Medtech defined in clause 2.14.

            

    

    

    
      	
              4.6.  

            	
              Any
                stipulation,
                condition, reservation or exemption as to responsibility and/or liability
                of Pharmaspray for loss of and/or damage to the Materials and/or
                the
                Products, occurring during loading on, stowing, and subsequently
                to the
                discharging from the means of carriage in which the Materials and/or
                the
                Products are (to be) carried (before delivery to Medtech), shall
                be null
                and void unless with prior written consent of
                Medtech.

            

    

    

    
      	
              4.7.  

            	
              Pharmaspray
                shall at
                all times load, stow and discharge the Materials and the Products
                in
                accordance with the applicable provisions of the Quality Manual and
                the
                specific instructions of Medtech.

            

    

    

    
      	
              5.  

            	
              Independent
                and other Subcontractors of
                Pharmaspray

            

    

    

    
      	
              5.1.  

            	
              Pharmaspray
                is
                entitled to contract and instruct (independent) subcontractors and/or
                auxiliary persons for the manufacturing, packaging, and storage of
                the
                Product, subject to the reasonable written consent of Medtech and
                subject
                to reasonable assurance that all confidential and proprietary information
                of Medtech will be safeguarded.

            

    

    

    
      	
              5.2.  

            	
              Pharmaspray
                shall be
                responsible and liable for the acts and omissions of its employees,
                servants, (independent) subcontractors, agents, suppliers and other
                persons whose services it uses for the performance of its obligations
                under this Agreement, as if such acts and omissions were its own,
                cases of
                Force Majeure excepted.

            

    

    

    
      	
              6.  

            	
              Rates,
                Charges and Payment Terms

            

    

    

    
      	
              6.1.  

            	
              All
                rates, costs and
                expenses with respect to the production and packaging and storage
                services
                shall be charged and invoiced by Pharmaspray to Medtech on a weekly
                basis
                and in conformity with the provisions set down in Schedule 3 regarding
                the
                rates and charges. The prices set out on Schedule 3 shall be fixed
                prices
                for the term of this Agreement; provided, however, Pharmaspray shall
                be
                entitled to pass on to Medtech in the first quarter of each calendar
                year,
                by mutual written agreement, any significant net increase in prices
                charged by third parties in connection with Pharmaspray's services
                provided (including any increase in prices

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
    

    
      	 	
              for
                raw
                materials).  In the event of a demonstrable price-increase of
                one or more Materials exceeding  5%, Pharmaspray shall also during
                the  calendar year be entitled to pass on to Medtech this
                price-increase in consultation with
                Medtech.

            

    

     

    
      	
              6.2.  

            	
              Invoices
                shall be
                issued and expressed in Euros and payment shall be made in Euros
                to a
                Dutch bank account of Pharmaspray. If, at the request of Pharmaspray,
                any
                costs, duties and the like involved with payment shall be paid by
                Medtech
                in another currency and/or a foreign bank account, the costs for
                such
                payment shall be borne by
                Pharmaspray.

            

    

    

    
      	
              6.3.  

            	
              Any
                objections to
                the invoice Medtech has received from Pharmaspray shall be made by
                Medtech
                in writing within sixty (60) days from the invoice date. If no objections
                are made within 60 days from the invoice date, the invoice shall
                be
                binding on both Parties.

            

    

    

    
      	
              6.4.  

            	
              Medtech
                shall pay
                the invoiced amounts within sixty (60) days counting from the invoice
                date. Medtech shall only be allowed to pay at a later date with prior
                written consent of Pharmaspray.  If Medtech pays the invoice
                within eight (8) days of the invoice date, Medtech shall be entitled
                to
                receive a credit equal to 3% of the total amount of the invoice,
                except of
                the costs of transport organized on behalf of Medtech as mentioned
                in
                clause 4.3

            

    

    

    
      	
              6.5.  

            	
              Any
                payment to be
                made by either Party under this Agreement shall be made in
                full without set-off, restriction, condition or deduction for or on
                account in any counterclaim.

            

    

    

    
      	
              6.6.  

            	
              Any
                and all
                outstanding payments of Medtech due to Pharmaspray shall become
                immediately payable (opeisbaar)
                if Medtech is declared bankrupt or in moratorium of payments, discontinues
                its business or if its business is
                liquidated.

            

    

    

    
      	
              6.7.  

            	
              If
                Medtech does not
                pay the amount due within the agreed time, Medtech shall be legally
                held
                to be in default and shall be liable to pay interest equal to the
                Dutch
                statutory interest rate plus 4% over the entire invoice amount, commencing
                on the due date of the invoice, until the actual date of payment.
                Medtech
                is liable to pay any and all judicial and/or extra-judicial costs
                for debt
                collection by Pharmaspray.

            

    

    

    
      	
              6.8.  

            	
              To
                the extent that
                Product produced and delivered by Pharmaspray are for sale and use
                in the
                United States, Canada or anywhere else outside The Netherlands, no
                VAT tax
                shall be included in the invoice.

            

    

    

    
      	
              6.9.  

            	
              The
                Parties agree
                that the prices, rates and charges appearing in Schedule 3 have been
                established for purposes of this Agreement with mutual implicit
                assumptions in cost of goods sold (“COGS”) and exchange rates between the
                U.S. dollar and the Euro. To the extent that fluctuations in exchange
                rates occur such that there is a variance of more than 10% in any
                twelve
                month period in the effective exchange rate, the Parties agree to
                meet and
                to negotiate in good faith to achieve an equitable and commercially
                viable
                accommodation. Increases in COGS not primarily related to exchange
                rates
                shall be subject to annual review, and to the extent reasonably applicable
                shall be modulated by published cost-of-living
                indexes.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              7.  

            	
              Warranties

            

    

    

    
      	
              7.1.  

            	
              Subject
                to clause
                7.3 and 7.5, Pharmaspray represents and warrants that the performance
                of
                the Production Services shall be in compliance with the Product
                Specifications set forth in Schedule 1, the Quality Manual and any
                other
                provisions of this Agreement, cases of Force Majeure
                excepted.

            

    

    

    
      	
              7.2.  

