Document:

Exhibit 10.1

 

MARKETING
AND DISTRIBUTION AGREEMENT

 

THIS MARKETING
AGREEMENT (“Agreement”) made as of this 9th day of
January, 2004 between Vase Active Pharmaceuticals, Inc. (“VAPH”) with a place
of business at 99 Rosewood Drive, Danvers, Massachusetts, 01923, and
OrthoDistribution, Inc. (“ODI”) with a place of business at 116 Bridges Lane,
North Andover, MA 0l845

 

WITNESSETH:

 

WHEREAS,
VAPH is in the business of manufacturing and marketing consumer products; and

 

WHEREAS,
ODI has established a sales and distribution net work into the orthopedic
marketplace; and

 

WHEREAS
VAPH has developed an innovative Over-the-Counter pain reliever to treat
arthritis and muscle and joint pain currently marketed under the names “Osteon”
and “Athlete’s Relief” (the “Arthritis Product”); and

 

WHEREAS,
VAPH wishes to engage ODI to jointly market and sell with VAPH the Product
under exclusive label specifically designed for the professional medic.

 

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

 

1.             Marketing
and Promotion

 

1.1           VAPH
will manufacture a product that is specifically labeled for the professional
orthopedic market and specifically identified to this strategic
relationship.  VAPI-I shall supply to
ODI the product that it needs to market into its distribution channel.  ODI shall have the right, at its option, to
advertise, promote, market, sell and otherwise distribute the Arthritis Product
through whatever means arid media, now existing or hereafter created, which
ODI, in its sole judgment, may choose. 
The entire cost of the marketing effort, including promotional programs,
shall be borne by ODI.

 

1.2           ODI
shall have the right to duplicate, distribute and prepare derivative works of
all copyrighted elements of the Arthritis Product in all media, now known or
hereafter created.

 

1.3           ODI
shall have the right to specific and determine the form and content of all
packaging, invoices, advertising, and all associated prom and merchandising
materials for sale and marketing of the Product.

 

1.4           All
right, title and interest in and to the entire editorial visual, audio and
graphic content of all advertisements and promotional materials developed by
and for the Arthritis

 

 

Product by ODI shall be the
property of both ODI and VAPH.  However,
all product packaging must contain the following:

 

“This product is formulated ‘with VAPWS advanced, patented transdermal
delivery technology called PENtoCORE.”

 

In addition, the product must have the VAPH technology symbol on the
front, lower’ panel of the label and box.

 

1.5           Should
ODI elect to conduct any clinical studies using the Arthritis Product, or
contract with others to perform any clinical studies using the Arthritis
Product on its behalf, such clinical studies shall be the property of both VAPH
and ODI.  VAPH shall have the right on
fourteen (14) business days prior notice, to review these studies.  VAPH agrees that it will not use or disclose
to any third party such clinical studies without ODI’s prior written consent,
which may not be unreasonably withheld.

 

2.             Product

 

2.1           VAPH
represents and warrants that:

 

(a)                                  The Arthritis Product
shall contain only wholesome, first quality ingredients, which are not in a
damaged or degraded condition and which comply in all respects with and/or have
received all required approvals required by applicable governmental
regulations, laws and rules and/or quality assurance standards regarding safety,
efficacy, packaging/labeling and/or content including, without limitation, the
Pure Food and Drug Act;

 

(b)                                 The Arthritis Product
are effective for their intended purpose and VAPH will promptly replace or
refund the cost of any identified defective or damaged Arthritis Product (in
the case of damaged Arthritis Product, so long as VAPH has been notified of
such damage within ten (10) business days of ODI’s receipt of such damaged
Arthritis Product and iii the case of defective Arthritis Product within ten
(10) days of ODI’s actual knowledge that such Arthritis Product are defective),
or Arthritis Product not conforming with applicable laws, regulations, or
rules.

 

(c)                                  The manufacture and
sale of the Arthritis Product does not infringe upon any patent.

