Document:

Unassociated Document

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT is made and entered into as of the 8th day of July (the “Agreement”), by and between SHENGTAI PHARMACEUTICAL, INC., a Delaware corporation (the “Company”), having its principal place of business at Changda Road East, Development District, Changle County, Shandong, P.R.C. and (the “Employee”) Qingtai Liu, with PRC National ID No. (or Passport No.) 370725195706040015 (collectively the “Parties”).

 

WITNESSETH:

 

WHEREAS, Employee is currently Chief Executive Officer of the Company and a Director of the Board of the Company; and

 

WHEREAS, the Company intends to motivate and reward the Employee to remain with the Company, to assist in a potential sale of the Company and to enhance the performance of the Company before a Change of Control, as defined below; and

 

WHEREAS, Employee wishes to be so employed, in each case, upon the terms hereinafter set forth.

 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements herein contained, and other good and valuable consideration, the Parties agree as follows:

 

1.      DEFINITIONS.  As used herein, the following terms shall have the following meanings:

 

(a)  “Affiliate” means any Person controlling, controlled by or under common control with the Company.

 

(b)  “Board” means the Board of Directors of the Company.

 

(c)  “Cause” means (i) conviction of any crime whether or not committed in the course of his employment by the Company; (ii) Employee’s refusal to carry out the responsibilities as the Chief Executive Officer that are designated by the Board or the Company’s corporate charter or bylaws; or (iii) the breach of any representation, warranty or agreement between Employee and Company.

 

(d)  “Change in Control” has the meaning set forth in Section 4.

 

(e)  “Common Stock” means the Company’s $.001 par value per share common stock.

 

(f)  “Date of Termination” means (a) in the case of a termination for which a Notice of Termination (as hereinafter defined in Section 5.3) is required, 30 days from the date of actual receipt of such Notice of Termination or, if later, the date specified therein, as the case may be, and (b) in all other cases, the actual date on which the Employee’s employment terminates during the Term of Employment (as hereinafter defined in Section 3) (it being understood that nothing contained in this definition of “Date of Termination” shall affect any of the cure rights provided to the Employee or the Company in this Agreement).

 

  

  

  

(g)  “Disability” means Employee’s inability to render, for a period of three consecutive months, services hereunder due to his physical or mental incapacity.

 

(h)  “Effective Date” means July 8, 2009

 

(i)  “Person(s)” means any individual or entity of any kind or nature, including any other person as defined in Section 3(a)(9) of the Securities Exchange Act of 1934, and as used in Sections 13(d) and 14(d) thereof.

 

(j)  “Prospective Customer” shall mean any Person which has either (a) entered into a nondisclosure agreement with the Company or any Company subsidiary or Affiliate or (b) has within the preceding 12 months received a currently pending and not rejected written proposal in reasonable detail from the Company or any of the Company’s subsidiary or Affiliate.

 

2.      EMPLOYMENT.

 

(a)  Agreement to Employ. Effective as of the Effective Date, the Company hereby agrees to employ Employee, and Employee hereby agrees to serve, subject to the provisions of this Agreement, as an officer and employee of the Company.

 

(b)  Duties and Schedule. Employee shall serve as the Company’s Chief Executive Officer and Director of the Board, and shall have such responsibilities as designated by the Board or the corporate charters or bylaws that are not inconsistent with applicable laws, regulations and rules. Employee shall report directly to the Board, Compensation Committee or the Audit Committee thereof, as circumstances may require. Employee shall faithfully and diligently assist the Company in a potential sale of the Company and to enhance the performance of the Company before the occurrence of a Change in Control. Employee shall not be assigned duties and responsibilities that are not generally within the scope and character associated or required of other employees of similar rank and position.

 

3.      TERM OF EMPLOYMENT. Unless Employee’s employment shall sooner terminate pursuant to Section 5, the Company shall employ Employee for a term commencing on the Effective Date and ending upon the occurrence of Change in Control as defined herein (the “Term”).  The term shall be renewable upon each Party’s written consent.  The period during which Employee is employed pursuant to this Agreement shall be referred to as the “Term” or the “Term of Employment”.

 

4.      COMPENSATION.

 

(a)   Salary. Employee’s salary during the Term shall be $120,000 per year (the “Salary”), payable in twice-monthly payments and in US Dollars. All applicable withholding taxes shall be deducted from such payments.  The Board will review Employee’s Salary at least once per year and may, in its discretion, increase or decrease the Salary in accordance with the Company’s compensation policies. A discretionary bonus, if any, may be paid each year as determined solely by the Board.

 

  

  

  

 

(b)    Award upon Change in Control.  The Company shall grant to Employee an award of $360,000 upon the occurrence of any of the following, which shall be deemed as the occurrence of a “Change in Control”:

 

(i)           An acquisition of any common stock or other voting securities of the Company entitled to vote generally for the election of directors (the "Voting Securities") by any “Person” or “Group” (as each such term is used for purposes of Section 13(d) or 14(d) of the Exchange Act), immediately after which such Person or Group, as the case may be, has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than 50% of the then outstanding shares of Common Stock or the combined voting power of the Company’s then outstanding Voting Securities; provided, however, that in determining whether a “Change in Control” has occurred, shares of Common Stock or Voting Securities that are acquired in a Non-Control Acquisition (as defined below) shall not constitute an acquisition which would cause a Change in Control. A “Non-Control Acquisition” shall mean an acquisition by (i) the Company, (ii) any Subsidiary or (iii) any Employee Benefit Plan maintained by the Company or any Subsidiary, including a trust forming part of any such plan;

 

(ii)           During any 2-year period, individuals who, at the beginning of such 2-year period, constitute the Board (the “Incumbent Board of Directors”), cease for any reason to constitute at least 50% of the members of the Board; provided, however, that (i) if the election or nomination for election by the Company’s shareholders of any new director was approved by a vote of at least two-thirds of the Incumbent Board of Directors, such new director shall, for purposes hereof, be deemed to be a member of the Incumbent Board of Directors, and (ii) no individual shall be deemed to be a member of the Incumbent Board of Directors if such individual initially assumed office as a result of either an actual or threatened “Election Contest” (as described in Rule 14a-11 promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person or Group other than the Board of Directors (a “Proxy Contest”) including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest;

 

  

  

  

(iii)           The consummation of a merger, consolidation or reorganization involving the Company or any Subsidiary, unless the merger, consolidation or reorganization is a Non-Control Transaction. A “Non-Control Transaction” shall mean a merger, consolidation or reorganization of the Company or any Subsidiary where:  (A) the shareholders of the Company (or such Subsidiary, as  the case may be) who immediately prior to the merger, consolidation or reorganization owned, directly or indirectly, at least 50% of the combined voting power of the outstanding Voting Securities of the Company or such Subsidiary immediately following such merger, consolidation or reorganization, own at least 50% of the combined voting power of the outstanding voting securities of the corporation resulting from such merger, consolidation or reorganization (the "Surviving Corporation"), in substantially the same proportions as their ownership of the Common Stock or Voting Securities, as the case may be, immediately prior to the merger, consolidation or reorganization; (B) the individuals who were members of the Incumbent Board of Directors immediately prior to the execution of the agreement providing for the merger, consolidation or reorganization constitute at least two-thirds of the members of the board of directors of the Surviving Corporation, or a corporation beneficially owning, directly or indirectly, a majority of the outstanding voting securities of the Surviving Corporation, and (C) no Person or Group, other than (1) the Company, (2) any Subsidiary, (3) any Employee Benefit Plan or (4) any other Person or Group who, immediately prior to the merger, consolidation or reorganization, had Beneficial Ownership of not less than 20% of the outstanding Voting Securities or Common Stock, has Beneficial Ownership of 20% or more of the combined voting power of the Surviving Corporation's outstanding voting securities or common stock