            	
              Subject
                to clauses
                7.3, Pharmaspray represents and warrants that she shall assemble
                the
                Products in complete and correct state and in compliance with the
                Product
                Specifications set forth in Schedule 1, the Quality Manual and any
                other
                provisions of this Agreement, cases of Force Majeure
                excepted.

            

    

    

    
      	
              7.3.  

            	
              The
                representation
                and warranty mentioned in clause 7.1 and 7.2 do not apply to defects
                in
                the Product caused by defects in Materials delivered to Pharmaspray
                by  Suppliers if the Materials are accompanied by a certificate
                of analysis conforming with the Specifications and all approval procedures
                and criteria required by the Quality Manual are met. The representation
                and warranty does not apply to texts/artwork edited or provided by
                Medtech.

            

    

    

    
      	
              7.4.  

            	
              The
                Parties
                represent and warrant that, during this Agreement and after termination
                and completion of this Agreement, except as may be required by judicial
                process or the regulatory requirements of governmental authority
                having
                jurisdiction over the Parties and/or Products, they shall keep
                confidential any information whatsoever regarding the Materials,
                the
                Products, the contents of this Agreement, and the Quality Manual
                and
                Schedules and not provide any third party with such confidential
                information unless with prior written consent of the other
                Party.

            

    

    

    
      	
              7.5.  

            	
              The
                Parties agree
                that the existing design of the Product is the responsibility of
                Medtech
                as specification holder. The responsibility of Pharmaspray is to
                insure
                that production of the Product is in all respects in conformance
                with
                specifications and applicable regulatory requirements. The warranties
                of
                Pharmaspray shall be viewed in all respects as limited by this Section
                7.5.

            

    

       

    
      	8.         
              	Insurance
	 	 
	
              8.1  

            	
              Both
                Parties shall
                on request provide the other Party with periodic evidence of satisfactory
                product liability insurance coverage for the
                Products.

            

    

    

    
      	
              9.

            	
              Liability
                

            

    

    

    
      	
              9.1.

            	
              Pharmaspray
                shall be
                liable for any and all damages and costs suffered by Medtech as a
                consequence of Pharmaspray's non-performance (“tekortkoming
                in de nakoming”) of its obligations under the Agreement, including
                but not limited to the warranties granted by Pharmaspray pursuant
                to
                clause 7.1 and 7.2 of this Agreement, cases of Force Majeure excepted.
                

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              9.2.

            	
              Except
                as set forth
                in Section 7.5, Pharmaspray shall be responsible for damage, defects,
                non-delivery or late delivery caused by Materials from Suppliers.
                Notwithstanding the foregoing, Pharmaspray is not liable for damage,
                defects, non-delivery or late delivery caused by the design of the
                Product, the formula(s), the package or instructions, prescribed
                by
                Medtech and/or shortcomings caused by Medtech.

            

    

    

    
      	
              9.3.

            	
              As
                to arranging for
                transport of Products on behalf of Medtech after delivery ex works
                has
                taken place, Pharmaspray is only liable for her own acts and omissions;
                Pharmaspray is not to be considered the insurance carrier or shipper.
                

            

    

    

    
      	
              9.4.

            	
              The
                Parties agree
                that Pharmaspray’s liability is in any case limited to the greater of (1)
                the invoiced value of the Products for that specific order; or (2)
                the
                maximum amount Pharmaspray’s insurance company will compensate for in that
                particular case provided that Pharmaspray has arranged and maintained
                for
                sufficient insurance coverage or could reasonably expected to arrange
                for,
                and maintain a certain level of insurance coverage, considering the
                standard practice in the industry, in accordance with this Agreement.
                

            

    

    

    
      	
              9.5.

            	
              Only
                Medtech shall
                be responsible and liable for the content of artwork, consumer
                instructions and label copy. Pharmaspray is not responsible or liable
                for
                the content of consumer instructions, artwork and label copies and
                any
                (other) texts on the Products, including the Product package. Pharmaspray
                shall only be responsible for assuring that only artwork provided
                by or
                approved by Medtech is accurately utilized.

            

    

    

    
      	
              9.6.

            	
              Medtech
                shall be
                liable for any and all material damages and costs suffered by Pharmaspray
                as a consequence of a defect (or defects) in Materials delivered
                by
                Medtech or defect(s) in texts/artwork edited or provided by Medtech.
                

            

    

    

    
      	
              9.7.

            	
              Neither
                of the
                Parties shall be liable in case of Force Majeure.
                

            

    

    

    
      	
              9.8.

            	
              Claims
                of either
                party against the other expire in accordance with the provisions
                of the
                Dutch Civil Code. Shorter expiration dates are not valid, unless
                with
                prior written consent of the other Party.

            

    

     

    
      	10.	Indemnifications
	 	 
	
              10.1.

            	
              Subject
                to the
                provisions of Sections 7.3, 7.5 and 9, Pharmaspray will hold harmless
                and
                indemnify Medtech from and in regard to any and all claims by third
                parties in connection to the performance by Pharmaspray of the production
                and packaging services such as, but not limited to, claims originating
                from defectiveness of the Products and/or the Materials required
                for the
                Products and the production process, cases of Force Majeure excepted.
                

            

    

    

    
      	
              10.2.

            	
              Medtech
                will hold
                harmless and indemnify Pharmaspray from and in regard to any and
                all
                claims by third parties other than Suppliers, originating from
                

            

    

    

    
      	
               

            	1.	
              defects
                in the
                texts/artwork edited, approved or provided by Medtech, or
                

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
               

            	2.	
              the
                design of the
                Product, formula(s), component parts packaging or instructions provided,
                prescribed or designed by Medtech or Medtech’s predecessors in interest.
                

            

    

     

    
      	11. 	Exclusivity
	 	 
	
              11.1.

            	
              During
                the term of
                this Agreement, Pharmaspray shall not provide any services whatsoever
                to
                third parties in relation to aerosol products similar to or in any
                way
                competing with the Product in the United States, Canada and Mexico.
                

            

    

    

    
      	
              11.2.

            	
              During
                the term of
                this Agreement, Medtech shall purchase the Product only and exclusively
                from Pharmaspray. 

            

    

     

    
      	12.	Duration
              and
              Termination
	 	 
	
              12.1.