 

(d)                                 All information
provided to ODI by VAPH with respect to the Arthritis Product is accurate, true
and correct and all claims made by VAPH, regarding the Arthritis Product can be
substantiated.  ODI shall submit for VAPH
review and approval, which may not be unreasonably withheld, and VAPH will
review and approve (as appropriate) the accuracy of all promotional, marketing
and advertising materials submitted by ODI to VAPH.  VAPH shall have no responsibility for determining whether the
contents of such materials conform to legal requirements with respect thereto,
it being understood that such responsibility shall remain with ODI.

 

2

 

3.             Pricing and
Payment Terms

 

3.1           VAPH
will supply the product to ODI to distribute. 
ODI and VAPH will split gross revenue associated with this product with
50% going to VAPH and 50% going to ODI. 
VAPH will outsource product manufacturing to an independent third party
manufacturer that will produce the product to VAPH’S specifications and
protocol.  VAPH will be responsible, in
its sole discretion, for choosing the contract manufacturer and all trade
secrets, production protocol that is not public domain will remain trade
secrets to VAPH.  ODI will provide a
monthly report to VAPH on unit, sales and provide payments accordingly.

 

3.2           VAPH
and ODI will agree jointly as to the price point by which the product will be
sold into the market.

 

3.3           Accounting
Records: ODI shall keep a complete and accurate account of the product unit sales
in sufficient detail to determine the revenue split. ODI shall provide VAPH
with complete data on the number of units sold.  ODI shall keep such information for one (1) year after revenue
split payments.  VAPH shall have the
right, once a year and during business hours upon reasonable notice, to send an
independent auditor to inspect and review the books and reports of ODI that are
necessary for the calculation of revenue split.  The independent auditors performing such inspection or audit
shall be bound to CD to retain ODI’s information as confidential, even from
VAPH and shall only be allowed to disclose whether ODI calculations were
accurate and, if not, the amount of discrepancy, which shall be adjusted
between the parties within thirty (30) days from the independent auditor
report.  Such inspection and audit shall
be at VAPH’s expense.

 

4.             Authority
- Reliance

 

4.1           By VAPH:
VAPH represents and warrants to ODI as follows:

 

(a)                                  VAPH has all
requisite power and authority to execute, deliver and perform this Agreement,
to grant all rights granted to ODI hereunder, and has duly authorized, by all
necessary action, the execution and delivery hereof by the officer or
individual whose name is signed on its behalf below.

 

(b)                                 The execution and
delivery by VAPH of this Agreement and the performance by it of its obligations
hereunder do not and will not conflict with or result in a breach of or a
default of any other agreements, instrument, order, law or regulation
applicable to VAPH, or by which it may be bound.

 

4.2           By ODI:
represents and warrants to VAPH as follows:

 

(a)                                  ODI has all requisite
power and authority to execute, deliver and perform this Agreement, and has
duly authorized, by all necessary action, the execution and delivery hereof by
the officer or individual whose name is signed on its behalf below.

 

(b)                                 The execution and
delivery by ODI of this Agreement and the performance by it of its obligations
hereunder do not and will not conflict with or result in a breach

 

3

 

or default of any other agreement, instrument, order, law or regulation
applicable to ODI or by which it may be bound.

 

5.             Indemnification

 

5.1           Bv VAPH.  VAPH shall indemnify, defend and hold
harmless ODI and its officers, directors, employees, agents, successors and
assigns from and against any and all costs, damages, liabilities, and expenses
whatsoever, including, without limitation, damages, judgments, awards, costs
and reasonable attorneys’ fees and disbursements which ODI may incur or become
obligated to pay arising out of or resulting from (i) the activities of VAPH
pursuant to this Agreement, (ii) the breach by VAPH of any of its
representations, warranties, covenants, obligations or duties under this
Agreement.  However, VAPH shall not be
liable to ODI for consequential damages, and, provided, further that VAPH shall
not be liable for damages occasioned by regulatory interference with the
marketing by ODI of the Arthritis Product.

 

5.2           By
ODI.  ODI shall indemnify, defend
and hold harmless VAPH and its officers, directors, employees, agents
successors and assigns, from and against any and all costs, damages,
liabilities, and expenses whatsoever, including, without limitation, damages,
judgments, awards, costs and reasonable attorneys’ fees and disbursements which
VAPH may incur or become obligated to pay arising out of or resulting from (i)
the activities of ODI pursuant to this Agreement, or (ii) the breach by ODI of
any of its representations, warranties, covenants, obligations, or duties under
this Agreement.  However, ODI shall not
be liable to VAPH for consequential damages.

