Document:

Exhibit 10.03

 

AGREEMENT

THIS AGREEMENT (the "Agreement") is hereby made and entered into as of this 19th day of January, 2009, by and among Proteonomix, Inc., a Delaware corporation with offices at 187 Mill Lane, Mountainside, NJ 07092 ("PI"); its wholly-owned subsidiary, Proteoderm, Inc., a New York corporation, with offices at 187 Mill Lane, Mountainside, NJ 07092 ("PD"); China Biopharma, Inc., a Delaware corporation, with offices at 75 Shuguang Rd., Bldg. B, Hangzhou, China 310007 ("CB"), and Sinoquest Investment Limited, a British Virgin Island corporation domiciled in China, with offices at 173 Yugu Lu, Zhongtian Dasha, 16-L, Hangzhou, China 310007 ("SI"). Each party hereto may be referred to as a "Party," and all of the parties. may be referred to collectively as the "Parties." CB and SI may hereinafter be referred to as the "China Company") and PD and PI as "Proteo").

WHEREAS, Proteo has developed. a line of cosmetic products (the "Product") and wishes to grant to the China Company certain rights with regard to the license, purchase, sale and distribution of the Product; and

WHEREAS, the China Company wishes to receive certain exclusive rights for the license, purchase, sale and distribution of the Product; and

WHEREAS, each Party hereby represents . and warrants that it has received all necessary corporate authorization to enter into the Agreement and to perform in accordance with the Agreement's terms; and

WHEREAS, each Party hereby represents. and warrants that there are no impediments to the execution hereof and the performance hereunder and that the execution hereof and the performance hereunder will not interfere with any other agreements that may be in effect, with any third parties; and

WHEREAS, the China Company hereby represents and warrants that it has the financial capability and distribution network to purchase, package, market and commercialize the Products in the Territory, as, the same is hereinafter defined; and

WHEREAS, Proteo hereby represents and warrants that it is not aware of any patents, patent applications and/or other know-how that might restrict their right to license the Product, as hereinafter defined, to the China Company; and

WHEREAS, Proteo hereby represents and warranst that it will grant no other licenses that could impinge on the China Company's territory, as that term is hereinafter defined; and

WHEREAS, the shares of common stock of PI (trading symbol: PROT) are currently trading on the "Pink Sheets" with a most recent closing price $7.00 as of December 31, 2008; and

WHEREAS, each Party hereby represents and warrants that it has obtained satisfactory, advice of counsel in connection with the execution of the Agreement, or, or has waived the entitlement to counsel, and

WHEREAS, SI and CB each hereby warrants and represents that it is a corporation in good standing in its jurisdiction, and further warrants and represents that the legal or working relationship between them is as follows: SI and CB and their affiliates may jointly or independently license, purchase, sale, or distributes the Product and 

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WHEREAS, CB hereby represents that it has securities trading on the OTCBB (Over the Counter Bulletin Board). and it files annual and other reports with the United States Securities and Exchange Commissionis a fully reporting company.

NOW, THEREFORE, the Parties agree as follows:

1. The Product. PD has developed .a day cream, a night cream and a under eye serum, containing its patent-pendint protein, as well as an exfoliant and cleanser, which will not contain the protein. The Product is developed with a unique, natural matrix of bioactive proteins called Matrix NC-138 (tm) for use in anti-aging skin products. The activity of these biofunctional proteins contained in the isolated Matrix NC-138 is based on their inherent amino acid composition and sequence. Matrix NC-138 acts on the skin to enhance activities through the stimulation of collagen and glandular production leading to a reduction in lines and wrinkles. Proteo has applied for patents in the United States and globally on its MC-138 bioactive protein.

2. The License. Proteo hereby grants to the China Company an exclusive license of the right to use the name "Proteoderm" on the Product packaging as well as a logo for kits containing the five ingredients contained in the Product. The license includes all rights necessary or useful for sale of the Products in China, Hong Kong and Taiwan (the "Territory"). Proteo reserves the right to review and approve the actual design of the labels, brochures and advertising material. The cost of the license is included in the cost of the Product sold to the China Company.

