Document:

MASTER SERVICES AGREEMENT

between

Bioheart, Inc.

13794 NW 4th Street

Suite 212

Sunrise, Florida 33325

USA

and

Ascent Medical Product Development Centre, Inc.

401 North 3rd Street

Suite 300

Minneapolis, MN 55401

USA

 

This Master Services Agreement ("Agreement") is entered into this 18th day of January, 2010 ("Effective Date") by and between Bioheart, Inc. ("BIOHEART") and Ascent Medical Product Development Centre, Inc. ("ASCENT”). BIOHEART and ASCENT may be individually referred to as a "Party" and collectively as the "Parties."

WHEREAS, ASCENT is a clinical research organization ("CRO") in the business of providing professional clinical development services, including but not limited to project management, monitoring, data management, biostatistics, regulatory and medical writing.

WHEREAS, BIOHEART is in the business of developing, testing and seeking to commercialize cell-based therapies for the treatment of cardiovascular diseases.

WHEREAS, BIOHEART wishes to appoint ASCENT to provide certain clinical services to assist BIOHEART in the execution of clinical studies, and Ascent wishes to accept such appointment upon the terms and conditions set forth in this Agreement.

IT IS THEREFORE AGREED AS FOLLOWS:

	
            1.
 	
            SERVICES
 

1.1. ASCENT shall provide the services set forth in one or more Task Orders (a "Task Order"), the form of which is attached hereto as Exhibit A, which Task Orders will contain the protocol and the related responsibilities and budget, and such other services as are set forth in any change order (a "Change Order") executed by BIOHEART and ASCENT (collectively, the "Services").

 

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Master Services Agreement

 

	
            1.2.
 	
            Subject to the terms and conditions hereinafter set forth, ASCENT shall diligently perform the Services consistent with all applicable ICH Good Clinical Practice (GCP) guidelines, regulatory requirements or other applicable guidelines, regulations or laws and generally accepted professional standards, Including, where applicable, the United States Food and Drug Administration ("FDA") regulations and/or the corresponding regulations from Jordanian Food and Drug Agency (JFDA).
 

	
            1.3.
 	
            The Services shall only be performed by ASCENT or its Affiliates. "Affiliate" means, with respect to a Party to this Agreement, any other legally recognizable entity directly or indirectly controlling, controlled by, or under common control of such Party. ASCENT shall remain responsible for the performance of any of its Affiliates.
 

	
            1.4.
 	
            ASCENT will perform the Services according to this Agreement, ASCENT's standard operating procedures, and project specific procedures set forth in a Task Order or a Change Order. Notwithstanding the above, ASCENT will not change its standard operating procedures without BIOHEART's prior written consent.
 

	
            2.  
 	
            OBLIGATIONS OF ASCENT
 

	
            2.1.
 	
            ASCENT will perform the Services in a timely fashion in accordance with the anticipated time schedule defined in each Task Order. Should, during the course of the work, any facts become known which could jeopardize the completion deadline, ASCENT will immediately inform BIOHEART and the Parties shall promptly and in good faith negotiate a mutually satisfactory outcome. Any changes in the agreed timelines of a Task Order must be agreed upon by the Parties mutually in writing.
 

	
            2.2.
 	
            ASCENT will provide BIOHEART with all agreed upon reports and other work products existing in connection with the Services in a timely manner, as defined in each Task Order.
 

	
            2.3.
 	
            ASCENT will fully disclose to BIOHEART all documentation related to the Services upon prior written request.
 

	
            2.4.
 	
            In the event that BIOHEART decides to terminate a Task Order for safety or efficacy reasons, ASCENT will immediately take all necessary steps to terminate any contracts. ASCENT will immediately notify BIOHEART if, for any reason, it considers it inappropriate to continue providing Services under a Task Order. However, ASCENT will only cease providing Services pursuant to the written direction of BIOHEART.
 

	
            2.5.
 	
            ASCENT agrees to cooperate with any audit or inspection carried out by BIOHEART or other relevant bodies such as the administrative authorities and the JFDA. ASCENT shall provide BIOHEART with a copy of any inspection report related to the Services pursuant to this Agreement. ASCENT will, as soon as possible, implement all modifications that prove necessary subsequent to the findings of the audits made by or on behalf of BIOHEART. Where an internal audit is concerned, BIOHEART agrees to give ASCENT at least ten (10) working
 

 

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Master Services Agreement

 

days' advance notice. BIOHEART shall be responsible for all costs and expenses related to ASCENT's obligations hereunder or under any Task Order or change order.

	
            2.6.
 	
            ASCENT agrees to inform BIOHEART promptly of any regulatory action taken against ASCENT, and to provide a copy of any written correspondence received from a regulatory agency that may affect ASCENT's work hereunder. Furthermore, ASCENT agrees to notify BIOHEART of any request received from any applicable regulatory or governmental authority to inspect or otherwise gain access to the information, data or materials pertaining to the Services and shall permit inspection of such information, data and materials.
 

	
            2.7.
 	
            ASCENT shall determine the composition of its team to perform the Services and will maintain it at the level required for the duration of the provision of the said Services. ASCENT will further ensure that the team is suitably informed and up to date. ASCENT confirms that the personnel involved in the contracted activities are suitably qualified and bound by professional secrecy. Moreover, ASCENT will ensure that employees, agents and subcontractors, who work exclusively under the administration and management of ASCENT observe the same requirements. Neither ASCENT, its subcontractors, agents nor any members of their respective staffs involved in providing the Services shall be, at the time of performance of any Services: (i) disqualified or debarred by the FDA or any other Regulatory Agency for any purpose
pursuant to 21 U.S.C. § 335a or any foreign counterpart thereof; or (ii) convicted under United States federal law or foreign counterpart thereof, for conduct relating to the development or approval, or otherwise relating to the regulation of, any drug under the Generic Drug Enforcement Act of 1992 or any other relevant statute, law or regulation.
 

	
            2.8.
 	
            ASCENT confirms that it is entitled to enter into the contractual relationship with BIOHEART and that by entering this Agreement it does not violate obligations towards third parties.
 

	
            2.9.
 	
            ASCENT makes no representation or warranty, either express or implied, that the product covered by any Task Order can, either during the term of the Agreement or thereafter, be successfully developed or, if so developed, will receive the required approval from any applicable regulatory body. BIOHEART acknowledges that its obligations to pay ASCENT for Services rendered under this Agreement and the individual Task Orders are independent of and shall not be affected by the results of the studies.
 

	
            2.10.
 	
            BIOHEART acknowledges that the Services provided by ASCENT under the Agreement are based upon information supplied by BIOHEART. ASCENT does not warrant that the Services will meet any specifications, functions or other standards, except as expressly set forth in this Agreement or the individual Task Orders.
 

 

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Master Services Agreement

 

	
            2.11.
 	
            ASCENT hereby expressly disclaims any and all representations or warranties, whether oral or written, express or implied, other than those expressly set forth in the Agreement.
 

	
            3.
 	
            OBLIGATIONS OF BIOHEART
 

	
            3.1.
 	
            BIOHEART will have the overall responsibility for any study at all times, and BIOHEART will remain responsible for and manage all study related tasks which have not been specifically delegated to ASCENT pursuant to this Agreement and in each Task Order.
 

	
            3.2.
 	
            For activities to be performed in Jordan, BIOHEART will be the "Sponsor" for the conduct of the study as defined in the JFDA Regulations. ASCENT is not acting as the "legal representative" of BIOHEART under this Directive. BIOHEART and ASCENT shall each comply with the Directive for all activities performed in Jordan.
 

	
            3.3.
 	
            For activities to be performed in the US, each Task Order will specify the obligations transferred to ASCENT pursuant to 21 CFR §312.50 et seq., and BIOHEART and ASCENT shall each comply with the with the procedures and requirements of 21 CFR §312 for all activities performed in the United States.
 