 

(iv)           A complete liquidation or dissolution of the Company; or

 

(v)           The sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a Subsidiary) (“Asset Sale”)

 

Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred:

 

(i)           solely because any Person or Group (the “Subject Person”) acquired Beneficial Ownership of more than the permitted amount of the then outstanding Voting Securities or Common Stock of the Company as a result of an acquisition of Voting Securities or Common Stock by the Company, which, by reducing the number of shares of Voting Securities or Common Stock then outstanding, increases the proportional number of shares beneficially owned by the Subject Person; provided, however, that if a Change in Control would have occurred (but for the operation of this sentence) as a result of the acquisition of Voting Securities or common stock by the Company, and after such acquisition by the Company, the Subject Person becomes the beneficial owner of any additional shares of Voting Securities or Common Stock, which increases the percentage of the then outstanding shares of Voting Securities or Common Stock beneficially owned by  the Subject Person, then a Change in Control shall be deemed to have occurred;

 

(ii)          if the acquisition or ownership of any Common Stock or Voting Securities by the Company and its Affiliates (determined as if it was the Company) shall not cause or result in a Change in Control; or

 

(iii)         The Board or its Compensation Committee shall have determined that no Change in Control shall have occurred in respect of a particular event or series of events.

 

(c)    Business Expenses. Employee shall be reimbursed by the Company for all ordinary and necessary expenses incurred by Employee in the performance of his duties hereunder on behalf of the Company, such expenses not to exceed $500 per month without the prior written approval of the Company.

 

  

  

  

 

5.      TERMINATION.

 

(a)      Termination Due to Death or Disability.

 

(i)      Death. This Agreement shall terminate immediately upon the death of Employee.  Upon Employee’s death, Employee’s estate or Employee’s legal representative, as the case may be, shall be entitled to Employee’s accrued and unpaid Salary and vacation as of the date of Employee’s death, plus all other compensation and benefits that were vested through the date of Employee’s death.

 

(ii)     Disability. In the event of Employee’s Disability, this Agreement shall terminate and Employee shall be entitled to (a) accrued and unpaid vacation through the first date that a Disability is determined; and (b) all other compensation and benefits that were vested through the first date that a Disability has been determined.

 

(b)       Termination .  Both the Company and the Employee may terminate the employment hereunder by delivery of written notice to the other party at least thirty (30) days prior to termination date or with a shorter notice period if agreed upon by the Parties provided, however, that in the event of a breach of this Agreement by the Employee or an event which would constitute “Cause”, the Company may immediately terminate this Agreement upon written notice with no waiting period;.  Upon the effective date of termination under this Section 5.2, Employee shall be entitled to (a) accrued and unpaid vacation through such effective date; and (b) all other compensation and benefits that were vested through such effective date.

 

(c)       Notice of Termination.  Any termination of the Employment by the Company or the Employee shall be communicated by a notice in accordance with Section 8.4 of this Agreement (the “Notice of Termination”).

 

(d)       Payment. The Employee shall not be entitled to severance payments upon any termination provided in Section 5 herein. Except as otherwise provided in this Agreement, any payments to which the Employee shall be entitled under this Section 5, including, without limitation, any economic equivalent of any benefit, shall be made as promptly as possible following the Date of Termination, but in no event more than 30 days after the Date of Termination.  If the amount of any payment due to the Employee cannot be finally determined within 30 days after the Date of Termination, such amount shall be reasonably estimated on a good faith basis by the Company and the estimated amount shall be paid no later than thirty (30) days after such Date of Termination.  As soon as practicable thereafter, the final determination of the amount due shall be made and any adjustment requiring a payment to Employee shall be made as promptly as practicable.  The payment of any amounts under this Section 5 shall not affect Employee’s rights to receive any workers’ compensation benefits.

 

6.      EMPLOYEE’S REPRESENTATION. The Employee represents and warrants to the Company that: (a) he is subject to no contractual, fiduciary or other obligation which may affect the performance of his duties under this Agreement; (b) he has terminated, in accordance with their terms, any contractual obligation which may affect his performance under this Agreement; and (c) his employment with the Company will not require him to use or disclose proprietary or confidential information of any other person or entity.

 

  

  

  

 

7.      NON-COMPETITION: NON-DISCLOSURE; INVENTIONS.

 

(e)      Trade Secrets. Employee acknowledges that his employment position with the Company is one of trust and confidence. Employee further understands and acknowledges that, during the course of Employee's employment with the Company, Employee will be entrusted with access to certain confidential information, specialized knowledge and trade secrets which belong to the Company, or its subsidiaries, including, but not limited to, their methods of operation and developing customer base, its manner of cultivating customer relations, its practices and preferences, current and future market strategies, formulas, patterns, patents, devices, secret inventions, processes, compilations of information, records, and customer lists, all of which are regularly used in the operation of their business and which Employee acknowledges have been acquired, learned and developed by them only through the expenditure of substantial sums of money, time and effort, which are not readily ascertainable, and which are discoverable only with substantial effort, and which thus are the confidential and the exclusive Property of the Company and its subsidiaries (hereinafter “Trade Secrets”). Employee covenants and agrees to use his best efforts and utmost diligence to protect those Trade Secrets from disclosure to third parties.  Employee further acknowledges that, absent the protections afforded the Company and its subsidiaries in Section 7, Employee would not be entrusted with any of such Trade Secrets. Accordingly, Employee agrees and covenants (which agreement and covenant shall survive the termination of this Agreement regardless of the reason) as follows:

 

(i)      Employee will at no time take any action or make any statement that will disparage or discredit the Company, any of its subsidiaries or their products or services;

 

(ii)      During the period of Employee's employment with the Company and for 60 months immediately following the termination of such employment, Employee will not disclose or reveal to any person, firm or corporation other than in connection with the business of the Company and its subsidiaries or as may be required by law, any Trade Secret used or useable by the Company or any of its subsidiaries, divisions or Affiliates (collectively the “Companies”) in connection with their respective businesses, known to Employee as a result of his employment by the Company, or other relationship with the Companies, and which is not otherwise publicly available. Employee further agrees that during the term of this Agreement and at all times thereafter, he will keep confidential and not disclose or reveal to any person, firm or corporation other than in connection with the business of the Companies or as may be required by applicable law, any information received by him during the course of her employment with regard to the financial, business, or other affairs of the Companies, their respective officers, directors, customers or suppliers which is not publicly available;

 

  

  

  