3. Purchase by the China Company. The China Company will purchase from PD premixed cosmoceutical material (the "Material") consisting of the finished Product from which it may bottle, label and sell the Product for distribution, consisting of PD's NC138 matrix mixed with Proteo's day cream and night cream in a 1% solution, under-eye serum in a 1% solution. The China Company will supply an exfoliant and cleanser. PI and PD will supply the NC138 additive in the correct proportion for use in the exfoliant and cleanser. PI and PD will test and approve the exfoliant and cleanser prior to distribution. The Material will be sent premixed in containers, each containing the Material for multiple units (the "Units"). A Unit is defined as PD's day cream, night cream and serum in the solutions set forth above. A Unit should consist of a one-ounce day cream, one-ounce night cream, .25 Milligram serum, and the NC138 additive in the correct proportion for use in the exfoliant and cleanser.

4. Term of the Agreement. The term of the Agreement shall be three years from the date- hereof, and the China Company shall have a license as described hereinabove for the same term. The China Company shall have the right to renew the Agreement for three additional one-year periods.

5. Purchase by the China Company. The China Company will purchase Units using a letter of credit established in favor of PD, with a bank to be mutually agreed upon. The Units will have a price of one hundred ($100) dollars, FOB a United States airport.

6. Packaging of the Products. The China Company will be responsible for the design and packaging of the Product. Proteo shall have the right to inspection and the right of approval of all packaging, logos, etc., prior to any distribution or sale of the Product. Design and content of the Product shall be subject to written pre-approval by PD. All promotions and marketing materials must be pre-approved in writing by PD; and the costs therefor will be the responsibility of the China Company.

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7. Sales by the China Company. As set forth elsewhere herein, the China Company shall have the exclusive right to market, distribute and sell the Products in the Territory, under the name "Proteoderm" and no other name. On the first day of every month, after the first shipping, the China Company will report, in writing, gross sales of the Products to PD, as well as net operating profit (gross sales less returns, less costs of manufacture, packaging and distribution). Every thirty days, commencing on February 1, 2009, the China Company shall pay to PD a royalty with $15.00 per Unit on the net, sales. The initial order shall be placed within sixty (60) days of the date of this Agreement and the China Company shall provide delivery dates of between 60 and 90 days on the initial and subsequent orders to Proteo. Minimum quantity for the initial order shall be 1,000 units and aggregate orders in the year commencing with the date of the initial order shall be 10,000 units. In the event that any shipment is delayed by Chinese authorities' request or requirements to register the Product, the delivery date(s) shall be extended by the length of delay without a default by either Party. In such event, both Parties will make every effort, as soon as possible, to register the Product or otherwise satisfy the' requirements and adhere to the Chinese authorities' regulatory requirements. Proteo will supply the samples of the Product to China Company for product evaluation as soon as possible and shall be no later than February 15, 2009.

8. Pricing of the Product. The Product shall be priced for sale as follows: Retail value of complete unit shall be no less than US $400 with no deviation .therefrom without the prior written consent of Proteo.

9. Returns of Product The China Company is responsible for all returns from its customers. However, as set forth above, it may offset royalties due by returns. Proteois responsible for the quality and quantity of the Materials shipped to the China Company. Proteo shall recall and replace the shipped Material immediately if there would be a quality and quantity failure or defect.

10. Delivery of the Product to the China Company; Acceptance by the China Company. Proteo shall send and deliver the Product to the China Company in the following manner: cosmetic quality container that shall contain each of the products.

11. Damage in Transit. Only in the event there shall be any damage to any of the units comprising the Product at the FOB port will the China Company be entitled to refuse acceptance of the Product. It shall be the responsibility of the China Company to document such.damage and deliver it to PD in a timely basis.