	
            3.4.
 	
            BIOHEART will, as required and as applicable, supply sufficient quantities of the materials required for the timely completion of any clinical study described in each Task Order. ASCENT will contract with Bioheart for these materials and their provision for the study.
 

	
            3.5.
 	
            Study timelines and subject recruitment are the responsibility of ASCENT, who will select, evaluate, contract with, and administer all sites, which are to participate in the studies.
 

	
            3.6.
 	
            BIOHEART agrees to keep ASCENT fully informed at all times of any and all relevant information, hereunder safety information (including but not limited to all study trials and all regulatory applications) known to BIOHEART which might reasonably impact the provision of Services by ASCENT.
 

	
            3.7.
 	
            BIOHEART acknowledges that ASCENT will require documents, drug supplies, data, records and cooperation by BIOHEART, investigators, and/or third party suppliers in order to properly perform the Services. It is agreed and understood that ASCENT accepts no liability whatsoever for any errors, delays or other consequences arising from the failure of BIOHEART, investigators and/or third party suppliers to provide the same; however, if said delays or errors result in a cost to ASCENT, BIOHEART agrees to accommodate that cost using a method for payment that is mutually agreed for this assignment.
 

	
            4.
 	
            TERM AND TERMINATION
 

	
            4.1.
 	
            This Agreement shall commence upon the date that it is executed by both Parties and will continue in effect indefinitely, unless terminated in accordance with the provisions herein.
 

 

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Master Services Agreement

 

	
            4.2.
 	
            BIOHEART may terminate any Task Order upon ninety (90) days prior written notice to ASCENT should BIOHEART decide to terminate the clinical study involved under the respective task order. Either Party may terminate a Task Order upon ninety (90) days' prior written notice to the other Party in the event material patient safety concerns are raised by the competent authorities. For the avoidance of doubt, commercial reasons, such as potential other clients or potential other service providers do not provide a valid reason to terminate the Agreement and/or the Task Order.
 

	
            4.3.
 	
            In the event that a Task Order is terminated prior to the completion of the Services ASCENT will, on the effective date of termination, cease to provide Services under the Task Order other than those which are reasonable and necessary to safely close out the study and to fulfill any legal and/or ethical obligations. Contractual obligations to any underlying third parties will be terminated to the extent practicable. Both BIOHEART and ASCENT recognize that termination of a Task Order will require discussion and co-ordination to ensure subject safety, continuity/ discontinuity of treatment, and compliance with local and/or national regulations.
 

	
            4.4.
 	
            In case of early termination of a Task Order by BIOHEART other than a termination pursuant to Section 4.5 below, BIOHEART and ASCENT agree that there will be a mutually agreed upon reimbursement methodology for the payments in Bioheart shares that have occurred prior to the termination and that have not already been used for the study.  However, in no case will ASCENT be required to absorb a loss due to the early termination of the study. 
 

	
            4.5.
 	
            In the event of any material breach of any material provision of this Agreement and/or any Task Order, the non-breaching Party shall notify the breaching Party of the specific nature of the breach and shall request that it be cured. If the breaching Party does not cure the breach within thirty (30) days after receipt of such notice, the non-breaching Party may immediately terminate this Agreement and/or Task Order upon notice to the breaching Party, whereupon the non-breaching Party shall have no further liability or obligation to the breaching Party. Such termination shall not preclude the non-breaching Party from pursuing any and all remedies available to it at law or in equity.
 

	
            4.6.
 	
            The Agreement may be terminated immediately by either Party if the other Party becomes insolvent, is dissolved or liquidated, makes a general assignment for the benefit of its creditors, or files or has filed against it a petition for bankruptcy or has a receiver appointed for a substantial part of its assets.
 

 

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Master Services Agreement

 

	
            5.  
 	
            COMPENSATION AND EXPENSES
 

	
            5.1.
 	
            In consideration for the provision of the Services, BIOHEART shall pay ASCENT the amounts specified in the applicable Task Orders on a "fee-for-services" basis. In addition, if costs are incurred by ASCENT as a result of unforeseen circumstances or requests for additional activities made by BIOHEART, that are not accommodated by the budget that has been mutually agreed for the task, BIOHEART shall reimburse ASCENT for all reasonable and necessary expenses, including but not limited to third party payments (if applicable), travel, printing, shipping, teleconference, and any other reasonable out-of-pocket expenses (collectively: "Pass-Through Costs" or "PTC"), incurred by ASCENT in accordance with the applicable Task Order. A handling fee of up to five percent (5%) of the PTC cost may be charged by ASCENT if agreed upon by the
Parties and set forth in an applicable Task Order.  The reimbursement will be made using the formula that has been agreed for payments to ASCENT and will be made in a timely manner, as requested by ASCENT.
 

	
            5.2.
 	
            The payment schedule for any task shall be agreed by both parties and Specified in the task order.  There will be no deviation from that schedule..
 

	
            5.3.
 	
            For all activities to be performed in Jordan and the US, the base currency of the related Task Orders will be US Dollars.
 

	
            5.4.
 	
            Payments of undisputed invoices not made thirty (30) days' of receipt of the applicable invoice may bear interest at the annual rate of LIBOR +3%. ASCENT reserves the right to suspend the provision of Services under a Task Order if the undisputed invoices under such Task Order are not paid within thirty (30) days following the date on which they are due.
 

	
            5.5.
 	
            All amounts stated in the Task Orders are exclusive of any Value Added Tax ("VAT") and other taxes and duties, as applicable. This would apply to taxes on imported goods necessary for the study.  BIOHEART will be responsible for reimbursing ASCENT for any such taxes and duties arising from Services provided under the Task Orders. ASCENT shall be responsible for remitting any such taxes and duties to the appropriate taxing authority. Reimbursement for such taxes, if any, will be added to the last payment made for the study.
 

	
            5.6.
 	
            Any Additional costs or fees, including, but not limited to investigator fees and grants, central laboratory fees, packaging and distribution of medication,   printing   and   distribution   of   Case   Report   Forms,   and
 

 

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Master Services Agreement

 

Institutional Review Board submission fees, incurred by ASCENT in the conduct and performance, of the Services are only contracted by ASCENT for and on behalf of BIOHEART and shall be included in trial or task courses.  Unless unforeseen, these costs shall be included in the budget for the task order. If not included, these costs will be reimbursed to ASCENT in a manner that is in accordance with the payment schedule appended to this agreement.

	
            5.9.
 	
            BIOHEART acknowledges that, as part of ASCENT's Services under this Agreement, ASCENT may execute clinical trial related agreement with investigators and hospital or research institutions ("Site Agreements") as agent for and on behalf of BIOHEART, but only to the extent that BIOHEART has approved such finalized Site Agreements prior to their execution and delivery by ASCENT. In no event shall such investigators, hospitals or institutions be construed to be ASCENT's subcontractor or agent. 
 

	
            6.  
 	
            SCOPE OF WORK AND CHANGE ORDERS
 

	
            6.1.
 	
            BIOHEART shall inform ASCENT if BIOHEART wishes to modify an existing Task Order or obtain additional Services not covered by the Task Order and will submit a reasonable detailed summary of such proposed modifications of Services. After receipt of such summary, ASCENT shall in good faith prepare and provide BIOHEART with a written cost estimate for the provision of such Services which will be based on commercially reasonable terms ("Change Order"). If BIOHEART accepts the cost estimate or the Parties otherwise agree on the terms and conditions for such modifications or Services, the Parties shall amend an existing Task Order in a Change Order, as applicable. All Services provided by ASCENT pursuant to this Agreement shall be governed by the terms and conditions of this Agreement and by the applicable Task Order as may be, from
time to time, executed between the Parties.
 

	
            6.2.
 	