 

6.             Term
— Termination

 

6.1           The
term of this Agreement shall commence as of the date hereof continue
indefinitely unless a breach of this contract occurs;

 

6.2           In
the event of a breach of any representation, warranty. covenant, obligation or
duty by a party, and said breach is not cured within thirty (30) days after
receipt of written notice thereof, the other party may terminate this
Agreement. Such termination shall be without prejudice to any rights or
remedies at law or in equity, which may he available to the non-breaching
party.

 

6.3           Upon
the termination of this Agreement, ODL shall retain indefinitely the rights to
process those orders for Arthritis Product that we’re placed prior to the
effective date of termination and accept those orders from customers with whom
ODI was negotiating or whom ODI had solicited prior to the effective date of
termination, together with the right to solicit and ODI reorders from prior
customers with respect to Arthritis Product in its inventory or which it had
ordered as of the date of such termination. in each case, the parties shall
continue to perform as though this Agreement were still in effect until refunds
and replacements have been satisfactorily honored.  Termination of this Agreement shall not affect the rights of the
parties with respect to the intellectual property rights provided herein and
the Indemnities as set forth in Section 5, as the term of such sections shall
survive the termination alibis Agreement.

 

4

 

7.             Further
Actions.

 

The parties agree to execute such additional documents and to perform
all such other and further acts as may be necessary or desirable to carry out
the purpose and intent of this Agreement.

 

8.             Exclusivity

 

8.1           ODI
and VAPH will own jointly the label associated with this product and shall
split the gross proceeds of the revenue generated from the sale of this product
as specified in paragraph 3 above.  This
label is exclusively owned by the parties to this Agreement.

 

8.2           Other
than the right to market Arthritis Product, which contains VAPH’s patented
technology, nothing in this Agreement conveys any right to VAPH’s intellectual
property to ODI.

 

9.             Miscellaneous

 

9.1           If
any provision of this Agreement is, or is declared to be, invalid or
unenforceable, such invalidity or unenforceability shall not effect either the
balance of such provisions, to the extent it is not invalid or unenforceable,
or the remaining provisions hereof.

 

9.2           Except
for the further writing arid agreements contemplated hereby, this Agreement
contains the entire understanding of the parties with respect to the subject
matter hereof and supersedes all prior agreements and understandings between
them with respect to the subject matter hereof. No amendment of this Agreement
shall be effective unless embodies in a written instrument executed by all f
the parties.

 

9.3           This
Agreement shall be governed by and construed in accordance with the laws of the
Commonwealth of Massachusetts.

 

9.4           The
rights and obligations of the parties under this Agreement shall inure to the
benefit of arid be binding upon their respective successors and assigns,
provided. however, that neither VAPH nor ODI may assign this Agreement or any
portion thereof, without the express written consent of the other which consent
shall be unreasonably withheld.  This
provision does not pertain to assignments made to subsidiaries of the corporate
parties to this Agreement.

 

9.5           All
headings contained in this Agreement are for convenience and shall not affect
the interpretation or meaning of this Agreement.

 

9.6           The
failure of any party hereto at any time to enforce any of the provisions of
this Agreement shall not be deemed or construed to be a waiver of any such
provision, nor in any way to effect the validity of this Agreement or any
provisions hereof or the right of any party hereto to thereafter enforce each
and every provision of this Agreement. No waiver of any breach of any of the
provisions of this Agreement shall be effective unless set forth in a written
instrument executed by the party against whom or which enforcement of such a
waiver is sought. No waiver of any such breach shall be construed or deemed to
be a waiver of any other subsequent breach.

 

5

 

9.7           This
Agreement does not constitute a partnership or joint venture between the
panics, nor does it constitute one party as an agent for the other. Other than
for the product described hereinabove, ODI has no rights to VAPI intellectual
properly, patents or other formula and products. Each party shall be
responsible for its own employees and all tax reporting and payment associated
with the operation of its business.