            	
              This
                Agreement shall
                become effective for an initial period of three years, starting from
                the
                Commencement Date. This Agreement may be renewed for additional three
                year
                periods upon the mutual written consent of the Parties no later than
                six
                months prior to the then applicable expiration date.
                

            

    

     

    
      	
              12.2.

            	
              Each
                of the Parties
                has the right to terminate this Agreement with immediate effect by
                giving
                written notice if any of the following events shall occur:
                

            

    

    

    
      	
               

            	
              a.

            	
              the
                other party
                breaches any of the terms of this Agreement and fails to remedy such
                breach within thirty (30) days after written notice requiring to
                do so,
                unless such breach or failure does not justify this with its consequences
                in view of its minor importance; 

            

    

    
      	 	
              b.

            	
              the
                other party
                files a petition for moratorium of payments with the competent court
                or is
                granted a moratorium of payments; 

            

    

    
      	 	
              c.

            	
              the
                other party
                files a petition for bankruptcy with the competent court or is declared
                bankrupt; or 

            

    

    
      	 	
              d.

            	
              the
                board of
                directors of the other party resolves to dissolve or liquidate its
                company. 

            

    

    

    
      	
              12.3.

            	
              In
                case of
                termination of the Agreement pursuant to Clause 12.2, the terminating
                Party is entitled to receive full compensation for any and all direct
                damage suffered by it as a result of the termination and/or, in the
                case
                of the event stated under Clause 12.2 sub a., any damage suffered
                as a
                result of such breach. 

            

    

    

    
      	
              12.4.

            	
              In
                deviation of
                Clause 12.1, Medtech may terminate this Agreement with immediate
                effect by
                giving written notice, without any compensation or damages whatsoever
                to
                Pharmaspray, if Pharmaspray becomes owned or controlled by or associates
                with or merges with a producer who provides production services to
                competitors of the Product. 

            

    

     

    
      	13.	Completion
              after
              termination
	 	 
	
              13.1.

            	
              Upon
                termination of
                the Agreement, Medtech is obliged to take delivery of the Materials
                and
                (semi) Products still in the possession and/or under the control
                of
                

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	Pharmaspray
              on the
              expiration date of the Agreement or, in case of termination with immediate
              effect, within 2 weeks upon such termination, after payment of all
              outstanding amounts to Pharmaspray. Pharmaspray and Medtech shall mutually
              agree as to the allocation of costs incurred for raw materials, labels
              and
              packaging; provided, that, in the event Medtech terminates this Agreement
              for any reason other than as set forth in Sections 12.2 and 12.4 hereof,
              Medtech shall be obligated to purchase from Pharmaspray, at Pharmaspray’s
              actual cost, any safety stock agreed between Medtech and Pharmaspray;
              and
              provided further, that, notwithstanding the foregoing, any breaching
              Party
              shall be fully responsible for such costs (including, without limitation,
              safety stock maintained by Pharmaspray).  Medtech shall have the
              right, but not the obligation, to purchase any finished Products being
              held in Pharmaspray’s inventory for which no Purchase Orders have been
              submitted. 
	 	 
	
              13.2.

            	
              If
                Medtech
                terminates this Agreement prior to purchasing eight million (8,000,000)
                units of the Product from Pharmaspray, Medtech shall purchase the
                Mold
                from Pharmaspray in an amount equal to 250,000 Euros (the purchase
                price
                for the Mold) multiplied by a fraction the numerator of which is
                the
                Shortfall Amount (as defined below) and the denominator of which
                is
                8,000,000. The “Shortfall Amount” shall equal eight million (8,000,000)
                units less the number of units of the Product purchased by Medtech
                hereunder through the termination date.  Upon Medtech’s
                purchasing eight million (8,000,000) units of the Product from
                Pharmaspray, Pharmaspray shall promptly transfer title to the Mold
                to
                Medtech. 

            
	 	 
	 	Should
              the Mold be
              utilized by Pharmaspray for purposes other than the manufacture of
              the
              Product hereunder, the acquisition cost of the Mold to Medtech shall
              be
              reduced proportionately to the additional
              use.

    

     

    
      	14.	No
              Rescission
	 	 
	
              14.1

            	
              The
                Parties herewith
                expressly waive the right to rescind the Agreement pursuant to Article
                265
                of Book 6, Dutch Civil Code. 

            

    

        
      

    
      	15.	Miscellaneous
	 	 
	
              15.1.

            	
              Changes
                in the Quality Manual. Subject to the written consent of
                Pharmaspray which shall not be unreasonably withheld, delayed or
                conditioned, Medtech reserves the right to amend or adapt the Quality
                Manual and Schedules to changes in the aforementioned regulation
                and
                legislation and / or to the introduction of new regulations and /
                or
                legislation regarding the quality requirements of the Product from
                time to
                time. 

            

    

    

    
      	
              15.2.

            	
              Successors
                and Assignments. This Agreement is binding on and for the benefit
                of both Parties and their successors and permitted assignees. Neither
                Party may assign (its rights under) this Agreement without the prior
                written consent of the other party. Pharmaspray shall have no rights
                in
                the Materials and / or Products of Medtech and may not and shall
                not
                attempt to assign any interests, either real or presumed, to the
                Materials
                and /or (Semi) Products of Medtech.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              15.3.

            	
              Entire
                Agreement. This Agreement represents the entire agreement of the
                Parties with respect to its subject matter, and supersedes all prior
                proposals, agreements, memoranda and / or understandings with respect
                to
                this Agreement or its subject matter between Medtech and Wartner
                USA B.V.
                and Pharmaspray B.V. Any future representation, agreement, understanding
                or waiver will only be binding if in writing and signed by the Party
                sought to be bound. 

            

    

    

    
      	
              15.4.

            	
              Schedules
                and Annexes. Each schedule, annex and / or the applicable
                provisions of the Quality Manual will become part of and subject
                to this
                Agreement upon signature and date by both Parties.
                

            

    

    

    
      	
              15.5.

            	
              Waivers.
                Either Party’s failure strictly to enforce any provision of this Agreement
                will not be construed as a waiver of that provision or as excusing
                the
                other Party from future performance.