            The Parties agree and acknowledge that the estimated budget for the delivery and completion of the Task Order is based on the assumptions set forth in each Task Order. Any material change in a Task Order and/or the assumptions upon which the Task Orders are based (including, but not limited to, changes in an agreed starting date for an activity or finishing date of a milestone) may require changes in the budget and/or time lines and will require a written Change Order. Such Change Order will detail the requested changes to the applicable Service, i.e. task, responsibility, duty, budget, timeline or any other relevant matters. The Change Order will become effective upon the execution by both Parties and ASCENT will be given a reasonable period of time to implement the changes.
 

 

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Master Services Agreement

 

	
            6.3.
 	
            The Parties agree to act promptly and in good faith when considering a Change Order requested by the other Party. Without limiting the foregoing, BIOHEART agrees that it will not unreasonably withhold approval of a Change Order if the proposed changes in budgets or time lines result from circumstances which are outside the control of ASCENT or which result from changes in the scope of Services upon which the initial budget or time lines were based. ASCENT reserves the right to postpone effecting any changes in the Services until such time as the Parties agree to and execute the corresponding Change Order.
 

	
            6.4.
 	
            The Parties may mutually and in writing agree on the provision of defined "out-of-scope" services which are not specifically reflected in a Change Order. Such out-of-scope services shall be invoiced to BIOHEART on a "fee-for-services" basis at the ASCENT standard hourly rates and will be due for payment within thirty (30) days' of invoice date. As per section 5.1, ASCENT service fees are not subject to a handling fee, whereas any PTC incurred under any out-of-scope services are subject to the agreed handling fee.
 

	
            7.  
 	
            CONFIDENTIAL INFORMATION
 

	
            7.1.
 	
            Each Party ("Receiving Party") hereby agrees to maintain any Confidential Information received from the other Party ("Disclosing Party") in strictest confidence that at all times, will not disclose it to any third party, and will use it only as necessary to perform its obligations under this Agreement. Neither Party will allow the Confidential Information of the other Party to be disclosed except to its own personnel who have a need to know the information. Each Party will cause each of its officers, directors, employees, and agents to restrict disclosure and use of such Confidential Information in like fashion. "Confidential Information" shall include, without limitation, technical and business data, specifications, research and development strategies, research results, methodology product samples and any
other information, which may reasonably be deemed to be confidential.
 

	
            7.2.
 	
            Exceptions to the above can be made concerning the publishing of methodology and unspecified results for scientific purposes, however only upon prior written consent from the Disclosing Party.
 

	
            7.3.
 	
            This obligation of confidentiality will not apply to information that: (i) the Receiving Party knew before receiving it from the Disclosing Party; (ii) the Receiving Party receives from a third party without an obligation of confidentiality or breach of this Agreement; or (iii) becomes publicly available without breach of this Agreement.
 

	
            7.4.
 	
            The Receiving Party will return all tangible Confidential Information of the disclosing Party upon request. The Receiving Party may, however, retain one (1) copy of such information for archival purposes.
 

 

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Master Services Agreement

 

	
            7.5.
 	
            The confidentiality obligations stipulated herein shall survive the termination of the Agreement.
 

	
            8.
 	
            INTELLECTUAL PROPERTY RIGHTS
 

	
            8.1.
 	
            BIOHEART shall be the sole and exclusive owner of the results of the work done by ASCENT on any study contemplated hereunder and BIOHEART shall have the right to make whatever use it deems desirable of any such material and results. The commercial exploitation by BIOHEART will not entitle ASCENT to any royalties or other indemnities. BIOHEART shall be entitled to file in its own name relevant patent applications and the resultant patent rights shall also be owned by BIOHEART.
 

	
            8.2.
 	
            Except as expressly provided above, ASCENT shall retain any and all title, right and interests it may have in its own trademarks, copyrights, trade secrets, patents know-how and methodologies and any other intellectual property rights and similar rights of any type under the laws of any governmental authority, domestic or foreign ("Pre-Existing Intellectual Property"). ASCENT shall grant to BIOHEART a royalty free, irrevocable, limited, non-exclusive, non-transferable right to use such ASCENT Pre-Existing Intellectual Property to the extent required for the achievement of the scope and objective of a Task Order.
 

	
            9.
 	
            PATENT RIGHTS
 

	
            9.1.
 	
            ASCENT shall promptly disclose to BIOHEART or its nominee any and all inventions, discoveries and improvements conceived or made by ASCENT while providing such Services to BIOHEART pursuant to a Task Order and relating to such Services and agrees, without any additional consideration, to assign all its interest therein to BIOHEART or its nominee. Whenever requested to do so by BIOHEART, ASCENT will execute any and all applications, assignments, or other instruments and give testimony which BIOHEART shall deem necessary to apply for and obtain Letters of Patent in all countries of the world at BIOHEART's discretion or to otherwise protect BIOHEART's interests therein. BIOHEART shall compensate ASCENT at a reasonable rate for the time devoted to said activities and shall reimburse ASCENT for reasonable expenses incurred. These
obligations shall continue beyond the termination of a Task Order with respect to inventions, discoveries and improvements conceived of or made by ASCENT while providing Services to BIOHEART pursuant to a Task Order and shall be binding upon ASCENT's assigns, administrators and other legal representatives.
 

	
            9.2.
 	
            The obligations described above apply to the clinical investigators, institutions or other agents contracted by ASCENT on behalf of BIOHEART. If this assurance cannot be obtained from the clinical investigators, institutions or other agents by ASCENT, BIOHEART will be promptly notified of the fact and both Parties shall discuss the appropriate measures to be taken in such circumstances.
 

	
            10.
 	
            LIABILITY
 

 

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Master Services Agreement

 

	
            10.1.
 	
            Each Party's entire and collective liability to pay damages to the other Party under this Agreement will, in no event, exceed the aggregate amount due from BIOHEART to ASCENT, but under no circumstances exceed $1,500,000.- under the relevant Task Order. The limitations set forth herein apply to claims arising from any cause whatsoever, regardless of the cause of action or whether the claim arose in contract, tort or otherwise.
 

	
            10.2.
 	
            In no event will a Party be liable to the other Party for any reason whatsoever, whether in contract or in tort, for any form of indirect, special, incidental, exemplary or consequential damages howsoever arising (including, but not limited to, loss of revenue, loss of actual or anticipated profits, loss of contracts, loss of the use of money, loss of anticipated savings, loss of business, loss of opportunity, loss of goodwill, loss of reputation, loss of, damage to or corruption of data), which arise out of or are in connection with the Services provided under this AGREEMENT and the underlying Task Orders (including any delay in the performance of the Services hereunder), whether foreseeable, known, foreseen or otherwise.
 

	
            10.3.
 	
            The provisions set forth herein allocate risks under the Agreement, and both Parties have relied upon the limitations in determining whether to enter into this Agreement.
 

	
            11.
 	
            INDEMNITY
 

Each Party to this Agreement agrees to defend, indemnify and hold the other Party, its directors, officers, employees, affiliates and agents ("Indemnitees") harmless from and against all claims and proceedings (to include any settlements or ex gratia payments made with the consent of the Parties hereto and reasonable legal and expert costs and expenses), suits, losses, damages, costs, fines, ("Claims") for injury to persons, damage to property or non-compliance with applicable laws and regulations whether litigated or not, made or brought (whether successful or otherwise) by any third party against the Indemnitees in connection with or resulting from any study conducted under this Agreement. This indemnity shall not apply to any Claim to the extent that such Claim is caused by the negligent or wrongful acts or omissions or breach of statutory duty of such Party, its directors,
officers, employees, affiliates or agents.

	
            12.
 	
            INSURANCE
 

	
            12.1
 	
            BIOHEART shall maintain, for the duration of the Agreement, an appropriate and adequate professional liability coverage with an insurance company of sound financial standing for an amount sufficient to cover its liability and indemnification obligations hereunder, including the liabilities defined in Article 3 (2)(f) of Directive 2001 /20/EC, which is incorporated herein by reference. BIOHEART will extend this cover to protect ASCENT from and against any action or actions for property damage, personal injury or death arising from activities properly undertaken, or undertaken at the express instructions of BIOHEART,
 

 

 

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Master Services Agreement

 

within the terms of the Agreement. BIOHEART will provide ASCENT with a copy of such insurance certificate within one (1) week upon written request.