 

IN WITNESS THEREOF, the parties have executed this Agreement as of the
date first above mentioned.

 

	
   

  	
  ORTHODISTRIBUTION,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  VASO ACTIVE
  PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

6Exhibit 10.3

 

MARKETING AGREEMENT

 

THIS MARKETING AGREEMENT (“Agreement”) made as of this 9 day of March,
2004 between Vaso Active Pharmaceuticals, Inc., Inc. (“VAPH’) with a place of
business at 99 Rosewood Drive, Danvers, Massachusetts, 01923, and M2G Media,
Inc. and its Associates, (“M2G”) with a place of business at 6 Capstone,
Irvine, CA, 92606.

 

WITNESSETH:

 

WHEREAS, M2G is in the business of marketing consumer products through
direct to consumer television marketing, and;

 

WHEREAS, VAPH has developed an innovative Over-the-Counter pain
reliever to treat arthritis and muscle and joint pain currently marketed under
the names “Osteon” and “Athlete’s Relief” (the” “Product”);

 

WHEREAS, VAPH wishes to engage M2G to market the Product in the direct
to consumer marketplace (Further defined to include other direct response
media: television, internet, radio, and other direct response media); and will
allow M2G to exclusively own its own label and technology name (“Penitron”) for
the products in all markets;

 

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

 

1.             Marketing and
Promotion

 

1.1           M2G shall
have the right, at its option, to advertise, promote, market, sell and
otherwise distribute Product through a direct to consumer television and all
other marketing and distribution channels in North America.  In addition, in the event that the minimum
sales numbers, defined in paragraph 9.3, are achieved, M2G shall have marketing
exclusivity for its label and technology name (“Penitron”) throughout the
world. This right shall be an exclusive right as further defined elsewhere in
this document.  The entire cost of the
marketing effort, including promotional programs, shall be born by M2G.

 

1.2           M2G shall
have the right to duplicate, distribute and prepare derivative works of all
copyrighted elements of the Product in all media, now known or hereafter
created.

 

1.3           M2G shall
have the exclusive right to specify and determine the form and content of all
packaging, invoices, advertising, and all associated promotional and
merchandising materials for sale and marketing of the Product.

 

1.4           All
right, title and interest in and to the entire editorial, visual, audio and
graphic content of all advertisements and promotional materials developed by
and for the Product by

 

 

M2G with M2G’ s trademark, in
connection with this Agreement shall be and remain the sole property of M2G.  However, all product packaging must contain
the following:

 

“This product is formulated using an advanced technology developed by
VasoActive Pharmaceuticals” or similar language to be supplied by VAPH.

 

In addition, M2G

 

1.5           Should
M2G elect to conduct any clinical studies using the Product, or contract with
others to perform any clinical studies using the Product on its behalf such
clinical studies shall be the property of both VAPH and M2G.  VAPH shall have the right on fourteen (14)
business days prior notice, to review these studies.  VAPH agrees that it will not use or disclose
such clinical studies without M2G’s prior written consent, which may not be
unreasonably withheld.

 

2.             Product

 

2.1           VAPH
represents and warrants that:

 

(a)                                  The
Product shall contain only wholesome, first quality ingredients, which are not
in a damaged or degraded condition and which comply in all respects with and/or
have received all required approvals required by applicable governmental
regulations, laws and rules and/or quality assurance standards regarding
safety, efficacy, packaging/labeling and/or content including, without
limitation, the Pure Food and Drug Act;

 

(b)                                 The
Product are effective for their intended purpose and VAPH will promptly replace
or refund the cost of any identified defective or damaged Product (in the case
of damaged Product, so long as VAPH has been notified of such damage within ten
(10) business days of M20’ s receipt of such damaged Product and in the case of
defective Product within ten (10) days of M2G’s actual knowledge that such
Product are defective), or Product not conforming with applicable laws,
regulations, or rules.  This provision
does not apply to products shipped by M2G into the retail trade.  Damages and/or returns incurred in the normal
course of trade shall be M2G’s responsibility;

 

(c)                                  The
manufacture and sale of the Product does not infringe upon any patent;

 

(d)                                 All
information provided to M2G by VAPH with respect to the Product is accurate,
true and correct and all claims made by VAPH, regarding the Product can be
substantiated.  M2G shall submit for VAPH
review and approval and VAPH will review and approve (as appropriate) the
accuracy of all promotional, marketing and advertising materials submitted by
M2G to VAPH.  VAPH shall have no
responsibility for determining whether the contents of such materials conform
to legal requirements with respect thereto, it being understood that such
responsibility shall remain with M2G.