12. Maintenance of License. In order for the China Company to retain its license, it must meet the following requirements for sales: Purchases of the Product in the amount of one million U.S. dollars in the first year after first shipping; two million U.S. dollars in the second year after the first shipping; and three million in U.S. dollars for the third year after the first shipping and for each year thereafter is the Agreement has been renewed.

13. No Dealings with Competitors. Neither the China Company or any of its affiliates and subsidiaries, if any, shall import, manufacture, design, import or sell the cosmetic products of any other competitive cosmoceutical company throughout the term of the Agreement, as renewed if renewed, and for a period of two years thereafter.

14. Additional Obligations of the China Company. In addition to its other obligations herein set forth, the China Company shall purchase in the open (U.S.) market, every three months throughout the term of the Agreement, certain shares of the common stock of PD. The amount to be spent on purchasing the stock of PI shall be equal to 5% of gross sales (less returns) of the Products during each quarter. The China Company shall not make any further trades of the shares of PI that it purchases, and shall hold and retain such shares, for a period of one year from the date of each purchase.

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15. Creation of WOFE) The China Company shall, at its own expense, pay for the creation and establishment of a WOFE (Wholly Owned Foreign Enterprise). The WOFE will be owned sixty percent (60%) by PD and forty percent (40%) by the China Company. The WOFE shall be responsible for the sales and marketing of all products in the Territory of Proteo other than the Product. The WOFE must be established not later than March 31st, 2009, and proper documentation confirming the ownership thereof shall be delivered to PD not later than April 15th, 2009.

16. Default under the Agreement. The following events, circumstances or actions taken by the China Company shall result in a default under the Agreement: failure to purchase the quantities as set forth in this Agreement and failure to permit Proteo to approye labels and other adversiting of the Product.

Upon the occurrence of any default, Parties shall have the right to terminate the Agreement, notwithstanding the right of renewal hereinabove stated.

17. Confidentiality. "Confidential Information" shall mean any materials, written information and data marked "Confidential" by Proteo. The China Company shall not make any use of any Confidential Information supplied by Proteo except as contemplated by the Agreement.

18. Independent Contractor Status. The Parties shall be independent contractors in the execution and performance under the Agreement, and not partners, joint venturers; or principal and agent.

19. Termination of the Agreement. In the event this Agreement is terminated by the China Company, the China Company just return to Proteo all unsold product.

20. Limitation on Liability: Proteo shall not bear any legal responsibility or liability for any faulty packaging of the Product by the China Company nor for any errors or mistakes in the mixing of the Material by the China Company.

21'. Entire Agreement. The terms and conditions set forth in the Agreement constitute the entire' agreement among the Parties; and there are no other terms or conditions not set forth herein.

22. Jurisdiction. The Parties accept and submit to the jurisdiction of the courts of the State of New Jersey, in connection with any disputes or litigation that may arise -throughout the term of the Agreement or afterwards and the application of New Jersey law without reference to conflicts of laws principles.

23. Notices. Notices from one Party to the other may be made by hand delivery, United States Postal Service or overnight courier service and are effective upon delivery, The addresses of the Parties are . set forth in the preamble to this Agreement and may be changed by written notice as set forth in this paragraph.

24. Execution in Counterparts. The Agreement may be executed in counterparts and the Agreement will not be effected unless and until all Parties have caused the execution hereof.

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IN WITNESS WHEREOF, the Parties have executed the Agreement by their authorized corporate officers as of the date first above written.

PROTEONOMIX, INC.

PROTEODERM, INC.

By: /S/Michael Cohen

By: /s/Michael Cohen

Michael Cohen , President

Michel Cohen, President

CHINA BIOPHARMA, INC.

SINOQUEST INVESTMENT, LTD.