	
            12.2
 	
            ASCENT will maintain appropriate and adequate general third party liability coverage with an insurance company of sound financial standing to cover its contractual liabilities arising out of the Services provided under the Agreement. ASCENT will provide BIOHEART with a copy of such insurance certificate within one (1) week upon written request.
 

	
            13.
 	
            NOTICES
 

Except as otherwise provided, ail communications and notices required under this Agreement shall be sent via a recognized reputable overnight courier service, such as Federal Express or DHL, to the addresses set forth below, or to such other addresses as the Parties may from time to time specify in writing.

	
             
 	
            If  to BIOHEART
 	
            If  to ASCENT:
 

	
             
 	
            Bioheart, Inc.
 	
            ASCENT
 

	
             
 	
            13794 NW 4th Street
 	
            401 North 3rd Street
 

	
             
 	
            Suite 212
 	
            Suite 300
 

	
             
 	
            Sunrise, Florida 33325
 	
            Minneapolis, MN  
 

	
             
 	
            55401
 

	
             
 	
            USA
 	
            USA
 

	
             
 	
            Tel:  954 835-1500
 	
            Tel:  212-828-3906
 

	
             
 	
            Fax: 954 845-9976
 	
            Fax:212-828-3908
 

	
             
 	
            Attn.: Chief Executive Officer
 	
            Attn.: Chief Executive Officer
 

All communications provided for under each Task Order shall be addressed to the respective Parties as outlined in the Task Order.

	
            14.
 	
            PUBLICITY/Logo/TRADEMARKS
 

The Parties must agree before any press release or other specialized publicity documents related to this Agreement or a Task Order are released to the press, broadcasting, television, or internet. This applies to the use or publication of either Party's name.

Neither of the Parties is entitled to use the logo or trademarks of the other Party unless expressly authorized by the other Party in writing.

	
            15.
 	
            INDEPENDENT CONTRACTOR AND SUBCONTRACTORS
 

The Parties are acting in the capacity as independent contractors hereunder. Nothing contained herein shall be considered or interpreted as creating an employment relationship, partnership, association or other relationship between the Parties in which any one of the Parties may be liable for the acts or omissions of the other Party. Nothing contained

 

 

 

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Master Services Agreement

 

 

herein shall be construed or interpreted as creating an agency relationship between the Parties.

ASCENT reserves the right, upon receiving the prior written consent of BIOHEART, which consent shall not be unreasonably withheld, to use subcontractors and other third parties to support ASCENT in the fulfillment of its obligations under the Agreement.

	
            16.
 	
            MODIFICATION OF THE AGREEMENT
 

No amendments, changes, modifications or alterations of the terms and conditions of this Agreement or any Task Order shall be binding upon either Party unless mutually agreed in writing and signed by both Parties.

	
            17.
 	
            ASSIGNMENT
 

Neither Party will assign or transfer any of its rights or obligations hereunder without the prior written consent of the other Party. Any assignment or transfer of any of its rights and obligations hereunder without the prior written consent of the other Party, will be null and void.

Notwithstanding the above, either Party may assign, cede or transfer any or all of its rights and obligations under this Agreement or under a Task Order to any of its respective Affiliates without the prior written consent of the other Party.

	
            18.
 	
            FORCE MAJEURE
 

Neither Party will be liable to the other for any delay or failure to fulfill obligations (other than payment obligations) caused by circumstances which were unforeseeable, unavoidable and beyond its reasonable control, including, but not limited to, Acts of God, war, riots, terrorism, fire, explosion, flood, sabotage epidemics, strikes, failures to obtain requested governmental visas, work permits or other authorizations, governmental laws and regulations imposed after the fact, and power failures ("Force Majeure Events"). Both Parties will in any event use reasonable endeavors to mitigate the effect of Force Majeure Events so as to recommence performance of their obligations as soon as reasonably possible. In the event such failure continues for a period of sixty (60) days or more, either Party may terminate the applicable Task Order by giving written notice thereof to the other Party.

	
            19.
 	
            NON-SOLICITATION
 

Neither Party may, during the term of this Agreement and for one (1) year thereafter, approach or induce with offers of employment, directly or indirectly, any of the employees of the other Party that it may come into contact with in performing its duties under the Agreement, without first obtaining the prior written agreement of the other Party.

 

 

 

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Master Services Agreement

 

ENTIRETY OF THE AGREEMENT

This Agreement, together with each Task Order and any Change Order executed by both Parties, is the entire and complete understanding and agreement between the Parties. In case of any inconsistency between the provisions of a Task Order and this AGREEMENT, the provisions of the Task Order shall prevail to the extent of any such inconsistency.

	
            21.
 	
            SURVIVAL
 

The terms of paragraphs dealing with liability, indemnity, intellectual property, confidential information, patent rights, publicity, survival and applicable law & jurisdiction shall survive the expiration or termination of this Agreement and each Task Order.

	
            22.
 	
            APPLICABLE LAW AND JURISDICTION
 

This Agreement and each Task Order shall be governed by and construed in accordance with the substantive laws of the State of Florida without regard to its conflict of law rules.

The Parties agree that the state courts of Broward County, Florida or the United States Federal District Court for the Southern District of Florida shall have sole and exclusive jurisdiction over any controversy arising out of, connected with or associated with this Agreement, and each Party hereby agrees to submit to the personal and exclusive jurisdiction and venue of such courts.

 

 

IN WITNESS WHEREOF, the parties hereto have hereunder executed this Agreement on the date below with their respective signatures.

 

 

	
            Date: February 2, 2010
 	
            Date: February 2, 2010
 

 

 

	
            /s/Karl E. Groth Ph.D.
 	
            /s/Peggy A. Farley  
 

	
            Karl E. Groth, Ph.D.
 	
            Peggy A. Farley
 

	
            Chairman and Chief Executive Officer
 	
            President and Chief Executive Officer
 

	
            Bioheart Inc.
 	
            Ascent Medical Product Development
Centre Inc.
 

 

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Master Services Agreementex10-1.htm

    

    Exhibit
10.1

     

    
      SEVERANCE
AGREEMENT

       

      THIS
SEVERANCE AGREEMENT (the “Agreement”), dated as of December 9, 2009, between
Leonard S. Schwartz, an individual (the “Executive”), and Aceto Corporation
(“Aceto”), a New York corporation, recites and provides as follows:

       

      WHEREAS,
Executive served as the Chief Executive Officer and Chairman of the Board of
Directors of Aceto and/or its subsidiaries pursuant to an Employment Agreement
dated March 24, 2009 (the “Employment Agreement”); and

       

      WHEREAS,
Executive and Aceto desire to terminate the Employment Agreement and for
Executive to retire from his employment and membership on the Board of Directors
of Aceto and/or of its subsidiaries; and,

       

      WHEREAS,
Aceto and Executive have reached agreement on all matters relating to the
employment of Executive by Aceto, the termination of his Employment Agreement
and/or his retirement from employment and membership on the Board of Directors
of Aceto and/or subsidiaries; and,

       

      WHEREAS,
Aceto and Executive desire to set forth all of the terms and conditions of their
agreement in this Agreement.

       

      NOW,
THEREFORE, based upon their mutual promises and other good and valuable
consideration, Aceto and Executive agree as follows:

       

      1.   RESIGNATION:
Executive hereby irrevocably and voluntarily resigns for the purposes of
retirement from his position as Chairman and Chief Executive Officer of Aceto
and from the Board of Directors of Aceto and all of its subsidiaries or
affiliates as of the Effective Date of this Agreement as defined
below.  In connection with Executive’s resignation and as of the
Effective Date of this Agreement:

       

      a.   NO
DUTIES.  As of November 20, 2009 Executive had and shall have no
further obligation or authority to perform duties and functions on behalf of
Aceto and/or its subsidiaries or affiliates and shall refrain from performing
such duties or functions.