            

    

    

    
      	
              15.6.

            	
              Notices.
                All notices required or permitted under this Agreement shall be in
                writing
                unless otherwise indicated in this Agreement. The notifying Party
                shall
                send the written notice to the address of the other Party as shown
                at the
                beginning of this Agreement and/or any other address as agreed upon
                by the
                receiving Party. Sent notices will only be effective upon actual
                receipt
                by the other Party. 

            

    

    

    
      	
              15.7.

            	
              Electronic
                Mail. The Parties agree that day-to-day communication can also
                be
                by electronic mail (e-mail). Sent e-mail messages will only be effective
                upon actual receipt by the other Party. Notwithstanding the preceding
                passages, any message, notice and /or document relating to modification
                and/or which affects the effect of this Agreement shall only have
                binding
                effect if in writing (not being electronic mail and/or other electronic
                documents) and with written consent of the Parties.
                

            

    

    

    
      	
              15.8.

            	
              Confidentiality.
                Each Party shall, during this Agreement and after termination and
                completion of this Agreement, keep confidential any information whatsoever
                regarding the business of the other Party and not provide any third
                party
                with such confidential information unless with prior written consent
                of
                the other Party, except as may be reasonably required by judicial
                process
                or compliance with applicable governmental and regulatory requirements.
                

            

    

    

    
      	
              15.9.

            	
              Mandatory
                Law. This Agreement shall only take effect to the extent that
                its
                provisions are not contrary to any provision of mandatory (national
                and /
                or international) law. Any provision of this Agreement being contrary
                to
                any provision of mandatory law or otherwise being null and void does
                not
                effect the validity of the other provisions of this Agreement.
                

            

    

    

    
      	
              15.10.

            	
              General
                Terms and Conditions. The applicability of any general terms and
                conditions of the contracting Parties, other than those which are
                expressly and with written consent of both Parties declared applicable
                to
                the relationship between Medtech and Pharmaspray under this Agreement,
                is
                hereby expressly excluded. 

            

    

    

    
      	
              15.11.

            	
              Changes
                to the Agreement. Provisions that deviate from this Agreement can
                be invoked by both Parties only if and to the extent that these provisions
                are accepted by both Parties in writing.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              15.12.

            	
              Severability.
                If any term or condition of this Agreement is null and void or will
                become
                null and void during the course of this Agreement, the validity and
                effectiveness of all other terms and conditions shall not be impaired
                thereby. All terms and conditions of this Agreement are separable.
                

            

    

     

    
      	16.	Applicable
              law and
              jurisdiction
	 	 
	
              16.1.

            	
              This
                Agreement is
                exclusively governed and construed by Dutch law, as will all disputes
                that
                may arise from this Agreement. All legal concepts to which reference
                is
                made in this Agreement are Dutch legal concepts.
                

            

    

    

    
      	
               

            	
              All
                disputes,
                arising in connection with the present Agreement or further contracts
                and
                / or agreements resulting here from, which cannot be settled amicably,
                shall be settled by the competent Court of Groningen, The Netherlands,
                notwithstanding higher appeals. 

            

    

    

    [Remainder
      of page
      intentionally left blank]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    This
      agreement was signed with duplicate originals in Irvington, New York on December
      21, 2007.

    

    

     

    

    
      	 	/s/
              Peter J.
              Anderson	 	/s/
              Jos
              Schott	 	 
	 	Medtech
              Products Inc.	 	Pharmaspray
              B.V. 	 	 
	 	By:  Peter
              J. Anderson	 	By:
              Jos Schott 	 	 
	 	Treasurer	 	Managing
              Director 	 	 

    

    
    

    
    

    
    

    
    

    
      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
      	 
	
              Schedules

            

    

     

    

    
      	Schedule
              1	Product
              Definitions and Specification
	Schedule
              2 	Suppliers
              and Materials
	Schedule
              3 	Prices,
              Rates and Charges
	Schedule
              4	Quality
              Manualexhibit103.htm

    Exhibit
      10.3

     

    
      Executive
        Employment Agreement

       

      
      

      
        1.   Employment. 
          Employer agrees
          to
          employ Executive and Executive accepts such employment for the period beginning
          as of October 1st
          2007 and ending upon his separation pursuant to Section
          1(c) hereof (the “Employment
          Period”).

         

      

      (a)           
        Position
        and Duties.

       

      (i)           
        During the Employment Period, Executive shall serve as the Senior Vice
        President, International of Employer and shall have the normal duties,
        responsibilities and authority implied by such position, subject to the power
        of
        the Chief Executive Officer of Employer and the Board to expand or limit
        such
        duties, responsibilities and authority and to override such
        actions.

       

      (ii)           
        Executive shall report to the Chief Executive Officer of Employer, and Executive
        shall devote his best efforts and his full business time and attention to
        the
        business and affairs of the Company, Employer and their Subsidiaries.

       

      (b)           
        Salary,
        Bonus and Benefits.  During the Employment Period, Employer
        will pay Executive a base salary of $213,000 per annum (the “Annual
        Base Salary”). In addition, the Executive shall be eligible for and
        participate in the Annual Incentive Compensation Plan (the “Annual Bonus”) under
        which the Executive shall be eligible for an annual Target Bonus payment
        of 45%
        of Annual Base Salary. Executive is eligible for the Long Term Incentive
        Plan of
        the company. During the Employment Period, Executive will be entitled to
        such
        other benefits approved by the Board and made available to the senior management
        of the Company, Employer and their Subsidiaries, which shall include vacation
        time (four weeks per year) and medical, dental, life and disability
        insurance.  The Board, on a basis consistent with past practice, shall
        review the Annual Base Salary of Executive and may increase the Annual Base
        Salary by such amount as the Board, in its sole discretion, shall deem
        appropriate.  The term “Annual Base Salary” as used in this Agreement
        shall refer to the Annual Base Salary as it may be so increased.