(iii)           Upon the termination of Employee's employment with the Company, Employee will return to the Company all documents, customer lists, customer information, product samples, presentation materials, drawing specifications, equipment and other materials relating to the business of any of the Companies, which Employee hereby acknowledges are the sole and exclusive property of the Companies or any one of them.  Nothing in this Agreement shall prohibit Employee from retaining, at all times any document relating to his personal entitlements and obligations, his rolodex, his personal correspondence files; and any additional personal property;

 

(iv)           During the term of the Agreement and, for a period of three (3) months immediately following the termination of the Employee's employment with the Company, Employee will not: compete, or participate as a shareholder, director, officer, partner (limited or general), trustee, holder of a beneficial interest, employee, agent of or representative in any business competing directly with the Companies without the prior written consent of the Company, which may be withheld in the Company’s sole discretion; provided, however, that nothing contained herein shall be construed to limit or prevent the purchase or beneficial ownership by Employee of less than five percent of any security registered under Section 12 or 15 of the Securities Exchange Act of 1934;

 

(v)           During the term of the Agreement and, for a period of eighteen (18) months immediately following the termination of the Employee's employment with the Company, Employee will not:

 

(A)      solicit or accept competing business from any customer of any of the Companies or any person or entity known by Employee to be or have been, during the preceding 18 months, a customer or Prospective Customer of any of the Companies without the prior written consent of the Company;

 

(B)      encourage, request or advise any such customer or Prospective Customer of any of the Companies to withdraw or cancel any of their business from or with any of the Companies; or

 

(vi)           Employee will not during the period of his employment with the Company and, subject to the provisions hereof for a period of eighteen (18) months immediately following the termination of Employee's employment with the Company,

 

(A)      conspire with any person employed by any of the Companies with respect to any of the matters covered by this Section 7;

 

(B)      encourage, induce or solicit any person employed by any of the Companies to facilitate Employee's violation of the covenants contained in this Section 7;

 

(C)      assist any entity to solicit the employment of any employee of any of the Companies; or

 

(D)      employ or hire any employee of any of the Companies, or solicit or induce any such person to join the Employee as a partner, investor, coventurer, or otherwise encourage or induce them to terminate their employment with any of the Companies.

 

  

  

  

 

(f)      Employee expressly acknowledges that all of the provisions of this Section 7 of this Agreement have been bargained for and Employee's agreement hereto is an integral part of the consideration to be rendered by the Employee which justifies the rate and extent of the compensation provided for hereunder.

 

(g)     Employee acknowledges and agrees that a violation of any one of the covenants contained in this Section 7 shall cause irreparable injury to the Company, that the remedy at law for such a violation would be inadequate and that the Company shall thus be entitled to temporary injunctive relief to enforce that covenant until such time that a court of competent jurisdiction either (a) grants or denies permanent injunctive relief or (b) awards other equitable remedy(s) as it sees fit.

 

(h)     Successors.

 

(i)      Employee. This Agreement is personal to Employee and, without the prior express written consent of the Company, shall not be assignable by Employee, except that Employee’s rights to receive any compensation or benefits under this Agreement may be transferred or disposed of pursuant to testamentary disposition, intestate succession or a qualified domestic relations order or in connection with a Disability.  This Agreement shall inure to the benefit of and be enforceable by Employee’s estate, heirs, beneficiaries, and/or legal representatives.

 

(ii)     The Company. This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

 

(i)      Inventions and Patents. The Company shall be entitled to the sole benefit and exclusive ownership of any inventions or improvements in products, processes, or other things that may be made or discovered by Employee while he is in the service of the Company, and all patents for the same. During the Term, Employee shall do all acts necessary or required by the Company to give effect to this section and, following the Term, Employee shall do all acts reasonably necessary or required by the Company to give effect to this section.  In all cases, the Company shall pay all costs and fees associated with such acts by Employee.

 

8.      MISCELLANEOUS.

 

(j)      Indemnification.  The Company and each of its subsidiaries shall, to the maximum extent provided under applicable law, indemnify and hold Employee harmless from and against any expenses, including reasonable attorney’s fees, judgments, fines, settlements and other legally permissible amounts (“Losses”), incurred in connection with any proceeding arising out of, or related to, Employee’s employment by the Company, other than any such Losses incurred as a result of Employee’s negligence or willful misconduct.  The Company shall, or shall cause a subsidiary thereof to, advance to Employee any expenses, including attorney’s fees and costs of settlement, incurred in defending any such proceeding to the maximum extent permitted by applicable law.  Such costs and expenses incurred by Employee in defense of any such proceeding shall be paid by the Company or applicable subsidiary in advance of the final disposition of such proceeding promptly upon receipt by the Company of (a) written request for payment; (b) appropriate documentation evidencing the incurrence, amount and nature of the costs and expenses for which payment is being sought; and (c) an undertaking adequate under applicable law made by or on behalf of Employee to repay the amounts so advanced if it shall ultimately be determined pursuant to any non-appealable judgment or settlement that Employee is not entitled to be indemnified by the Company or any subsidiary thereof.  The Company will provide Employee with coverage under all director’s and officer’s liability insurance policies which is has in effect during the Term, with no deductible to Employee.

 

  

  

  

(k)     Applicable Law.  Except as may be otherwise provided herein, this Agreement shall be governed by and construed in accordance with the laws of the State of New York, applied without reference to principles of conflict of laws.

 

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

 

(m)    Notices.  All notices and other communications hereunder shall be in writing and shall be given by hand-delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

 

If to the Employee:

Mr. Qingtai Liu

Changda Road East,

Development District,

Changle County, Shandong, P.R.C.

 

If to the Company:

Shengtai Pharmaceutical, Inc.

Changda Road East,

Development District,

Changle County, Shandong, P.R.C.

Attn:  Mr. Qingtai Liu

Tel:    86-536-6295802

With a copy to (which shall not constitute notice):

Guzov Ofsink, LLC

600 Madison Avenue, 11th Floor

New York, New York 10022

Attn: Darren Ofsink

Tel: 212-371-8008

  

  

  

Or to such other address as either party shall have furnished to the other in writing in accordance herewith.  Notices and communications shall be effective when actually received by the addressee.

(n)      Withholding.  The Company may withhold from any amounts payable under the Agreement, such federal, state and local income, unemployment, social security and similar employment related taxes and similar employment related withholdings as shall be required to be withheld pursuant to any applicable law or regulation.

 

(o)      Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and any such provision which is not valid or enforceable in whole shall be enforced to the maximum extent permitted by law.

 

(p)      Captions.  The captions of this Agreement are not part of the provisions and shall have no force or effect.

 

(q)      Entire Agreement.  This Agreement contains the entire agreement among the parties concerning the subject matter hereof and supersedes all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the parties with respect thereto.

 

(r)      Survivorship. The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement or the Employee’s employment hereunder to the extent necessary to the intended preservation of such rights and obligations.

 

(s)      Waiver. Either Party's failure to enforce any provision or provisions of this Agreement shall not in any way be construed as a waiver of any such provision or provisions, or prevent that party thereafter from enforcing each and every other provision of this Agreement.