       

      b.   COOPERATION.  Anything
to the contrary in this Agreement notwithstanding, Executive may and must
cooperate with Aceto to and including March 23, 2012 and thereafter as necessary
for business, including legal, matters when requested by the then President,
Chief Executive Officer and/or Chairperson of the Board.  If such
cooperation is required, the Company shall compensate him at the rate of $250.00
per hour.  The Company shall reimburse him for any approved,
reasonable expenses incurred by Executive as a result of his
cooperation.  Executive will take all steps requested by Aceto to
remove him immediately as director, officer or employee of any Aceto-Related
Party, as defined below, and Aceto will take all necessary actions to effectuate
such removal.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      c.   NO
CONTACT.  Except outside the work environment, Executive shall have no
contact with customers,  suppliers,  Aceto-Related Parties
and  current employees of Aceto and Aceto-Related Parties,
except  in connection with Executive’s
benefits,  compensation, administrative matters or as requested by the
Chairman of the Board of Aceto.  With respect to customers and
suppliers of Aceto and Aceto-Related Parties, Executive will not discuss Aceto,
Aceto-Related Parties and those entities respective businesses or
operations.

       

      2.    SEVERANCE
COMPENSATION.  In consideration of Executive’s undertakings contained
in this Agreement, Aceto shall:

       

      a.   Pay
Executive, as soon as practical after the Effective Date of this Agreement, any
accrued base salary and expense reimbursement under Paragraph 2(b) of the
Employment Agreement and remaining unpaid as of the Effective Date of this
Agreement.  Any expense reimbursements are subject to Aceto’s
practices regarding reimbursements and must be submitted with receipts within
thirty (30) days of the Effective Date of this Agreement to Mr. Eilender and
approved in accordance with Aceto’s practices before they will be
paid;

       

      b.   Pay
Executive the pro-rated amount of Four Hundred Forty-Six Thousand One Hundred
Ninety Dollars ($446,190) per year in equal installments, on a biweekly basis,
commencing on Aceto’s first regular pay-period after the Effective Date of this
Agreement, through March 23, 2012.  The first and final payment may be
unequal amounts to account for the pro-ration of the Four Hundred Forty-Six
Thousand One Hundred Ninety Dollars ($446,190):  Payments under this
Paragraph 2(b) shall cease in the event that Executive materially breaches this
Agreement.

      
      

       

      
        	 	i.	

                In
      the event that Executive materially violates the terms of this Agreement,
      Aceto shall have no obligation to make further payments as of the date of
      such employment, except base pay accrued prior to his
      resignation.

              
	 	 	 
	 	ii.	

                In
      the event that Executive obtains work with a person or entity that
      competes with Aceto or an Aceto-Related Party but does not breach this
      Agreement, payment under Paragraph 2(b) shall be reduced by the
      compensation Executive receives for such employment.

              
	 	 	 
	 	iii.	

                In
      the event Aceto does not learn of the employment identified in Paragraph
      2(b)(ii) until after it has made a payment or payments pursuant to this
      Paragraph 2(b), Executive shall return any compensation to which he was
      not entitled under Paragraph 2(b)(ii) of this
  Agreement.

              

      

       

      c.   Pay
Executive one million and one dollars ($1,000,001.00) less any legally required
deductions by wire transfer by the close of business on the eighth (8th) day
after the execution of this Agreement, provided Executive complies with the
terms of this Agreement and has not revoked or materially breached
it.  The payment made under this Paragraph 2(c) is in consideration
for Executive’s obligations under this Agreement and is not related to prior
services rendered by Executive.

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      d.   Provide
Executive with the following benefits through March 23, 2012, to the extent
permitted under the particular plan and/or applicable law and in accordance and
under the terms then existing and in effect for all executive employees of Aceto
under the particular plan and/or applicable law:

       

      
        	 	i.	

                

                  Medical
      Insurance, including dental, equivalent to that provided to active
      employees at Aceto will be provided to Executive, provided Executive
      timely remits the employee share of the premiums, provided, however, that
      in the event that Executive obtains medical insurance acceptable to him,
      for which Aceto will reimburse Executive up to $29,000 for the cost of
      such insurance through March 23, 2012 and Aceto shall have no further
      obligation to provide medical insurance coverage;

                

              
	 	 	 
	 	ii.	

                

                  Life
      Insurance;

                

              
	 	 	 
	 	iii.	

                

                  Contributions
      to his Supplemental Executive Retirement Plan prorated through the end of
      March 23, 2012;

                

              
	 	 	 
	 	

                iv.

              	

                401(k)
      contributions in accordance with the applicable 401(k) plan prorated
      through the end of the March 23, 2012;

              
	 	 	 
	 	

                v.

              	

                Aceto
      will facilitate Executive’s 401(k) rollover and the Executive’s prompt
      receipt of funds from his Supplemental Executive Retirement Plan in
      accordance with the applicable law.

              
	 	 	 
	 	

                vi.

              	

                In
      the event that Executive is not eligible or becomes ineligible to
      participate in the benefits set out in Paragraphs 2(d)(iii) and (iv) of
      this Agreement, Aceto will pay the cash equivalent annually, when normally
      paid to employees.

              

      

       

      e.   Aceto
agrees to cooperate with Executive and to reasonably assist him in responding to
any claim made by the New York Department of Revenue and Taxation during the
term of this Agreement. Aceto shall withhold from any amounts payable under this
Agreement (such as federal, state or local taxes and contributions for benefits)
as may be required to be withheld pursuant to any applicable law or regulation
or benefit plan or program in which Executive participates under this Agreement,
as well as any sums due from Executive to Aceto.

       

      f.   Aceto
shall make a contribution of $10,000.00 to the Roslyn Torah Foundation, within
10 days of execution of this Agreement.

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      3.   RELEASES.

       

      a.   In
consideration of Aceto’s undertakings contained in this Agreement, Executive
shall execute the Release contemporaneous with execution of Agreement, which is
attached hereto as Exhibit A and expressly incorporated into this
Agreement.

       

      b.   In
consideration of Executive’s undertakings contained in the Severance Agreement
to which Aceto is not otherwise entitled, Aceto releases Executive from, and
promises and agrees not to sue Executive for or in respect of, any and all
claims, charges, complaints, liabilities, obligations, promises, agreements,
damages, actions and expenses (including attorney’s fees and costs) of any
nature whatsoever, known or unknown, which Aceto now has or claims to have
against Executive from the beginning of time to the date of this Agreement,
provided, however, that this release shall not bar or waive any claims arising
out of any shareholder or derivative actions against Executive or for business
related willful misconduct, intentional misconduct or criminal
conduct.

       

      4.   NO
BENEFITS NOT SET OUT IN THIS AGREEMENT.  No salary, benefits, vacation
pay, sick pay or other payments or additional monies beyond the sums identified
in Paragraph 2 of this Agreement will be made by Aceto to Executive or on
Executive’s behalf and the parties agree that no salary, benefits, or other
payments beyond the sums identified in Paragraph 2(a) are owing.

       

      5.   NO
DISPARAGEMENT.

       

      a.   In
consideration of Aceto’s undertakings contained in this Agreement to which
Executive is not otherwise entitled, Executive agrees that he and his agents,
family and/or representatives shall refrain from (i) all conduct, verbal or
otherwise, which  would materially damage the reputation, goodwill or
standing in the community of Aceto, its affiliates, subsidiaries, divisions,
agents and related parties and their respective principals, owners (direct or
indirect), members, directors, officers, agents, servants, employees, parties,
attorneys and other professionals, successors and assigns (collectively, the
“Aceto Related Parties”) and (ii) referring to or in any way commenting on Aceto
and/or any of the other Aceto Related Parties in or through the general media or
any public domain (including without limitation, internet websites, blogs, chat
rooms and the like), which would materially damage, the reputation, goodwill or
standing in the community of Aceto and/or any of the other Aceto Related
Parties.