 

2

 

3.             Pricing
and Payment Terms

 

3.1           M2G shall
purchase the product from VAPH on a wholesale basis. VAPH will outsource
product manufacturing to an independent third party manufacturer that will
produce the product to VAPH’S specifications and protocol. VAPH will be
responsible, in its sole discretion, for choosing the contract manufacturer and
all trade secrets, production protocol that is not public domain will remain
trade secrets to VAPH.

 

3.2           M2G’s
Product purchase price per unit shall be $6.00 per unit per unit (FOB Danvers)
provided that a marketing rebate of $1.50 per unit shall be provided for the
first unit purchased by a household. All other units shall be priced at the
$6.00 level. A unit is defined as the initial sale to an individual or
household of a unit or units packaged comparably to the current Osteon
packaging.

 

3.3           VAPH has
the right, after year 2 to increase price but only if the raw material cost
increases by more than 10%. In that event, VAPHI can raise the price only by
the amount of the cost increase. M2G shall have the right with 14 business day
advance written notice, to audit VAPH’S books and records to ascertain the
product cost increase This audit right may be exercised by M2G only once each
calendar year.

 

3.4           M2G
agrees to the following payment terms: For the first order of 10,000 product
units, VAPH will produce the product and ship to M2G with M20’s payment due net
30 days from deliver to M2G. On all orders thereafter, the payment terms
consist of twenty-five (25%) paid on order placement; twenty-five (25%) percent
paid on delivery and fifty (50%) paid within 30 days of delivery.

 

4.             Shipping:
Accepting and Filling Orders

 

4.1           VAPH
shall fulfill orders issued from M2G within 90 days from order placement.
Minimum order size is 10,000 product units. All orders will be shipped vIa
common carrier to M2G’s warehouse under M2G’s shipping carriers. Shipping costs
from Danvers will be the responsibility of M2G. Further, it is M2G’s
responsibility to ship the Product to its accounts. in the event that VAPH
fails to ship Product to M2G within the 90 day order placement period, the cost
of an expedited shipment (three day air) of the product to M2G shall be borne
by VAPH.

 

5.             Authority
- Reliance

 

5.1           VAPH
represents and warrants to M2G as follows:

 

(a)                                  VAPH
has all requisite power and authority to execute, deliver and perform this
Agreement, to grant all rights granted to M2G hereunder, and has duly
authorized, by all necessary action, the execution and delivery hereof by the
officer or individual whose name is signed on its behalf below.

 

(b)                                 The
execution and delivery by VAPH of this Agreement and the performance by it of
its obligations hereunder do not and will not conflict with or result in a
breach of or a default of any other agreements, instrument, order, law or
regulation applicable to VAPH, or by which it may be bound.

 

3

 

(c)                                  VAPH
acknowledges that M2G has entered into this Agreement in express reliance upon
the representations and warranties made by M2G in this Agreement.  Should any representation or warranty prove
to be false in any material respect, such breach shall constitute grounds for
termination of this Agreement in accordance with Section 7.

 

5.2           By M2G.
M2G represents and warrants to VAPH as follows:

 

(a)                                  M2G
has all requisite power and authority to execute, deliver and perform this
Agreement, and has duly authorized, by all necessary action, the execution and
delivery hereof by the officer or individual whose name is signed on its behalf
below.

 

(b)                                 M2G
acknowledges that VAPH has entered in this Agreement in express reliance upon
the representations and warranties made by M2G in this Agreement.  Should any representation or warranty prove
to be false in any material respect, such breach shall constitute grounds for
termination of this Agreement in accordance with Section 7.