 

(t)      Joint Efforts/Counterparts.   Preparation of this Agreement shall be deemed to be the joint effort of the parties hereto and shall not be construed more severely against any party.  This Agreement may be signed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

 

(u)      Representation by Counsel.   Each Party hereby represents that it has had the opportunity to be represented by legal counsel of its choice in connection with the negotiation and execution of this Agreement.

 

— Signature page follows —

 

  

  

  

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

	
EMPLOYEE:

	  	
SHENGTAI PHARMACEUITICAL, INC.

	  	  	  
	
 

	  	
By:

	
/s/ Christopher Wenbing Wang

	

/s/Qingtai Liu

	  	
Christopher Wenbing Wang

	

Qingtai Liu

	  	
Chairman, Compensation CommitteeUnassociated Document

Agreement

This Agreement (this “Agreement”) is made as of November 1st, 2005 by and between A.D. Integrity Applications Ltd., of 22 He'Amal Street, South Industrial Zone, P.O. Box 432, Ashkelon, 78100, Israel (the “Company”) and Diabeasy Diabeasy cc, of 81 Central St. Houghton 2198, (P.O. Box 2900, Saxonwald, 2132) Johannesburg, South Africa (the “Reseller”) for the purpose of defining the rights and duties of the parties in connection with the distribution by the Reseller of the Company’s Products.

	
Whereas

	
The Reseller wishes to distribute a certain product that was developed by the Company, and is manufactured and be distributed under the name GlucoTrack(TM); and

 

	
Whereas

	
The Reseller wishes to examine the said product in order to see if it complies with the specifications set forth by the Company in connection therewith, and if so, become the reseller thereof in South Africa; and

 

	
Whereas

	
The parties hereto wish to set forth the terms and conditions in connection with the aforesaid;

NOW THEREFORE, the parties hereto declare, covenant and agree as follows:

 

	
1.

	
Products:

 

	
  

	
1.1.

	
The Company’s product covered by this Agreement is named GlucoTrack DF-F (the “Product”). The Company may, at all times, make changes in the Product, at its sole discretion. The Company shall advise the Reseller in advance in the case of material changes in the Product. It is hereby agreed that should the Company perform a meaningful upgrade in the Specifications of the Product (as detailed in Exhibit A hereto) prior to receipt of CE Mark approval with respect to the Product, then the Company shall provide the Reseller with technical solutions and adjustments (by way of accessories or as the Company shall otherwise deem fit) such that the Product shall comply with such upgrades, however only with respect to inventory in the possession of the Reseller which was purchased by the latter from the Company not earlier than [TBD] months before the Company notified the Reseller of such modification. Such solutions and adjustments shall be provided at Company's account, except for transportation costs and assembly thereof to Product that will be on Reseller's account. For the avoidance of doubt it is clarified that should same occur following the approval of the Samples by the Reseller pursuant to Section below, it shall not entitle the Reseller to re-examine the Product and will not derogate from Reseller's appointment or obligations hereunder. For the avoidance of doubt it is further clarified that such modifications do not refer to different models, but to updates of the DF-F model only, if and to the extent such updates will be done by the Company.

 

	
  

	
1.2.

	
Should the appointment pursuant to Section 3 below become valid and both parties be interested that GlucoTrack DF-B be distributed by the Reseller as well in the Territory (as defined below), then the parties will negotiate the terms and conditions for the distribution thereof with regards to delivery and other dates and schedules, quantities (including minima quota) and prices, while the terms and conditions of this Agreement in all other matters shall apply to such distribution, mutatis mutandis. The Company may, at all times, make changes in the Products, at its sole discretion. The Company shall advise the Reseller in advance in the case of material changes in the Products.

 

  

Page 1 of 14

  

 

	
2.

	
Examination of Product:

 

	
  

	
2.1.

	
The Company shall provide the Reseller with five (5) units of the Product, as soon as the Company finds them ready for testing (the "Samples"). The Reseller shall examine the Samples in order to check whether the Product complies with the Specifications set forth in Exhibit A attached hereto (the "Specifications"), and will provide the Company with Reseller's approval, or with Reseller's comments and reservations regarding any non compliance discovered by Reseller, within 45 days as of receipt of Samples from the Company as aforesaid (the "Due Date of Notice").

 

	
  

	
2.2.

	
Should the Reseller approve the Samples in writing, the Reseller's appointment will come into full force and effect as of the Due Date of Notice.

 

	
  

	
2.3.

	
Should the Reseller provide the Company with a detailed list of reservations or comments regarding any non compliance of the Product with the Specifications within not later than the Due Date of Notice, the Company (with the assistance of Reseller, to the extent requested by the Company) shall try to modify such non compliance and shall provide the Reseller with the modified Samples for another examinations, and the provisions of Section 2.1 and 2.2 shall apply to such another examination, mutatis mutandis (including time tables).

 

	
  

	
2.4.

	
Should the Reseller fail to provide any written approval or list of reservations and comments pursuant to Sections 2.2 or 2.3 above by not later than the Due Date of Notice, or should the Reseller reject the Samples for any reason whatsoever, then the appointment of the Reseller pursuant to Section 3 below shall not come into effect and this Agreement shall terminate automatically, unless otherwise separately agreed between the parties in writing. In such case, the Reseller shall immediately return to the Company, at Reseller's account, any and all Samples and any other material which relates to the Samples and/or Products, that was either prepared by the Company or that was prepared by Reseller within the process of examination of Samples. For the avoidance of doubt it is clarified that the provisions of Sections 12, 14, 15 and of any other Section herein that relates to non competition and/or confidentiality or that according to its terms or nature survives the termination or expiration of this Agreement, shall survive such termination.

 

	
3.

	
Appointment:

 

	
  

	
3.1.

	
Subject to the provisions of Section 2 above and 3.3 below, the Company hereby grants to the Reseller, and the Reseller hereby accepts from the Company a non exclusive, non-transferable right and license to promote, advertise, market, sell, distribute and license the Product, only in South Africa (the “Territory”). Reseller shall sell the Product directly to end users, and will receive consideration therefore directly from such end users or through insurance companies in which such end users are insured; it is hereby agreed that the manner of payment, and the fact that it can be done either by end user or by the insurance company, shall not affect the provisions of this Agreement and the payment terms hereof.  The appointment shall become in force and effect only pursuant to the provisions of Section 2.2 above and as at the date mentioned therein (the "Appointment Date"), and will not come into effect at all under the provisions of Section 2.4 above.

 

  

Page 2 of 14

  

 

	
  

	
3.2.

	
The Reseller may not sell the Products to third parties located outside of the Territory or to third parties with the intention of selling the Products outside of the Territory without the prior written consent of the Company, which may be granted or denied in the Company’s sole and absolute discretion; and the Reseller shall receive from each third party to which it may sell the Products an undertaking not to sell the Products outside of the Territory. Any failure to comply with the preceding sentence shall be deemed a material breach of this Agreement by the Reseller.

 

	
  

	
3.3.