       

      b.   In
consideration of Executive’s undertakings contained in this Agreement to which
Aceto is not otherwise entitled, Aceto and Aceto Related
Parties  agree that they shall refrain from (i) all conduct, verbal or
otherwise, which materially damage the reputation, goodwill or standing in the
community of Executive and (ii) referring to or in any way commenting on
Executive in or through the general media or any public domain (including
without limitation, internet websites, blogs, chat rooms and the like), would
materially damage, the reputation, goodwill or standing in the community of
Executive.

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

      6.   TERMS ARE
CONFIDENTIAL.  Until such time as Aceto is required to disclose the
existence and terms of this Agreement, Executive shall keep the terms and
conditions of this Agreement strictly confidential.  Executive hereby
agrees not to disclose the existence of this Agreement or any of the terms of
this Agreement (including without limitation the amounts referred to in
Paragraph 2) to any person, including without limitation, any current or former
employee of or applicant for employment with Aceto and/or any of the other Aceto
Related Parties, with the exception of Executive’s attorney, accountant, tax
preparer or spouse or as compelled by legal process, provided Executive’s
attorneys, accountants, tax preparers, or spouses, are informed of this
provision requiring confidentiality and such person agrees to be bound by its
terms.

       

      7.   RETURN OF
COMPANY PROPERTY.  All documents, records, data, equipment (including,
without limitation: any computer or computers; any electronic storage device;
computer hard drives; flash drives; discs and the like), Aceto charge or credit
cards, any Aceto electronic communication devices (including cellular
telephones, BlackBerry®, PDA and the like) and other physical property, whether
or not pertaining to Confidential Information, which were furnished to Executive
by Aceto or were procured by Executive in connection with Executive’s services
to Aceto and/or is subsidiaries or affiliates will be and remain the sole
property of Aceto. Executive will return to Aceto forthwith all such materials
and property except as provided in Paragraph 8 of this Agreement, .

       

      8.   RETURN OF
COMPANY CARS.  Aceto shall continue to provide Executive with one
Aceto-provided car through current expiration of the lease on the Aceto provided
car in or about July 2010.  Aceto shall provide for the registration,
maintenance and insurance of the vehicle until lease expiration.  At
that time the lease expires, Aceto shall purchase the car and transfer its title
to Executive, at which time Executive shall be solely responsible for the car
and its registration, maintenance and insurance and Aceto shall have no other
obligations related to the car.  Executive shall be responsible for
any excess charges due on the lease at the time of its expiration.

       

      9.   STOCK
SHARES AND OPTIONS.

       

      a.   Executive’s
stock options and restricted shares in Aceto and/or its subsidiaries and
affiliates (“Options” and “Restricted Shares”, respectively) will be guided by
the plans or other vehicles that granted them to him and shall vest according to
their respective terms.

       

      b.   Executive’s
ability to exercise all stock options issued to him  shall be extended
for a period of two years after the Effective Date of this Agreement, provided
such extension is permitted under the plan and applicable
law.  Executive’s ability to exercise any other stock options shall
guided by the plans or other vehicles that granted them to him.

       

      c.   Aceto
represents that it will remove all of the restrictions pertaining to all of
Executive’s restricted stock as follows: 6,666 shares on December 6, 2009,
10,001 shares upon resignation of Executive from all positions with Aceto and
Aceto-related entities and that Aceto will facilitate Executive’s receipt of a
certificate for such shares.

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

      10.   CONFIDENTIAL
INFORMATION.

       

      a.   “Confidential
Information” means any information concerning or referring in any way to the
business of Aceto and/or its subsidiaries and affiliates disclosed to or
acquired by the Executive through or as a consequence of the Executive’s
affiliation as an employee of Aceto and/or member of its and/or its subsidiaries
or affiliates. For purposes of this Agreement, Confidential Information consists
of information proprietary to Aceto and/or its subsidiaries and affiliates which
is not generally known to the public and which in the ordinary course of
business is maintained by Aceto and/or its subsidiaries and affiliates as
confidential. By way of example and without limitation, Confidential Information
consists of computer software, trade secrets, patents, inventions, copyrights,
techniques, designs, and other technical information in any way concerning or
referring to scientific, technical or mechanical aspects of Aceto’s and/or its
subsidiaries’ and affiliates’ products, concepts, processes, machines,
engineering, research and development. Confidential Information also includes,
without limitation, information in any way concerning or referring to Aceto’s
and/or its subsidiaries’ and affiliates’ business methods, business plans,
forecasts and projections, operations, organizational structure, finances,
customers, funding, pricing, costing, marketing, purchasing, merchandising,
sales, products, product information, suppliers, customers, employees or their
compensation, data processing, software and all other information designated by
Aceto and/or its subsidiaries and affiliates as “confidential.” Confidential
Information shall not include any information or material that is or becomes
generally available to the public other than as a result of a wrongful
disclosure by (a) a person otherwise bound to the provisions hereof, or (b) any
person bound by a duty of confidentiality or similar duty owed to Aceto and/or
its subsidiaries and affiliates.

       

      b.   DUTY OF
CONFIDENTIALITY. Executive will maintain in confidence and will not, directly or
indirectly, disclose or use (or allow others to disclose or use) any
Confidential Information belonging to Aceto and/or its subsidiaries and
affiliates, whether in oral, written, electronic or permanent form, except as
directed in writing by the Board of Directors of Aceto and/or its subsidiaries
or affiliates.

       

      c.   Executive
shall deliver forthwith to Aceto and/or its subsidiaries and affiliates as the
case may be all original Confidential Information (and all copies thereof) in
Executive’s possession or control belonging to Aceto and/or its subsidiaries and
affiliates and all tangible items embodying or containing Confidential
Information.

       

      d.   This
Agreement supersedes any previous Confidentiality and Non-Disclosure Agreement
between the Executive and Aceto and/or its subsidiaries and
affiliates.

       

      e.   INJUNCTIVE
RELIEF. Executive acknowledges that a violation or attempted violation on
Executive’s part of any agreement in this Paragraph 10 will cause irreparable
damage to Aceto and/or its subsidiaries and affiliates, and accordingly,
Executive agrees that Aceto and/or its subsidiaries and affiliates as the case
may be shall be entitled as a manner of right to an injunction from any court of
competent jurisdiction restraining any violation or further violation of such
agreement by Executive without the obligation of posting a bond; such right to
an injunction, however, shall be cumulative and in addition to whatever other
remedies that Aceto and/or its subsidiaries and affiliates may
have.  The existence of any claim of Executive, whether predicated on
this Agreement or otherwise, shall not constitute a defense to the enforcement
by Aceto of the covenants contained in this Agreement.