       

      (c)           
        Separation.  The
        Employment Period will continue until (i) Executive’s death, disability or
        resignation from employment with the Company, Employer and their respective
        Subsidiaries or (ii) the Company, Employer and their respective Subsidiaries
        decide to terminate Executive’s employment with or without Cause.  If
        (A) Executive’s employment is terminated without Cause pursuant to clause (ii)
        above or (B) Executive resigns from employment with the Company, Employer
        or any
        of their respective Subsidiaries for Good Reason, then during the period
        commencing on the date of termination of the Employment Period and ending
        on the
        first anniversary of the date of termination (the “Severance
        Period”), Employer shall pay to Executive, in equal installments on the
        Employer’s regular salary payment dates, an aggregate amount equal to (I) his
        Annual Base Salary, plus (II) an amount equal to the Annual Bonus, if any,
        paid

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Annual
        Bonus, if any, paid or payable to Executive by Employer for the last fiscal
        year
        ended prior to the date of termination. In addition, if Executive is entitled
        on
        the date of termination to coverage under the medical and prescription portions
        of the Welfare Plans, such coverage shall continue for Executive and Executive’s
        covered dependents for a period ending on the first anniversary of the date
        of
        termination at the active employee cost payable by Executive with respect
        to
        those costs paid by Executive prior to the date of termination; provided,
        that this coverage will count towards the depletion of any continued health
        care
        coverage rights that Executive and Executive’s dependents may have pursuant to
        the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”);
        provided
        further, that Executive’s or Executive’s covered dependents’ rights to continued
        health care coverage pursuant to this Section
        1(c) shall terminate at the time Executive or Executive’s covered
        dependents become covered, as described in COBRA, under another group health
        plan, and shall also terminate as of the date Employer ceases to provide
        coverage to its senior executives generally under any such Welfare
        Plan.  Notwithstanding the foregoing, (I) Executive shall not be
        entitled to receive any payments or benefits pursuant to this Section
        1(c) unless Executive has executed and delivered to Employer a general
        release in form and substance satisfactory to Employer and (II) Executive
        shall
        be entitled to receive such payments and benefits only so long as Executive
        has
        not breached the provisions of Section
        2 or Section
        3 hereof.  The release described in the foregoing sentence
        shall not require Executive to release any claims for any vested employee
        benefits, workers compensation benefits covered by insurance or self-insurance,
        claims to indemnification to which Executive may be entitled under Employer’s or
        its Subsidiaries’ certificate(s) of incorporation, by-laws or under any of
        Employer’s or its Subsidiaries’ directors or officers insurance policy(ies) or
        applicable law, or equity claims to contribution from Employer or its
        Subsidiaries or any other Person to which Executive is entitled as a matter
        of
        law in respect of any claim made against Executive for an alleged act or
        omission in Executive’s official capacity and within the scope of Executive’s
        duties as an officer, director or employee of Employer or its Subsidiaries.
        Not
        later than eighteen (18) months following the termination of Executive’s
        employment, Employer and its Subsidiaries for which the Executive has acted
        in
        the capacity of a senior manager, shall sign and deliver to Executive a release
        of claims that Employer  and its Subsidiaries have against Executive;
provided
        that, such release shall not release any claims that Employer and/or its
        Subsidiaries commenced prior to the date of the release(s), any claims relating
        to matters actively concealed by Executive, any claims to contribution from
        Executive to which Employer or its Subsidiaries are entitled as a matter
        of law
        or any claims arising out of mistaken indemnification by Employer and/or
        any of
        its Subsidiaries.  Except as otherwise provided in this Section
        1(c) or in the Employer’s employee benefit plans or as otherwise required
        by applicable law, Executive shall not be entitled to any other salary,
        compensation or benefits after termination of Executive’s employment with
        Employer.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    2.    Confidential
      Information.

     

    (a)           
      Obligation
      to Maintain Confidentiality.  Executive acknowledges that the
      information, observations and data (including trade secrets) obtained by him
      during the course of his performance under this Agreement concerning the
      business or affairs of Employer, its Subsidiaries and Affiliates (“Confidential
      Information”) are the property of Employer, its Subsidiaries and
      Affiliates, as applicable, including information concerning acquisition
      opportunities in or reasonably related to Employer’s, its Subsidiaries’ and/or
      Affiliates’ business or industry of which Executive becomes aware during the
      Employment Period. Therefore, Executive agrees that he will not disclose to
      any
      unauthorized Person or use for his own account (for his commercial advantage
      or
      otherwise) any Confidential Information without the Board’s written consent,
      unless and to the extent that the Confidential Information, (i) becomes
      generally known to and available for use by the public other than as a result
      of
      Executive’s acts or omissions to act, (ii) was known to Executive prior to
      Executive’s employment with Employer or any of its Subsidiaries or Affiliates or
      (iii) is required to be disclosed pursuant to any applicable law, court order
      or
      other governmental decree.  Executive shall deliver to Employer at a
      Separation, or at any other time Employer may request, all memoranda, notes,
      plans, records, reports, computer tapes, printouts and software and other
      documents and data (and copies thereof) relating to the Confidential
      Information, Work Product (as defined below) or the business of the Employer,
      its Subsidiaries and Affiliates (including, without limitation, all acquisition
      prospects, lists and contact information) which he may then possess or have
      under his control.

     

    (b)           
      Ownership
      of Property.  Executive acknowledges that all discoveries,
      concepts, ideas, inventions, innovations, improvements, developments, methods,
      processes, programs, designs, analyses, drawings, reports, patent applications,
      copyrightable work and mask work (whether or not including any Confidential
      Information) and all registrations or applications related thereto, all other
      proprietary information and all similar or related information (whether or
      not
      patentable) that relate to Employer’s, its Subsidiaries’ and/or Affiliates’
actual or anticipated business, research and development, or existing or future
      products or services and that are conceived, developed, contributed to, made,
      or
      reduced to practice by Executive (either solely or jointly with others) while
      employed by the Employer, its Subsidiaries and/or Affiliates (including any
      of
      the foregoing that constitutes any proprietary information or records) (“Work
      Product”) belong to the Employer or such Subsidiary or Affiliate and
      Executive hereby assigns, and agrees to assign, all of the above Work Product
      to
      Employer or to such Subsidiary or Affiliate.  Any copyrightable work
      prepared in whole or in part by Executive in the course of his work for any
      of
      the foregoing entities shall be deemed a “work made for hire” under the
      copyright laws, and Employer or such Subsidiary or Affiliate shall own all
      rights therein.  To the extent that any such copyrightable work is not
      a “work made for hire,” Executive hereby assigns and agrees to assign to
      Employer or such Subsidiary or Affiliate all right, title, and interest,
      including without limitation, copyright in and to such copyrightable
      work.  Executive shall 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    promptly
      disclose such
      Work Product and copyrightable work to the Board and perform all actions
      reasonably requested by the Board (whether during or after the Employment
      Period) to establish and confirm the Employer’s or such Subsidiary’s or
      Affiliate’s ownership (including, without limitation, assignments, consents,
      powers of attorney, and other instruments).