	
Should the Reseller fully comply with the Minima Quota provided in Section 5.2 below during the first two calendar quarters following the Appointment Date, the Reseller's rights pursuant to this Agreement with respect to the Territory shall become exclusive. Notwithstanding the aforesaid, should at any time thereafter, the Reseller fails to comply with the annual Minima Quota, or with the quarterly Minima Quota at any two subsequent calendar quarters, then the Company may elect, at its discretion, to either - (i) notify the Reseller rights hereunder become non exclusive; or (ii) terminate this Agreement by 30 (thirty) days prior notice to Reseller.

 

	
4.

	
Representations and Warranties of the Parties:

 

	
  

	
4.1.

	
Each party represents and warrants to the other party that:

 

	
  

	
4.1.1.

	
It is duly organized and validly existing under the laws of the jurisdiction under which it has been incorporated; it has full corporate power and authority to execute this Agreement and to perform its obligations hereunder; and all corporate action on its part necessary for the authorization, execution, delivery and performance of this Agreement by it have been taken.

 

	
  

	
4.1.2.

	
This Agreement, when executed and delivered by it, will constitute a valid and legally binding obligation on its part, enforceable in accordance with its terms.

 

	
  

	
4.1.3.

	
The execution, delivery and performance of this Agreement will not result in the breach or violation of any law or regulation applicable to it or any contract or commitment by which it is bound.

 

	
  

	
4.1.4.

	
It is not required to obtain any permit, authorization, license or consent from any person or entity (including any governmental authorities) in connection with the execution and delivery of this Agreement or the consummation or performance of any of the transactions contemplated hereunder.

 

  

Page 3 of 14

  

 

	
  

	
4.1.5.

	
The Reseller further declares that no regulatory approval is required for the distribution and/or sale of the Product in the Territory; should such license, permit or approval be required at any time during the term hereof, the Reseller shall duly and timely obtain same on its account and upon termination or expiration of this Agreement or of the exclusivity hereof, shall see that same license, permit or approval is assigned, to the extent permitted under applicable law, to the Company or anyone designated by the Company.

 

	
  

	
4.2.

	
In addition to the aforesaid, the Reseller represents and warrants that: it has the required knowledge, experience and financial capacity to fulfill its obligations hereunder; it has previous experience and knowledge regarding the Product and/or products similar to the Product and the market of the Product in the Territory; it has received and reviewed all the information required by it; and it has evaluated the merits of this Agreement before executing it.

 

	
5.

	
Reseller’s Duties: The Reseller agrees to use its best efforts to develop the full sales potential of the Products in the Territory and to abide and comply with all sales policies and operating regulations of the Company, as may issued and modified from time to time at the discretion of the Company. In addition to such other actions as may be necessary to generate sales in the Territory, the Reseller agrees that it will perform at its expense and to the satisfaction of the Company the following duties:

 

	
  

	
5.1.

	
Promotion and Marketing: The Reseller will engage in advertising and sales’ promotion activities in which Product will be designated by its correct name and identified as Product of the Company being marketed by the Reseller. Such activities shall include, among other things, market development for the Product and identification of business opportunities and possible new applications for the Product, as well as post sales services (including, without limitation, on going sales of the Personal Ear Clip being part of the Product). The Reseller shall maintain a qualified sales and distribution organization which will call on such customers and potential customers in the Territory as may be reasonably likely to purchase Products. Among other things, the Reseller shall initiate, at its expense, marketing programs and shall regularly participate in exhibitions, fairs and other commercial and technical expositions. The Reseller is hereby granted the right to translate and reproduce, at its expense, the Company’s publicly distributed documentation related to the Product and to use such documentation in connection with the sale of the Product. At all times, the Reseller shall maintain a sufficient stock of the Product as well as of components thereof (including the Personal Ear Clip) in order to expeditiously meet the market demands in the Territory.

 

	
  

	
5.2.

	
Minima Quota: For the first year as of the Appointment Date, the minima quota shall be 10,000 (ten thousands) units of the Product, divided as follows:

 

	 	
·

	
1st period of 3 (three) months:  2,000 units

	 	
·

	
2nd period of 3 (three) months: 2,000 units

	 	
·

	
3rd period of 3 (three) months: 3,000 units

	 	
·

	
4th period of 3 (three) months: 3,000 units

 

  

Page 4 of 14

  

 

It is understood that the Personal Ear Clip (PEC) is valid for 6 (six) months after initial use. Therefore purchasing of additional PECs is necessary, accordingly. For the avoidance of doubt it is hereby clarified that the above quoted minima quota relates however to the full kits of the Product, excluding Personal Ear Clip being sold separately as aforesaid and/or other spare parts.

 

The first sale of Products by the Reseller to end users in the Territory shall occur by not later than six (6) weeks following the appointment of the Reseller as such pursuant to Section 3 above, provided that the order thereof is timely supplied by the Company.

After 6 (six) months of sales, parties will decide about the minima quota for second operational year which shall not be less than the abovementioned minima quota.

 

	
  

	
5.3.

	
Support and Service: The Reseller shall maintain a staff of trained personnel and a stock of technical literature sufficient to provide training, explanations of the Product and use thereof in the Territory and will respond to and complete all service calls from such users in a prompt and professional manner. The Company will provide the Reseller with relevant end user's manual for the Product, embedded with each Product's packet. Reseller shall provide full post-sale services to the end users / customers of the Product within the Territory, as may be required, including, without limitation, sale of components and Personal Ear Clips, replacement of problematic or defective Products and any other service required, for a period being not less than the Warranty Period (as defined below). The provisions of this Section 5.3 shall survive the termination or expiration of this Agreement for any reason whatsoever, such that Reseller's obligations hereunder shall be in full force and effect until the end of the Warranty Period with respect to the last Product sold by Reseller pursuant to this Agreement. [Note: maintenance and replacement of defective Products - TBD]

 

	
  

	
5.4.

	
General Conduct: The Reseller will be solely responsible to market the Product according to the laws, regulations, requirements and provisions applying in the Territory. The Reseller will bear any costs associated with bringing the Product to be in conformity with such requirements, if any, including but not limited to import licenses, technical compliance requirements, etc. The Reseller shall at all times conduct its business in a way that will reflect favorably on the Company and the Product and will not partake in any illegal or questionable business practice.

 

	
  

	
5.5.

	
Forecasts: Within 30 days of the date hereof and on each anniversary of the date hereof, the Reseller shall deliver to the Company an annual forecast of anticipated Product purchases for the coming year. Such forecast shall include at least the Minima Quota provided herein for such year and shall bind the Reseller after being approved by the Company; the Reseller shall be entitled to deviate from the forecast (increase or decrease) by not more than 10%, provided however that in any case Reseller shall not purchase less than the Minima Quota at any time.

 

	
  

	
5.6.

	
Records: The Reseller shall maintain complete sales records showing the quantity of Product sold, the purchase price at which Product was sold, and the dates of such sales. The Reseller will permit the Company to inspect such records upon request, and, upon termination of this Agreement for any reason whatsoever, it shall provide the Company with a copy of such records, for the entire period in which the Agreement has been effective.

 

  

Page 5 of 14

  

 

	
  

	
5.7.