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

      f.   ASSIGNMENT
OF RIGHTS. Executive has disclosed to Aceto any and all designs, intellectual
property, software, inventions, discoveries, or improvements (individually and
collectively, "Inventions") made by Executive as a result or product of his
employment relationship with Aceto and/or its subsidiaries and affiliates.
Executive hereby assigns to Aceto or its relevant subsidiary or affiliate
without additional compensation the entire worldwide right, title and interest
in and to any such Inventions (whether disclosed or not), and related
intellectual property rights and without limitation all copyrights, copyright
renewals or reversions, trademarks, trade names, trade dress rights, industrial
design, industrial model, inventions, priority rights, patent rights, patent
applications, patents, design patents and any other rights or protections in
connection therewith or related thereto, for exploitation in any form or medium,
of any kind or nature whatsoever, whether now known or hereafter devised. To the
extent that any work created by Executive can be a work for hire pursuant to
U.S. Copyright Law, the parties deem such work a work for hire and Executive
should be considered the author thereof. Executive shall, at the request of
Aceto, or its relevant subsidiary or affiliate without additional compensation
execute, acknowledge and deliver to Aceto or its relevant subsidiary or
affiliate such instruments and documents as Aceto or its relevant subsidiary or
affiliate may require to perfect, transfer and vest in Aceto or its relevant
subsidiary or affiliate the entire right, title and interest in and to such
inventions. In the event that Executive does not timely perform such
obligations, Executive hereby makes Aceto or its relevant subsidiary or
affiliate and its officers his attorney-in-fact and gives them the power of
attorney to perform such obligations and to execute such documents on
Executive’s behalf. Executive shall cooperate with Aceto or its relevant
subsidiary or affiliate upon Aceto’s or its relevant subsidiary’s or affiliate’s
request and at Aceto’s or its relevant subsidiary’s or affiliate’s cost but
without additional compensation in the preparation and prosecution of patent,
trademark, industrial design and model, and copyright applications worldwide for
protection of rights to any Inventions.

       

      11.   NON-COMPETE;
NON-SOLICITATION.

       

      a.   NON-COMPETE.
For a period commencing on the Effective Date of this Agreement and ending March
23, 2013 (the "Non-Competition Period"), Executive shall not, directly or
indirectly, either for himself or any other person, own, manage, control,
materially participate in, invest in, permit his name to be used by, act as
consultant or advisor to, render material services for (alone or in association
with any person, firm, corporation or other business organization) or otherwise
assist in any manner any business which is a competitor of Aceto and/or its
subsidiaries or affiliates (collectively, a "Competitor"). Nothing herein shall
prohibit Executive from being a passive owner of not more than five percent (5%)
of the equity securities of a Competitor which is publicly traded, so long as he
has no active participation in the business of such Competitor.

       

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

      b.   NON-SOLICITATION.
During the Non-Competition Period identified in Paragraph 11(a) above, Executive
shall not, directly or indirectly, (i) induce or attempt to induce or aid others
in inducing anyone working at Aceto or its subsidiaries or affiliates to cease
working at Aceto or its subsidiaries or affiliates, or in any way interfere with
the relationship between Aceto or its subsidiaries or affiliates and anyone
working at Aceto or its subsidiaries or affiliates except in the proper exercise
of Executive’s authority or (ii) in any way interfere with the relationship
between Aceto or its subsidiaries or affiliates and any customer, supplier,
licensee or other business relation of Aceto or its subsidiaries or
affiliates.

       

      c.   SCOPE.
If, at the time of enforcement of this Paragraph 11, a court shall hold that the
duration, scope, area or other restrictions stated herein are unreasonable under
circumstances then existing, the parties agree that the maximum duration, scope,
area or other restrictions reasonable under such circumstances shall be
substituted for the stated duration, scope, area or other
restrictions.

       

      d.   INDEPENDENT
AGREEMENT. The existence of any claim or cause of action of Executive against
Aceto or any of its subsidiaries or affiliates, whether or not predicated upon
the terms of this Agreement, shall not constitute a defense to the enforcement
of these covenants.

       

      e.   INJUNCTIVE
RELIEF. Executive acknowledges that a violation or attempted violation on
Executive’s part of any agreement in this Paragraph 11 will cause irreparable
damage to Aceto and/or its subsidiaries or affiliates, and accordingly,
Executive agrees that Aceto and/or its subsidiaries or affiliates shall be
entitled as a manner of right to an injunction from any court of competent
jurisdiction restraining any violation or further violation of such agreement by
Executive without the obligation of posting a bond; such right to an injunction,
however, shall be cumulative and in addition to whatever other remedies that
Aceto and/or its subsidiaries or affiliates may have. The existence of any claim
of Executive, whether predicated on this Agreement or otherwise, shall not
constitute a defense to the enforcement by Aceto and/or its subsidiaries or
affiliates of the covenants contained in this Agreement.

       

      12.   ARBITRATION:  No
dispute between one or more Aceto Related Parties and Executive, shall be the
subject of a lawsuit filed in state or federal court. Instead, any such dispute
shall be submitted to binding arbitration before the American Arbitration
Association (“AAA”) or, if Aceto and Executive agree in a separate writing, an
other individual or organization or an individual or organization that a court
appoints. Notwithstanding the above, either Aceto or Executive may file with an
appropriate state or federal court a claim for injunctive relief in any case
where the filing party seeks provisional injunctive relief or where permanent
injunctive relief is not available in arbitration. The filing of a claim for
injunctive relief in state or federal court shall not allow either party to
raise any other claim outside of arbitration. It is understood that both sides
are hereby waiving the right to a jury trial.

       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

      a.   The
arbitration shall be initiated in Nassau County, New York and shall be
administered by AAA under its commercial arbitration rules before a single
arbitrator that shall be mutually agreed upon by the parties hereto. If the
parties cannot agree on a single arbitrator, then an arbitrator shall be
selected in accordance with the rules of AAA. The arbitration must be filed
within one (1) year of the act or omission which gives rise to the claim. Each
party shall be entitled to take one deposition, and to take any other discovery
as is permitted by the Arbitrator. In determining the extent of discovery, the
Arbitrator shall exercise discretion, but shall consider the expense of the
desired discovery and the importance of the discovery to a just
adjudication.

       

      b.   The
Arbitrator shall render an award that conforms to the facts, as supported by
competent evidence (except that the Arbitrator may accept written declarations
under penalty of perjury, in addition to live testimony), and the law as it
would be applied by a court sitting in the State of New York. The cost of
arbitration shall be advanced equally by the parties. Any party may apply to a
court of competent jurisdiction for entry of judgment on the arbitration
award.

       

      c.   PRIOR
AGREEMENTS SUPERSEDED.  This Agreement supersedes all previous
Agreements between the Executive and Aceto, including the Employment
Agreement.  To the extent that there is any conflict between this
Agreement and any earlier agreement between Aceto and Executive, this Agreement
governs.

       

      13.   SUCCESSORS.

       

      a.   This
Agreement is personal to Executive and shall not be assignable by Executive. In
the event of Executive’s death on or before March 23, 2012 and in the absence of
his earlier material breach of this Agreement, any payment or benefit due shall
inure to Executive’s estate or beneficiary, as applicable.

       

      b.   This
Agreement shall inure to the benefit of Aceto and its successors and assigns.
Aceto may assign this Agreement to any successor or affiliated entity,
subsidiary, sibling, or parent company, provided that such assignee is
financially qualified to fulfill obligations hereunder and in the event of such
assignment, Aceto agrees to guarantee all obligations hereunder.

       

      c.   In the
event of Change of Control (as defined hereafter), this Agreement shall continue
to be binding on all parties.  For purposes of this Agreement, “Change
of Control” shall mean the event when any entity, or affiliated or related
entity, acquires 20% or more of Aceto stock.

       

      14.   MISCELLANEOUS

       

      a.   Executive
shall notify Aceto of any and all employment or other compensated work he
obtains during the period October 21, 2009 through and including March 23, 2012
with a person or entity that competes with Aceto or an Aceto-Related Party but
does not breach this Agreement.  Such notice shall identify the name
and address of the employer or person or entity that provides the compensation
for the work involved, Executive’s title, duties and responsibilities, and fully
identify all compensation that Executive is to receive in connection with the
work or employment.

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

      b.   This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without reference to the principles of conflict of laws. The
captions of this Agreement are not part of the provisions hereof and shall have
no force or effect.  This Agreement contains the full and complete
understanding between the parties hereto and supersedes all prior
understandings, whether written or oral pertaining to the subject matter hereof.
This Agreement may not be amended or modified otherwise than by written
agreement executed by Executive and by the designated representative of the
Board.