 

(c)                                  The
execution and delivery by M2G of this Agreement and the performance by it of
its obligations hereunder do not and will not conflict with or result in a
breach or default of any other agreement, instrument, order, law or regulation
applicable to M2G or by which it may be bound.

 

6.             Indemnification

 

6.1           By
VAPH.  VAPH shall indemnify, defend
and hold harmless M2G and its officers, directors, employees, agents,
successors and assigns from and against any and all costs, damages,
liabilities, and expenses whatsoever, including, without limitation, damages,
judgments, awards, costs and reasonable attorneys’ fees and disbursements which
M2G may incur or become obligated to pay arising out of or resulting from (i)
the activities or VAPH pursuant to this Agreement, (ii) the breach by VAPH of
any of its representations, warranties, covenants, obligations or duties under
this Agreement, and (iii) the costs incurred by M2G to enforce this indemnity,
provided, however, that VAPH shall not be liable to M2G for consequential
damages, and, provided, further that VAPH shall not be liable for damages
occasioned by regulatory interference with the marketing by M2G of the Product.

 

6.2           By M2G.  M2G shall indemnify, defend and hold harmless
VAPH and its officers, directors, employees, agents, successors and assigns,
from and against any and all Costs, damages, liabilities, and expenses
whatsoever, including, without limitation, damages, judgments, awards, costs
and reasonable attorneys’ fees and disbursements which VAPH may incur or become
obligated to pay arising out of or resulting from (i) the activities of M2G
pursuant to this Agreement, or (ii) the breach by M20 of any of its
representations, warranties, covenants, obligations, or duties under this
Agreement.

 

4

 

7.             Term —
Termination

 

7.1           The term
of this Agreement shall commence as of the date hereof continue indefinitely unless
a breach of this contract occurs;

 

7.2           In the
event of a breach of any representation, warranty, covenant, obligation or duty
by a party, and said breach is not cured within thirty (30) days after receipt
of written notice thereof; the other party may terminate this Agreement. Such
termination shall be without prejudice to any rights or remedies at law or in
equity, which may be available to the non-breaching party.

 

7.3           Upon the
termination of this Agreement, M2G shall retain indefinitely the rights to
process those orders for Product that were placed prior to the effective date
of termination and accept those orders from Customers with whom M2G was
negotiating or whom M2G had solicited prior to the effective date of
termination,. Termination of this Agreement shall not affect the rights of the
parties with respect to the intellectual property rights provided herein and
the Indemnities shall survive the termination of this Agreement.

 

8.             Further
Actions.

 

The parties agree to execute such additional documents and to perform
all such other and further acts as may be necessary or desirable to carry out
the purpose and intent of this Agreement.

 

9.             Exclusivity

 

9.1           M2G shall
have the exclusive rights to market the Product with its own private label and
technology name for 6 months t in the North American direct television market.
Further, M20 shall have exclusive private label and private technology
marketing rights in retail and all other distribution channels. In the event
that the marketing minimums, defined in paragraph 9.3 are achieved when
established after 6 months, the aforementioned rights shall be conveyed on a
global basis as well.

 

9.2           Product
is defined as the menthol based topical analgesic employing VAPH’s PENtoCORE
technology and currently marketed under the name Osteon and Athlete’s Relief.

 

9.3           M2G shall
have the exclusive rights to the Product in the North American television
direct sales marketplace and all other distribution channels (“Territory”), for
their private label branded product and private named technology for the term
of this Agreement, provided, however, that to maintain such exclusivity, M2G
must achieve a minimal sales volumes in the Territory which will be set by both
parties within 6 months from the date of this contract following the test
marketing period. Said Agreement on future minimums will not be unreasonably
withheld by either party.

 

9.4           Other
than the right to market Product, which contains VAPH’s patented technology,
nothing in this Agreement conveys any right to VAPH’s intellectual property to
M2G.

 

5

 

9.5           In the
event that M2G is in compliance with the term of this Agreement and this
Agreement is in full force and effect or extensions thereto, neither VAPH nor
its licensees will compete with M2G in the direct response media markets within
the OTC pain category.