	
Additional Reports: At the end of each fiscal quarter or upon the Company’s request, the Reseller shall provide the Company with a written report containing the following information: (i) the market situation in the Territory; (ii) The Reseller's sales promotion activities; (iii) forecast of sales in the upcoming fiscal quarter; (iv) all matters known to the Reseller which are likely to effect the sales of the Product; and (v) any additional information which may be reasonably requested by the Company.

 

	
  

	
5.8.

	
Distribution Outside of the Territory: Unless otherwise specifically agreed in wirting prior to any such action taken, the Reseller shall refrain from seeking customers for the Products outside of the Territory, from establishing any branch maintaining any distribution depot with the purpose of selling Product outside of the Territory or otherwise engage in any activity which may lead to the sale of Product outside of the Territory. In addition, the Reseller shall refrain from providing any service in connection with the Product outside of the Territory. The Reseller will refer potential customers of the Product who are located outside of the Territory to the Company or such other Reseller as the Company shall designate in writing.

 

	
  

	
5.9.

	
Market Research: The Reseller will cooperate with the Company in market research and furnish the Company, free of any charge, with all reasonable reports necessary to keep the Company informed of the market, competitive conditions and market position, including market responses.

 

	
  

	
5.10.

	
No Agent: The Reseller will act as an independent contractor under the terms of this Agreement and not as an agent or legal representative of the Company for any purpose, and it has no right or authority to assume or create any obligation of any kind, expressed or implied, on behalf of the Company to the Reseller’s customers or to any other person. Without derogating from the generality of the aforesaid, the Reseller shall refrain from: (i) entering into any agreement or arrangement with any third party which imposes any legal obligation or liability of any kind whatsoever on the Company; (ii) signing the Company's name to any contract, undertaking or other instruments; (iii) incurring any debt to a third party payable by the Company.

 

	
  

	
5.11.

	
Capabilities of Product: The Reseller shall not make any representations, claims or other like statements regarding the characteristics or capabilities of the Product other than those representations or claims contained in the documentation or Product literature supplied to the Reseller by the Company.

 

	
  

	
5.12.

	
Audit: The Company shall have the right to visit and inspect Reseller’s premises for the purpose of verifying that the Reseller is fully performing all of its obligations under this Agreement. Such audit will take place after a prior notice by the Company.

 

	
  

	
5.13.

	
Performance of Clinical Trials: Should the Company and Reseller mutually agree to perform formal clinical trials in the Territory or in any other place, same shall be performed without derogating from Reseller's obligations hereunder, simultaneously with the fulfillment of such obligations. Such trials shall be performed according to a clinical protocol to be provided by the Company, and the Reseller shall assist the Company in the performance thereof, including without limitation in locating and defining a proper site for the experiments and approval of the experiments process by the competent ethical committees / entities.

 

  

Page 6 of 14

  

 

	
  

	
5.14.

	
Publications: The Reseller shall be entitled, at Reseller's account, to prepare professional articles in connection with the Product and to publish same in professional publications, subject to the Company's prior written approval to each such publication and the contents thereof, and without derogating from the provisions of Section 12 below.

 

	
6.

	
Price and Terms:

 

	
  

	
6.1.

	
Products will be sold to Reseller by the Company FOB Israel according to the price list set forth in Exhibit B. These prices are subject to change upon 90 days written notice to the Reseller.

 

	
  

	
6.2.

	
The Reseller shall bear all shipping costs, insurance expenses, importation costs and duties and further shipping charges and additional or other charges, costs and expenses there may be, and all taxes assessable on the Products after delivery to the carrier at the Company’s designated site.

 

	
  

	
6.3.

	
Any terms of sale not specified herein shall be governed by the Company’s standard sales order terms in effect at the time of the Reseller’s order.

 

	
7.

	
Purchase Orders and Shipment:

 

Until otherwise instructed by the Company:

 

	
  

	
7.1.

	
Reseller will place every purchase order directly with the Company by fax or as will be otherwise instructed in writing by the Company from time to time, and the Company may approve or reject such order.

 

	
  

	
7.2.

	
The Reseller shall pay 30% of the consideration for each order by way of wire transfer to the Company's designated bank account by not later than 5 (five) business days following receipt of Company's approval for such order (the "Down Payment"). The remaining 70% of said consideration will be made by means of an irrevocable letter of credit [Note: or by wire transfer with guarantees - TBD] issued by a first class bank acceptable to the Company, allowing payment within 10 days from the date of the Bill of Lading or by other means that shall be agreed upon by the parties. Shipment shall be made by the Company within 30 days from the receipt of the Down Payment for such order.

 

	
8.

	
Warranty and Insurance:

 

	
  

	
8.1.

	
The Reseller acknowledges that the Product shall be of the type called GlucoTrack DF-F (Spot Measurement), and that the Personal Ear Clip component thereof should be replaced by the end user at least once in six months.

 

	
  

	
8.2.

	
The Company’s warranty to the Product is as set forth in, and limited to, the provisions of the warranty certificate attached hereto as Exhibit C, and to the warranty period specified therein (the “Warranty Certificate” and "Warranty Period", respectively), and the exclusive obligations of the Company and the Reseller’s sole remedies during the Warranty Period set forth in the Warranty Certificate shall be as set forth therein. No other warranties are expressed or implied, including, but not limited to, the implied warranties of merchantability and fitness for a particular purpose. For avoidance of any doubt, no term of the terms set forth in the Warranty Certificate may be changed and no additional undertaking or warranty may be made by the Company unless specifically made in writing prior to the date of its alleged effect.

 

  

Page 7 of 14

  

 

	
  

	
8.3.

	
The Reseller shall provide in any agreement made by it with any customer of the Product that, except for the warranty described in the Warranty Certificate, the Company shall not be liable for, and the customer shall not have any claim or other right whatsoever against the Company relating to or in connection with the Product and their purchase by the customer; and that any claim a customer may have with regard to the Product shall be addressed only to the Reseller, who shall approach the Company in connection therewith. The Reseller shall cooperate with the Company in checking any claims made with regard to the Product and if found just - in providing any of the remedies set forth in the Warranty Certificate.

 

	
  

	
8.4.

	
Without derogating from the parties’ obligations hereunder, the Reseller shall purchase and keep current a product liability insurance policy, to the Company’s satisfaction, to cover the liabilities which may arise with respect to the Product. Said policy shall provide, inter alia, insurance cover for a claim or any other argument whatsoever which may be brought against the Company or the Reseller, directly or indirectly, in relation to or in connection with the Product.

The Reseller shall notify the Company of the details of the insurance policy within 30 days from the date hereof. Neither the Reseller nor the insurance company nor anyone else acting on their behalf shall entertain any claim against the Company with respect to any remedy other than those specified in the Warranty Certificate.

 

	
  

	
8.5.

	
The rights and obligations of the parties hereto under this Section 8 shall survive the expiration or termination of this Agreement for any reason whatsoever.

 

	
9.

	
End User Pricing: The Reseller agrees to disclose to Company, as set forth on Section 5.5 above or upon the Company’s request, the prices at which Reseller sold and/or sells the Product. If such prices are not acceptable to the Company, pricing policies shall be negotiated between the Reseller and the Company until agreement is reached by both parties.