By: /s/ Peter Wang

By: /s/ Peter Want

Peter Wang, CEO

Peter Wang, President '/

5Exhibit 10.4

CONSULTING AGREEMENT

THIS CONSULTING AGREEMENT (the “Agreement”) dated May 19, 2008  by and between National Stem Cell Holding, Inc., a Delaware corporation, (“National Stem Cell”), with its principal place of business at 187 Mill Lane, Mountainside, New Jersey 07052 and Kenneth Steiner, M.D., residing at 411 Osprey Lane, Brielle, New Jersey 08730 (the “Executive”) (collectively the "Parties").

WHEREAS, the Parties desire to enter into the Agreement to reflect the Executive’s capacities in National Stem Cell’s business and to provide for National Stem Cell’s employment of the Executive; and

WHEREAS, the Parties wish to set forth the terms and conditions of that employment;

NOW THEREFORE, in consideration of the mutual covenants and promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Parties, the Parties agree as follows:

1. 

Term

National Stem Cell hereby employs the Executive; and the Executive hereby accepts employment with National Stem Cell as Chief Operating Officer, upon the terms and conditions set forth in the Agreement. Unless terminated earlier pursuant to Section 5, the Executive’s employment shall be for the period commencing May 19, 2008 (the “Commencement Date”) and ending May 18, 2010. The Initial Term, together with any such extension, shall be referred to herein as the “contract period.” 

2. 

Title; Duties

During the contract period, the Executive shall be employed in the business of National Stem Cell and its affiliates. 

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to build and thereafter lead an effective and cohesive executive management team with effective succession planning;

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 to represent National Stem Cell to city, government, regulatory authorities, the media, shareholders and the general public;

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to manage the creation of an appropriate vision and long-term strategy for National Stem Cell to be agreed by the Chief Executive Officer (“CEO”) and the Board of Directors (the “Board”);

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to successfully implement National Stem Cell's strategy as agreed by the CEO and the Board;

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to develop and put in place strategic operating plans and budgets for each of National Stem Cell's business units to reflect the longer-term objectives and priorities of the CEO and the Board operations and controls;

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to take remedial action where necessary and to inform the CEO of any significant changes;

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to establish an appropriate corporate structure for National Stem Cell;

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to ensure appropriate and satisfactory systems are in place for monitoring group performance against plans and budgets;

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to put in place an effective system of controls throughout National Stem Cell, covering nonfinancial as well as financial controls;

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to ensure that operating objectives and standards of performance are not only understood but followed by management and employees;

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to ensure that National Stem Cell and its businesses comply with all applicable legal and regulatory requirements and, where appropriate, best practices;

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to ensure that appropriate standards of conduct are established and complied with;

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to liaise with the CEO and keep him informed;

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to report to the CEO and the Board regularly on the operation of National Stem Cell's businesses both at Board meetings and at other times;

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to provide such information to the Board as the  Board and the CEO require in order for the CEO and the Board to assess the performance of the business and the achievement of the agreed strategy and budget;

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to provide an appropriate and satisfactory system for financial management reporting on a monthly basis; 

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to ensure that a system is in place for effective communication with the executive management team and other employees;

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 to be responsible for all corporate communications and to plan and carry out an effective program of investor relations; and

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to ensure effective communication with shareholders, analysts and the media and to respond appropriately to media and public relations issues

The Executive shall report to the Chief Executive Officer, who shall have the authority to direct, control and supervise the activities of the Executive. 

3. 

Extent of Services

The Executive may, without impairing or otherwise adversely affecting the Executive’s performance of his duties to National Stem Cell, (i) engage in personal investments and charitable, professional and civic activities, and (ii) serve on the Boards of Directors of corporations other than National Stem Cell, all of which be disclosed to the Board in writing.

4. 

Compensation and Benefits

(a) 

Fees. National Stem Cell shall pay the Executive a gross base fee for the period ending June 15, 2009 (“Base Fee”) payable in shares of the common stock as follows: 500,000 shares on signing this Agreement and 500,000 shares every four months thereafter. The Board, or, if established, National Stem Cell’s compensation committee (the “Compensation Committee”) shall review the Executive’s Base Fee annually and may increase (but not decrease) the Executive’s Base Fee as in effect from time to time as the compensation committee shall deem appropriate.