     

    (c)           
      Third
      Party Information. Executive understands that Employer, its Subsidiaries
      and Affiliates will receive from third parties confidential or proprietary
      information (“Third
      Party Information”), subject to a duty on Employer’s, its Subsidiaries’
and Affiliates’ part to maintain the confidentiality of such information and to
      use it only for certain limited purposes.  During the Employment
      Period and thereafter, and without in any way limiting the provisions of Section
      2(a) above, Executive will hold Third Party Information in the strictest
      confidence and will not disclose to anyone (other than personnel and consultants
      of Employer, its Subsidiaries and Affiliates who need to know such information
      in connection with their work for Employer or any of its Subsidiaries and
      Affiliates) or use, except in connection with his work for Employer or any
      of
      its Subsidiaries and Affiliates, Third Party Information unless expressly
      authorized by a member of the Board (other than himself if Executive is on
      the
      Board) in writing.

     

    (d)           
      Use
      of Information of Prior Employers.  During the Employment
      Period and thereafter, Executive will not improperly use or disclose any
      confidential information or trade secrets, if any, of any former employers
      or
      any other Person to whom Executive has an obligation of confidentiality, and
      will not bring onto the premises of Employer or any of its Subsidiaries or
      Affiliates any unpublished documents or any property belonging to any former
      employer or any other Person to whom Executive has an obligation of
      confidentiality unless consented to in writing by the former employer or
      Person.  Executive will use in the performance of his duties only
      information which is (i) generally known and used by persons with training
      and
      experience comparable to Executive’s and which is (x) common knowledge in the
      industry or (y) otherwise legally in the public domain, (ii) otherwise provided
      or developed by Employer or any of its Subsidiaries or Affiliates or (iii)
      in
      the case of materials, property or information belonging to any former employer
      or other Person to whom Executive has an obligation of confidentiality, approved
      for such use in writing by such former employer or Person.

     

    3.           
      Non-competition
      and No Solicitation.  Executive
      acknowledges that (i) the course of his employment with Employer he will become
      familiar with Employer's, its Subsidiaries’ and Affiliates’ trade secrets and
      with other confidential information concerning the Employer, its Subsidiaries
      and Affiliates; and (ii) his services will be of special, unique and
      extraordinary value to Employer and such Subsidiaries.  Therefore,
      Executive agrees that:

     

    (a)           
      Non-competition.  During
      the Employment Period and also during the period commencing on the date of
      termination of the Employment Period and 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ending
      on the first anniversary of the date of termination, he shall not without the
      express written consent of Employer, anywhere in the world, directly or
      indirectly, own, manage, control, participate in, consult with, render services
      for, or in any manner engage in any business (i) which competes with (a) OTC
      wart treatment products (including, without limitation, cryogen-based products),
      (b) devices for treatment or management of bruxism, (c) OTC sore throat
      treatment products (including, without limitation, liquids, lozenges and
      strips), (d) inter-proximal devices, (e) copper scrubbers, (f) powdered and
      liquid cleansers, (g) pediatric OTC medicinal products, or (h) any other
      business acquired by Employer and its Subsidiaries after the date hereof which
      represents 5% or more of the consolidated revenues or EBITDA of Employer and
      its
      Subsidiaries for the trailing 12 months ending on the last day of the last
      completed calendar month immediately preceding the date of termination of the
      Employment Period, or (ii) in which Employer and/or its Subsidiaries have
      conducted discussions or have requested and received information relating to
      the
      acquisition of such business by such Person (x) within one year prior to the
      Separation and (y) during the Severance Period, if any.  Nothing
      herein shall prohibit Executive from being a passive owner of not more than
      2%
      of the outstanding stock of any class of a corporation that is publicly traded,
      so long as Executive has no active participation in the business of such
      corporation

     

    (b)           
      No
      solicitation.  During the Employment Period and also during the
      period commencing on the date of termination of the Employment Period and ending
      on the first anniversary of the date of termination, Executive shall not
      directly or indirectly through another entity (i) induce or attempt to induce
      any employee of Employer or its Subsidiaries to leave the employ of Employer
      or
      its Subsidiaries, or in any way interfere with the relationship between Employer
      or its Subsidiaries and any employee thereof, (ii) hire any person who was
      an
      employee of Employer or its Subsidiaries within 180 days after such person
      ceased to be an employee of Employer or its Subsidiaries (provided,
      however,
      that
      such restriction shall not apply for a particular employee if Employer or its
      Subsidiaries have provided written consent to such hire, which consent, in
      the
      case of any person who was not a key employee of Employer or its
      Subsidiaries  shall not be unreasonably withheld), (iii) induce or
      attempt to induce any customer, supplier, licensee or other business relation
      of
      Employer or its Subsidiaries to cease doing business with Employer or its
      Subsidiaries or in any way interfere with the relationship between any such
      customer, supplier, licensee or business relation and Employer or its
      Subsidiaries or (iv) directly or indirectly acquire or attempt to acquire an
      interest in any business relating to the business of Employer or its
      Subsidiaries and with which Employer or its Subsidiaries have conducted
      discussions or have requested and received information relating to the
      acquisition of such business by Employer or its Subsidiaries in the two year
      period immediately preceding a Separation.