 

10.                               Products
to be Developed

 

10.1         VAPH will
develop additional products using its PENtoCORE technology as requested by
M2G.  M2G will submit to VAPH an outline
of the proposed product specifics.  VAPH
will then develop a budget for the development of the new product (including
the manufacturing estimates and wholesale cost to M2G) which will be submitted
to M2G for approval. VAPH’S scientists will begin development when the budget
is approved by M2G and the first installment payment is made.

 

10.2         With any
new Product developed for M2G, M2G will own the world wide rights to market
that application.  However, any
transdermal intellectual property developed by or through the development work
shall remain the property of VAPH. 
Further, VAPH is not barred from competing in the marketplace with a
comparable, though not identical product, provided however, that M2G will also
be provided with a negotiated exclusivity period.

 

10.3         The
manufacture and pricing of the new application will fall under the terms of an
Agreement to be submitted with the budget and pre-approved by M2G.

 

11.                               Miscellaneous

 

11.1         If any
provision of this Agreement is, or is declared to be, invalid or unenforceable,
such invalidity or unenforceability shall not effect either the balance of such
provisions, to the extent it is not invalid or unenforceable, or the remaining
provisions hereof.

 

11.2         Except for
the further writing and agreements contemplated hereby, this Agreement contains
the entire understanding of the parties with respect to the subject matter
hereof and supersedes all prior agreements and understandings between them with
respect to the subject matter hereof No amendment of this Agreement shall be
effective unless embodies in a written instrument executed by all of the
parties.

 

11.3         This
Agreement shall be governed by and construed in accordance with the laws of the
Commonwealth of Massachusetts.

 

11.4         The rights
and obligations of the parties under this Agreement shall inure to the benefit
of and be binding upon their respective successors and assigns, provided,
however, that neither VAPH nor M2G may assign this Agreement or any portion
thereof, without the express written consent of the other which consent shall
not be unreasonably withheld. This provision does not pertain to assignments
made to subsidiaries of the corporate parties to this Agreement.

 

11.5         All
headings contained in this Agreement are for convenience and shall not affect
the interpretation or meaning of this Agreement.

 

11.6         The failure
of any party hereto at any time to enforce any of the provisions of this
Agreement shall not be deemed or construed to be a waiver of any such
provision, nor in any

 

6

 

way to effect the validity of
this Agreement or any provisions hereof or the right of any party hereto to
thereafter enforce each and every provision of this Agreement. No waiver of any
breach of any of the provisions of this Agreement shall be effective unless set
forth in a written instrument executed by the party against whom or which
enforcement of such a waiver is sought. No waiver of any such breach shall be
construed or deemed to be a waiver of any other subsequent breach.

 

11.7         M2G shall
have a right of “First Notification” for any new andlor subsequent product VAPH
will launch into the marketplace. Under the right of first notification, VAPH
shall notify M20 of any product to be launched and M2G and VAPH will then have
15 days to negotiate a deal that is acceptable to both parties. In the event
that a deal is not reached, VAPH is then free to pursue a deal elsewhere. Both
parties agree to meet within 30 days to do a strategic marketing plan.

 

11.8         M2G may not
transfer the rights of this contract to any other party without the expressed
written consent of VAPH.

 

11.9         All press
releases must be pre-approved by the non releasing party prior to
                            .

 

11.10       M2G agrees
that it can not market a non VAPH product under the label and technology name
identified to this contract.

 

11.11       This
Agreement does not constitute a partnership or joint venture between the
parties, nor does it constitute one arty as an agent for the other.  Other than for the product described in
section 9.2 hereinabove, M2G has no rights to VAPH intellectual property,
patents or other formula and product. 
Each party shall be responsible for its own employees and all tax
reporting and payment associated with the operation of its business.

 

11.12       Neither M2G
nor VAPH or its licensees or assignees may refer to the other in any marketing
or advertising, or any other promotional program.  Both parties aagree to be “blind” relative to
the other in their marketing, advertising or promotional programs.

 

IN WITNESS THEREOF, the parties have executed this Agreement as of the
date first above mentioned.

 

	
   

  	
  M2G MEDIA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  VASO ACTIVE PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

7

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