The Executive understands that National Stem Cell does not report annual, quarterly and other reports with the Securities and Exchange Commission (“SEC”); has minimal revenues; has suffered losses in each year since its formation; its common stock trades on the most junior market, the Pink Sheets and that trading is at best light; that the shares issued to the Executive are restricted and certificates will contain a legend stating that the shares cannot be publicly sold in the absence of an effective registration statement filed with the SEC; and even if the shares become publicly tradable there is no assurance that a trading market will exist for the shares. All shares issued pursuant to this Agreementvest at least one year from the date of earning and under Rule 144 promulgated under the Securities Act of 1933, may not be publicly sold until a period of at least one year after vesting.

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 (b) 

Benefits. The Executive shall be eligible to participate in such life, health, and disability insurance, pension, deferred compensation and incentive plans, options and awards, performance bonuses and other benefits as National Stem Cell extends to its executives.

(c) 

Reimbursement of Business Expenses. National Stem Cell shall reimburse the Executive for all reasonable travel, entertainment and other expenses incurred or paid by the Executive in connection with, or related to, the performance of his duties, responsibilities or services under the Agreement, upon presentation by the Executive of documentation, expense statements, vouchers, and/or such other supporting information as National Stem Cell may reasonably request.

5.

Termination

Either Party may terminate employment of the Executive under the Agreement without cause in which event, if such termination is accomplished by National Stem Cell, the Executive will be entitled to compensation and benefits to the end of the Contract Period; and if by the Executive, his compensation shall reduced pro rata. 

National Stem Cell may terminate the Agreement at any time for cause, which will reduce the Executive’s compensation and benefits pro rata. 

The Executive may terminate his employment under the Agreement at any time for good reason in that (i) the assignment to the Executive of substantial duties or responsibilities inconsistent with the Executive’s position at National Stem Cell, or any other action by National Stem Cell which results in a substantial diminution or other substantive adverse change in the Executive’s duties or responsibilities, (ii) National Stem Cell’s failure to pay the Executive any Base Fee or other compensation to which he becomes entitled, or (iii) National Stem Cell’s breach of any of its other obligations under the Agreement. In this event, compensation and benefits shall continue to the end of the Contract Period.

The Executive’s employment shall terminate immediately upon his death or disability which shall mean such physical or mental impairment as would render the Executive eligible to receive benefits under the long-term disability insurance policy or plan then made available by National Stem Cell to the Executive. In this event, compensation and benefits shall continue to the end of the Contract Period.

6. 

Confidentiality

(a) 

Definition of Proprietary Information. The Executive acknowledges that he may be furnished or may otherwise receive or have access to confidential information which relates to National Stem Cell’s past, present or future business activities, strategies, services or products, research and development; financial analysis and data; improvements, inventions, processes, techniques, designs or other technical data; profit margins and other financial information; fee arrangements; terms and contents of leases, asset management agreements and other contracts; tenant and vendor lists or other compilations for marketing or development; confidential personnel and payroll information; or other information regarding administrative, management, financial, marketing, leasing or sales activities of National Stem Cell, or of a third Party which provided proprietary information to National Stem Cell on a confidential basis. All such information, including any materials or documents containing such information, shall be considered by National Stem Cell and the Executive as proprietary and confidential (the “Proprietary Information”).

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(b) 

Exclusions. Notwithstanding the foregoing, Proprietary Information shall not include information in the public domain not as a result of a breach of any duty by the Executive or any other person.