       

      c.   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, reputable overnight courier (such as
Federal Express or UPS), or by facsimile, or by e-mail, or by hand delivery to
such address as either party shall have furnished to the other in writing in
accordance herewith. Notice may be given to Aceto or Executive as
follows:

       

      
        	 	
                For
      Aceto:

              	
                For
      Executive:

              
	 	
                Mr.
      Albert L. Eilender

                Aceto
      Corporation

                One
      Hollow Lane

                Lake
      Success, NY 11042-1215

              	
                c/o
      David C. Jacobson

                Law
      Offices of David C. Jacobson LLC

                245
      Park Avenue, 24th Floor

                New
      York, NY 10167

              
	 	 	 
	 	
                With
      a Copy to:

              	 
      
	 	
                Robert
      A. Sparer

                Clifton
      Budd & DeMaria, LLP

                420
      Lexington Avenue, Suite 420

                New
      York, New York 10170

              	 
      

      

      

      d.   The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this
Agreement.

       

      e.   The
failure of either party to insist upon strict compliance with any provision of
this Agreement, or the failure to assert any right either party may have
hereunder, shall not be deemed to be a waiver of such provision or right or any
other provision or right of this Agreement.

       

      f.   This
Agreement shall become effective on the seventh (7th) day after the Executive
executes the General Release attached as Exhibit “A” to this Agreement, provided
the Executive does not exercise his right to revoke the General Release
(“Effective Date”).

       

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

      IN WITNESS WHEREOF, Executive
has hereunto set Executive’s hand and, pursuant to the authorization from its
Board of Directors, Aceto has caused these presents to be executed in its name
on its behalf, all as of the day and year first above written.

       

      
        
          	ACETO
      CORPORATION,
a New York Corporation	 	 	EXECUTIVE	 
	 	 	 	 	 	 
	By:	
                  /s/
      Albert L. Eilender

                	 	 	
                  /s/
      Leonard S. Schwartz

                	 
	 	
                  ALBERT
      L. EILENDER

                	 	 	
                  LEONARD
      S. SCHWARTZ

                	 

        

      

       

       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

      RELEASE

       

      THIS
Release dated as of December 9, 2009, between Leonard S. Schwartz, an individual
(the “Executive”), and Aceto Corporation (“Aceto”), a New York corporation,
recites and provides as follows:

       

      WHEREAS,
Executive serves or served as the Chief Executive Officer and Chairman of the
Board of Directors of Aceto and/or its subsidiaries pursuant to an Employment
Agreement dated March 24, 2009 (the “Employment Agreement”); and

       

      WHEREAS,
Executive and Aceto desire to terminate the Employment Agreement and Executive
has resigned his employment and membership on the Board of Directors of Aceto
and/or of its subsidiaries; and,

       

      WHEREAS,
Aceto and Executive have reached agreement on all matters relating to the
employment of Executive by Aceto, the termination of his Employment Agreement
and his retirement from employment and membership on the Board of Directors of
Aceto and/or subsidiaries; and,

       

      WHEREAS,
Aceto and Executive have set the terms and conditions of their agreement in the
Severance Agreement dated December 9, 2009 (“Severance Agreement”) to which this
Release is Exhibit “A”; and,

       

      WHEREAS,
the Severance Agreement obligates Executive to execute this
Release;

       

      NOW,
THEREFORE, based upon their mutual promises and other good and valuable
consideration contained in the Severance Agreement, Executive agrees as
follows:

       

      1.   In
consideration of Aceto’s undertakings contained in the Severance Agreement to
which Executive is not otherwise entitled, Executive releases Aceto, its
affiliates, subsidiaries, divisions, agents and related parties and their
respective principals, owners (direct or indirect), members, directors,
officers, agents, servants, employees, parties, attorneys and other
professionals, successors and assigns (collectively, the “Aceto Related
Parties”) from, and promises not to sue Aceto and/or any of the other Aceto
Related Parties for or in respect of, any and all claims, charges, complaints,
liabilities, obligations, promises, agreements, damages, actions and expenses
(including attorney’s fees and costs) of any nature whatsoever, known or
unknown, which Executive now has or claims to have against Aceto and/or any of
the other Aceto Related Parties jointly, severally or singly from the beginning
of time to the date of this Agreement, including, without limitation, claims
relating to Executive’s employment with Aceto or the termination of his
employment; claims based in contract, tort, constitutional, statutory or common
law, and claims under any federal, state, or local statute, order, law or
regulation, governing terms or conditions of employment, including but not
limited to wages, benefits or discrimination in employment on the basis of any
protected characteristic.  This release applies to rights and claims
arising under the Age Discrimination in Employment Act of 1967 (29 U.S.C. §§621,
et
seq.).  This release does not release Aceto or Aceto-Related
Parties from obligations under the Severance Agreement.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      2.   Notwithstanding
Paragraph 1 of this Release, Executive may bring a claim for breach of the
Severance Agreement .  If any claim covered in Paragraph 1 of this
Release, other than for a breach of the Severance Agreement or to enforce his
rights under the Severance Agreement, is brought by Executive, to the greatest
extent permitted by applicable law, Aceto and/or the other Aceto Related Parties
shall be entitled to its and/or their attorney’s fees and costs upon prevailing
on such claim.

       

      3.   Executive
acknowledges the following:

       

      a.   He has
read and understands this Release and the Severance Agreement;

       

      b.   Before
executing this Release and the Severance Agreement he has been offered at least
forty-five (45) days to consider his rights and obligations under this Release
and the Severance Agreement;

       

      c.   The
period of time he has to consider his rights and obligations under this Release
and the Severance Agreement is reasonable;

       

      d.   Before
executing this Release and the Severance Agreement, Aceto advised him in writing
to consult with an attorney;

       

      e.   He has
knowingly and voluntarily elected to enter into this Release and the Severance
Agreement and releases Aceto from any and all claims, subject to the stated
limitations in this Release, in exchange for valuable consideration which is in
addition to anything of value to which he is already entitled;

       

      f.   The
Release constitutes a waiver of all rights and claims he may have under the Age
Discrimination in Employment Act of 1967 (29 U.S.C. §§621, et seq.);

       

      g.   This
Release does not waive any rights or claims by Executive that may arise after
this Release is finally accepted and executed; and,

       

      h.   For a
period of seven (7) days following the execution of this Release and the
Severance Agreement, Executive may revoke this Release and the Severance
Agreement by sending written notice of same to Aceto, addressed to Mr. Albert L.
Eilender, One Hollow Lane, Lake Success, NY 11042-1215.  For the
revocation to be effective, Aceto must receive the written notice by not later
than the close of business on the seventh day after Executive signs this
Release.  This Release shall not become effective or enforceable until
this seven (7) day revocation period has expired without Executive having
exercised his right to revoke.

       

      
        
           

        

        
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            	ACETO
      CORPORATION,
a New York Corporation	 	 	EXECUTIVE	 
	 	 	 	 	 	 
	By:	
                    /s/
      Albert L. Eilender

                  	 	 	
                    /s/
      Leonard S. Schwartz

                  	 
	 	
                    ALBERT
      L. EILENDER

                  	 	 	
                    LEONARD
      S. SCHWARTZ

                  	 

          

        

         

      

    

    On the
9th day of December in the year 2009 before me, the undersigned, personally
appeared Albert L. Eilender, personally known to me or proved to me on the basis
of satisfactory evidence to be the individual whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his
capacity and with the authority of Aceto Corporation, and that by his signature
on the instrument, the corporation upon which the individual acted executed the
instrument.

     

    
      
        	
                 

              	 	 
	
                Notary
      Signature

              	 	 

      

    

     

     

     

     

     

     

    On the
9th day of December in the year 2009 before me, the undersigned, personally
appeared Leonard S. Schwartz, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed to
the within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument the individual executed
the instrument.

     

    
      
        
          	
                   

                	 	 
	
                  Notary
      Signature

                	 	 

        

       

      3

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