 

	
10.

	
Extra-Territorial Sales/Commissions and Charges: The Reseller is aware that the Company cannot always control the reshipment of its Product by the customers. The Reseller, therefore, shall not hold the Company responsible for Company’s products that are reshipped by any person or entity into the Territory.

 

  

Page 8 of 14

  

 

Should any such customers of the Company be identified as having transferred Products into the Territory, the Company will undertake to exercise, to the best of its reasonable ability and in conformity with applicable laws, control on its sales to such customers to attempt that such reshipments into the Territory will be prevented from recurring. The Company accepts no liability to pay the Reseller commission or defray charges related to such customer shipments.

 

	
11.

	
Assignment: The rights of the Reseller under this Agreement may not be assigned in whole or in part by operation of law or otherwise without the prior expressed written consent of the Company, and, without derogating from any remedy to which the Company may be entitled to in such event, any attempted assignment of any rights, duties or obligations hereunder without consent shall be void.

 

	
12.

	
Intellectual Property Rights: The Reseller represents to the Company and acknowledges that all the rights with respect to the Product (including without limitation the Personal Ear Clip thereof), including, but not limited to, all patents, trademarks, copyrights, service marks, trade names, technology, know how, moral rights and trade secrets, all applications for any of the foregoing, and all permits, grants and licenses or other rights relating to the Products (the “Intellectual Property Rights”) are and shall remain the sole property of the Company. The Reseller, its employees, officers, shareholders and/or anyone acting on their behalf shall not copy, reverse engineer or otherwise tamper with the Products, or allow any other person (including, without limitation, within the process of Samples examination pursuant to Section 2 hereinabove) to do so. The Reseller is not granted any right in any such Intellectual Property Right unless specifically otherwise stated in this Agreement, and no such right can be granted to the Reseller unless specifically granted in writing prior to any use made thereof by the Reseller. The Reseller shall promptly notify the Company of any infringement or alleged infringement of any Intellectual Property Right by any third party of which it becomes aware, and shall assist the Company in protecting its rights in connection therewith. For the purpose of this Section 12, the term "Product" shall include also the Samples. The provisions of this Section 12 shall remain in full force and effect at all times and survive the termination or expiration of this Agreement for any reason whatsoever. The Reseller shall be liable for any breach hereof by any of its employees, officers, shareholders and/or anyone acting on their behalf.

 

	
13.

	
Trademarks and Names:

 

	
  

	
13.1.

	
The Reseller shall neither remove or conceal any trademark, trade name or logo of the Company appearing on any Product or written material provided by the Company nor add any other trademark, trade name or logo to the same without the prior written specific consent of the Company. The aforesaid shall also apply with regard to any translations of material provided by the Company, and, mutatis mutandis, with regard to any material originally prepared by the Reseller itself or any person or entity connected with it, and copies of such materials shall be delivered to the Company and will require its written approval prior to any use made of them.

 

	
  

	
13.2.

	
The Reseller is hereby granted a non exclusive permission to use during the term of this Agreement the trademarks and trade names used by the Company in connection with the Products. Such permission is expressly limited to uses by the Reseller necessary for the performance of Reseller’s obligations under this Agreement, and the Reseller hereby admits and recognizes the Company’s exclusive ownership of such marks and names and the renown of the Company’s marks and names, both worldwide and specifically in the Territory. The Reseller agrees not to take any action inconsistent with such ownership and shall discontinue using any of the Company’s trademarks, trade names, logos and symbols immediately upon expiration or termination of this Agreement for any reason whatsoever.

  

Page 9 of 14

  

 

	
14.

	
Confidentiality: All information furnished by the Company to the Reseller with regard to the Products and including but not limited to the business, marketing and sales plans of the Company, and designs, manufacturing process and other technical information pertaining to the Intellectual Property Rights or to the Products (“Confidential Information”), shall be deemed to have been furnished in confidence and shall not be used by the Reseller for any purpose whatsoever other than for Reseller’s performance hereunder. The Reseller shall take all necessary precautions and maintain strict safeguards to hold such Confidential Information in strict confidence and to prevent the disclosure thereof to any third party; and it shall exercise at least a degree of care to preserve and safeguard the Confidential Information such as that which it would undertake to preserve and safeguard its own confidential information. The obligations under this Section 14 shall survive the expiration or termination of this Agreement for any reason whatsoever.

 

	
15.

	
Non-Competition: During the term of this Agreement and for an additional period of twelve (12) months after its expiration or termination for any reason whatsoever, the Reseller shall not market to any person, company or other entity any products which, directly or indirectly, compete with the Product or with the Company, except with the prior written consent of the Company. The obligations under this Section 15 shall survive the expiration or termination of this Agreement for any reason whatsoever.

 

	
16.

	
Term and Termination:

 

	
  

	
16.1.

	
This Agreement shall become effective upon its signing by both parties and shall be in force for a period of three (3) years subject to the fulfillment by the Reseller of any and all of its obligations hereunder and subject to Sections 3.3 and 5.2 above, unless sooner terminated as provided below or in Section 3.3(ii) above.

 

	
  

	
16.2.

	
Notwithstanding the aforesaid if either party hereto commits: (i) a material breach of this Agreement or defaults in the performance of any material obligation, and such default or breach is not corrected within 14 (fourteen) days after the same has been called to the attention of the defaulting party by a written notice from the other party; or (ii) a non-material breach of this Agreement or defaults in the performance of any other obligation, and such default or breach is not corrected within 30 (thirty) days after the same has been called to the attention of the defaulting party by a written notice from the other party - then the non-defaulting party, at its option, may thereupon terminate this Agreement by submitting a written notice to the other party. In the event of an exclusive distribution agreement, the Company shall have the right, in the event of any such breach, in addition to and without derogating from its rights set forth above, to turn this Agreement into a non-exclusive distribution agreement. Without derogating from the generality of the foregoing provisions, a delay by the Reseller of more than 5 (five) working days in paying any amount due pursuant to Section 6 hereof shall be considered a material breach hereof.

 

  

Page 10 of 14

  

 

	
  

	
16.3.

	
Notwithstanding the aforesaid, if the Reseller files a petition for bankruptcy or is adjudicated bankrupt, or a petition for bankruptcy is filed against it or it becomes insolvent or unable to fulfill its obligations hereunder, or makes an assignment for the benefit of creditors or any arrangement pursuant to any bankruptcy law, or discontinues its business, if a receiver is appointed to it and in any event of change of control in the Reseller, the Company shall have the right to immediately terminate this Agreement. The Reseller shall immediately advise the Company, in writing, upon the occurrence of such event.

 

	
  

	
16.4.

	
Notwithstanding the aforesaid, in the event of a merger and/or acquisition transaction in which the Company is purchased by a third party or in any other case of change of control in the Company while this Agreement is still in force, the Company shall make efforts to continue working with the Reseller for the term remaining under Section 1 above; however, should the purchaser of the Company or of a controlling stake thereof refuse to continue using the services of the Reseller hereunder for any reason whatsoever, this Agreement shall terminate upon the later to occur between – (i) elapse of one year as of the Appointment Date; (ii) the actual purchase or change of control in the Company as aforesaid.