(c) 

Obligations. Both during and after the contract period, the Executive agrees to preserve and protect the confidentiality of the Proprietary Information and all physical forms thereof, whether disclosed to him before the Agreement is signed or afterward (except as required by applicable law or otherwise as necessary in connection with the performance of the Executive’s duties to National Stem Cell hereunder). In addition, the Executive shall not (i) disclose or disseminate the Proprietary Information to any third Party, including employees of National Stem Cell (or their affiliates) without a legitimate business need to know; (ii) remove the Proprietary Information from National Stem Cell’s premises without a valid business purpose; or (iii) use the Proprietary Information for his own benefit or for the benefit of any third Party.

(d) 

Return of Proprietary Information. The Executive acknowledges and agrees that all the Proprietary Information used or generated during the course of working for National Stem Cell is the property of National Stem Cell. The Executive agrees to deliver to National Stem Cell all documents and other tangibles (including diskettes and other storage media) containing the Proprietary Information at any time upon request by the Board of Directors during his employment and immediately upon termination of his employment.

7. 

Noncompetition

(a) 

Restriction on Competition. For the period of the Executive’s employment with National Stem Cell and for 24 months following the expiration or termination of the Executive’s employment by National Stem Cell (the “Restricted Period”), provided, however, that the Restricted Period shall only extend for six months following the expiration or termination of the Executive’s employment if the Executive’s employment is terminated following a Change in Control, the Executive will not engage, directly or indirectly, as an owner, director, trustee, manager, member, employee, executive, partner, principal, agent, representative, , or in any other individual, corporate or representative capacity, in any business that National Stem Cell conducts as of the date of the Executive’s termination of employment. Notwithstanding the foregoing, the Executive shall not be deemed to have violated this Section 8(a) solely by reason of his passive ownership of less than 5% of the outstanding stock of any publicly traded corporation or other entity.

(b) 

Non-Solicitation of Clients. During the Restricted Period, the Executive agrees not to solicit, directly or indirectly, on his own behalf or on behalf of any other person(s), any client of National Stem Cell whom National Stem Cell had provided services at any time during the Executive’s employment with National Stem Cell in any line of business that National Stem Cell conducts as of the date of the Executive’s termination of employment or that National Stem Cell is actively soliciting, for the purpose of marketing or providing any service competitive with any service then offered by National Stem Cell. Stem Cell is actively soliciting, for the purpose of marketing or providing any service competitive with any service then offered by National Stem Cell. 

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(c) 

Non-Solicitation of Employees. During the Restricted Period, the Executive agrees that he will not, directly or indirectly, hire or attempt to hire or cause any business, other than an affiliate of National Stem Cell, to hire any person who is then or was at any time during the preceding six months an employee of National Stem Cell and who is at the time of such hire or attempted hire, or was at the date of such employee’s separation from National Stem Cell a vice president, senior vice president or executive vice president or other senior executive employee of National Stem Cell.

(d) 

Acknowledgment. The Executive acknowledges that he will acquire much Proprietary Information concerning the past, present and future business of National Stem Cell as the result of his employment, as well as access to the relationships between National Stem Cell and National Stem Cell and their clients and employees. The Executive further acknowledges that the business of National Stem Cell is very competitive and that competition by him in that business during his employment, or after his employment terminates, would severely injure National Stem Cell. The Executive understands and agrees that the restrictions contained in this Section 8 are reasonable and are required for National Stem Cell’s legitimate protection, and do not unduly limit his ability to earn a livelihood.

(e) 

Rights and Remedies upon Breach. The Executive acknowledges and agrees that any breach by him of any of the provisions of Sections 7 and 8 (the “Restrictive Covenants”) would result in irreparable injury and damage for which money damages would not provide an adequate remedy. Therefore, if the Executive breaches, or threatens to commit a breach of, any of the provisions of the Restrictive Covenants, National Stem Cell shall have the following rights and remedies, each of which rights and remedies shall be independent of the other and severally enforceable, and all of which rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available to National Stem Cell under law or in equity (including, without limitation, the recovery of damages):

(i) 