     

    (c)           
      Enforcement.  If,
      at the time of enforcement of Section
      2 or this Section
      3, a court holds that the restrictions stated herein are unreasonable
      under circumstances then existing, the parties hereto agree that the maximum
      duration, 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    scope
      or geographical area reasonable under such circumstances shall be substituted
      for the stated period, scope or area and that the court shall be allowed to
      revise the restrictions contained herein to cover the maximum duration, scope
      and area permitted by law.  Because Executive’s services are unique
      and because Executive has access to Confidential Information, the parties hereto
      agree that money damages would be an inadequate remedy for any breach of this
      Agreement.  Therefore, in the event of a breach or threatened breach
      of this Agreement, Employer, its Subsidiaries or their successors or assigns
      may, in addition to other rights and remedies existing in their favor, apply
      to
      any court of competent jurisdiction for specific performance and/or injunctive
      or other relief in order to enforce, or prevent any violations of, the
      provisions hereof (without posting a bond or other security).

     

    (d)           
      Additional
      Acknowledgments.  Executive acknowledges that the provisions of
      this Section
      3 are in consideration of:  (i) employment with the Employer,
      (ii) the prospective issuance of securities by Employer pursuant to the
      Long-Term Equity Incentive Plan and (iii) additional good and valuable
      consideration as set forth in this Agreement.  In addition, Executive
      agrees and acknowledges that the restrictions contained in Section
      2 and this Section
      3 do not preclude Executive from earning a livelihood, nor do they
      unreasonably impose limitations on Executive’s ability to earn a
      living.  In addition, Executive acknowledges (i) that the business of
      Employer and its Subsidiaries will be conducted throughout the world, (ii)
      notwithstanding the state of incorporation or principal office of Employer
      or
      any of its Subsidiaries, or any of their respective executives or employees
      (including the Executive), it is expected that Employer and its Subsidiaries
      will have business activities and have valuable business relationships within
      its industry throughout the world and (iii) as part of his responsibilities,
      Executive will be traveling throughout the world in furtherance of Employer’s
      and/or its Subsidiaries’ business and their relationships.  Executive
      agrees and acknowledges that the potential harm to Employer and its Subsidiaries
      of the non-enforcement of Section
      2 and this Section
      3 outweighs any potential harm to Executive of their enforcement by
      injunction or otherwise.  Executive acknowledges that he has carefully
      read this Agreement and has given careful consideration to the restraints
      imposed upon Executive by this Agreement, and is in full accord as to their
      necessity for the reasonable and proper protection of confidential and
      proprietary information of Employer and its Subsidiaries now existing or to
      be
      developed in the future.  Executive expressly acknowledges and agrees
      that each and every restraint imposed by this Agreement is reasonable with
      respect to subject matter, time period and geographical area.

     

    4.
                  Miscellaneous.

    

    (a)           
      Survival.  The
      provisions of Sections 1(c), 2, 3 and 4 shall survive the termination of this
      Agreement.

    

    (b)           
      Entire
      Agreement.  This Agreement sets forth the entire understanding
      of the parties and merges and supersedes any prior or 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    contemporaneous
      agreements, whether written or oral, between the parties pertaining to the
      subject matter hereof.

    

    (c)           
      Modification.  This
      Agreement may not be modified or terminated orally, and no modification or
      waiver of any of the provisions hereof shall be binding unless in writing and
      signed by the party against whom the same is sought to be enforced.

    

    (d)           
      Waiver.  Failure
      of a party to enforce one or more of the provisions of this Agreement or to
      require at any time performance of any of the obligations hereof shall not
      be
      construed to be a waiver of such provisions by such party nor to in any way
      affect the validity of this Agreement or such party's right thereafter to
      enforce any provision of this Agreement, nor to preclude such party from taking
      any other action at any time which it would legally be entitled to
      take.

    

    (e)           
      Successors
      and Assigns.  Neither party shall have the right to assign this
      Agreement, or any rights or obligations hereunder, without the consent of the
      other party; provided, however, that upon the sale of all or substantially
      all
      of the assets, business and goodwill of Employer to another company, or upon
      the
      merger or consolidation of Employer with another company, this Agreement shall
      inure to the benefit of, and be binding upon, both Executive and the company
      purchasing such assets, business and goodwill, or surviving such merger or
      consolidation, as the case may be, in the same manner and to the same extent
      as
      though such other company were Employer; and provided, further, that Employer
      shall have the right to assign this Agreement to any Affiliate or Subsidiary
      of
      Employer.  Subject to the foregoing, this Agreement shall inure to the
      benefit of, and be binding upon, the parties hereto and their legal
      representatives, heirs, successors and permitted assigns.

    

    (f)           
      Communications.  All
      notices or other communications required or permitted hereunder will be in
      writing and will be deemed given or delivered when delivered personally, by
      registered or certified mail or by overnight courier (fare prepaid) addressed
      as
      follows:

     

    
    

    
      	(i)	To
              Employer:   	Prestige
              Brands Holdings, Inc. 
	 	 	90
              North Broadway
	 	 	Irvington,
              New York  10533
	 	 	Attention:
              Chief Executive Officer

    

     

                                             
      
      
        	(ii)	With
                a
                copy to:  	Prestige
                Brands Holdings, Inc. 
	 	 	90
                North Broadway 
	 	 	Irvington,
                New York  10533 
	 	 	Attention:
                Legal Department

      

    

     

     

    
    

    
      	(iii) 	To
              the
              Employee:  	John
              Parkinson 
	 	 	525
              E. 72nd
              Street, Apt. 4E
	 	 	New
              York, New
              York  10021

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    or
      to
      such address as a party hereto may indicate by a notice delivered to the other
      party.  Notice will be deemed received the same day when delivered
      personally, five (5) days after mailing when sent by registered or certified
      mail, and the next business day when delivered by overnight
      courier.  Any party hereto may change its address to which all
      communications and notices may be sent by addressing notices of such change
      in
      the manner provided.

     

    (g)           
      Severability.  If
      any provision of this Agreement is held to be invalid or unenforceable by a
      court of competent jurisdiction, such invalidity or unenforceability shall
      not
      affect the validity and enforceability of the other provisions of this Agreement
      and the provision held to be invalid or unenforceable shall be enforced as
      nearly as possible according to its original terms and intent to eliminate
      such
      invalidity or unenforceability.

    

    (h)           
      Governing
      Law.  This Agreement will be governed by, construed and
      enforced in accordance with the laws of the State of New York, without giving
      effect to its conflicts of law provisions.