 

	
  

	
16.5.

	
For avoidance of doubt, no right of termination under any provision of this Agreement shall be exclusive of any other remedies or means of redress to which the party terminating this Agreement may be lawfully entitled.

 

	
  

	
16.6.

	
For the removal of any doubt, upon the expiration or termination of this Agreement for any cause or reason whatsoever, the Company shall be free to directly contact and engage in business with any person or entity in the Territory; and the Reseller shall not be entitled to any compensation, remuneration, royalties, broker fees or any other payment whatsoever from the Company with respect to the aforesaid or otherwise with respect to any alleged loss of anticipated income or profit. The Reseller agrees and declares that any investments and expenses made by it with regard to the market development have been taken into consideration in agreeing on the terms set forth in this Agreement.

 

	
  

	
16.7.

	
Acceptance of any purchase order from the Reseller or any sale made to the Reseller after notice of termination or expiration or after actual expiration or termination of this Agreement shall not be construed as a renewal or extension hereof nor as a waiver of such notice of termination, but in the absence of a new agreement covering such purchase orders or sales, each such purchase order and sale shall be governed by terms and conditions identical to the terms and conditions set forth in this Agreement. The provisions of this Section 16.8 shall survive the expiration or termination of this Agreement for any reason whatsoever.

 

  

Page 11 of 14

  

 

	
17.

	
Miscellaneous:

 

	
  

	
17.1.

	
Entire Agreement: This Agreement constitutes the entire Agreement between the parties with respect to its subject matter, and supersedes and cancels all prior agreements to the subject hereof, if any, between the parties.

 

	
  

	
17.2.

	
Amendments: No amendment to this Agreement shall be effective unless it is in writing and signed by a duly authorized representative of each party. The term "Agreement", as used herein, includes any future written amendments, modifications, or supplements made in accordance herewith.

 

	
  

	
17.3.

	
Severability: In the event any paragraph or provision of this Agreement is held illegal, void or unenforceable, to any extent, in whole or in part, as to any situation or person, the balance shall remain in effect and the provision in question shall remain in effect as to all other persons or situations, as the case may be, and the parties hereto shall draw up an arrangement in accordance with the meaning and the object of such paragraph or provision.

 

	
  

	
17.4.

	
Exhibits and Headings: The Exhibits to this Agreement constitute an integral part hereof. Headings used in this Agreement are for reference only and shall not be deemed a part of this Agreement.

 

	
  

	
17.5.

	
Consent to Breach Not Waiver: No term or provision hereof shall be deemed waived and no breach excused, unless such waiver or consent shall be in writing and signed by the party claimed to have waived or consented. Any consent by any party to, or waiver of, a breach by the other, whether express or implied, shall not constitute a consent to, waiver of, or excuse for any other different or subsequent breach.

 

	
  

	
17.6.

	
Governing Law and Jurisdiction: This Agreement shall be deemed to have been made in Tel-Aviv, Israel, and shall be governed and construed in accordance with the laws of the State of Israel, exclusive of its rules governing choice of law and conflict of laws. Any controversy or claim arising under, out of, or in connection with this Agreement, its validity, its interpretation, its execution or any breach or claimed breach thereof, shall be exclusively settled by the competent courts of Tel-Aviv, Israel.

 

	
  

	
17.7.

	
Notices: All notices shall be in writing and deemed given and received when delivered in person, by telex, or by commercial air courier service.  Notices shall be addressed to each party at its address set forth above, or such other address as the recipient may have specified by earlier notice to the sender.

IN WITNESS WHEREOF the parties have signed this Agreement as of the date first hereinabove set forth.

 

	 	 	 	 	 	 
	A.D. Integrity Applications Ltd.	 	 
Diabeasy cc

	 	 	 	 	 	 
	 
By:     Avner Gal

	 	 	By:    Dr. Lawrence A. Distiller  	 	Dr. Avron G. Urison
	 
Title:   Managing Director, CEO

	 	 	Title: Associate     	 	Associate

 

  

Page 12 of 14

  

 

Exhibit A

 

GlucoTrack(TM) – Specifications (Model DF-F)

	
Feature

	 	
Specifications

	 	
Remarks

	
Operation Modes

	 	
Spot (Continuous mode in Next generation)

	 	
By user choice

	
Users

	 	
Up to 3 users

	 	
Individual Ear Clip Unit for each user

	
Range

	 	
40-500 mg/dL (2.2-27.8 mmol/Liter)

	 	  
	
Ear Clip Unit

	 	
Ergonomic, Externally plugged, Each individual Ear Clip Unit Automatically recognized by the device and display user’s name

	 	
Color grip for easy handling and identification

	
Indications 

/ Operation

	 	
‘On’ LED indicator, ‘Alarm’ LED indicator, Buzzer, Alphanumeric Keypad, Navigator

	 	  
	
Display

	 	
Time, Date, Glucose Level (mG/dL or mmol/Liter – by User choice),  Glucose High/ Low/ Normal indication, Battery Level, Low Battery indication, Replacement of Ear Clip Unit request, Re-Calibration request, last measurement reading upon device turn on, User name, Memory use status

	 	
Dot Matrix Display

Light blue Backlight

	
Controls

	 	
Turn On/Off Push button, Navigator, "Select" Push button, Fast menu enter, Key pad

	 	
Auto turn off after 3 minutes

Backlight turns off after 30 seconds

	
Memory

	 	
Up to 300 last points per user (including level, date, time)

	 	  
	
Warnings

	 	
Glucose High / Low level, Low battery, Replace Ear Clip Unit, Re-Calibration Request, Ear Clip Unit not in place

	 	
LED + Audible, Levels are preset by each user

	
Interface

	 	
IR, USB for Data Downloading

	 	  
	
Calibration

	 	
Automatic process user's instructions

	 	  
	
General

	 	
Auto turn off after 3 minutes of non operation.

Latency compensation algorithm in Continuous Mode

	 	
In Spot Mode only.

 

	
Battery

	 	
Li-Ion Rechargeable

	 	
Operation inhibited during  recharge period

	
Working 

temperature

	 	
+5oC to +45oC

	 	  
	
Storage 

temperature

	 	
-5oC to +55oC

	 	  
	
Relative 

humidity

	 	
95%

	 	  
	
Dimensions

	 	
Universal Main Unit:  116 X 55 X 26 mm

Personal Ear Clip:       41 X 24 X 19 mm

	 	  
	
Weight

	 	
TBD

	 	  

 

  

Page 13 of 14

  

 

Exhibit B

 

GlucoTrack(TM) – Price List (Model DF-F)

 

	
Description

	 	
Price

	
Complete device (including Universal Main Unit, one Personal Ear Clip, embedded built in battery, Charger, Self Test Aid Strip, Manual in English, Carrying bag* and Case)

	 	
US$ 835.-

	  	 	  
	
Personal Ear Clip (including color grip and Self Test Aid Strip)

	 	
US$ TBD

 

* Type of Carrying bag – TBD by Integrity Applications.

 

  

Page 14 of 14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}]]