The right and remedy to have the Restrictive Covenants specifically enforced (without posting bond and without the need to prove damages) by any court of competent jurisdiction, including, without limitation, the right to an entry against the Executive of restraining orders and injunctions (preliminary, mandatory, temporary and permanent) against violations, threatened or actual, and whether or not then continuing, of such covenants; and

(ii) 

The right and remedy to require the Executive to account for and pay over to National Stem Cell and its affiliates all compensation, profits, monies, accruals, increments or other benefits (collectively, “Benefits”) derived or received by him as the result of any transactions constituting a breach of the Restrictive Covenants, and the Executive shall account for and pay over such Benefits to National Stem Cell and, if applicable, its affected affiliates.

(f) 

Without limiting Section 11(i), if any court or other decision-maker of competent jurisdiction determines that any of the Restrictive Covenants, or any part thereof, is unenforceable because of the duration or geographical scope of such provision, then, after such determination has become final and unappealable, the duration or scope of such provision, as the case may be, shall be reduced so that such provision becomes enforceable and, in its reduced form, such provision shall then be enforceable and shall be enforced.

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(g) 

The provisions of Section 8(a) shall not apply in the event that the Agreement is not renewed as provided in Section 1.

8. 

Executive Representation

The Executive represents and warrants to National Stem Cell that he is not now under any obligation of a contractual or other nature to any person, business or other entity which is inconsistent or in conflict with the Agreement or which would prevent him from performing his obligations under the Agreement. 

9. 

Enforcement and Indemnification

(a) 

National Stem Cell. in its sole discretion, may bring an action in any court of competent jurisdiction to seek injunctive relief and such other relief as National Stem Cell or National Stem Cell shall elect to enforce the Restrictive Covenants. If the courts of any one or more of such jurisdictions hold the Restrictive Covenants wholly unenforceable by reason of breadth of scope or otherwise it is the intention of National Stem Cell and the Executive that such determination not bar or in any way affect National Stem Cell’s right, or the right of any of its affiliates, to the relief provided in Section 8(e) above in the courts of any other jurisdiction within the geographical scope of such Restrictive Covenants, as to breaches of such Restrictive Covenants in such other respective jurisdictions, such Restrictive Covenants as they relate to each jurisdiction being, for this purpose, severable, diverse and independent covenants, subject, where appropriate, to the doctrine of res judicata. The Parties hereby agree to waive right to a trial by jury for any and all disputes hereunder (whether or not relating to the Restrictive Covenants).

(b) 

National Stem Cell will indemnify the Executive, to the maximum extent permitted by applicable law, against all costs, charges and expenses incurred or sustained by the Executive, including the cost of legal counsel selected and retained by the Executive in connection with any action, suit or proceeding to which the Executive may be made a Party by reason of the Executive being or having been an officer, director, or employee of National Stem Cell or any subsidiary or affiliate of National Stem Cell. National Stem Cell agrees to pay to the Executive in advance of the final disposition of any proceeding all such amounts incurred or suffered. 

10. 

Miscellaneous

(a) 

Litigation and Regulatory Cooperation. During and after Executive’s employment, Executive shall reasonably cooperate with National Stem Cell in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of National Stem Cell which relate to events or occurrences that transpired while Executive was employed by National Stem Cell; provided, however, that such cooperation shall not materially and adversely affect Executive or expose Executive to an increased probability of civil or criminal litigation. Executive’s cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of National Stem Cell at mutually convenient times. During and after Executive’s employment, Executive also shall cooperate fully with National Stem Cell in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while Executive was employed by National Stem Cell. National Stem Cell shall also provide Executive with compensation on an hourly basis (to be derived from the sum of his Base Fee and average annual incentive compensation) for requested litigation and regulatory cooperation that occurs after his termination of employment, and reimburse Executive for all costs and expenses incurred in connection with his performance under this Section 11(a), including, but not limited to, reasonable attorneys’ fees and costs.