    

    (i)           
      Jurisdiction;
      Venue.  THIS AGREEMENT SHALL BE SUBJECT TO THE EXCLUSIVE
      JURISDICTION OF THE STATE OR FEDERAL COURTS SITTING IN WESTCHESTER COUNTY,
      NEW
      YORK.  THE PARTIES TO THIS AGREEMENT IRREVOCABLY AND EXPRESSLY AGREE
      TO SUBMIT TO THE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE
      SOUTHERN DISTRICT OF NEW YORK OR COURTS OF THE STATE OF NEW YORK IN WESTCHESTER
      COUNTY, NEW YORK FOR THE PURPOSE OF RESOLVING ANY DISPUTES AMONG THE PARTIES
      RELATING TO THIS AGREEMENT.  THE PARTIES IRREVOCABLY WAIVE, TO THE
      FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH THEY MAY NOW OR HEREAFTER
      HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF
      OR
      RELATING TO THIS AGREEMENT, OR ANY JUDGMENT ENTERED BY ANY COURT IN RESPECT
      HEREOF, BROUGHT IN WESTCHESTER COUNTY, NEW YORK, AND FURTHER IRREVOCABLY WAIVE
      ANY CLAIM THAT ANY SUIT, ACTION OR PROCEEDING BROUGHT IN WESTCHESTER COUNTY,
      NEW
      YORK HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.  THE PARTIES HERETO
      AGREE TO SERVICE OF PROCESS BY CERTIFIED OR REGISTERED UNITED STATES MAIL,
      POSTAGE PREPAID, ADDRESSED TO THE PARTY IN QUESTION.

     

    (j)           
      Waiver
      of Jury Trial.  EACH PARTY TO THIS AGREEMENT WAIVES, TO THE
      FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL
      BY
      JURY IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING
      TO
      THIS AGREEMENT.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (k)           
      No
      Third-Party Beneficiaries.  Each of the provisions of this
      Agreement is for the sole and exclusive benefit of the parties hereto and shall
      not be deemed for the benefit of any other person or entity.

    

    (l)           
      Code
      Section 409A.  The parties to this Agreement intend that the
      Agreement complies with Section 409A of the Internal Revenue Code, where
      applicable, and this Agreement shall be interpreted in a manner consistent
      with
      that intention.  To the extent not otherwise provided by this Agreement,
      and solely to the extent required by Section 409A of the Code, no payment or
      other distribution required to be made to the Executive hereunder (including
      any
      payment of cash, any transfer of property and any provision of taxable benefits)
      as a result of his termination of employment with Employer shall be made earlier
      than the date that is six (6) months and one day following the date on which
      the
      Executive separates from service with Employer any and its affiliates (within
      the meaning of Section 409A of the Code).

    

    (m)           
      Counterparts.  This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original but all of which together will constitute one and the same
      instrument.

     

    [Remainder
      of page
      intentionally left blank]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
      first written above.

     

    
      
        	 	 	PRESTIGE
                BRANDS HOLDINGS, INC. 
	 	 	 
	 	 	 
	 	 	 
	 	By:	/s/
                Mark
                Pettie	 
	 	Name:	Mark
                Pettie 
	 	Title:
                	Chairman
                and Chief Executive 
	 	 	Officer
                
	 	 	 
	 	 	 
	 	/s/
                John
                Parkinson	 
	 	John
                Parkinson 	 

      

    

     

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    DEFINITIONS

    

     

    “Affiliate”
means,
      with
      respect to any Person, any other Person who directly or indirectly, through
      one
      or more intermediaries, controls, is controlled by, or is under common control
      with, such Person.  The term “control” means the possession, directly
      or indirectly, of the power to direct or cause the direction of the management
      and policies of a Person, whether through the ownership of voting securities,
      by
      contract or otherwise, and the terms “controlled” and “controlling” have
      meanings correlative thereto.

     

    “Cause”
is
      defined as (i)
      your  willful and continued failure to substantially perform your
      duties with Employer (other than any such failure resulting from your incapacity
      due to physical or mental illness) that has not been cured within  10
      days after a written demand for substantial performance is delivered to you
      by
      the Board, which demand specifically identifies the manner in which the Board
      believes that you have not substantially performed your duties, (ii) the willful
      engaging by you in conduct which is demonstrably and materially injurious to
      Employer or its Affiliates, monetarily or otherwise, (iii) your conviction
      (or
      plea of nolo contendere) for any felony or any other crime involving dishonesty,
      fraud or moral turpitude, (iv) your breach of fiduciary duty to Employer or
      its
      Affiliates, (v) any violation of Employer's policies relating to compliance
      with
      applicable laws which have a material adverse effect on Employer or its
      Affiliates or (vi) your breach of any restrictive covenant.  For
      purposes of clauses (i) and (ii) of this definition, no act, or failure to
      act,
      on your part shall be deemed "willful" unless done, or omitted to be done,
      by
      you not in good faith and without reasonable belief that your act, or failure
      to
      act, was in the best interest of  Employer.

    

    “Good
      Reason” is defined as, without your consent, (i) the assignment to you of any
      duties inconsistent with your status as the Senior Vice President, International
      or a substantial adverse alteration in the nature or status of the your
      responsibilities, unless Employer has cured such events within 10 business
      days
      after the receipt of written notice thereof from you, (ii) a reduction in your
      annual base salary or target annual bonus percentage, except for
      across-the-board salary reductions similarly affecting all senior executives
      of
      Employer, or (iii) the relocation of Employer's headquarters by more than 30
      miles.

     

    “Person”
means
      any person
      or entity, whether an individual, trustee, corporation, limited liability
      company, partnership, trust, unincorporated organization, business association,
      firm, joint venture, governmental authority or similar entity.

     

    “Subsidiary”
of
      any
      specified Person shall mean any corporation fifty percent (50%) or more of
      the
      outstanding capital stock of which, or any partnership, joint venture, limited
      liability company or other entity fifty percent (50%) or more of the ownership
      interests of which, is directly or indirectly owned or controlled by such

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
specified
        Person, or any
        such corporation, partnership, joint venture, limited liability company,
        or
        other entity which may otherwise be controlled, directly or indirectly, by
        such
        Person.

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