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(b)

Taxes. The Executive agrees to be solely responsible for all taxes, withholdings, and other statutory or contractual obligations of any sort, including, but not limited to, Workers’ Compensation Insurance, if any; and the Executive agrees to defend, indemnify and hold Company harmless from any and all claims, damages, liability, attorneys’ fees and expenses on account of (i) an alleged failure by the Executive to satisfy any such obligations or any other obligation (under this Agreement or otherwise) or (ii) any other action or inaction of the Executive. 

(c)

Responsibility for Insurance. In the performance of this Agreement the Executive is acting on his own behalf and not as an employee or agent of National Stem Cell. The Executive shall be solely responsible for any physical or other injuries to persons or damage to property.

(d)

Non-Solicitation. Executive agrees that during the Term and for one year thereafter, the Executive will not encourage or solicit any employee or Executive of Company to leave National Stem Cell for any reason.

(e)

Legal Relationship. The Parties agree that the Executive is an independent contractor and shall not in any way be deemed to be an employee of National Stem Cell and the Executive shall not have the authority to bind National Stem Cell or act on National Stem Cell’s behalf with third parties except as expressly permitted by National Stem Cell in writing.  

(f) 

Notices. All notices required or permitted under the Agreement shall be in writing and shall be deemed effective (i) upon personal delivery, (ii) upon deposit with the United States Postal Service, by registered or certified mail, postage prepaid, or (iii) in the case of facsimile transmission or delivery by nationally recognized overnight delivery service, when received, addressed as follows:

(i)

If to National Stem Cell, to:

Michael Cohen, CEO

National Stem Cell Holding, Inc.

187 Mill Lane

Mountainside, NJ 07052

Phone: 917-714-8929

Fax:  973-833-0277

Email: mcohen@nationalstemcell.com

(ii) 

If to the Executive, to:

Kenneth Steiner, M.D.

411 Osprey Lane

            Brielle, New Jersey 08730

Phone: 732 397 5717

Email: hrhkenneth@gmail.com

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or to such other address or addresses as either Party shall designate to the other in writing from time to time by like notice.

(g) 

Pronouns. Whenever the context may require, any pronouns used in the Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular forms of nouns and pronouns shall include the plural, and vice versa.

(h) 

Entire Agreement. the Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of the Agreement.

(i) 

Amendment. The Agreement may be amended or modified only by a written instrument executed by both National Stem Cell and the Executive.

(j) 

Governing Law. The Agreement shall be construed, interpreted and enforced in accordance with the laws of the State of Delaware, without regard to its conflicts of laws principles.

(k) 

Successors and Assigns. the Agreement shall be binding upon and inure to the benefit of both Parties and their respective successors and assigns, including any entity with which or into which National Stem Cell may be merged or which may succeed to its assets or business or any entity to which National Stem Cell may assign its rights and obligations under the Agreement; provided, however, that the obligations of the Executive are personal and shall not be assigned or delegated by him.

(l) 

Waiver. No delays or omission by National Stem Cell or the Executive in exercising any right under the Agreement shall operate as a waiver of that or any other right. A waiver or consent given by National Stem Cell or the Executive on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion.

(m) 

Captions. The captions appearing in the Agreement are for convenience of reference only and in no way define, limit or affect the scope or substance of any section of the Agreement.

(n) 

Severability. In case any provision of the Agreement shall be held by a court or arbitrator with jurisdiction over the Parties to the Agreement to be invalid, illegal or otherwise unenforceable, such provision shall be restated to reflect as nearly as possible the original intentions of the Parties in accordance with applicable law, and the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby.

 (o) 

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

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

8

SIGNATURE PAGE

NATIONAL STEM CELL HOLDING, INC.

By: /s/ Michael Cohen

Name: Michael Cohen

Title: Chief Executive Officer

The Executive

/s/ Kenneth Steiner

Name: Kenneth Steiner, M.D.

9

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